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They Shook Hands over a Direct Hand-Over of a Residential Area

30 Iul 2004 - 00:00

ECONOMY - July 30 2004

The Executive sold to the Bucharest City Hall the residential development area called the French Village, north of Bucharest, with no prior bidding.


Romanian PM Adrian Nastase [also leader of the ruling Social Democrat Party] admitted the sell was made following a meeting he had with the Bucharest Mayor Traian Basescu [also leader of the Democrat Party, in opposition].

Nastase stated yesterday that the sell of the French Village was "a natural decision, that will allow [the City Hall] to acquire the revenues needed for implementing important projects for the city of Bucharest."
He said that the decision was made following his meeting with the city mayor, Traian Basescu, "and in spite of some personal attacks [the latter] conducted on alleged interests linked to that residential area."
"I think it was important we could reach the best viable solution for the local community," added Nastase.

According to him, the direct sale, with preclusion of bidding, of the French Village to the City Hall was a better option than an open bidding for selling the villas one at a time.
"The issue here is not the method used for selling [the residential development area] but the revenues the City Hall would be able thus to raise for other useful projects in Bucharest," said Nastase.
He also stated that that way of solving issues should become a model for all local communities, irrespective of the lack of mutual sympathy between the various leaders at local or central level [hinting at his personal rocky relationship with Basescu, as between the two of them is a well-known fact that no love is lost].

On his part, Traian Basescu stated that the City Hall take-over of the French Village was agreed with the Executive as the City Hall already owns the land on which the villas had been built.
He said that this was "the wisest decision for the city of Bucharest" and that the current management of the residential area would be kept on. "We envisage for the villas to be rented at high rates in the future too, and we will keep the current management in position, as it delivered good results so far," said Basescu.
He also stated that the sell of the villas to any other buyer should have had the prior agreement of the City Hall, as the latter owns the land.

"The City Hall raises 465 French francs per square meter per year for the land in the French Village. This year so far we got 1.3 million euros from the Village and 250,000 euros from the French Club," Basescu explained.
He said the money thus raised from renting the properties in the French Village would be used to help young people get mortgages.
"We have thus the ability to fund with 4 million euros per year the access to mortgages to all young graduates," said the mayor.
Translation: ANCA PADURARU

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