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Начало Общински сесии After debates and reversals municipal rents jump by only 20%

After debates and reversals municipal rents jump by only 20%

21.12.2004 08:59 •
More than an hour continued the debates in the Municipal Council on the introduced change of the basic rental prices with 4 options for price increase from 20 to 200%.
The chairwoman of the Economic Commission Boryana Belukhova quoted a reference from the administration, according to which the monthly amount of rents collected is modest - about 8600 leva. 80% of the rents are for land on which pavilions are placed. We are waiting from the administration a strategy for the pavilions, if we now raise rents dramatically, this will reflect on the smallest business, said Mrs. Belukhova. She pointed out that the basic prices are one, but if there is interest in the relevant site, fair market prices are reached in the competitions and contracts are concluded on them. Therefore, he made a proposal to prepare an economic analysis and forecast whether the collection rate at an increase of 100% will not fall, and until then the point will be postponed.
Against the raising of rents was Ek. Cafferinova, who stressed that the Municipal Council also has a social function and should not be considered only how much the municipality will collect, but also what is the social situation of the tenants. Alderman At. Vodev asked for the objects to be differentiated in order to have an accurate picture before making the decision.
On the contrary was Zavarin Marov, who asked not to be postponed because the tenants themselves share that they should raise their rents. "It's early for elections!", said his colleagues and Georgi Mihaylov, who on behalf of the Municipal Property Commission proposed to increase rents in the central zone by 100%, in the expanded center by 50% and for all other zones by 20%. There were other ideas about the specific figures of the increase, but after arguments and deliberations, G's proposal was accepted. Mikhailov.
However, on the next item on the agenda, it came to a situation where the decision just adopted was cancelled and a new option was reached - an increase of all basic rental prices by only 20%. The specific occasion was requests for extension of contracts from 7 companies, tenants of stores on the Cooperative Market. Under the amendments to the Municipal Property Act, it is now possible to conclude annexes to lease contracts. The problem arose because, according to the standard text of the leases, the price increased with the percentage increase in the underlying prices. In this particular case the rental prices are much above the basic ones - between 150 and 366 leva per month, that is, in a 100% increase they become between 300 and 800 leva. Krasimir Angelov, one of the tenants, said on behalf of all that rents in Velingrad cannot be like in "Vitoshka". Let's look at the real situation in the city, the market prices of rents are between 5 and 11 leva. If the increase is within 20% each of the tenants is willing to provide assistance to the municipality, Mr. Angelov said and pointed out that he will donate a digital apparatus the latest model of the Historical Museum and 50 photos a month for free to create an archive of the museum, others will help the Children's Rehabilitation Center, etc. Dr. Tsvetan Dafov suggested that the previous decision should be reviewed and there should be no shock increase. Without contradicting the treaties, if we increase the basic prices by 20%, so will the rental prices in annexation, B suggested. Belukhova. Dimitar Gadzhev demanded an increase of 30%, but the councillors united around the 20% decision.
The case of the Market Stores has also given rise to another problem: if there is the possibility of annexation without appearing in a contest, will there be any contests at all. Without putting at least a few sites on the market, we will only write ourselves Samaritans, but we will have no real idea what rental income the municipality can collect, criticizes G. Mikhailov. In order not to measure with a different yardstick, the councillors decided not to have a contest for the warehouses in the Halls, but to offer an annex to the previous contract. We are removing the auctions, will this be the practice in the future, asked I. Babuchi. The same question is certainly asked by many tenants of municipal land or building.
Elena Baeva
Type of municipal Old prices New prices
Property and Area
Land for auction. Activity
Real Center 3.00 lv 3.60 lv
Expanded center 2.50 lv 3.00 lv
Municipal market 2.40 лв 2.88 лв
First zone 2.00 lv 2.40 lv
Second zone 1.60 bgn 1.92 bgn
Auction buildings. Activity
Real Center 3.40 bgn 4.08 bgn
Expanded center 3.20 лв 3.84 лв
Municipal market 3.00 лв 3.60 лв
First zone 2.60 bgn 3.12 bgn
Second zone 2.00 lv 2.40 lv


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