Maka Malakmadze, Adjara
Batumi City Hall sold “Piazza” for 7 million GEL less than it has spent on its construction. Members of the Batumi City Council from the opposition parties were clarified that the budget shall be filled in.
The opposition does not exclude the possibility that a governmental official stands behind the company. The new owner of the Batumi Piazza is Piazza Holding with Russian citizen Irakli Samkharadze as a director.
In the framework of the rehabilitation program of historical districts and tourist infrastructure of Old Batumi, Piazza Complex was constructed in 2010 in Batumi. 14-storied building occupies 5, 700 sq. meters and it was one of the most expensive project in Batumi; 18, 500, 000 GEL was spent on it.
Last month, Batumi City Hall sold the multifunctional complex for 11 million GEL to the Piazza Holding Ltd at the conditional auction. The starting price of the Piazza was 10, 900, 000 GEL. The “Piazza Holding” Company paid 100 000 GEL more and purchased 3, 700 sq. meter in it.
“More than 2, 000 sq. meters of the building was not sold. The square of the Piazza still belongs to the self-government. Only part of the building was sold. In addition, if the local authority plans any event in the building, the owner shall give the ground floor to them to organize the event,” said the chairman of the Batumi City Council Giorgi Kirtadze.
According to the contract requirements, the new owner shall give the ground floor to the local authority only in three occasions throughout the year. All important concerts were organized in the Piazza last year.
Piazza Holding, Ltd was founded on February 23, 2011. The company purchased the Batumi Piazza on March 17 at the auction of the Batumi City Hall. The 100% share holder of the Piazza Holding and its director is Russian citizen Irakli Samkharadze who lives in Moscow.
The Batumi City Hall does not have any information about the Company or its past investments. “I am not interested in the properties of the Piazza Holding. The person purchased the bid at the auction,” said head of the Batumi City Hall administration Gela Makharadze.
The opposition members of the Batumi City Council have different opinion. Irakli Chavleishvili from the Republic Party is sure the real purchaser of the Piazza is government official. He is surprised why the City Hall sold the building at several million GEL less than its construction cost.
“Different funds shall be allocated for the infrastructural projects. Why did we need this tower, which cost too much and was later sold cheaper? I doubt governmental officials stand behind this holding, who have earned money illegally; Samkharadze is a private person behind whom we can see others’ financial interests. They cheaply got hold of the building which was constructed with the people’s money.”
In the framework of the rehabilitation program of the Batumi Historical Districts and Tourist Infrastructure, the construction of the 14-story Piazza started in January of 2010. The total program budget is 53 728 000 GEL and the financial source of the program is 2010 Batumi Budget as it is indicated in the resolution # 33 of the Batumi City Council.
One more requirement for the new owner of the Piazza is to start a hotel and all related service-centers in the Piazza building. The investor has to pay the total price of the Piazza till the end of 2011.
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