The Dubrovnik Cable Car could well be back in business from the 1st of July after closing on the 25th of April, according to the Mayor of Dubrovnik. At a press conference held today the Mayor of Dubrovnik, Mato Frankovic, stated that “The Gordian knot of relations between the City of Dubrovnik and Excelsa Real Estate has been cleared.”
Since the 25th of April the Dubrovnik Cable Car, the second most visited tourist attraction in Dubrovnik after the Dubrovnik City Walls, has remained closed due to non-payment of concession fees. And since that date the City of Dubrovnik and Excelsa Real Estate, the company that owns and runs the cable car, have been locked in a legal battle with both sides seemingly unwilling to back down. This loggerhead has now reached a conclusion, a conclusion that will allow the cable car to remain to passengers from the 1st of July.
“Today, I have sent to the councillors the materials in which the agreement defined the payment of past debts. Excelsa Real Estate will pay a total of 46 million Kuna of debts from the past nine years, one part to the City of Dubrovnik, another part to the Republic of Croatia and the third to the Ministry of Finance, respectively the Customs Administration,” said Frankovic at the press conference.
“The city of Dubrovnik will receive 26 million Kuna in this agreement, which is a significant amount of money that will ultimately be spent on improving the infrastructure in Dubrovnik, starting with the sports objects,” added the mayor.
And in regard to the future payments of concession fees by Excelsa Real Estate to the City of Dubrovnik the Mayor pointed out that the city will annually receive around 10 million Kuna.
“Our fellow citizens will be able to see this benefit of over 36 million Kuna this year in the city hall. I believe that after the decision of the City Council, city councillors will support the agreement and the new contract proposal and that the cable car will start working as early as the 1st of July,” emphasized Frankovic.
Regarding the future concession fees the Mayor pointed out that various expert institutions had been involved in attempting to set a realistic percentage, however not one organisation specifically indicated the amount that should be charged.
“The City Council has so far adopted a decision of 15 percent. The entire debt from the past was based on 15 percent and that is exactly why it will continue at the same amount in the future,” concluded the Mayor today.