Polnord’s money-making vehicle is on the run

14 June 2012

A verdict was reached by the Supreme Administrative Court in the middle of June on plots located in the Wilanów district, following a bitter conflict between the developer Polnord and Warsaw’s City Hall. The end of the struggle, however, is still out of sight, as Polnord has just begun to write-up the bill for a case that looks to have turned out to be quite expensive for the city: it will have to pay PLN 222m to Polnord for the land, with additional charges resulting from the years of delay it suffered.

The decision taken by Supreme Administrative Court this month followed the verdict issued by the Regional Administrative Court back in December 2010 that stated the city’s refusal to pay any compensation for taking over the land intended for the state roads was illegal. Shortly after the verdict was announced, the city’s authorities appealed the decision, an appeal it has now lost.

The decision means the company can now apply the same logic to all the plots it owns in Wilanów. The stakes are high for the city of Warsaw, as Polnord is controls 33ha in the district, land estimated to be worth as much as PLN 500m.

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