Visit-Montenegro.com: “Sail” fluttering only in computer animation

Budva – There is every indication that the luxurious hotel “Jedro” (Sail), first with seven-star rating in the Mediterranean, which is supposed to be the hallmark of Budva and Montenegro in general, will become nothing more than a nice computer animation, since the judicial procedure was initiated over a piece of land surrounding the site where the future 27-storey building should sprout.

A year ago, inheritors of the clan Rafailovic (almost 15 families) instituted legal proceedings against the local government which took over a land lot of 65.000 square meters in 1995, even though, as they stated, the disputed land lot has belonged to them for two centuries.

Local authorities refused to comment on this matter, which is a rather common thing when it comes to controversial issues. However, Daily “Vijesti” found out that there were some meetings with representatives of the clan a year ago but agreement was not reached.

Having in mind that they haven’t been paid any damages, the local government should provide them at least EUR 40 million if it is really willing to acquire title deed in 7 ha of land by the sea.

In anticipation that they will be returned the land by the court ruling since they have all legitimate documents to support a claim for the private property, one of inheritors – Djuro Rafailovic shows land title certificate and original property documents old more than 70 years and says that despite one lot, which is the legacy left behind by his grandfather, there is another lot bought by his father in 1937 and the local government deprived them of both lots in 1995.

- We initiated judicial procedure and now others joined too. The local government registered as the property owner since nobody reported to them when another cadastral-survey was carried out 20 years ago. There was probably some kind of announcement in the Official Gazette inviting owners to register but I am certain that nobody read it then. Unlike today when this type of advertisement is announced in the mass media, it was quite different back then. We spoke with the Mayor- Rajko Kuljaca and his associates two years ago. On that occasion they promised to check if we were paid damages for the land since they thought that the local government acquired the land title on the basis of this kind of settlement. We all agreed to drop compensation claims if they establish that we were paid the damages. They found out that we were telling the truth and that the compensation of damages never took place, but nobody called us ever since – Rafailovic remarked.

He praised local government officials from Tivat and Kotor who expressed their willingness to help former owners to return their property in these municipalities, and he added that, unfortunately, this was not the case with Budva.

- I checked with the Austrian Embassy, since I have citizenship of this country as well as my brothers, and we were advised to go through courts of all instances and if justice is not served - they will help us transfer the case to Strasbourg. I hope that the court will pass the decision in our favour since we are legal owners – Rafailovic stated.

He says that he is willing to sell the land at a proper price and this implies the price at which the lots on the southern side of the cape were paid to former owners.

And while the judicial procedure is still going on and it should enter its final phase in the middle of July, the Russian company “Mirax”, which advertised the construction of this hotel at the beginning, now apparently drops the whole idea since nobody mentions second phase of the “Astra Montenegro” hotel in public anymore. Even if laying the cornerstone of the future “Jedro” hotel was announced earlier for the end of the season, it was confirmed in the “Mirax” company yesterday that their priority was finishing nearly 20 out of 40 luxury villas.

- Our priority is to finish the villas which have been sold already, and 60% of them were sold already. We believe that this will happen in October – it is said in “Mirax”.

The latest billboard adds all along Budva Riviera underpin this story that the construction of the hotel was abandoned since advertisement for the hotel “Jedro” on cape Zavala have been replaced with leisure villas exclusively.

The city was buzzing with rumors a year and a half ago when news leaked out that “Mirax”, owned by the youngest Russian billionaire Sergei Polonsky, has bought 4 ha of land at western part of Zavala cape by paying EUR 20 million in cash, which is €700 per square meter in then inaccessible part of the peninsula covered by forest which separates Budva from Becici.

“Mirax”, one of the most prosperous Russian construction companies at the time, announced implementation of the largest investment project on Montenegrin coast called “Astra Montenegro”. The project was estimated at EUR 200 million and it included building 32 villas for sale and two hotels: a 6-storey and 27-storey hotel in the shape of a boat’s sail on the land which is subject to property litigation.

Moreover, local government founded company “Budva Holding” with a special purpose to manage attractive lots all along Budva Riviera, including the one on Zavala. This company invited tenders last year to establish Joint Venture Company which would be in charge of managing the future exclusive tourist resort on cape Zavala. Only two companies applied for the tender and placed their bid – “Mirax” and one American company. However, ever since then, the agreement has not been signed with either of these companies. Local authorities disclosed no details on reasons for this pending decision.

By V.L.