On September 5th, our law firm made a settlement with the city Kraków, based on which our client will pay the fee for perpetual usufruct in the amount lower for about 2/3 than it was set by the city.
The objections we set out during the proceeding, regarding value of the estate, were considered to be right by the city Kraków. They acknowledged that the estate was worth about 2 million polish zloty less than they evaluated at first, so the fee they set should be reduced. The property valuation was made with validation of current legal regulations and omission of estate market, it contained numerous mistakes as well. This settlement is groundbreaking – for the first time the city admitted to incorrect valuation and overestimation of estate’s value. The fact that the settlement was approved by the competent authority, as well as the gathered information, opens the door to effective undermine of the fees set by cities.