MODEL FOR MANAGING THE BUSINESS ZONE GORNJI ČRET

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1 MODEL FOR MANAGING THE BUSINESS ZONE GORNJI ČRET BORDERS OF THE AREA COVERED BY THE PLAN BASIC CADASTRE SUBSTRATE EXCERPT FROM SPATIAL PLAN FOR ARRANGEMENT OF THE TOWN KRIŢEVCI CARTOGRAPHIC REPRESENTATION NO. 4.0 BUILDING AREAS OF THE SETTLEMENT LEGEND; ZONE GORNJI ČRET - AREA COVERED BY THE PLAN BORDER OF THE BUILDING AREAS OF THE SETTLEMENT BORDERS OF THE SETTLEMENT Town Križevci, March 2011

2 INTRODUCTION By directly investing into the entrepreneur zones the units of local self-government create preconditions for implementation of various incentives for development of small and medium businesses, mainly through the benefits to entrepreneurs who construct buildings on locations with completely ready infrastructure. According to the General urban plan, Town Križevci started with designing and construction of the business zone in ninety-eighties. In the South-West part of the Town was created the Services zone in Križevci, which is now the business zone in the Nikola Tesla Street, where is planned construction of objects for manufacturing, services and other activities. The second business zone, Cubinec is situated in the immediate vicinity of the railway station and is connected with the state road Bjelovar Križevci Novi Marof. The existing spatial planning documentation for that zone was amended in the new General urban development plan for the Town Križevci, due to vicinity of the planned construction of the motorway and placement of the protective area for the Trstenik water wells. According to the Spatial Plan for the Town Križevci, planned is design and construction of the third business zone Gornji Čret. The selected terrain covered by the business zone Gornji Čret is defined by the main railway line MG1 Botovo Koprivnica Zagreb on the north side and the route for the planned motorway Vrbovec Križevci Koprivnica on the south side. The Business zones planned by the General urban plan and the Spatial plan are: Business zone in the Nikola Tesla Street, covering 57.6 hectares Business zone Cubinec covering 35 hectares Business zone Gornji Čret covering 45 hectares Excerpt from Spatial Urban Development Plan for Town Kriţevci Chart 1 LAND USAGE AND PLANNING Scale 1: Road to Koprivnica KRIŢEVCI Nikola tesla Street Upper Čret Lemeš Kriţevački Cubinec DurĎić Kriţevački Cubinec Bukovje Kriţevačko New DuĎić Road to Bjelovar 2

3 BUSINESS ZONE GORNJI ČRET Terrain This zone covers the area of 45 hectares and is owned by the Town Križevci. In addition to the very advantageous traffic position the advantage of this zone is the ownership structure of the land and the possibility of phased putting of the zone into function. The zone is spatially divided into two parts that cover the area of approximately 22 hectares each and that can be put into service in phases. According to the intended purpose, the zone is divided into: Purpose Planning marking Area m 2 % Business purpose K 12, Production-business purpose I 308, Green spaces Z 71, Areas for the infrastructure systems IS 57, Total zone 451,

4 REPUBLIC OF CROATIA, COUNTY KOPRIVNIČKA- KRIŢEVAČKA TOWN KRIŢEVCI URBAN DEVELOPMENT PLAN BUSINESS ZONE GORNJI ČRET I. CHANGES AND AMENDMENTS CARTOGRAPHIC REPRESENTATION 1. USE AND INTENDED PURPOSE OF SURFACES LEGEND: BORDERS OF THE AREA COVERED BY THE PLAN PROJECT SCOPE MARKINGS I. PRODUCTION-BUSINESS PURPOSE II. BUSINESS PURPOSE SURFACE COVERED (m 2 ) METHOD OF CONSTRUCTION business activities, construction plot of at least 1500 m 2, kig max. 0.4 E=Po/Su+Pr+2kat+Ptk, V=11.5 business and production activities, construction plot of at least 2500 m 2, kig max. 0.4 E=Po/Su+Pr+2kat+Ptk, V=11.5 production activities, kig max. 0.5 E=Po/Su+Pr+2kat+Ptk, V=8.5 SPECIAL CONDITIONS FOR CONSTRUCTION PART FOR SPECIAL ARRANGEMENT; construction plot of at least 1000 m 2 PART FOR SPECIAL ARRANGEMENT MANDATORY PLACEMENT OF THE CONTENT (zone administration centre, administrative building, public parking lot/garage, public park) SPECIAL USE TRAFFIC DIRECTION without possibility of connections given depth of the construction plot County KOPRIVNIČKO-KRIŢEVAČKA COUNTY Local Government Unit TOWN KRIŢEVCI Name of the spatial plan URBAN DEVELOPMENT PLAN FOR ARRANGEMENT OF BUSINESS ZONE GORNJI ČRET I. Changes and amendments Name of the cartographic representation USAGE AND INTENDED PURPOSE OF THE SURFACES Number of the cartographic representation: 1 Decision of the representative body regarding preparation of the plan: Official Gazette of Town Kriţevci, No. 5/10 Public hearing (date of publishing): Vjesnik, Monday November 29 th 2010 Stamp of the body responsible for public hearing: Scale of the cartographic representation: 1:2,000 Decision of the representative body regarding adoption of the plan: Official Gazette of Town Kriţevci, No. / Public inspection: From to Darko Masnec, dipl.oec. Legal entity that prepared the Plan: Urbing Ltd. for spatial planning and environment protection work, Av. V.Holjevca 20, Zagreb Stamp of the Legal entity that prepared the Plan: Leading person responsible for preparation of the Plan: Expert team that took part in preparation of the plan: John Leko, dipl.inţ.prom. Maja Martinec, dipl.inţ.arh. Filip Šrajer, dipl.inţ.arh. Stamp of the representative body: Endorsement that this Spatial plan is identical to the original by: Suzana Vujčić dipl.inţ.arh. Davor Plenković dipl.inţ.graď. Leopold Ljubić inţ.el. Dubravko Vlahović dipl.inţ.stroj. President of the representative body: Roko Bašić dr.vet.med. Stamp of the Authority 4

5 REPUBLIC OF CROATIA, COUNTY KOPRIVNIČKA- KRIŢEVAČKA TOWN KRIŢEVCI URBAN DEVELOPMENT PLAN BUSINESS ZONE GORNJI ČRET I. CHANGES AND AMENDMENTS CARTOGRAPHIC REPRESENTATION 4. METHODS AND CONDITIONS FOR CONSTRUCTION LEGEND. BORDERS OF THE AREA COVERED BY THE PLAN BUSINESS PURPOSE PRODUCTION-BUSINESS PURPOSE PROTECTED GREEN SPACES SPACES OF THE INFRASTRUCTURE SYSTEMS; TRAFFIC SPACES (ROADS) SPACES OF THE INFRASTRUCTURE SYSTEMS; WATERWAYS/CHANNEL County Local Government Unit TOWN KRIŽEVCI KOPRIVNIČKO-KRIŽEVAČKA COUNTY Name of the spatial plan URBAN DEVELOPMENT PLAN FOR ARRANGEMENT OF BUSINESS ZONE GORNJI ČRET - I. Changes and amendments Name of the cartographic representation METHODS AND CONDITIONS FOR CONSTRUCTION Number of the cartographic representation: 4. Decision of the representative body regarding preparation of the plan: Official Gazette of Town Kriţevci, No. 5/10 Public hearing (date of publishing): Vjesnik, Monday November 29 th 2010 Stamp of the body responsible for public hearing: Scale of the cartographic representation: 1:2,000 Decision of the representative body regarding adoption of the plan: Official Gazette of Town Kriţevci, No. / Public inspection: From to Darko Masnec, dipl.oec. Legal entity that prepared the Plan: Urbing Ltd. for spatial planning and environment protection work, Av. V.Holjevca 20, Zagreb Stamp of the Legal entity that prepared the Plan: Leading person responsible for preparation of the Plan: Expert team that took part in preparation of the plan: John Leko, dipl.inţ.prom. Maja Martinec, dipl.inţ.arh. Filip Šrajer, dipl.inţ.arh. Stamp of the representative body: Endorsement that this Spatial plan is identical to the original by: Suzana Vujčić dipl.inţ.arh. Davor Plenković dipl.inţ.graď. Leopold Ljubić inţ.el. Dubravko Vlahović dipl.inţ.stroj. President of the representative body: Roko Bašić dr.vet.med. Stamp of the Authority 5

6 Spatial and traffic infrastructure The Urban Development Plan was prepared for the area of the Business Zone Gornji Čret, and in the phase of adoption are also the 1 st Amendments to the Urban Development Plan for the Business Zone Gornji Čret. Amendments to the Urban Development Plan were prepared since the fast road was changed into the motorway, and the need to define a new entrance into the zone, to connect the zone traffic to the motorway traffic. The entrance from the motorway will be provided via a service road leading towards the exit/entrance to the motorway, near Cubinec. That way the zone will be directly connected to the future motorway. Until the motorway is constructed, the entrance into the zone will be via the state road D 41 Križevci - Koprivnica and the county Ž2212. The length of the roads planned within the zone is 2,600 meters, and they will be constructed in phases. 6

7 REPUBLIC OF CROATIA, COUNTY KOPRIVNIČKA- KRIŢEVAČKA TOWN KRIŢEVCI URBAN DEVELOPMENT PLAN BUSINESS ZONE GORNJI ČRET I. CHANGES AND AMENDMENTS CARTOGRAPHIC REPRESENTATION 2.1. TRAFFIC INFRASTRUCTURE NETWORK LEGEND. BORDERS OF THE AREA COVERED BY THE PLAN TRAFFIC NETWORK ROADS (1) ROAD MARKING (1-3) PART OF THE ROAD NOT COVERED BY THE PLAN INFRASTRUCTURE CORRIDOR THE CHARACTERISTIC ROAD PROFILE, ROADS 1a, 2 and 3. Scale: 1:2000 CORRIDOR 21 m limits of work / road corridor road axis limits of work / road corridor PT - TRAFFIC LANE PZT - PARKING/STOPPING LANE AB - BUS STOP/LAY-BY Z - GREENERY BS - BICYCLE LANE PS - PEDESTRIAN PATH WIDTH IN METRES CONSTRUCTION PLOT County Local Government Unit KOPRIVNIČKO-KRIŽEVAČKA COUNTY TOWN KRIŽEVCI Name of the spatial plan URBAN DEVELOPMENT PLAN FOR ARRANGEMENT OF BUSINESS ZONE GORNJI ČRET - I. Changes and amendments Name of the cartographic representation TRAFFIC INFRASTRUCTURE NETWORK Number of the cartographic representation: Decision of the representative body regarding preparation of the plan: Official Gazette of Town Kriţevci, No. 5/10 Public hearing (date of publishing): Vjesnik, Monday November 29 th 2010 Stamp of the body responsible for public hearing: 2.1. Scale of the cartographic representation: 1:2,000 Decision of the representative body regarding adoption of the plan: Official Gazette of Town Kriţevci, No. / Public inspection: From to Darko Masnec, dipl.oec. Legal entity that prepared the Plan: Urbing Ltd. for spatial planning and environment protection work, Av. V.Holjevca 20, Zagreb Stamp of the Legal entity that prepared the Plan: Leading person responsible for preparation of the Plan: Expert team that took part in preparation of the plan: John Leko, dipl.inţ.prom. Maja Martinec, dipl.inţ.arh. Filip Šrajer, dipl.inţ.arh. Stamp of the representative body: Endorsement that this Spatial plan is identical to the original by: Suzana Vujčić dipl.inţ.arh. Davor Plenković dipl.inţ.graď. Leopold Ljubić inţ.el. Dubravko Vlahović dipl.inţ.stroj. President of the representative body: Roko Bašić dr.vet.med. Stamp of the Authority 7

8 The communal infrastructure The communal infrastructure is placed in the traffic corridor and covers: Water supply, Drainage separately rainwater, separately faecal. Gas supply Electrical energy supply. Telecommunications 8

9 REPUBLIC OF CROATIA, COUNTY KOPRIVNIČKA- KRIŢEVAČKA TOWN KRIŢEVCI URBAN DEVELOPMENT PLAN BUSINESS ZONE GORNJI ČRET I. CHANGES AND AMENDMENTS CARTOGRAPHIC REPRESENTATION 2.2. TELECOMMUNICATIONS AND COMMUNAL INFRASTRUCTURE NETWORK LEGEND. BORDERS OF THE AREA COVERED BY THE PLAN TELECOMMUNICATIONS TK CABLE - EXISTING USER AN CONNECTING TK CABLE ELECTRICAL ENERGY SUPPLY TRANSFORMER STATION 10(20) KV 10(20) KV LINE 0.4 KV LINE AERIAL 10(20) KV LINE - WILL BE REMOVED GAS SUPPLY GAS LINE GAS LINE - ALTERNATIVE REDUCTION STATION (ALTERNATIVE) WATER SUPPLY WATER SUPPLY PIPELINE (EXISTING) WATER SUPPLY PIPELINE DRAINAGE SEWAGE COLLECTOR RAIN WATER COLLECTOR PUING STATION County Local Government Unit KOPRIVNIČKO-KRIŽEVAČKA COUNTY TOWN KRIŽEVCI Name of the spatial plan URBAN DEVELOPMENT PLAN FOR ARRANGEMENT OF BUSINESS ZONE GORNJI ČRET - I. Changes and amendments Name of the cartographic representation TELECOMMUNICATIONS AND COMMUNAL INFRASTRUCTURE NETWORK Number of the cartographic representation: 2.2. Decision of the representative body regarding preparation of the plan: Official Gazette of Town Kriţevci, No. 5/10 Public hearing (date of publishing): Vjesnik, Monday November 29 th 2010 Stamp of the body responsible for public hearing: Scale of the cartographic representation: 1:2,000 Decision of the representative body regarding adoption of the plan: Official Gazette of Town Kriţevci, No. / Public inspection: From to Darko Masnec, dipl.oec. Legal entity that prepared the Plan: Urbing Ltd. for spatial planning and environment protection work, Av. V.Holjevca 20, Zagreb Stamp of the Legal entity that prepared the Plan: Leading person responsible for preparation of the Plan: Expert team that took part in preparation of the plan: John Leko, dipl.inţ.prom. Maja Martinec, dipl.inţ.arh. Filip Šrajer, dipl.inţ.arh. Stamp of the representative body: Endorsement that this Spatial plan is identical to the original by: Suzana Vujčić dipl.inţ.arh. Davor Plenković dipl.inţ.graď. Leopold Ljubić inţ.el. Dubravko Vlahović dipl.inţ.stroj. President of the representative body: Roko Bašić dr.vet.med. Stamp of the Authority 9

10 ORGANISATION AND ZONE ADMINISTRATION MODEL Organisation and decision making The zone will be administered, depending on the responsibilities, by the Town Council and the Mayor who will make the strategic decisions on the conditions for arrangement of the Zone (Urban Development Plan), decisions on new investments and the forms and methods for achievements of the benefits for the investors. The proposed model foresees that the Zone will be operationally administered, based on the adopted strategic decisions, the authorised Administrative Department and the appointed Zone Committee, thus ensuring the Town will always be represented when the Zone is administered. The funds for building of the Zone are provided by the Town Križevci, with non-returnable subsidies from individual Ministries. The schematic representation of administering the Business Zone Gornji Čret THE TOWN COUNCIL THE MAYOR CONTRACTING ADMINISTRATIVE DEPARTMENT FOR BUSINESS AND FINANCE THE ZONES COMMITTEE USE OF BENEFITS THE ENTREPRENEUR SELLING RIGHT TO BUILD TENDERING The activities of the Administrative Department include the following: Development and expansion of the Zone Preparation of public tenders for arranging and maintaining the Zone Marketing promotion of the Zone Attracting and counselling of new users of the Zone Assistance to the entrepreneurs to realise the projects Rational, economical and intended use of the construction plots Care about the safety of user's resources Other activities related to functioning of the Zone) 10

11 Equipping of the Zone Town Križevci will equip the business zone with all necessary traffic and communal infrastructure. Equipping will be done in phases, so that at the end of one phase the construction plots will be fully equipped and ready for the market, and by selling the plots, or by some other methods of use, funds will be made available to continue developing and equipping the Zone. As the initial sources of financing of the traffic and communal infrastructure of the zone available are the existing funds of the Republic of Croatia Ministries, especially the Ministry of Economy, Labour and Entrepreneurship through the non-returnable assets, assets of the Town, i.e. the assets from the EU pre-accession funds, and later also the assets earned by managing the already equipped construction plots. Management of the land The forms of managing the construction land are: Sale through public tenders Granting construction rights through public tenders Sale of the land Initial sales price for the construction plots is determined based on the assessment of the value of the construction plots by the Tax Authority, Branch office Koprivnica, local office Križevci and amounts to 150 Kn per m 2 On the top of the said amount for the initial price, to attract the investors, the Town approves the additional discount of 20 %, so the price of the land, together with the discount is 120 Kn per m 2 The land can also be sold to the interested bidders entrepreneurs for instalment payments over the period of 12 months, with interest of 4 % per annum. The Buyer obtains the right to register the ownership upon full payment of the contracted price and interest. Upon signature of the contract, the Town will allow the entrepreneur to obtain the project documentation required to implement his business project. The sales contract must also contain a clause that will prevent the buyer to speculate with the construction plots in the Zone, abusing the discount approved when buying them. Granting the construction rights The construction plots in the business zone Gornji Čret can be granted for use to the entrepreneurs as grant of the construction rights for the period of 25 years. The initial price for granting of the construction rights for the construction plots in the business zone Gornji Čret amounts to 0.5 Kn per m 2 per month For the total area of the plot for which the construction grant is issued. The compensation for the construction right is charged and paid on a monthly basis. The entrepreneur can, even before expiry of the period for which the construction right was issued, can cease this right and purchase the plot that was subject of the construction right contract. In that case the amount already paid as compensation for the construction right cannot be used as a part of purchase value. 11

12 The property constructed on the plot for which was granted the construction right, present at the moment of sale is not included in the value of the land that is subject of purchase. If a contractual party comes into the situation of not being able to pay the compensation for construction rights, it can bring into the contractual relation a third party that will continue the contracted relation until its completion. If the contractual party, user of the construction rights fails to pay the compensation for 3 consecutive months, or for cumulative total of 6 months, the Town will terminate the contract on grant of the construction rights, and the property built on the said land plot will become property of the Town, without any compensation. Upon expiration of the contract on grant of the construction rights, the current user can purchase the said terrain, or agree a new contract on grant of the construction rights, at the at that moment valid initial price. If he does not wish to accept any of these possibilities, all property and installations that are constituent part of the land plot become property of the Town, without compensation, and the Town can dispose them at will. By purchasing the land plot, or by contracting the construction rights grant, the entrepreneur-user obtains the construction plot up to which is constructed all communal and traffic infrastructure, and to which he can connect. Also included in the price of the land is engaged electrical power for the plot of 2,500 m 2 of 10 kw, for the plot of 5,000 m 2 20 kw, and for the plot of 10,000 m 2 40kW of electrical energy, i.e. proportionally to the surface the entrepreneur buys, or contracts the construction rights grant. Stimulating measures To stimulate investments in the zones, the Town je introduced various types of benefits, which in addition to the benefits applicable to all entrepreneurs; additionally stimulate the entrepreneurs in the business zones. The text that follows presents the determined benefits to entrepreneurs in the business zones, shown by types. 1. Company tax benefits: The entrepreneurs beginners (legal and physical entities) will be exempt to the Company tax, as follows: In 1 st year of business 100% In 2 nd year of business 75% In 3 rd year of business 50%. This exemption does not apply to the legal and physical entities that open objects intended for hospitality activities, or groceries retail trade activities. The existing entrepreneurs that in previous year increased the number employees with no time limit contracts: - up to 10 employees, will be exempt of the Company tax by 25% - up to 25 employees, will be exempt of the Company tax by 50% - more than 25 employees, will be exempt of the Company tax by 100%. This exemption does not apply to the legal and physical entities that open objects intended for hospitality activities, or groceries retail trade activities. 2. Benefits regarding payment of communal compensation: 12

13 The legal and physical entities for newly constructed objects in the zones have the right for reduction of the communal compensation, as follows: 100% reduction for the first year of business, 75% reduction for the second year of business, 50% reduction for the third year of business, 25% reduction for the fourth year of business. 3. Other benefits (partial exemption from the communal contribution) For the business objects of the volume of: m 3 to 5000 m 3 the communal contribution is reduced by 25%, - over 5000 m 3 the contribution is reduced by 50%. In addition to the above reductions, the entrepreneurs that construct the objects in the business zones, the communal contribution will be reduced for additional 10 %. These benefits do not apply to the legal and physical entities that perform (retail) trading activities. HEAD OF ADMINISTRATIVE DEPARTMENT FOR ECONOMY AND FINANCE Darko Masnec 13

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