The City of Brno has approved compensation of up to 50% of rental costs for its non-residential tenants, such as cafes and restaurants in the city, for May, June and July. Brno Mayor Markéta Vaňková (ODS) said that the city council wishes to support local businesses by any means possible. Photo Credit: Courtesy of MMB.
Brno, Apr 26 (BD) – The City of Brno will compensate up to 50% of rental costs for its non-residential tenants, such as cafes and restaurants in the city, for May, June and July. This is the latest step taken to support local businesses, following a decision in March to postpone rental payments. Brno Mayor Markéta Vaňková said that the city council wishes to support local businesses by any means possible.
“From the start, we announced that we are ready and willing to help our local businesses,” said Vaňková. “One of the most affected sectors is gastronomy, which is critical for Brno. Today, we have approved further rent relief. Of course, we will provide it to businesses which are eligible: those which lease premises from the City of Brno, which have either had to significantly reduce their operations to a dispensing window or cease them altogether, and which do not owe the city for rent and related services for the period up to the end of 2020, or who will pay this debt by the end of May.” She added that premises leased from city districts are not included in the proposal.
The Czech government has previously announced that business owners can apply for further compensation until summer. The City of Brno’s decision is in line with this policy and does not duplicate the state support already announced. Deputy Mayor for Property Management Jiří Oliva (CSSD) added: “We do not want local businesses to go bankrupt and we do not want abandoned shops and restaurants in the city center. Therefore, we feel that they need help beyond the government programs. Originally, we intended to offer rent compensation for the first quarter of 2021, when the pandemic peaked and strict anti-epidemic measures were in place. However, our communication with the Ministry of Industry and Trade showed that if we did, there would be a duplication with state subsidy programs. That is why we finally decided to compensate half of rental costs for a later period instead.”
Second Deputy Minister Tomáš Koláčný (Piráti) agreed, pointing to the growing need to support local businesses: “Individual tenants have been turning to us since the measures were tightened in the autumn, and as the second wave gained momentum, it was clear that they needed further support. We will thus support the owners of shops and services, as well as theatre bars and cafes, school facilities, saunas, and sports clubs.” The council stressed that applications must be submitted by the end of May to receive the rent support from the city, using this application form prepared by the City of Brno. Businesses should apply to the department from which they rent their premises.
