I. Metshin: "The preferential rent allows entrepreneurs to plan their business for years ahead"

(Kazan City KZN.RU, 16 May). In Kazan first auctions at a reduced lease under the city program to support small and medium businesses were held. Preferential conditions will allow entrepreneurs not only "stay afloat" in the conditions of the global crisis, but also to plan their business for years ahead. Such an opinion was expressed by the Mayor of Kazan Ilsur Metshin at the last Business Monday today. He instructed to closely monitor the progress of the program and to mark all of the pitfalls that arise when tendering.

"This is a start, and we must continue to work systematically, supporting primarily sectors of business, which are defined, - I.Mteshin said. - Facilities that are put up for auctions mostly do not apply to the first line, but they are ideal for these industries: they are hostels and souvenir stores, and private kindergartens. Terms of preferential rent are more than loyal, there is no similar precedents in Russia - let me remind you that it provides a zero rate for the rent for the first two years. All this makes possible to plan business with the future in mind even in the current conditions".

The chairman of the Committee of Property and Land Relations Renat Galyautdinov reported about how the implementation of the new program in the city is going. According to him, in the previous two months Committee received 108 applications for the inspection of objects at a reduced rent. All premises have been shown.

The first auction for reduced rent under the program has been held April 29, next - 6 and 13 May. 15 objects were put for bids and 17 applications were filed. 8 projects were given for rent following the auction.

The greatest interest among the representatives of small and medium business was caused by premises at st. K.Marks, 23/6 with area of ​​113.1 sq.m. 4 applications were submitted on this object. The winner is a participant who offered the highest amount of annual rent - the excess of the starting value was 80%.

In total 53% of exposed objects were given for rent in two weeks - then, as experience shows, as a rule, only a third of the objects in the conventional trading have success. The next auction at a reduced lease program will be held on May 20 (accepting applications is completed), May 27, June 3, June 10. On each date 5 objects are exposed. To date applications for inspection of premises continue to arrive.

Recall premises are available at reduced rent for a period of 5 years. Zero interest rate is set in the first two years, i.e. entrepreneur does not pay the rent for two years. In the third year entrepreneur pays 25% of the amount of rent, in the fourth year - 50%, in the fifth year - 75%. The premises are prohibited for sublet. List of 100 municipal facilities provided at reduced rent is published on the official website of Kazan Mayor’s Office.

Information on upcoming auctions and the auction results, the timing of receipt of applications is published on the website of Land and Property Relations Committee kzio.kzn.ru in section "Auctions and competitions."