NARVA - A property conflict between a German businessman and the Narva city government may end with the closure of a unique medical instrument production facility and the layoff of 36 people.
Entrepreneur Miroslaw Pien-kowski opened his first business in Narva, a titanium medical instrument production facility, in 1993, and, apparently satisfied with the results, six years later he moved his scalpel factory Micro Fix from Germany to the Estonian city.
The business, which was rated fifth best of its kind in the world, provided some 200 jobs over the past decade to the impoverished local economy.
But the situation suddenly grew complicated in October when the Narva municipality chose Nakro, a private company, as the new property manager for the city-owned building that Micro Fix rented.
At the end of November the authorities quadrupled the rent rate for the building and Micro Fix was offered a new contract with Nakro.
This rent-hike took place despite alleged verbal agreements between Pienkowski and the city guaranteeing that the rent rate would stay low if the businessman participated in the construction of a state-of-the-art business/high-tech center.
Finally, on Nov. 28 the property department of the Narva city government terminated the rent contract with Micro Fix and demanded the company move out by Dec. 15.
Pienkowski was unequivocal in his assessment of the situation.
"In the production and business spheres I encounter very different people, laws and economies, from stable German capitalism to Cuban capitalism. But I've never encountered a city government that is in fact desperate for new jobs that raises difficulties for those who can create them," he said.
Narva Mayor Tarmo Tammiste said the city government did not rule to terminate the rent contract with Micro Fix but added such a decision could only be taken with the approval of city authorities.
"I cannot say anything. I was not in town," Tammiste said.
Micro Fix's manufacturing was also hampered last week when the property management company prevented a truck ready to take assembly line production from Narva to Germany from leaving the factory area.
The incident was resolved in about an hour after Micro Fix lawyers threatened to call the police.
Pienkowski, unsure whether he will eventually invest more into the problem-stricken capital of northeastern Estonia, is now expecting the city authorities to clear up the situation.
"I asked for a concrete answer because I have production, certain plans connected to significant funds. I cannot [take any] risks because of the mood of a person who holds some office today and may not hold it tomorrow," said Pienkowski.
