Tatabánya – Környe cooperation

The gradual development of the Industrial Park necessitated the inclusion of lands, neighboring Tatabánya, belonging to the public administration of Környe. Today one third of the Industrial Park area is located in Tatabánya and two thirds in Környe. Irrespectively of which public administration the land belongs to, the Industrial Park provides equal terms to investors. These equal terms are ensured by the Cooperation Agreement signed by the two local governments as briefed below.

Cooperation Agreement (Abstracts)

Which was entered into by and between the Local Government of the Village of Környe (Környe, Alkotmány u. 2.) a referred to as ‘Környe’ in the following and

the Local Government of Tatabánya City with County Rank (Tatabánya, Fő tér 6.) ‘Tatabánya’ in the following, on the date and with the conditions below:

The Parties have signed a Cooperation Agreement on the 27th of November 1997 under which they regulate their cooperation regarding the Tatabánya West Industrial Park (Industrial Park in the following) established by Tatabánya with land under the administration of Környe.

Due to the substantial changes affecting the area under development, the reconsideration of the Cooperation Agreement turned necessary. The reconsideration took place, as a result the Parties agreed to the terms below.

1. The Parties concordantly state that this Agreement is signed in order to promote the operation of the industrial park established on their area, enable its further development therefore creating new workplaces that aim to raise the quality of the local population’s lives. To achieve these goals the Parties will share the local revenues originating from the local taxes from the industrial park according to the terms listed in this Agreement. In the interest of achieving these goals, the Parties will cooperate on a long term in every legal and possible way in the course of the development of the Industrial Park.

2. The present Agreement applies to all those areas under the administration of Környe, which comprise the land located in the present Industrial Park and those areas that are includable during the organic future continuation of development, irrespectively of topographical lot numbers.

3. Környe and Tatabánya agree to conciliate the area development plans of the Industrial Park and its amendments, and that they will not implement an amendment on those without the notification and conciliation of the other Party.

4. Környe and Tatabánya agree that they take care of the operation of those local governmental areas and roads which are located within the Industrial Park but belong to their administration at their own expense.

5. Regarding the assessment, collection and distribution of local taxes, the Parties have agreed to the following:

5.b Környe and Tatabánya state that on the area of the Industrial Park, the following local taxes have been introduced, which are to be maintained:

  • Industrial tax
  • Building tax
  • Communal tax.

Tatabánya introduces the land tax, however the local government of Környe is not obliged to follow suit.

5.c Környe and Tatabánya agree that everyone collects the taxes on their respective administrative area according to the legal regulations. (In case the law orders a third party to collect taxes, e.g. the National Tax and Customs Administration of Hungary, then according to this Agreement collection refers to the effective crediting on the account of the local government.)

5.d The actually collected tax from companies that have located in the Industrial Park on the area of Környe is divided between the Parties according to the proportion of the accomplishment of liabilities:

5.e Környe is obliged to transfer the amount of collected taxes that Tatabánya is entitled to within 15 calendar days after being credited on its account.

5.f

5.g Tatabánya spends the received cash equivalents on the direct and indirect operation and development of the Industrial Park. The received amount has to be stated in its budget concept and its decree about the final budgetary accounts.

6. The Parties covenant that they do not initiate the establishment of another industrial park on their administrative area and immediately report to the other Party if there has been an initiative from others on their area.

7. Tatabánya covenants that it does not in any form initiate an administrative border amendment concerning Környe.

8. The present Agreement is signed for an indefinite term.

9. In case of an amendment in the Rules of Taxation, the Budget Acts or any regulation concerning the present Agreement, this Agreement shall be reconsidered if necessary and amended in accordance with the act (law).

10. The Parties will review the Cooperation Agreement latest in the second year following the local governmental elections irrespectively of the change in the regulatory environment.

11.

12. The Parties fix that on the grounds of the present Agreement it is not only their right but their obligation to do their best in the interest of the development and operation of the Industrial Park on the administrative areas of Tatabánya and Környe.

13. The Parties fix that the present Agreement can only be abrogated in writing in case of the other party’s contract breaching behavior with explanation provided, due on the 31st of December of the subject year. The contract breaching behavior has to interfere with the terms agreed in the present Agreement. The lawful abrogation does not dispense the defaulting party from the responsibility of compensation. In case the party does not accept the other party’s abrogation, it is obliged to turn to court within the 15 day term of preclusion following the reception of the letter of abrogation. In case the court assesses that the abrogation is invalid, the addressed party is entitled to receive the double amount of cash equivalents that arose from local taxes in the subject year. Until the legally binding court decision both parties are obliged to perform according to this contract and have to ensure the transfer of cash equivalents that each party is entitled to.

14. The Parties mutually agree that any conflict arising from the present agreement will be settled primarily by consensus. Therefore, they agree that within 8 days counting from the general assembly (board meeting) they establish a Conciliation Committee that consists of 3-3 members. The Conciliation Committee is obliged to reveal its position within another period of 8 days. If either party disagrees with the Conciliation Committees stance or in case due to any reason the Conciliation Committee can not express its attitude (e.g. it does not even meet), the parties may turn to court within a 15 day term of preclusion. The 15 day term of preclusion starts on the 16th day following the certified send date of the Conciliation Committee set up proposal from one party to the other. In the absence of agreement the parties are subject to the exclusive jurisdiction of the Győr-Moson-Sopron County Court.

15. This Agreement has been approved by the city council of both municipalities.

16. The Cooperation Agreement takes effect on the 1st of September, 2009.

17. When the present Agreement takes effect, the Cooperation Agreement signed on the 27th of November, 1997 loses validity without any further liabilities. It will be replaced by the present Agreement.

The present Agreement has been signed by the Parties after reading and comprehension as entirely concordant with their will.