Business zone Cestica
1. VARAŽDIN COUNTY
Position and location
Geographic position of Varaždin county is determined by its natural position and economic environment. Located almost at the heart of Europe where natural and economic units meet, near Panonia and the brink of Alps, with the centuries old influence of Germanic culture. It lies close to densely populated and naturally rich central Europe, economically developed belt of central European area, which stretches to the Adriatic coast and emphasizes importance and significant opportunities of the entire economic and geographic position of Varaždin county.
The very position of Varaždin county in Croatia emphasizes the importance and advantage in a wider European area through traffic linking west and central Europe, southeastern Europe and Middle East, and the line towards central Danube region, Adriatic, Mediterranean and exit to the world seas. Varaždin county is located at a very favorable location with geographic benefits which in past had been a significant factor in social and economic development.
Picture 1. The position of the Republic of Croatia in Europe
Varaždin’s surroundings make a frame worthy of a baroque town. The preserved green landscape, river Drava and a lake are ideal for hunting, fishing and recreation. Hunting grounds in Varaždin’s surroundings are well known and liked among the European hunters. Town’s immediate and wider surroundings are a true challenge, from Ludbreg sanctuaries, thermal waters of Varaždin spas, Pavlin complex in Lepoglava, Ivančica, vineyards Cestica, Ravne Gore to an old castle Trakošćan. All the above enables development of health, recreational, rural and sports tourism.
Surface and natural resources
The Varaždin county is situated at the borderline of Panonian area, and is characterized by three relief areas: plain in the central part, hilly with mountain massifs in south and west parts. The county has a moderate continental climate characteristic for peri-panonian brink. The agricultural lands, mineral and water resources are basic natural resources of Varaždin county. The county spreads across an area of 1.228 km2, which constitutes a 2,2% of total size of the Republic of Croatia. On the territory of Varaždin county, 6 towns and 22 municipalities were established representing economic, transportation and social unity. One of those municipalities is municipality Cestica.
2. MUNICIPALITY CESTICA
A. Geographic position
The municipality Cestica is located at the utmost north-west part of Croatia, its one part covering the tamed vineyard hills and the other located in the fertile plains with until recently fickle river Drava, on the size of 46 km2, i.e. 3,85 territory of Varaždin county. It has a population of cca 6.000 inhabitants in 20 settlements. The inhabitants are mostly Croatians, Catholics and farmers.
From east and south side it borders with municipalities Petrijanec, Vinica and Donja Voća, and on west and north with neighboring Slovene municipalities Zavrč, Gorišnica and Ormož. The name Cestica is related to an ancient Roman traffic road Ptuj-Osijek.
Picture 3. Position of Cestica Municipality in Varaždin county
B. Spatial and traffic characteristics
Spatially, the territory of Cestica municipality has 4 characteristic units. Those are: areas along Drava, plain agricultural area, linear line of settlements along the main traffic road from the state border to the border with municipality Petrijanec and a hilly landscape with mixed settlements, vineyards and forests, and valleys with brooks. A combination of fertile plain of river Drava and vineyard hills gives a special quality to the municipality, as well as the possibility of simultaneous intensive usage of agricultural land and vineyards, forests and meadows on the hilly part.
The traffic position of the municipality is rather favorable, although it is situated on a state cross-border. Passing through is one of the key traffic directions: the state road D2 (Slovenia – border crossing Dubrava Križovljanska – Varaždin – Virovitica – Našice – Osijek – Vukovar – Ilok – Serbia and Montenegro). Furthermore, construction of a fast road, the so-called „Podravska magistrala (highway)“ is planned for near future, which will be passing through the plain area of the municipality, and which will be directly linking Austria through Slovenia with highway Budapest-Zagreb. It should be emphasized that the mentioned Podravska magistrala will be passing through Economic zone Cestica.
Border crossings
On the territory of municipality Cestica, there are two international border crossings and one boundary crossing towards the Republic of Slovenia. The first is Dubrva Križovljanska – Zavrč, which has a status of a permanent international border road crossing of I. Category, and the other one is Otok Virje – Ormož, with a status of a permanent international border crossing of II. Category, while the boundary crossing Križanče – Drenovec is located on a 3-border point area of municipalities Cestica, Donja Voća and Zavrč. According to data by the Border-crossing Police station Varaždin, during the first 9 months of 2004,1.553.651 passengers and a total of 464.840 vehicles passed through the Dubrava Križovljanska border-crossing. During the same period of time, a total of 560.412 passengers and 100.512 vehicles passed through the border-crossing Otok Virje.
Within the state, the municipality stands out for several characteristics. Cestica is the most north-western part of the Republic of Croatia. Its longest border, from its west and north side is with the Republic of Slovenia, 18 kilometers long. A part of Ormoško lake is on the municipality’s territory, which serves as accumulation for hydroelectric power plant Varaždin. It is a part of a system of Drava hydroelectric power plants.
3. ECONOMIC ZONE CESTICA
„Gospodarska zona Cestica“ (Economic zone Cestica), on the basis of a new physical development plan for Cestica municipality and the decisions taken by authorities, has become a joint name for three locations with planned business activities. The first and the most important location is marked Location A and is located in Otok Virje and partly in Virje Križovljansko. The second location is Location B and is located in Babinac, while the third location is Location C and is located in Dubrava Križovljanska. The markings indicate the schedule of priorities for communal construction and construction of business objects.
Picture 5. Orto-photo overview of Economic zone Cestica with Locations A, B and C
1. LOCATION A
Location of business zone in Otok Virje and Virje Križovljansko, marked Location A, is a part of Economic zone Cestica, and as such represents a part of area which is the most developed and equipped for the immediate reception of entrepreneurs and their investments. Location in Otok Virje is 100% owned by municipality Cestica, and we can view it as two separate parts (marked A-1 and A-2), while the location in Virje Križovljansko is owned by the state (marked as A-3).
a) Part A-1
Part A-1, as an integral part of Location A, is located east from the future fast road, the so-called „Podravska magistrala”. This area consists of four parcels, an access road with a communal infrastructure (water, electricity, and telecommunications) and a substation. Parcels 1 and 4 are privately owned and the construction of objects is about to start, while parcels 2 and 3 are being sold. The size of the parcel number 2 is 9961 m2, and the size of parcel number 3 is 13423 m2.
|
Parcel marking |
Size
|
Owner
|
|
1
|
34.978 m2
|
Kohlbach Holding-Austria |
|
2
|
9.961 m2
|
- for sale |
|
3
|
13.423 m2
|
- for sale |
|
4
|
13.203 m2
|
Kalaura d.o.o. Zagreb |
b) Part A-2
The area marked A-2, is an area west from „Podravska magistrala“, of a total size cca. 48.000 m2, and a conceptual project being elaborated. The conceptual project anticipates dividing this area into 8 parcels, with 3 parcels of cca. 7.000 m2, and 5 parcels of cca. 5.000 m2.
c) Part A-3
In Virje Križovljansko on both sides of the county road Ž 2028 between Križovljan grad and Otok Virje, a new part of economic zone on Location A is planned, which is separated from Križovljan grad with a very valuable agricultural land, so as to avoid negative impact of economic zone on a possible development of tourist recreational and economic facilities in Križovljan grad. Distance from the residential settlements enables an undisturbed development of the zone and settlements located in the vicinity. Traffic wise, this zone has a good connection with the existing border crossing over the county road and an excellent possibilitiy of being connected to a new border crossing and planned fast state road (Podravska magistrala). Its objective is to, together with the planned zone in Otok Virje, enable development of industrial and warehouse-transportation economic activities in vicinity of the new border crossing as the economic originator of municipality’s development. The total size of this location is cca. 500.000 m2.
2. LOCATIONS B and C
Locations B and C are areas of second and third priorities and as far as communal infrastructure, there is traffic connection. It should be emphasized that the parcels in these areas are mostly privately owned, except for zone B, where a certain part of parcel is owned by municipality Cestica. Repurchasing of land by interested investors will be supported in these locations.
3. DESIRABLE ACTIVITIES AND AVAILABILITY OF WORK FORCE
· As the location of a top priority, Location A is the place of economic development not only for municipality Cestica, but also for surrounding areas. The result of development and activation of the economic zone will be to primarily hire residents of municipality Cestica and its wider area.
· However, respecting all the natural beauties mentioned when describing the municipality Cestica, and all the positive regulations and laws of the Republic of Croatia and EU, environmental protection comes second.
· In regard to long time business of traders and entrepreneurs on the territory of municipality Cestica, the intention is to use the existing resources in combination with foreign partners who will, with local businessmen, invest in partnership.
If we consider all the above mentioned, we can outline the activities which are desirable in the economic zone: metal working industry, woodworking, production of electrical-materials, production of plastic and glass products, catering-tourist, leather shops, food and beverage production, assembling and production of parts for automobile industry.
UNEMPLOYED PERSONS ON TERRITORY OF CESTICA ACCORDING TO EDUCATION LEVEL IN DECEMBER 2005
|
EDUCATION LEVEL |
TOTAL
|
WOMEN
|
|
No school and uncompleted elementary school |
49
|
17
|
|
Elementary school |
74
|
47
|
|
High school for trade professions lasting up to 3 years and school for qualification of workers |
141
|
65
|
|
High school lasting 4 + years |
72
|
55
|
|
Gymnasium
|
0
|
0
|
|
Higher education (college), I. university level and expert studies |
4
|
2
|
|
Universities, Academies, Masters Degree, Ph.D. |
4
|
4
|
|
TOTAL
|
344
|
190
|
UNEMPLOYED PERSONS ON THE TERRITORY OF CESTICA ACCORDING TO AGE IN DECEMBER 2005
|
EDUCATION LEVEL |
TOTAL
|
WOMEN
|
|
15-19 years old |
27
|
8
|
|
20-24 years old |
57
|
38
|
|
25-29 years old |
49
|
41
|
|
30-34 years old |
33
|
24
|
|
35-39 years old |
33
|
19
|
|
40-44 years old |
36
|
23
|
|
45-49 years old |
43
|
20
|
|
50-54 years old |
35
|
9
|
|
55-59 years old |
22
|
6
|
|
60 + years |
9
|
2
|
|
TOTAL
|
344
|
190
|
According to the basic groups of professions, the unemployed persons recorded by the Cestica Branch office of the Croatian Employment Institute can be divided into the following groups:
· Engineers, technicians and similar professions – total of 43 of whom 29 women: chemical technicians, construction technicians, electro-technicians, food technicians, computer technicians, economist, nurse, woodwork technician, weave technician...
· Office and counter officials/clerks – total of 35 of whom 26 women: typist, secretary, accountant, storekeeper, administrative clerk, hotel-tourist official/clerk...
· Catering and commercial professions – total of 85 of whom 63 women: cook, waiter, baby sitter, hairdresser, salesman, deliverer, security guard for the objects and surroundings...
· Farmers, hunting-breeding, forestry workers and fishermen – total 27 of whom 19 women: wine-grower, cellarer, gardener, florist...
· Professions in trade and individual production – total of 94 of whom 33 women: bricklayer, reinforcing worker, concrete laying worker, carpenter, plasterer, assembler of construction elements, plumber, electrician, house-painter, car body mechanic, locksmith, lathe operator, machinist, electro-mechanic, watch-maker, baker, pastry chef, textile maker, shoemaker, stoker, tire repairman, driver, fort cliff driver...
· Simple professions – total of 275 of whom 147 women: cleaning lady, maid, delivery man, farming, gardening, fruit-growing, vine-growing, bricklaying, carpeting, woodworking worker...
4. ADVANTAGES OF INVESTING INTO ECONOMIC ZONE CESTICA
a) AREA OF SPECIAL STATE CONCERN
Given that municipality Cestica belongs to an area of special state concern of category 3, investing into municipality Cestica has many advantages as opposed to other business and entrepreneurial zones in the surroundings, and as such represents the only business zone in Varaždin county in the area of special state concern. According to Law on areas of special state concern (»Narodne novine« (official gazette), no. 44/96., 57/96., 124/97., 78/99., 73/00., 87/00., 127/00., 94/01., 88/02. and 42/05.) among other, the entrepreneurs have the following benefits:
o INCOME TAX BENEFITS
Tax payers who work in the area of special state concern and hire over 5 employees for an indefinite period of time, with over 50% of employees having had a residency in the area of special state concern for at least 9 months, pay income tax for 10 years following the implementation of this Law as follows:
They pay 75% of the regulated tax rate in 3. category area.
o REAL ESTATE TAX BENEFITS
An exception to provisions of the Law on Real Estate Tax (for transactions and acquiring of properties located in the areas of special state concern, real estate tax is not paid in case when a private entity, through purchase of property, registers or changes the residence within that area.
Tax from Para 1. of this Article is not paid by legal entities who sell property in the areas of special state concern and which will continue to serve for business purposes.
Tax from Paras 1. and 2. of this Article is not paid if the property is abalienated or the business discontinued, or if the resident changes the residency outside the area of special state concern within 10 years of the day the property was acquired.
o CUSTOMS BENEFITS
In order to use the benefit from Article 17. Para 1. of the Law on import, entry or reception of equipment and parts for renovation or development of economic or similar activity which is either starting or is being implemented in these areas. The beneficiary of the customs benefit submits to the Ministry of Finance – Customs Administration, a request for verification of list of equipment and parts which are intended for renovation or development of economic or similar activity in the areas of special state concern.
The Ministry of Finance – Customs Administration verifies the list of equipment and parts upon previously obtained opinion by the Ministry of Development and Renovation.
The Ministry of Finance – Customs Administration processes the request and the proposed list and prior to verifying it, obtains the opinion from the Ministry of Development and Renovation.
o REDUCED WATER FEE
|
· Tarifni broj |
· Osnovica |
· Jedinica |
· Grad Zagreb |
· Varaždin, Ivanec, Vinica, Čakovec.. |
· CESTICA |
|
· 1. |
· Poslovne prostorije, osim proizvodnih pogona |
· m3 |
· 70,00 kn |
· 42,00 kn |
· 21,00 kn |
|
· 2. |
· Stambene građevine za stalno stanovanje: |
· |
· |
· |
· |
|
· |
· a) Obiteljske kuće do 400 m2 |
· m3 |
· 30,00 kn |
· 20,00 kn |
· 7,50 kn |
|
· |
· b) Ostale stambene građevine za stalno stanovanje |
· m3 |
· 42,00 kn |
· 28,00 kn |
· 10,50 kn |
|
· 3. |
· Stambene građevine za povremeno stanovanje |
· m3 |
· 56,00 kn |
· 35,00 kn |
· 17,50 kn |
|
· 4. |
· Objekti društvenog standarda i religijski objekti |
· m3 |
· 17,50 kn |
· 10,50 kn |
· 3,50 kn |
|
· 5. |
· Proizvodni pogoni |
· m3 |
· 12,50 kn |
· 7,50 kn |
· 2,50 kn |
|
· 6. |
· Prometnice |
· m2 |
· 4,90 kn |
· 1,40 kn |
· 0,70 kn |
|
· 7. |
· Produktovodi |
· m |
· 10,50 kn |
· 7,00 kn |
· 3,50 kn |
|
· 8. |
· Telekomunikacijske kanalizacije |
· m |
· 21,00 kn |
· 14,00 kn |
· 7,00 kn |
|
· 9. |
· Otvorene poslovne građevine |
· m2 |
· 35,00 kn |
· 21,00 kn |
· 7,00 kn |
|
· 10. |
· Druge otvorene građevine |
· m2 |
· 17,50 kn |
· 10,50 kn |
· 3,50 kn |
|
Heading No.
|
Basis
|
Unit
|
Town Zagreb
|
Varaždin, Ivanec, Vinica,
Čakovec..
|
CESTICA
|
|
1.
|
Business premises, except for
production drives
|
m3
|
70,00 kn
|
42,00 kn
|
21,00 kn
|
|
2.
|
Residential objects for permanent
residing:
|
|
|
|
|
|
|
a) Family houses up to 400
m2
|
m3
|
30,00 kn
|
20,00 kn
|
7,50 kn
|
|
|
b) Other residential objects for
permanent residing
|
m3
|
42,00 kn
|
28,00 kn
|
10,50 kn
|
|
3.
|
Residential objects for temporary
residing
|
m3
|
56,00 kn
|
35,00 kn
|
17,50 kn
|
|
4.
|
Social standard objects and religious
objects
|
m3
|
17,50 kn
|
10,50 kn
|
3,50 kn
|
|
5.
|
Production drives
|
m3
|
12,50 kn
|
7,50 kn
|
2,50 kn
|
|
6.
|
Traffic roads
|
m2
|
4,90 kn
|
1,40 kn
|
0,70 kn
|
|
7.
|
Pipeline
|
m
|
10,50 kn
|
7,00 kn
|
3,50 kn
|
|
8.
|
Telecommunication sewage
|
m
|
21,00 kn
|
14,00 kn
|
7,00 kn
|
|
9.
|
Open business objects
|
m2
|
35,00 kn
|
21,00 kn
|
7,00 kn
|
|
10.
|
Other open objects
|
m2
|
17,50 kn
|
10,50 kn
|
3,50 kn
|
b) SPECIAL BENEFITS OF MUNICIPALITY CESTICA
Municipality Cestica additionally stimulates the economic activity in its area, and thus provides for the following benefits:
o Exemption from paying communal fee if the construction is finalized within 2 years of signing the land sale contract (amount of 10,00 kn/m3),
o Exemption from paying communal fee lasting 3 years from the start of business (amount 0,15 kn/m2)
o Exemption from paying company tax lasting 3 years from the start of business (amount 400,00 kn/annually),
o Additional discount on price of land if there is a possibility for works to be performed by the companies from Municipality Cestica.
o Possibility of reducing the price of land under condition of hiring workers from Municipality Cestica.
c) COMMUNAL INFRASTRUCTURE AND TRAFFIC CONNECTION
Communal infrastructure:
|
Location
|
Gas
|
Electricity
|
Water
|
Sewage
|
Telephone
|
|
A-1
|
NO
|
YES
|
YES
|
NO
|
YES
|
|
A-2
|
NO
|
NO
|
YES
|
NO
|
YES
|
|
A-3
|
NO
|
NO
|
YES
|
NO
|
YES
|
|
B
|
NO
|
NO
|
YES
|
NO
|
YES
|
|
C
|
NO
|
YES
|
YES
|
NO
|
YES
|
Traffic connection – distance in km from:
|
Location
|
Roads
|
Highway
|
Railroad
|
Airport
|
Border crossing
|
|
A-1
|
0
|
25
|
2
|
125
|
1
|
|
A-2
|
0
|
25
|
2
|
125
|
1
|
|
A-3
|
0
|
25
|
3
|
125
|
2
|
|
B
|
0
|
27
|
5
|
125
|
4
|
|
C
|
0
|
30
|
8
|
125
|
0
|
The area of Economic zone Cestica is managed by a commercial company „Gospodarska zona Cestica d.o.o.“, of which municipality Cestica has a majority ownership.