PRAGUE, March 18 The Czech Republic's
second-largest city Brno dealt a blow to U.S. online retailer
Amazon.com Inc's plans for a distribution centre in the
south of the country, as councillors voted on Tuesday to reject
some conditions for its construction.
The city council refused to back an amendment to the
contract with Amazon that would have allowed funds to help build
connections to the main highway near the plant's proposed site.
The city also said its plan governing development did not allow
Amazon last year announced plans to build two distribution
centres in the central European country, creating around 2,000
jobs in Brno. A site near Prague airport has already received a
An Amazon spokeswoman was not immediately available to
The rejection comes as the Czech economy is starting to get
back on its feet after exiting a record-long six-quarter
recession in the second quarter last year. Unemployment remains
at a record high but a jobless rate of 8.6 percent is still low
compared with others in the region.
Some countries such as Slovakia have already expressed
interest in housing an Amazon logistics centre if it is rejected
for Brno. Czech media reported the investment was worth 100
million euros ($139.1 million).
"Brno wasted its chance to get a strong investor at a time
of economic recession," said Brno Mayor Roman Onderka, a member
of the country's ruling Social Democrat party, whose government
had pushed for the investment.