The issue of the former Cracovia Hotel is widely discussed among the citizens of Karaków. It is an example of a severe conflict between the local authorities and the investor – Echo Investment company, which bought the building in Błonia Park. Right after the purchase the building was listed in the Register of Historical Monuments (rejestr zabytków) as an example of 1960s modernist architecture. At present, the local spatial management plan stipulates that the building will be renovated and restructured. The investor claims that the building must be demolished as it can no longer perform utility functions. The company justifies its position by the fact that there are 18 tons of cancerogenic asbestos in the walls, what is more, the structure of the building makes it impossible to open a hotel in it once again and prevents installation of fire protection system and central air conditioning which are required by law.
To replace the former hotel Echo Investment presented a project of a modern department store. According to the plan the building would have developed entertainment and restaurant, café and bar functions, a cinema with four screening rooms, and an underground parking with 760 parking lots which was to be partially open. Meanwhile, the city authorities signed an agreement to build an underground parking with 150 parking lots on the other side of the street – under the square in front of Muzeum Narodowe (National Museum).
Supporters of the present Cracovia building insist that the building should be only modernized as it is a symbol of Kraków architecture. The investor observes that the new project was created by Witold Cęckiewicz, the architect who designed the created in 1965 hotel, which guarantees that the department store will refer to its prototype.
Discussions on the new project are ongoing on a forum created by the investor. People who live in the neighbourhood are particularly active in the discussion. They are concerned by communication disorder in the area and disturbance of the building line. The investor replies to every new topic.
The chances to realize the investor's plans had been erased after the city rejected the amendments to the project of Land Development and Management Conditions. It means that Echo cannot demolish the building and build the department store. Earlier the representatives of the investor said that if the project is accepted without the amendments the building will be left as it is. That would result in another ruin in such an attractive location. The City Council is yet to vote on the project.