Addressing reporters, Ferencak said that his decision to resign was prompted by his being exposed to "slander, lies and media lynching" in a scandal regarding the sale of city land in a Zagreb neighbourhood.
The land was acquired by the Croatian Nanbudo Institute (HNI) in 1996 under favourable conditions and at a price of 832,000 kuna for the purpose of construction of a centre for disabled persons. In 2001 the HNI registered the land as its property, only to sell it in two years' time for 11.7 million kuna. The HNI was at the time led by Ferencak and Petar Turkovic.
Ferencak reiterated that he had acted legally and ethically and that the land which the HNI had sold the "Konzum" chain of stores was not the city's property but its own, because the city had sold and not leased the land to the HNI as the media reported.
He said that his decision was not prompted by Foreign Minister Miomir Zuzul's resignation as speculated by some media.
Ferencak said that he would not run in the next local elections because he did not want the media campaign against him to hamper the work of his party, the city coalition and government or any other city institution.
Ferencak's decision was welcomed by leaders of the HNS's Zagreb branch, Stipe Tojcic and Morana Palikovic-Gruden, and HNS spokesman Boris Blazekovic, who said that they expected their coalition partner, the SDP, to act in the same way with regard to their member Milan Bandic.
The HNS and the SDP are expected to discuss Ferencak's successor after his resignation is accepted by the City Assembly.