The Magistrate, DPP, and Prague will sign a memorandum on the development of Palmovka

Prague – The Prague City Hall, the transport company (DPP), and Prague 8 will collaborate on the development of Palmovka. One of the considered forms is a joint venture between the City Hall and DPP, and the specific nature of the cooperation will be clarified on June 30. The city district would then provide assistance in coordination. This follows from the draft memorandum that was approved by Prague councilors today. Palmovka is considered one of the so-called significant development centers and has been in poor condition for many years.

"The memorandum clarifies the individual relationships and that we will work on a mixed urban district that should primarily serve affordable housing. At the same time, it should ensure the transformation of the area, where a park should be created... It should be a project that sets a new standard for working with land in municipal ownership," said Deputy Mayor Petr Hlaváček (TOP 09). The development of the territory will be handled by the city's company, Prague Development Company.

The collaboration between the city and DPP on the development of the area can take several possible forms, such as a mandate contract, a loan, a lease agreement, a right to build, and so on; a joint venture is not excluded, as stated in the document approved by the councilors. The exact form of cooperation will need to be specified, with an agreement to be reached no later than the end of this June.

The project will also involve the city hall of the eighth district, which owns part of the land in Palmovka. According to the draft memorandum, it would also provide so-called cooperation. This means that it would assist in coordinating the preparation and construction of the project.

The document includes not only the area currently occupied by the bus terminal, metro exits, and tram tracks but also the space where the remains of the Palmovka Center stand, which was to be the new headquarters of Prague 8. "In the general section, the area of the unfortunate town hall is also included, but it is being addressed procedurally by a separate team. It is necessary to first resolve the question of how to proceed (with the Palmovka Center)," said Hlaváček.

The memorandum will be concluded by the parties for an indefinite period and will come into effect upon the signing of all parties involved. Withdrawal from the document is possible if one of the parties does not act in accordance with its wording, or upon mutual agreement.

The lands in Palmovka are owned by the City Hall, the city district, and DPP, which is owned by Prague. In the future, a smaller district with a park could emerge there. In the western part of the area stands the unfinished Palmovka Center, where the city hall was supposed to have a new headquarters. Its construction was approved by Prague 8 in 2010, but it has not yet been completed, among other things, due to disputes with builders. What will happen to the remains of the building is still unclear.