Praha 5 will conclude an agreement with the company Ekospol for residential construction in Barrandov

Prague – Prague 5 will receive approximately ten million crowns from the development company Ekospol and land for a planned residential project next to the Barrandov estate, where the company will build a public parking lot and a playground. The city hall will withdraw its appeal against the building permit for the project. This follows from a cooperation agreement approved by the district council this week.

According to the approved document, Ekospol plans to build nine-story residential buildings with approximately 300 apartments at the intersection of Werichova Street and Miloš Havel Street; the developer has already started selling them on its website. The new apartments are the second phase of the project "Výhledy Barrandov," as the company previously built two apartment buildings with a similar number of units on neighboring plots across Miloš Havel Street.

The contribution slightly exceeding ten million crowns corresponds to 500 crowns per square meter of gross floor area of the planned project. In addition, the company will build parking for 55 cars and a playground on the adjacent land, which it will then transfer to the municipality. In exchange, the municipality agrees in the contract to withdraw the filed appeal and support the project with consideration to the public interest.

Prague 5 has approved rules for negotiating voluntary contributions from developers planning to build in its territories. According to its website, the municipality has entered into about thirty such contracts since 2018.

The Prague council approved citywide rules last year for so-called contributions from developers. According to these rules, developers must pay 700 crowns per square meter of gross floor area into a special city fund if the investor's plan is in accordance with the land use plan. If a change is necessary, developers must pay 2300 crowns per square meter. The reason is the lack of funds for building necessary infrastructure. However, these rules are not mandatory for municipalities, which can negotiate their own terms. At the same time, local governments cannot legally force investors into such contributions, so the conclusion of an agreement assumes willingness from both parties.