The Town Hall of Prague 7 will establish a fund for investor co-participation in land development

Prague – The Prague 7 City Hall will establish a Fund for the co-participation of investors in the development of the area, to which developers will contribute, in agreement with the city, for infrastructure development. The city hall will invest 28.68 million crowns into the fund. The district will follow the rules of engagement with developers set by the municipal office. This follows from a document approved by the district representatives. The city hall has been negotiating with developers about contributions to infrastructure development for a long time.

The fund will be established as a so-called permanent purpose fund, where funds from investor co-participation will be gathered. "The city council will decide on the use of the fund's resources for specific investment actions in the district," the document states.

The city hall will transfer funds into the fund that it has previously received from cooperation with developers. According to the document, the office has reached an agreement with one of the banks for more favorable interest rates on the fund's bank account.

The representatives also approved the adoption of rules for negotiations with investors, according to which they will adjust their own rules. According to the municipal rules, developers will pay either 700 CZK or 2300 CZK per square meter of floor area. Prague 7 will also increase the lower limit of the proposals to which the rules apply, and it will expand the range of projects to which the rules will apply, which will now include not only housing and administration.

In the past, the municipal office and city districts concluded extraordinary contracts with developers, in which the developer committed to meeting the city's requirements beyond their obligations. This occurred, for example, in the project for the planned construction of the Masaryk Centre near Masaryk Station, signed by the Prague CBD company from the Penta group, the municipal office, and Prague 1.