The town hall should sell the Torzo na Palmovce or complete it with someone

Prague – The unfinished Palmovka Center (CP) in Prague 8 would be most advantageous to sell or complete with the help of a private investor. This was announced to ČTK by the councilor of Prague 8, Tomáš Hřebík (TOP 09 and STAN). However, according to the councilor, there is also the option that the city hall would buy the remains of the building from the municipality. The city hall has long been struggling with a lack of funds and does not have the money for completion. The construction of the building, where the municipality was to have its new headquarters, was approved by the former leadership of the city district in 2010. The costs were then estimated to exceed one billion crowns.

"According to the analysis by Ernst & Young, which the city district commissioned, there were two most suitable options for how to proceed with the property. Either sale or concession, meaning to complete it with the help of a private investor," said Hřebík.

If the city hall were to go the way of completion together with a private party, that party would not only finish the building but would also operate it afterwards. Prague 8 would retain ownership for a certain period after completion. The councilor did not specify for how long. The city hall currently does not have money in its budget for the completion of the building. In the past, it had promised a subsidy from the city. Due to the fact that the city hall did not reach an agreement with the construction company, the city reclaimed it.

According to the councilor, an additional option has been added to the mentioned two, which is the purchase of the building including the land by the city. "This consideration arises from the fact that this week, a memorandum on cooperation between the transport company (DPP), the city, and the city district was approved at the main city council for the Palmovka area," stated the councilor.

According to the memorandum, the cooperation between the city and DPP could take the form of a mandate agreement, a loan, a lease, and a joint venture is not excluded. Prague 8 will also be involved, as it owns part of the land in Palmovka. Among other things, it would assist in coordinating the preparation and construction of the project.

The project, costing 1.1 billion crowns, was approved in 2010, and a new city hall and commercial spaces were to be located there. Approximately half of the mentioned amount was already invested. The previous leadership of Prague 8, after the elections in 2014, questioned the ownership of the building, and the property became the subject of legal disputes between Prague 8, the city, and the construction company Metrostav. Eventually, the parties agreed that the building would be completed by Prague 8. However, this ultimately fell through, among other reasons due to disputes with the contractor, who terminated the contract with the city hall. At that time, the company justified its action by the city’s inactivity.