The construction of Nová Karolina in Ostrava will continue

Ostrava - The construction of the new Karolina in Ostrava, one of the largest urban development projects in the Czech Republic that was halted about a year ago due to the global financial crisis, will continue. The company Multi Development, which won the competition for the redevelopment of the former industrial area, has obtained a loan of 98.5 million euros (2.6 billion CZK) from banks. The information, which the Czech News Agency received from a reliable source, was confirmed today by the deputy mayor of Ostrava, Lukáš Ženatý (ODS). The total costs of the project are expected to reach approximately 15 billion crowns according to the plan.
    Work on the construction could begin within a few weeks, and its start will depend not only on the weather but also on the lowering of the groundwater level. Multi Development has so far secured funds for the first part of the four construction phases. The financing comes from multiple banking institutions, including both Czech banks and foreign entities. "It is for the financing of the first phase, which is the most demanding in terms of construction. This includes the commercial and social center and all the infrastructure including the square," said Ženatý.
    However, the first phase also includes the construction of a residential building and an administrative complex. Multi Development had agreed to collaborate with Passerinvest Group on the construction of the administrative part of the first phase of the new Karolina before the complete halt of work. However, the construction work was ultimately halted completely due to the crisis.
    Ženatý added that the contractual partner of the city is indeed Multi Development, and the city therefore expects that the first phase will be completed, including the administrative complex and the residential building.
    According to Ženatý, the loan that the company managed to negotiate is the largest that a developer has managed to secure in the Czech Republic during the crisis. "I still believe that we chose a good partner in 2006, and their ability to finalize the loan in this completely crazy time when banks are not lending money only proves that we have a partner we can rely on," said Ženatý.
    Ostrava city councilors decided at their November meeting to extend the construction schedule of the individual phases by two years at the request of the company. The completion of the first phase was originally planned for 2010. The entire New Karolina was supposed to be completed in 2016, meaning the overall completion is now pushed to 2018. However, the city conditioned the final approval of the amendment to the schedule on the submission of the loan agreement.
    New Karolina is set to be built on an area of 32 hectares, making it more than seven times larger than Prague's Wenceslas Square. A total of 97,000 square meters of retail space, 67,000 square meters of office space, and 78,000 square meters designated for housing are expected to be created. The area is also set to include 3,500 parking spaces. The last buildings of the former Karolina coking plant were demolished about 20 years ago, and the site had to be decontaminated for ten years.