What will happen to the project for billions? The demolition of Nová Palmovka is also at stake
Ten years ago, the then town hall ordered a project for a new headquarters, which also included a commercial part. It soon turned out to be too big a bite. In addition, after the municipal elections in 2014, the political distribution of forces changed.
A year later, it came to a practical halt and a series of disputes began between investors and the construction company regarding the fulfillment of contractual conditions.
It should be clear by the end of the year
At the same time, the case exceeded the boundaries of the city district. What goes on with the construction is currently being addressed by the Prague management. They should be clearer by the end of the year. There are variants of the building, from the sale of the building under construction to its complete demolition. A fresh analysis from the consulting company Ernst & Young, commissioned by Prague 8, serves as a basis for decision-making.
“More than a hundred-page study includes more popular variants. The discussion is running between the city districts, the capital and the Prague Institute of Planning and Development, “says Martin 8alek, a spokesman for Prague 8, adding that the joint meetings of experts are now further complicated by the bad epidemic situation.
“It should be clear by December, then the selected solution will be presented for public debate,” adds Šalek.
What is certain is that any completion is completely beyond the financial means of the city district. For several years now, it has been fighting with Metrostav to pay off debts and to argue about the circumstances of preserving the unfinished building. In the meantime, the intention of Prague to have a low part of the town hall buildings, where, according to the original plan, shops are to be located, be completed for the seat of the Prague ambulance, also failed.
Part of the investment subsidy for the construction of a rescue center was protected in 2018 to pay debts to Metrostav. Even then, it was clear that the building would not be completed by mid-2019.
Deepening disputes
In addition, after the municipal elections, the city management changed again, and thus the priority. The dispute between the city district and Metrostav has deepened.
The arbitration court at the Czech Chamber of Commerce subsequently determined that Prague 8 must pay Metrostav a debt of almost three million crowns. In total, however, the company requires 180 million crowns for proven work and materials. This lawsuit is currently pending before the arbitral tribunal.
The city district in return to secure 300 million crowns due to the premature termination of the construction contract.
“Victories in arbitrations are a confirmation of the correctness of the procedure for us. However, our goal is not to judge, but to implement development projects. We hope that Prague 8 will find a solution that will help complete the project. The location of Palmovka would deserve it, “says Metrostav spokesman Vojtěch Kostiha.