The councilors approved the agreement between the city, Prague 8 and Metrostav on the Palmovka Center
Prague – Prague councilors today approved a tripartite agreement between the capital, Prague 8, and Metrostav Alfa regarding the unfinished Palmovka Center. The document will make it possible to end disputes over the building’s torso and complete construction. City councilor Jan Chabr (TOP 09) told ČTK today. According to Metrostav’s agreement, Prague 8 will also pay approximately CZK 142. In exchange for the building and land, it will receive a subsidy of CZK 550 million from the municipality and at the same time the city will forgive its debt.
The construction of the building, where the town hall was to have a new headquarters and include commercial premises, was approved by the previous management of the city district in 2010. The costs were estimated at more than a billion at the time. However, the previous management of Prague 8 stopped the construction and subsequently its ownership was tried.
“Given that this is an unfortunate milestone of the past and the set of real estate to be transferred to the capital, it is essential that the property resolves all disputes and possible claims going beyond the city district. It is one of the neglected sites in the legal of the Order of Prague and in order to start its overall revitalization and resolve the area comprehensively, it is necessary that it is not burdened by other legal and judicial disputes. said Chabr.
The agreement was approved last week by representatives of Prague 8. According to the mayor Ondřej Gros (ODS), an acceptable compromise is when Metrostav demands even higher amounts in court than the one it finally agreed with the town hall. Originally, there was a threat that the city district would pay up to 214 million.
In addition, according to the agreement, the municipality will provide the town hall with a subsidy and forgive the debt of 250 million crowns. City Hall received a loan of 300 million, which was to be used for construction. However, this did not happen in the end and the city district returned only part of the loan to the city. He will forgive the rest now. “The goal was to protect the city district from bankruptcy. That’s why we waived the obligation to return the subsidy,” said Deputy Mayor Pavel Vyhnánek (Prague Sobě). Prague 8 has long struggled with a lack of funds. The city will pay the mentioned subsidy of CZK 550 million to the town hall gradually in the years 2022 to 2026.
In the future, the Palmovka center should be part of the transformation of the entire Palmovka locality, where new houses will be built and the current bus station will disappear. The current square of Bohumil Hrabal will also undergo the transformation, greenery, benches and a café will be added. What exactly will be in the building of the Palmovka Center is not yet clear. According to Deputy Mayor Petr Hlaváček (TOP 09), these should be administrative premises and apartments will be built around the building.