Councilors approved the rules of contributions from developers
“The end of the Arab market,” said Petr Hlaváček, Councilor for Territorial Development (TOP 09), approving the methodology in the Council. The document should be consecrated by Prague’s deputies at the end of January. Investors are still negotiating with the city districts about their shares in improving the site or, for example, the construction of kindergartens individually.
Some town halls have firm rules agreed by the council, others depend on the developer’s ability to negotiate with the current political representation. And there are no cases where the builder agrees on the conditions for the construction of the project, but they cease to apply at the time of regrouping forces at the town hall, either after the election or when the coalition changes in a given election period.
“I believe that the methodology will bring clarity and a predictable environment to the negotiations. We need to know when buying the land, additional costs will be needed, “expects the director of the development company Skanska Reality, Petr Michálek.
2300 crowns per square meter
One of the most anticipated calculations is the payment for the change of the zoning plan. According to Hlaváček, these are the highest and strictest tariffs that anyone has ever introduced in Prague: “The amount of 2,300 crowns per square meter (rough floor areas – editor’s note) corresponds to about 25 percent of the value that will be created by the developer by agreeing on a higher capacity in the zoning plan. In addition, the amounts will increase by inflation every year. “
For example, the planned projects at the former Žižkov freight station could reach approximately one billion crowns, according to contributions from all participating developers. A new primary school or several kindergartens, roads or parks could be built for it.
Voluntarily, but…
As with the previous individually discussed contributions for the city district, the performance on the basis of the new methodology will be legally voluntary. “If the investor does not want to follow the rules, he does not have to, but there will be no change in the zoning plan,” Hlaváček added.
Contributions to the improvement of the site may also take a non-financial form. For example, the restoration of original, architecturally interesting buildings in brownfields, the organization of an architectural competition, the transfer of city land or the provision of subsidized housing will be recognized. In any case, the city’s leadership actions that one hundred percent of the money collected from developers will remain where the project originates.
Some developers with the payment of contributions earlier would be related to further price increases. According to others, however, the establishment of clear rules for changes to the zoning plan can help unblock large development areas where building closures now apply. “If this increases the supply of flats, it could also lead to a general decline,” said Leoš Anderle, CEO of Sekyra Group.