Of the 12 largest areas affected by the changes to the zoning plan, the sum of financial and non-financial performance by developers should amount to over 11 billion crowns. “The purpose of the methodology is to determine the recommended participation of investors in the increased costs of the municipality in public infrastructure and address its deficits, primarily in changing the zoning plan, and the municipality’s cooperation with the investor,” says the explanatory memorandum At the same time, the methodology establishes the Investor Participation Fund with the Board of Directors of the Magistrates’ Commission.
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According to Deputy Mayor for Territorial Development Petr Hlaváček (United Forces / TOP 09), the new methodology and fund, as one of the reactions to the deteriorating housing availability, should contribute to the development of the city in the form of quality multifunctional neighborhoods and short distances. Preparations for the text were said to take several months to ensure a solid legal basis through three legal opinions.
“Thanks to this methodology, a way of a unified approach towards investors and developers is emerging. The individual methodologies of city districts are being unified, and a certain standard is set. This gives me the possibility of deviations, but also a certain basic contractual pattern. What is important is the principle according to which money is returned to where the given activity or burden takes place, “said Hlaváček, according to whom the novelty is a guide to the regulatory plan by agreement.
According to Hlaváček, the uniform rules of contribution of developers to some extent replace the budgetary determination, which in its current form does not take into account the burden of specific localities by development.
The Deputy Mayor believes that the Prague initiative will give impetus to the debate on both the budget and the Building Act. “We already use this methodology, for example, in a project at the Žižkov Freight Station, where investors should contribute about a billion and a half, spread over time. I believe that this will set a certain standard and transparency in cooperation between the city and the private sector at a high professional level, following the example of successful cities such as Hamburg or Munich, “Hlaváček continued.
The methodology proposes to collect from building real estate larger than 300 square meters gross floor area 700 crowns for each square meter and 2300 crowns while increasing the capacity to change the zoning plan.
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Opposition Greens called these amounts completely insufficient, arguing that some neighborhoods have been collecting more for years. “The money raised for large projects will hardly cover the cost of building preschool facilities. However, the new construction also generates demands on health, social, cultural and transport infrastructure. In addition, current annual inflation puts these figures in a new perspective. At the beginning of 2022, 700 crowns per meter is actually quite a ridiculous amount and the developers are probably celebrating today, “said Jana Jebavá, co-chairwoman of the Prague Greens.
Matěj Michal Žaloudek, her party colleague and representative of Prague 3, also recommends that she keeps the methodology of the development contribution in the form of a certain number of municipal flats only as an option. “Given that the primary task of municipalities is to ensure the capacity of primary and kindergartens, it is clear that the expansion of the housing stock will not be a priority for the town hall. Which, given the situation today, is a pity and a missed opportunity. Unfortunately, it turns out that the selection from developers will cover the costs of only about a third of the public infrastructure that will need to be built, “added Žaloudek, who otherwise described the emergence of predictable and transparent rules as the right move.