Palmovka Center: The city of Prague 8 will forgive the debt, councilors approved
The town hall originally promised a subsidy of 600 million crowns from the city, which it had in three installments, the first of which was 300 million. However, the city district did not complete the unfinished building and subsequently did not return the entire amount, but returned about 55.2 million.
Debt forgiveness is part of the overall agreement between Prague 8, the municipality and Metrostav Alfa, which built the building. The town hall will pay about 142 million to the developer. It will receive a subsidy of 550 million from the city, which will be provided in the coming years. Prague 8, on the other hand, will transfer the unfinished building and land to the municipality.
Prague 8 has been facing financial problems for a long time and would be in danger of insolvency if it paid off debts. “The waiver of the penalty is part of a number of steps that the capital is taking to stabilize the financial situation of Prague 8, which got into significant trouble due to errors in the construction project of Nová Palmovka. We do not want the consequences to affect the citizens of the Eight. Our priority is to maintain all the services that the city district provides them, “said Deputy Mayor Pavel Vyhnánek (Prague Sobě). If the town hall went into insolvency, it would not be able to provide the population with basic services, including education.
Palmovka center
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. The previous management of Prague 8 stopped the construction and subsequently tried to own it.
In the future, the Palmovka center should be part of the transformation of the entire 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 will be specifically in the building of the Palmovka Center is not yet clear, however, the city management stated that it should be about administrative premises and apartments in the vicinity of the building.
This is what the Palmovka Center was supposed to look like.
Author: Prague 8 District, Plop