Praha 1 approved the contract for the construction of Penta in the vicinity of Florence

Prague - Prague 1 agrees with the proposed contract, which defines the so-called contributions of the Penta company to local governments in connection with the planned changes to the zoning plan for the upcoming construction on parcels northeast of Masaryk Station and at Florence. The contract was approved today by the councilors of the city district, who were criticized by the opposition. The city council approved the contract on Monday, and it will be addressed by the councilors of Prague 8 on Wednesday. The city conditions the changes to the zoning plan on the signing of the contract, which will subsequently be approved by the city councilors.

Through the contributions, the city demands a certain amount per square meter of gross floor area from developers for the planned projects, with the main leverage being the potential necessity of changing the zoning plan. The contributions are based on a methodology whose preparation began in the previous electoral term and utilize the institute of so-called planning contracts introduced by the new Building Act.

According to the councilor of Prague 1, Karel Grabein Procházka (ANO), the contributions for Prague 1 are calculated based on the share of parcels within its territory, which accounts for eight percent of the total area of the relevant zoning plan changes. According to a statement made by Penta on Monday, the total contributions will have a value of over 300 million crowns, to be shared between Prague 1, Prague 8, and the city hall.

Prague 1 will reportedly receive about 16 million, of which approximately ten million in cash. "This should be the foundation for a fund that we want to establish in Prague 1, so that financial resources resulting from planning contracts flow into it in the future," said the councilor. An additional five million will be in the form of non-financial contributions, which the city district intends to use for modifications to V Celnici Street, according to Grabein Procházka. He added that the city hall could also draw an additional seven million crowns from a previously concluded contract with Penta. The remaining one million crowns represents the share of Prague 1 in the costs of the architectural competition.

Opposition councilors criticized the way the material was presented and the content of the contract. For example, Pavel Marc (Greens) stated that the contract arrived for councilors only on Monday evening, which did not give them enough time to study the extensive document. Regarding the content, the opposition criticized the amount and form of the contributions, among other things. Anna Vinklárková from the organization Arnika also spoke at the meeting, expressing long-term dissatisfaction with the form of the contract and the associated changes to the zoning plan. She criticized, for example, the relocation of the bus station, which she believes is part of one of the changes.

Penta has already built the Masaryčka office building on part of the land near Masaryk Station, which it opened last year. The first of the zoning plan changes related to the approved contract includes additional parcels near the station to the east, while the second covers parcels at Florence, including the bus station. Penta purchased the bus station along with adjacent land in 2023. In the past, Penta, in collaboration with the capital city, announced an international urban planning competition that served as the basis for changes to the zoning plan. The total negotiated contributions also include the transfer of ten apartments to the city, the construction of a kindergarten, and the development of civic amenities, green spaces, or works of art.