Praha 10 wants contracts with developers for contributions to its development

Prague - The leadership of Prague 10 wants to enter into agreements with developers that would require them to contribute to street repairs or the expansion of schools and kindergartens. If they sign the contract, they will pay 915 crowns per square meter of the gross floor area of their project this year. The aim is to reduce the impact of construction on the budget of the city district, which has to cover civic amenities from its own funds. Signing the agreement with the municipality will be voluntary. CTK was informed of this today by the municipality's spokesman Jan Hamrník. The intention was approved by the district council.

"We will consistently urge developers to participate in addressing the immediate impacts of their projects on the surroundings. This will include, for example, increasing the capacity of schools and kindergartens, repairing streets and sidewalks, or building new parking spaces and public transport stops," stated Deputy Mayor Martin Valovič (ODS).

Signing the contract and the contribution will be voluntary for builders; the municipality cannot force them to do so. However, according to the deputy mayor, cooperation is beneficial for both parties. "The municipality has an interest in improving its amenities, while the builder wants to offer housing or job opportunities in a fully functional community. Both together create conditions for the long-term sustainable development of the municipality," Valovič added.

The amount that the builder will pay will change each year. The funds collected from developers will be sent by the city district to a special account that the public will be able to monitor and check.

In the past, so-called planning agreements began to be negotiated by other municipalities with builders. Last October, for example, Prague 7 announced that it was negotiating a contribution of up to 25 million crowns. This applies to projects over 250 square meters of new residential or administrative space. Prague 4 first announced such an intention in 2015.