Praha 6 will sell the land where the project Ice Bear was supposed to stand

Prague - Prague 6 has agreed with the investor who plans to build an apartment building on the site where a controversial project nicknamed the Polar Bear was originally intended to be. The agreement was approved today by the councilors. The city district will conclude contracts based on which the lands will be sold to the investor upon completion of the construction. The investor is the Penta group along with the Kaprain Group of financier Karel Pražák. The city hall will also gain the option to purchase part of the commercial spaces on the ground floor of the new building. The agreement has been criticized by some opposition members, who argue that the city district is selling the land too cheaply.

Last week, the city council approved the sale of parcels between Jugoslávských partyzánů Street and Verdunská Street. Prague 6 today approved the overall agreement that the city hall negotiated with the investor. This includes, in addition to the commitment for the future sale of the land for a price of 120.3 million crowns, the repayment of debts that the company owes to the city hall amounting to 39.4 million crowns. Both parties are currently in litigation over this money, and the disputes are now on hold.

The city hall has also negotiated the option for future purchases of at least 1100 m² of retail space on the ground floor of the planned building. A supermarket is planned for these spaces, and the rental income from these areas is expected to yield the city hall nine million crowns annually. The investor will pay the city hall the same amount for the land until the building is completed and the sale occurs. For the ground floor spaces, the city hall will pay the maximum price for which it sells the land, namely 120.3 million crowns.

Councillors from the Greens and Communists criticized the amount to which the city hall committed to sell the land during the meeting. The set price is based on an appraisal from Ernst & Young. The deputy mayor for urban development, Petra Kolínská (Greens/Troika Coalition), recently had another appraisal prepared, which estimated the land at 202.4 million crowns.

The city hall had a statement prepared by court expert Petr Ort, who claims that the appraisal is problematic. Ort himself estimated the value at 151.4 million crowns, but this is not an official appraisal, only a statement. Therefore, the city hall used the original estimate from Ernst & Young to determine the price. "We fully stand behind our appraisal," said Marek Jindra, a partner at the consulting firm, during the meeting.

The approach of the city hall does not please the councilor from the Greens, Petr Píš, who called the outcome a "defeat." "The city district made an enormous effort to challenge the appraisal that would have meant more financial resources for it," he stated, adding that a standard step would have been to have a revision appraisal prepared. According to Mayor Ondřej Kolář (TOP 09), however, the city hall is not obligated to do so, and if they were to agree to that, they could be making one appraisal after another. He believes Ort's expert opinion is sufficient.

The city hall rented the land in question in 2011 to the company Vítězné náměstí a.s., which was backed by PPF Real Estate. However, the project for a large office building nicknamed the Polar Bear sparked disputes that culminated in mutual lawsuits. In mid-last year, the new owners of Vítězné náměstí a.s. became the financial group Penta along with the Kaprain Group of financier Karel Pražák. The new owners stepped back from the original intention and recently presented a project by architect Jakub Cigler for an apartment building with commercial spaces on the ground floor.