Praha 7 is negotiating with developers for a financial contribution for the town hall

Prague - The City Hall of Prague 7 could receive up to 25 million crowns from so-called planning contracts with investors. Lenka Burgerová (Prague 7 for Itself), the deputy mayor, informed ČTK. The request for financial co-participation pertains to projects in Prague 7 that have more than 250 square meters of new residential or administrative space. In planning contracts, developers commit to contributing to the construction of infrastructure for their projects, which the municipality would otherwise have to pay for. The principles of financial participation were approved by Prague 7 in April 2018.

"At this point, several other contracts for investor cooperation on the development of the municipal area are under negotiation. The estimated financial fulfillment of these contracts is around 25 million, which is approximately half of the requested amount, with the other half usually being addressed in the form of non-financial fulfillment," Burgerová stated.

Currently, there are approximately several dozen projects ranging from small to large. It is not yet clear how many contracts will be concluded exactly. Negotiations depend on the current developments within the projects, where some investors may still withdraw from their intentions.

The seventh municipal district entered into six contracts regarding the investor's financial contribution between 2016 and 2018, from which the city hall received about 31 million crowns. These were mostly contributions for the development and expansion of educational facilities. Payments are usually tied to the completion of the project. These contracts often include non-financial contributions from the investor, such as new sidewalks made at the investor's expense, tree planting, or the construction of a kindergarten. The city hall also negotiated a donation from one of the developers for financing a horse for the Letná carousel.