Prague will establish a development company that will take care of the land

Prague - The capital city will establish a new municipal contribution organization, Prague Development Company, and will invest a non-investment contribution of 13 million crowns. The organization will be created by this year's June 1 and will primarily deal with the use of municipal land, its development, and the construction of residential buildings. It will be led by a director appointed by the city council and will also include a three-member investment expert committee that will serve as an advisory board to the director. This follows from a document approved today by the Prague councilors.

The organization will engage in so-called land development, preparing municipal land and areas for residential building construction, up to the phase of zoning proceedings. Concurrently, the Prague leadership will decide on specific projects whether the city will build the houses itself or in partnership with a private investor. The tasks that the city developer will address must always be approved by the Prague leadership.

In addition to the municipality and city leadership, the city developer will collaborate with individual city districts, the transport company, the Technical Administration of Communications, and other managers of municipal infrastructure.

By the end of 2020, the organization is expected to have 10 to 12 employees. Next year, this number will increase to 12 to 16, and by the end of 2022, it should have 20 to 25 employees.

At the head of the organization will be a director, who will have access to an investment expert committee, the members of which will be appointed for three years by the director based on the proposal of the councilor for territorial development and zoning plan. The nominations of committee members will be approved by the city council.

In recent years, the metropolis has been struggling with a housing crisis and rising housing prices. The city leadership aims to address this by accelerating building permits and other measures, including halting the privatization of municipal apartments and supporting cooperative housing construction.