Prague City Assembly has approved a groundbreaking document called the Methodology of Investor Participation in the Development of the Territory whose draft was submitted by Deputy Mayor Petr Hlaváček. Its goal is to support development of the city in which the public sector and private investors would each take a fair share. Private investors who plan large projects will therefore be asked to return part of the evaluation of their assets to the city by building schools, kindergartens, quality public space and greenery, or by making a certain share of new housing available for municipal purposes or by paying a financial compensation to the respective local authority. The policy shall apply in cases where the city will increase the value of the land owned by a developer by amending the zoning plan, a process which will now be accelerated by several years. The policy is expected to have a positive effect on the quality of life of local citizens and bring new housing options.

The policy also will significantly accelerate project authorization processes and unlock brownfields for new construction. It also regulates the process of negotiation and contracting between developers and the city or city districts, ensuring any commitments are contract-based and regulatory plans for new districts have an appropriate level of detail. The methodology will enable Prague to grow more responsibly, while improving the quality of facilities for current and future residents, including the environment, services as well as basic infrastructure and utilities.