Lordship to hold crisis talks with Prague 7 over Palac Stromovka

30 March 2016

Six hours before crisis talks with top representatives from Prague 7, the developer Lordship warned that failure to reach agreement over the fate of its project Palac Stromovka by July could lead to a protracted court battle. Having received a construction permit in 2013, the developer has been unable to get beyond the construction of a construction pit where the controversial multi-functional project is to be built. Since then, a change of leadership in the municipality led to disputes over the validity of the construction permit and disagreements over the building’s functions.

Prague 7 had taken issue with the design of the project and it maintained that in the original agreement with Lordship, the developer had agreed to include a residential component. Lordship disputes this, claiming it was never part of the legal agreement for the project, and claims that hygiene officials rejected its use for apartments because of excessive noise and pollution. It’s thought that Prague 7 no longer insists on a residential component for Palac Stromovka, but that it has insisted on changes to the design. Lordship’s director Václav Matoušek says the company has prepared a new design, adjusting the façade to meet the city’s demands and removing the tower that its architects had originally drawn. But he says the total volume of the building (which should include 22,000 sqm of offices and a 14,500 sqm shopping center) must remain in order to be financially feasible.

Lordship says it was forced to speak publicly about the project because of tabloid reports that claimed the construction pit, which remains empty, was a danger to the public. While rejecting the idea that the public was in imminent danger from a collapse of the construction pit, company officials conceded that the situation was unsustainable for much longer. The pit could be secured on a permanent basis, but this would be technically complicated and extremely costly, resulting not least in serious traffic problems and the need to shift numerous pipes and electrical cables.

Lordship founder Jonathan Jackson was unexpectedly not present at the press conference, but spoke via a pre-recorded video statement in which he said Lordship could not guarantee the project beyond July if no agreement with the city was reached. Company officials have had roughly 25 meetings with city officials in the past year, but complain that progress has been fitful and marred by unexplained delays.

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