Prague moves ahead with Penta’s Florenc development deal amid criticism

Prague’s city council has taken a significant step toward reshaping the area around Masarykovo nádraží and Florenc by approving an agreement with developer Penta. The deal, which was backed by district councils in Prague 1 and Prague 8, outlines financial contributions and commitments in exchange for changes to the city’s zoning plan.

While city officials argue the agreement brings vital funds and new amenities to the districts, opposition figures have raised concerns over transparency and the impact on public spaces. Critics argue that the rushed approval process left little room for debate, highlighting broader tensions over the priorities of Prague’s urban redevelopment.

Under the agreement, Penta commits to contributing over CZK 300 million in financial and non-financial forms. Prague 1 is set to receive CZK 16 million, including CZK 10 million in cash to seed a new fund for future urban projects, and additional support for improvements along V Celnici street.

"This should be the basis for a fund that we want to establish in Prague 1, so that financial resources resulting from planning contracts will continue to flow into it in the future," says Karel Grabein Procházka, Prague 1 city councilor.

Prague 8 will benefit from a new kindergarten building on Rohanský ostrov, five small apartments, and a share in ten additional flats co-owned with the developer.

"A certain experiment, which is being applied here for the first time, is ten apartments that we are sharing in half with the city district," adds Prague Deputy Mayor Petr Hlaváček. "The investor was resistant at first, but in the end we managed to agree on it."

The deal also includes plans to relocate the Florenc bus terminal, a point of contention for critics who argue the change will complicate transfers to the metro. City officials say they have requested the Ministry of Transport to study the possibility of adding a railway stop at Florenc, enhancing connections for travelers heading to the airport.

Opposition councilors and civic groups have expressed concern over the way the agreement was presented and approved. Members of the Green Party, Prague Sobě, and other opposition factions criticized the late delivery of the contract documents, which they say hindered thorough review.

Environmental group Arnika has also long opposed the deal, citing the loss of public space and potential disruption from moving the bus terminal.

Prague officials have defended the agreement, arguing it balances the needs of urban development with contributions to public services. “By approving this, we’re deciding whether we want Florenc to change or stay as it is,” said Prague 1 Deputy Mayor Radomír Nepil.

Penta has already completed work on the Masaryčka office building on part of the Masarykovo nádraží site, and the new agreement paves the way for further development on adjacent plots. The plan also includes transforming land around the Florenc bus terminal, which Penta purchased in 2023.