The statutory city of Karlovy Vary has adopted the Principles for Cooperation with Investors, which set out the rules governing the involvement of private investors in the development of public infrastructure and civic amenities in the city. The documentation, including the rules for calculating investors’ financial contributions, the discount scheme and a model planning agreement, was drafted by the law firm HAVEL & PARTNERS.

Comprehensive advice associated with the drafting of the Principles for Cooperation with Investors was provided by the HAVEL & PARTNERS team led by partner František Korbel, together with managing associate Tomáš Kalenský and associate Adriana Vetenglová.

The Principles apply to projects requiring an amendment to the zoning plan, as well as to investment intents that can already be authorised under the existing zoning plan. The aim of the document is to establish predictable terms of cooperation between the city and investors, whilst also involving private investors in the funding of public infrastructure and civic amenities which are facing further challenges due to the new development.

The new system includes rules for calculating investors’ financial contributions, as well as a system of discounts which allows the final contribution amount to take into account the specific nature and benefits of the project. For example, priority may be given to investment intents utilising brownfield sites or vacant lots, projects in areas with good public transport links, or buildings with green roofs.

HAVEL & PARTNERS has also drawn up a model planning agreement for the city, which should facilitate and speed up discussions on specific investment intents. The new rules thus provide both the city and investors with a comprehensible framework for cooperation on the future construction and development in Karlovy Vary.

HAVEL & PARTNERS has extensive experience in establishing rules governing cooperation between municipalities and private investors, and in drafting planning agreements for major development projects. The firm has drawn up similar guidelines for, to name a few, the statutory city of Brno, the Prague 1 district, and Plzeň.