On July 29, 2024, the district of Prague 1 initiated an extensive review of non-residential spaces leased at extremely favourable rates. The aim is to ensure efficient use of municipal property for public benefit. This scrutiny targets leases that are set at less than 150 crowns per square meter per month, predominantly benefiting non-profit organizations.
All organizations must provide evidence of their public benefit activities during the ongoing review. According to a press release from Prague 1, relevant commissions such as the Social Commission, Trade and Services Commission, and Culture and Sports Commission will visit these spaces to verify their proper use. If any misuse is found, the lease agreement may be terminated. “Our goal is to ensure that municipal spaces are utilized as efficiently as possible and for the maximum benefit of our citizens,” stated Prague 1 Mayor Terezie Radoměřská.
One example of the necessity for thorough review is the non-residential space on Říční Street, leased under favourable conditions to the Czech Special Olympics Movement. The review revealed that these spaces were not being used effectively, and their benefit to Prague 1 residents was inadequate. The premises were closed during summer, and the organization’s event calendar for the location was empty. The organization also failed to specify its benefits to Prague 1 residents and did not provide evidence of paid activities for registered adults with mental disabilities.
As a result, the organization’s lease agreement was terminated with a three-month notice period. The district paid a favourable rent of 2,500 monthly crowns for 150 square meters, equating to just 17 crowns per square meter. “We decided to convert the non-residential space on Říční Street into a children’s group, which we consider a better use of these premises. We believe this change will benefit our residents, especially families with children,” explained Ivana Antalová, Councilor for Social Affairs and Accessibility.
The Prague 1 Council approved the lease review on April 9, 2024, to examine the contribution of tenants’ activities to community and cultural life and the availability and quality of healthcare, social services, and educational facilities. According to the Department of Technical and Property Management, the review will cover 260 lease agreements that require verification. Prague 1 is prepared to help organizations not meet the conditions find alternative spaces.
Valerie Clare Talacková, a council member from the Prague Sobě party, questioned the genesis of the material and the appropriateness of the proposed review process. Ivana Antalová responded that the council has a duty to responsibly manage residential and non-residential properties. The review focuses on agreements with significantly lower rent than commercial rates. Such support is deemed essential for civic amenities, which include infrastructure and services necessary for the daily lives of Prague 1 residents, covering areas like education, culture, social and healthcare services, leisure activities, and community work.