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The Way to Smart Development
of Cities and Towns

How Principles of Investor Cooperation and planning agreements are reshaping urban development

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What are investor cooperation principles?

A document increasingly used by Czech cities that sets the framework for agreements between local governments and developers building within the municipality.
It assumes an agreement on sustainable development of the area, with clearly stated commitments on the part of both the city and the investor, which are then reflected in the planning agreement concluded between them.
Join the map

Principles of Investor Cooperation and Planning Agreements in Numbers

100 cities

Around one hundred Czech towns and municipalities use the Principles.

100 %

Transparency and the same rules for all investors.

1/4 of cities

More than a quarter of towns with over five thousand inhabitants use the Principles.

1000 M+

Municipalities receive hundreds of millions of Czech crowns through investor contributions.

1–2 %

The investor contribution amounts to roughly 1–2 % of the investor's total costs.

180 days

That is the average time from adopting the Principles to concluding the first planning agreement.

Cities leading the way

The stories of successful cities and investors show that the Principles of cooperation, and the planning agreements based on them, are a working tool that brings money into municipal budgets and secures high-quality development of public infrastructure as well as good relations between cities and developers.

Jihlava:
Principles in force since 2021

Jihlava was the first statutory city in the Czech Republic to approve Principles of Investor Cooperation. By 2025, Jihlava had signed 21 contracts.  Total investor commitments reach CZK 60 million in cash and in-kind contributions. Investment performance rates range from 250 to 800 CZK/m².

Mnichovo Hradiště:
Principles in force since 2020

Experience showed that the Principles needed updating. The original Principles worked with rates of CZK 250–650 per sqm of built-up area. The new Principles set rates of CZK 500–1,000 per sqm (floor area for residential construction, built-up area for non-residential construction) and CZK 50–200 per sqm for a change to the zoning plan.

Liberec:
Principles in force since 2022

In Liberec the Principles apply to all areas of the city and take into account the municipal costs triggered by construction projects. Since 2025, Liberec has signed 30 contracts with a total value of 50 million CZK and has 90 investment projects in the pipeline. The standard rate for investment expenditure is 500 CZK per square metre of gross floor area. The average investment expenditure is 1.6 million CZK.

Rokytnice nad Jizerou:
Principles in force since 2024

The aim of the Principles is to support sustainable development, protect the character of the town and encourage the construction of homes for permanent residence. By the end of 2025 the town had contracted contributions exceeding CZK 24 million. The municipal rate is 2,000 CZK per HPP for projects in built-up areas (renovations) and 3,500 CZK per HPP for new builds. Discounts based on the purpose of the building may reduce the amount to as little as 0 CZK.

Praha:
Planning agreements are changing the city

In the case of Rohan Island, the City of Prague and the Prague 8 district will receive a developer contribution of CZK 560 million, mainly for a new park and a new school. The transformation of the Žižkov freight railway station was confirmed by a series of planning agreements between the City of Prague, the Prague 3 district and five major investors. Investors’ contribution to the railway station site amounts to 1.4 billion CZK.

Břeclav:
Tangible results in five years

The construction principles have been in force here since 2020. The city's cooperation with investors delivers results that help solve specific problems in specific locations. For example, when a supermarket was built on a housing estate, the investor paid CZK 500,000 to compensate for the reduced number of parking spaces. The city used the money to landscape and green land in the area.

Do you use the principles or planning agreements in your city too?

Join the map of principles in Czech cities, share your experience with other local governments and become part of the family of smart cities that actively manage the development of their territory.
Add your good practice

How cooperation between a local government and an investor works

The aim of the investor cooperation principles is to address the shortfalls in public infrastructure and community facilities that arise as a result of new construction.

The principles make it possible to link spatial planning with incoming investment so that everyone feels the benefits, both existing residents and the investors themselves.

1

The investor's intention

Developing Czech cities is not a one-sided matter. An investor needs the city's cooperation for smooth delivery, and the city needs a partnership with the developer.

2

Joint negotiation between the investor and the city

Agreement, fair relations and transparent terms of cooperation - that is what planning agreements and investor cooperation principles deliver.

3

Setting the conditions

Planning agreements make it possible to set out transparently what a specific area needs.

4

Concluding the planning agreement

The Principles form the framework for planning agreements under which the developer provides the city with a financial or in-kind contribution (a kindergarten, a park, transport infrastructure and so on). This refers to the developer’s contribution towards the costs incurred by the local authority in connection with the public infrastructure required as a result of the developer’s project.

5

The investor contribution

Investment expenditure, which provides significant support to local authority budgets, represents an item amounting to 1–2 per cent of the total construction costs for investors.

6

Realization of construction

A well-designed framework for cooperation with investors brings cities new housing, schools and kindergartens, larger parks and playgrounds, and better transport and energy infrastructure.

Why the principles benefit cities and their residents

New sources of funding

A fair contribution by investors towards the city’s costs, and expanded opportunities for investment by the city.

Sustainable growth

A tool for developing desirable locations and construction projects, securing funds for maintenance and civic amenities..

Quality of construction

The city builds new parks, schools and amenities where they are needed and ensures they connect to the wider municipal ecosystem.

Pleasant environment

The principles encourage better architecture and green spaces.

A better environment

New residential neighbourhoods are integrated into municipal infrastructure and the municipality has the funds to maintain them.

Affordable housing

Supported housing can be created thanks to the coordination of the municipality with investors.

What city representatives say

Josef Tlustý
City Architect of Příbram
„In Příbram we had a clear goal: to create a place that attracts people to live and do business. That is why the city leadership decided to set rules for developers that make clear what Příbram can offer investors and, conversely, what we would need investors to bring to the city and to its existing and new residents. IIn the first phase, we commissioned a basic analysis of the city’s territory, in which we evaluated 200 locations in Příbram in terms of their potential for residential development, access to basic services or related community amenities. We then identified the top five locations for targeted development, governed by a planning agreement.“
Pavlína Stankayová
Mayor of Ostravice
„Ostravice has a high share of holiday properties, so in season there are three times as many people here, which puts considerable strain on municipal infrastructure. In 2023, we approved the Principles of Investor Cooperation and, thanks to this, we managed to conclude planning agreements worth more than CZK 20 million within two years. For a local government that is a significant sum, and we can invest it so that everyone in the municipality feels the benefit and it offsets the pressure on public space. The Principles were one of the best measures we have introduced in the municipality in recent years.“
Petr Hlaváček
Deputy Mayor of Prague for Spatial Development and Land-Use Planning
„We see developers as partners with whom we need to hold a constructive dialogue. New public planning agreements allow for a clear definition of the rights and obligations of both parties, thereby strengthening the predictability and transparency of mutual cooperation. Our shared aim is to ultimately create a high-quality development that is integrated into its surroundings and equipped with all the necessary transport infrastructure and local amenities.“
Bronislav Patočka
Deputy Mayor of Rokytnice nad Jizerou
„We have been concluding agreements based on the Principles since December 2023 – or rather, we gradually began to implement our requirements, and the result was a unified Principles of Investor Cooperation. Until then there were individual cooperation agreements and similar arrangements. Since we began applying the rules under the Principles, even before they were approved, we have concluded 11 agreements in total.“
Tomáš Kubica
Deputy Mayor of Jihlava
„Liberec has shown that well-designed Principles produce results quickly and efficiently. In just three years the city contracted almost CZK 50 million that will go back into infrastructure for residents. In-kind contributions made it possible, for example, to plant a new tree-lined avenue or build a playground in one of the largest suburban districts. A joint approach with investors establishes cooperation that is meaningful, well-founded and fair.“
Petr Piáček
Deputy Mayor of Jihlava
„From our practical experience with the Principles we see three main benefits. First, communication has become clearer – from the outset the investor knows who they are dealing with, what steps the process involves and on what conditions the city can support their project. Second, we are better able to plan and finance public infrastructure, because investor contributions are targeted at specific pavements, parks or transport measures in the area. And third, the quality of the environment has improved – The Principles motivate better architecture and green spaces for which the investor can receive a significant discount on the contribution.“
Jan Kučera
Mayor of Rožnov pod Radhoštěm
„Municipalities and investors were often placed on different sides of the chessboard and played against each other. In Rožnov we try to approach it differently: we are not on two sides of a chessboard, we are in the same boat, and through mutual cooperation we are trying to get an ocean liner moving.“
„In Příbram we had a clear goal: to create a place that attracts people to live and do business. That is why the city leadership decided to set rules for developers that make clear what Příbram can offer investors and, conversely, what we would need investors to bring to the city and to its existing and new residents. IIn the first phase, we commissioned a basic analysis of the city’s territory, in which we evaluated 200 locations in Příbram in terms of their potential for residential development, access to basic services or related community amenities. We then identified the top five locations for targeted development, governed by a planning agreement.”
Josef Tlustý, City Architect of Příbram
„Ostravice has a high share of holiday properties, so in season there are three times as many people here, which puts considerable strain on municipal infrastructure. In 2023, we approved the Principles of Investor Cooperation and, thanks to this, we managed to conclude planning agreements worth more than CZK 20 million within two years. For a local government that is a significant sum, and we can invest it so that everyone in the municipality feels the benefit and it offsets the pressure on public space. The Principles were one of the best measures we have introduced in the municipality in recent years.”
Pavlína Stankayová, Mayor of Ostravice
„We see developers as partners with whom we need to hold a constructive dialogue. New public planning agreements allow for a clear definition of the rights and obligations of both parties, thereby strengthening the predictability and transparency of mutual cooperation. Our shared aim is to ultimately create a high-quality development that is integrated into its surroundings and equipped with all the necessary transport infrastructure and local amenities.”
Petr Hlaváček, Deputy Mayor of Prague for Spatial Development and Land-Use Planning
„We have been concluding agreements based on the Principles since December 2023 – or rather, we gradually began to implement our requirements, and the result was a unified Principles of Investor Cooperation. Until then there were individual cooperation agreements and similar arrangements. Since we began applying the rules under the Principles, even before they were approved, we have concluded 11 agreements in total.”
Bronislav Patočka, Deputy Mayor of Rokytnice nad Jizerou
„Liberec has shown that well-designed Principles produce results quickly and efficiently. In just three years the city contracted almost CZK 50 million that will go back into infrastructure for residents. In-kind contributions made it possible, for example, to plant a new tree-lined avenue or build a playground in one of the largest suburban districts. A joint approach with investors establishes cooperation that is meaningful, well-founded and fair.”
Tomáš Kubica, Deputy Mayor of Jihlava
„From our practical experience with the Principles we see three main benefits. First, communication has become clearer – from the outset the investor knows who they are dealing with, what steps the process involves and on what conditions the city can support their project. Second, we are better able to plan and finance public infrastructure, because investor contributions are targeted at specific pavements, parks or transport measures in the area. And third, the quality of the environment has improved – The Principles motivate better architecture and green spaces for which the investor can receive a significant discount on the contribution.”
Petr Piáček, náměstek primátora Jihlavy
„Municipalities and investors were often placed on different sides of the chessboard and played against each other. In Rožnov we try to approach it differently: we are not on two sides of a chessboard, we are in the same boat, and through mutual cooperation we are trying to get an ocean liner moving.”
Jan Kučera, Mayor of Rožnov pod Radhoštěm

Why the Principles are an important tool from the investor's perspective

Increasing the appeal of properties

Co-operation with the local authority may help to ease residents’ opposition to the development; the city will provide the necessary supporting infrastructure

Transparent negotiations

No suspicion of corruption, clear rules that are the same for everyone.

A coordinated process

The new options offered by planning agreements unify the city's approach and simplify project approval.

Predictable cooperation

Clearly defined processes and conditions, the ability to quantify performance and cooperation parameters at the beginning.

Faster project preparation

Planning agreements help to speed up the project preparation phase and save the developer time.

A negligible cost

Investment contributions, which provide significant support to local authority budgets, represent a marginal cost to the investor in the context of the overall construction costs.

What the experts say

Josef Wiedermann
Managing Director of UBM Development Czechia s.r.o.
„We see planning agreements as a useful tool in delivering projects. From our point of view it is always essential to find the right way of working with the local government – our company never seeks to build a project against the will of local residents. The specific wording of an agreement is always a matter of individual negotiation with the local government concerned – In our experience, the urban district development departments work very well; however, the entire process is sometimes complicated by the large number of committees and advisory bodies that must be navigated.“
Tomáš Kadeřábek
co-owner of the development company TRESS Real Estate, s.r.o., and Director of the Czech Developers Association
What would improve the process of getting the project through the approval procedure on the city's side?
„High-quality planning documentation that clearly states whether the proposal complies with the regulations or whether the local authority’s consent is required for the amendment. Essentially, it is about removing the grey areas that each side interprets in its own way.“
Vít Zeman
urban economist
„When a developer prepares a new construction project, it means that he is acquiring a part of the urban space for his benefit and should also compensate for the costs associated with using the project. Every proposed construction in a city has an investment part and an operating part. This effectively puts the local government in the position of a co-shareholder of the proposed construction, because it must ensure its operational serviceability. Our job is to analyze this knowledge of costs and revenues and have a basis for a fair dialogue between the development and the city.“
Michal Dospěl
Regional Construction Director at CT
„Whatever we build, we always try to reach an agreement with the municipality or city district, even where no specific conditions are set for it. It is easier when the municipality has investor cooperation principles, because there is a transparent and predictable framework to work from: iFor example, it is easy to estimate and calculate in advance how much the investment will cost and what the developer must consider and include.“
Pavel Franc
CEO of Frank Bold
„Municipalities are not suitably economically motivated to proactively cooperate with investors. That is why it is great that in the Czech Republic we find more and more cities that have decided to establish a partnership with investors and include them in cooperation on urban development. At Frank Bold we were among the first to stand alongside local governments and help transform their relationship with developers. Investors who bring their projects to cities are not enemies – They are partners with whom cities should transparently clarify their expectations.“
Jiří Nezhyba
Lead Attorney and Partner at Frank Bold Attorneys
„Investor cooperation principles are a way to set predictable and transparent rules, in line with the new Building Act, under which developers contribute to the cities' costs for the public infrastructure triggered by their construction projects. The goal is a shared one: to create quality public space that works for the benefit of all.“
„We see planning agreements as a useful tool in delivering projects. From our point of view it is always essential to find the right way of working with the local government – our company never seeks to build a project against the will of local residents. The specific wording of an agreement is always a matter of individual negotiation with the local government concerned – In our experience, the urban district development departments work very well; however, the entire process is sometimes complicated by the large number of committees and advisory bodies that must be navigated.”
Josef Wiedermann, Managing Director of UBM Development Czechia s.r.o.
What would improve the process of getting the project through the approval procedure on the city's side?
„High-quality planning documentation that clearly states whether the proposal complies with the regulations or whether the local authority’s consent is required for the amendment. Essentially, it is about removing the grey areas that each side interprets in its own way.“
Tomáš Kadeřábek, co-owner of the development company TRESS Real Estate, s.r.o., and Director of the Czech Developers Association
„When a developer prepares a new construction project, it means that he is acquiring a part of the urban space for his benefit and should also compensate for the costs associated with using the project. Every proposed construction in a city has an investment part and an operating part. This effectively puts the local government in the position of a co-shareholder of the proposed construction, because it must ensure its operational serviceability. Our job is to analyze this knowledge of costs and revenues and have a basis for a fair dialogue between the development and the city.“
Vít Zeman, urban economist
„Whatever we build, we always try to reach an agreement with the municipality or city district, even where no specific conditions are set for it. It is easier when the municipality has investor cooperation principles, because there is a transparent and predictable framework to work from: For example, it is easy to estimate and calculate in advance how much the investment will cost and what the developer must consider and include.“
Michal Dospěl, Regional Construction Director at CT
„Municipalities are not suitably economically motivated to proactively cooperate with investors. That is why it is great that in the Czech Republic we find more and more cities that have decided to establish a partnership with investors and include them in cooperation on urban development. At Frank Bold we were among the first to stand alongside local governments and help transform their relationship with developers. Investors who bring their projects to cities are not enemies – They are partners with whom cities should transparently clarify their expectations.“
Pavel Franc, CEO of Frank Bold
„Investor cooperation principles are a way to set predictable and transparent rules, in line with the new Building Act, under which developers contribute to the cities' costs for the public infrastructure triggered by their construction projects. The goal is a shared one: to create quality public space that works for the benefit of all.“
Jiří Nezhyba, Lead Attorney and Partner at Frank Bold Attorneys