The former seat of Economie will be purchased by the Employment Office for 299 million

Prague - The caretaker government today unanimously approved the purchase of a building in Prague's Letná for the central employment office for the price of 299 million crowns. According to Prime Minister Jiří Rusnok, most of the amount will come from European funds. The office's headquarters, two contact workplaces, a telephone center, and a training center are to be relocated to the building in Prague 7.
    The former seat of the Economia publishing house was purchased in May by Alkatria, which according to available information cost 140 million crowns. The Prague 7 municipality had previously considered acquiring the building, initially offering 275 million crowns for it.
    Caretaker Minister of Labor František Koníček said at a press conference after the government meeting today that it cannot be concluded from comparison whether the price for Prague 7 is "correct." He has doubts about this. He stated that the municipality should have acquired the building through a "special operation" when it was to take over shares. According to Koníček, this meant the municipality was in a worse position than the ministry, as after tax deductions, the building amounts to roughly 250 million.
    The caretaker minister said he is unable to assess whether the price of 140 million was "fair" for Alkatria. He indicated that legal disputes accompanied the transaction at the time. For the government, it is supposedly crucial whether the building meets the needs, as well as the question of market price, which is supported by appraisals. The ministry had four appraisals prepared. Experts valued the building between 300 and 310 million crowns. According to Rusnok, this shows that the current price is "fair."
    The government discussed the acquisition of the five-story building in Letná at several meetings since the first half of October. Rusnok stated that one of the main reasons that convinced them was the "unique opportunity" to resolve the long-standing issue of placing offices in various locations and rented buildings. Another reason was the fact that nearly four-fifths of the funds would come from the European Union - according to the Ministry of Labor, exactly 79 percent, while 21 percent will be covered by the state. If the cabinet had not approved the purchase today, the European funds could not have been utilized this year and would have lapsed.
    The employment office's headquarters is currently in three buildings - in the Ministry of Labor's building at Karlovo náměstí and in rented spaces in Emauzy and Kartouzské. The call center operates in Vysočany, renting its premises from the Czech Social Security Administration.
    According to government documents, a single facility is needed for better management following changes in April 2011, when a central "super employment office" with regional branches and contact workplaces was established. Since last year, officials have not only been responsible for employment matters but also for disbursing all benefits. According to the report, the headquarters currently has 112 employees, with a target of 165. The contact points for Western and Eastern Prague employ 118 people, and there should be at least a 10 percent increase. A total of 305 employees are expected to work in the building.
    Compared to renting comparable spaces, the investment in acquiring the building is expected to pay off over nine years, according to the materials for the cabinet. The costs for acquiring the land and constructing the new administrative facility were estimated at 400 million.