Prague extended the lease of the Municipal House for another 30 years

Prague - The capital city has extended the lease agreement for the Municipal House for another 30 years, but it also wants to have greater control over the operation of the building. Milan Richter, a councilor, stated this to ČTK. Since 2005, the operation of the Art Nouveau monument has been managed by the joint-stock company Municipal House, which is wholly owned by Prague.
    According to Richter, the reason for the lease extension includes, among other things, stricter conditions. “If the company wants to lease certain spaces long-term, it will need the consent of the capital city,” the councilor said. According to him, the lease conditions have been too lenient so far.
    The long-term lease will also allow the company to use profits for the maintenance of the Municipal House. “The funds from the profits are kept in reserve funds. These funds will be used for maintenance, elevator repairs, interior, furniture, and so on. We simply want to make sure that the Municipal House does not deteriorate,” Richter noted. The tenant will be able to depreciate the funds invested in repairs up to 13 million annually.
    The Municipal House remains the property of the capital city, and the company pays about 25 million annually to Prague for it. According to Richter, the rent increases annually with inflation.
    The monument was previously managed by the same-named contribution organization, which the city transformed into a joint-stock company in 2005. The main reason for this transformation was to simplify management and improve economic opportunities. The Municipal House company has reported profits in millions of crowns in recent years.
    The Municipal House was built as the representative and social house of the capital city and was opened to the public in January 1912. One of the finest buildings of Prague's Art Nouveau has the status of a national cultural monument and has undergone several partial renovations. The last major reconstruction took place from 1994 to 1997. Since then, according to Richter, the city has invested almost no money into the monument.