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Developers will pay for roads

21 of October '21

Investors erecting office buildings and housing developments are required by law to cover the costs of reconstructing the road system in the immediate vicinity. Such measures have so far involved negotiations from scratch. This is set to change with a new procedure and a uniform price list that depends on, among other things, the area or location of the development.

According to Article 16 of the Law on Public Roads, investors in new housing estates, office buildings or scalps are required to reconstruct the road system to accommodate changes in traffic volume caused by their investment. The more a new building or complex accommodates employees or residents, the greater this impact and change. Road reconstruction usually takes place on the basis of an agreement that the developer enters into with the road manager. A reconstruction project is created at the developer's expense, followed by implementation.

responsibility and obligation


Photo: Wikimedia Commons

To date, the procedures for enforcing Article 16 of the law have been complicated and have involved negotiation on a case-by-case basis for individual developments. Based on these, redevelopments are implemented, which developers often use for PR purposes, boasting about their investments in public space and infrastructure. In doing so, they overlook the fact that this is their duty. The negotiation process is not only time- and cost-consuming for the city, but also for the investors themselves. A protracted process of decisions and determinations can affect construction delays.

one procedure

Przebudowa ulicy

photo: Wikimedia Commons / Panek

Warsaw has decided to introduce, by means of an ordinance of the mayor, uniform, simplified procedures for the entire capital. Investors of commercial buildings over 1,000 sqm or other developments over 5,000 sqm will be able to take advantage of the new regulations. A special team headed by the City Roads Administration will handle applications submitted by investors. It will include representatives of district offices and several municipal units, determine the scope of redevelopment and estimate the monetary value of the contribution an investor should make to adapt the road system to the needs of his investment. The guidelines formulated by the new body will be binding on city units, which will no longer have to give their own opinions and negotiate all the provisions.

easier investment

Generation Park

photo: Wikimedia Commons

This significant simplification and shortening of the procedure may contribute to facilitating investment and, as a result, increase supply in the market and have an impact on stemming the rising prices of new apartments. Cooperation between developers and the city will also become more transparent - the investor, upon receiving the team's position, will know what scope of construction or road reconstruction he has to perform and how much time he has to fulfill his obligations.

stop urban sprawl

Osiedle na przedmieściu

photo: Google Maps

The system is also expected to be a positive change from the point of view of the city and its residents. The financial participation of developers in the reconstruction of urban infrastructure will henceforth be appropriate to the size of the investment and its location. The rates have been set to give a premium to investments in well-connected areas of the city. Developers of settlements in the suburbs will pay relatively more, which is expected to limit sprawl. For example, a developer planning a 10,000-square-meter housing development in the center will be required to invest PLN 1.25 million in road reconstruction. Building in the suburbs, he will have to put up 1.93 million. The division of the city into three zones is determined by the mayor's order.

Kacper Kępiński

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