Incentive Program
for job creation

Since 2020, the capital has been using a new format to attract businesses to build commercial facilities outside the city center – the job creation incentive program.
Developers of apartment buildings can obtain the investment project status and substantial support from the city, if along with with the residential housing construction the investor implements projects to create production, office, retail, social facilities and other workplaces outside the Third Ring Road. As a result, the city will get new jobs and additional sources of budget revenue through property and profit taxes, and the developer - preferences and commercial spaces to generate potential revenue in future.

PROGRAM OBJECTIVE

Creation of workplaces outside the Third Ring Road and the Moscow Ring Road will decrease commuting from suburbs to the city center, where there is a high concentration of offices and workplaces, reduce commuting times and unload the center.

MECHANISM ESSENCE

When constructing residential buildings, the investor needs to re-register the land plot from one type of permitted use to another - namely, to the construction of apartment buildings. There is a substantial fee for making changes. Under the new program, a developer who builds for example an office facility or a hotel behind the Third Ring Road will be exempt from the fee for changing the land plot permitted use type.

PROGRAM TERMS

The developer signs the agreement and undertakes to build a facility of a certain size within a set period of time, which will provide the city with new jobs. He shall also obtain a bank guarantee for the amount of the fee benefit for changing the land plot permitted use type. If the investor fails to comply with the agreement terms, he shall return the benefit and pay a penalty.

The city guarantee a deferral in fee payment for changing the land plot permitted use type until the workplace is commissioned. Once the workplace is commissioned, the developer is exempt from the fee for changing the land plot permitted use type - fully or from the rest fee.
REQUIREMENTS
TO INVESTORS AND PROJECTS


In order to participate in the program, the developer and its proposed project shall meet a number of requirements.

  • The investor shall have the rights to the land plot in order to construct an apartment building and the rights and land plot development plan to create a new facility. Moreover, he shall have the financial resources to implement the workplace creation project ans shall not have any debts. The composition of the shareholders of the investor and the person engaged in the workplace creation shall be the same by at least 75%.
  • The project to become a workplace shall be implemented outside the Third Ring Road. There is currently an adjustment of location factor values for workplace to be created - the factor depends on the Moscow subdistrict.

Applications for special status are to be submitted on the Moscow Investment Portal.

PROJECTS IN PROGRESS
UNDER THE PROGRAM

PROJECT 1.

In September the first agreement under the city incentive program of new job creation was signed with SZ Pioneer 1.

The project investor will construct the 46,000-square-meter Ostankino Business Park office building complex in Butyrsky subdistrict by the end of 2023. The planned investments will amount to RUB 2.3 bn.
PROJECT 2.
Within the second agreement (October 2020), RDK Pioneer LLC will build the Botanichesky Sad shopping and office center in Rostokino in the Wilhelm Pick Street by 2023, the office space will amount to 36,800 square meters . Approximate investments in office space will be at least RUB 2 bn.

Both developers have been assigned the investment project status for creating administrative and business facilities, which gives the right to partial exemption from the rent rate for the first year of construction and the fee for changing the land plot permitted use type.
E-mail: pressprom@mos.ru
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