Coin Press - French luxury giant to fund redevelopment of two Paris streets: city hall

LVMH had proposed to the city hall that it would fund and carry out a two million euro renovation of Rue de Bassano and Rue Galilee, in the heart of the glitzy 8th district of Paris just off the iconic avenue.

The plan aims to "calm" traffic on these streets with wider pavements and more bike racks, according to the resolution adopted by the municipal council.

Thomas Chevandier, an aide to the Socialist mayor Emmanuel Gregoire, said LVMH was obliged to undertake the work once the flagship new store was finished.

But the decision to transfer project management to Louis Vuitton sparked controversy within the Paris council chamber, including among Green Party members who are part of the Socialist-led ruling majority in Paris.

"Given the state of municipal finances, seeing a private player invest such a sum to beautify our streets is a breath of fresh air. But by handing over full management of the work to the private sector, the city is stepping back from its own domain," said Catherine Lecuyer, the right-wing mayor of the 8th district.

"LVMH isn't just going to carry out construction work, it is going to design the street and rethink the public space for its clients," warned councillor Emile Meunier, part of a Green movement that opposed the plan.

"You are continuing to open a dangerous door to the privatisation of public space," he added.

Dismissing this argument as "absurd," Gregoire said that he "fully stood by" his approach at a time of strained public finances.

"If this allows us to secure an extra two million (euros) to fund a 'normal street with a school' in working-class neighbourhoods, then I am proud to have done it" he said.

Y.Ponomarenko--CPN