A new model for simulations of urban environment USM was developed and integrated into LES model PALM inside the project UrbanAdapt. The model allows simulations of air flow, radiation, air temperature and temperature of materials, air pollution and indices MRT and PET in fine resolution. The surrounding of a crossroad of the streets Komunardu and Delnicka in Praha-Holesovice was chosen as a pilot area in collaboration with IPR Prague. Studied scenarios included changes of housing development as well as assessment of different types of plant canopy and sensitivity studies of the colour of walls, roofs, streets and pavements.