OPPORTUNITIES FOR THE RECONSTRUCTION OF THE CITY HALL

Äripäev writes that Tallinn's plan to find a suitor for the Linnahall is of symbolic importance because it determines whether the area around the future conference center in the city center will be opened up to the sea or if Tallinn's coastline from Paljassaare to Reidi Road will be surrounded by a wall of luxury apartments and hotels.

The renovation of the Linnahall is estimated by Tallinn to cost 130-140 million euros, and this money is expected to be recouped partly from the management of the Linnahall as a conference center and partly likely through support or rent from the city and state.

Attorney-at-law Kadri Matteus commented to Äripäev on possible forms of cooperation and how to restore the Linnahall through collaboration between the private and public sectors.

Basically, there are two options:

A public procurement process where the Linnahall is reconstructed in cooperation with investors, and investors are granted, for example, building rights (construction concession). The city's contribution here may be limited to just building rights, but additional financial support or the city as a reliable rental partner is not ruled out.
The city sells the entire property and adjacent properties to the highest bidder but sets clear obligations for the property (building usage, deadlines, quality), and in case of a significant breach, the city has the right of repurchase.

The article was published on January 13, 2022 in Äripäev. Full text: https://www.aripaev.ee/suur-lugu/2022/01/12/monopolimang-merekaldal-linnahall-sokutatakse-erakatesse-magusa-kaasavaraga

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