Tallinn will offer up to \u20ac20 million to a private developer to build a long-planned swim and spa complex in Lasnam\u00e4e. Opposition leaders say the city should build it itself.<\/p>\n
City officials have for years wanted an Olympic-size swimming pool next to Tondiraba Ice Hall that could host everything from swim practices to international competitions.<\/p>\n
Deputy Mayor Tiit Terik (Center) said Tallinn expects to launch a public procurement in late July or early August to find a developer for the project. The city would provide an investment subsidy of up to \u20ac20 million, as approved by Tallinn City Council several years ago.<\/p>\n
“The winner will be the bidder that can build the facility with the smallest amount of city support,” Terik said. A company seeking \u20ac15 million, for example, would beat one seeking \u20ac18 million, he added.<\/p>\n
Social Democrat (SDE) Kaarel Oja questioned whether the procurement will truly be open. He noted that a similar one drew only one bid from developer Capital Mill, which also designed the project for the sports and aquatic center.<\/p>\n
“We’ve already seen this exact type of concession procurement once before,” Oja said, arguing that Capital Mill’s head start could discourage competing bids again.<\/p>\n
“They very confidently said they needed exactly the maximum amount the city was willing to provide,” he recalled, adding that no one else even attempted to compete.<\/p>\n
Terik: That’s just market conditions<\/p>\n
Terik, however, rejected suggestions that the outcome is predetermined.<\/p>\n
“If one specific company wins, that reflects market conditions and businesses’ willingness to take on the risks of a project like this,” he said.<\/p>\n
Oja also criticized the financing model, arguing the city would effectively subsidize a private developer and later pay to use the facility for schools and other municipal needs.<\/p>\n
“The city will end up being a major tenant or user and pay the developer,” he said. “That’s completely absurd.”<\/p>\n
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