Kaubamaja Grupp chose design plans eight years ago, but the project has been on hold due to parking and access issues. The city also wanted to launch a detailed planning process, which other parties involved did not want to do.

Last week, Tallinn, developer TKM Kinnisvara and MSI Grupp, which owns the department store, signed a memorandum of understanding to end the dispute and move forward.

It was agreed that a new parking garage on two underground levels will be built, and developers will initiate a detailed plan.

Peeter Kütt, board member of TKM Kinnisvara, told ERR: "Our next step is to start drafting the detailed plan as soon as possible, based on the winning design, and once that plan is in force, we'll move on to the design phase. What matters is that both the city government and the developers are now aligned on the key solutions."

Deputy Mayor Madle Lippus said the detailed plan must now address access to the underground parking levels.

"Since the department store wants to implement the winning design, it has now been determined that if they still want to include a ramp, then that solution needs to be found. But it's most reasonable to resolve this during the detailed planning process by finding a comprehensive volume-based solution for the plots, plus planning access via a ramp," she told ERR.

Access will be from Rävala puiestee, and since the city plans to reconstruct the street in the coming years, it will need to align with the plans.

The city said it will assemble a team to quickly resolve issues related to public transport, stormwater drainage, and cooling infrastructure so that this information can be taken into account during the drafting of the detailed plan.

Kaubamaja executive: winning design meets our needs well

Erkki Laugus, board member of Kaubamaja, told ERR the winning design meets the department store's needs.

"It's also important to Kaubamaja that the building has an open concept. The winning design allows the department store to be updated so that the Kaubamaja Quarter becomes a suitable place for cultural events and leisure activities," he said.

Once the store is rebuilt, the new Kaubamaja should become a prestigious downtown flagship department store, comparable to Harrods in London, Galeries Lafayette in Paris, or KaDeWe in Berlin, Laugus added.

It remains unclear whether the current gallery connecting Kaubamaja and Viru Center will be preserved in the renovation. Kütt also did not provide a clear answer. "The current solution has allowed for free movement between the two shopping centers. What matters is that the future solution prioritizes people's needs," he said.

The fate of Kaubamaja tänav is also important for the city, as it is intended to become part of a pedestrian and bicycle corridor running from Rotermanni Quarter through Viru Center, along Kaubamaja tänav, through the redeveloped Maakri Quarter and the Stockmann area, to Lastekodu tänav.

Currently, public transport stops are located on Kaubamaja tänav across from the department store, and this is where trolleys used to stop. If trolleys return to Tallinn streets next year, the city is also considering routing them along Laikmaa tänav instead of Kaubamaja tänav, Lippus said.

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