Tallinn to offer €20 million toward private Lasnamäe pool development

Tallinn will offer up to €20 million to a private developer to build a long-planned swim and spa complex in Lasnamäe. Opposition leaders say the city should build it itself.
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.
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 €20 million, as approved by Tallinn City Council several years ago.
"The winner will be the bidder that can build the facility with the smallest amount of city support," Terik said. A company seeking €15 million, for example, would beat one seeking €18 million, he added.
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.
"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.
"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.
Terik: That's just market conditions
Terik, however, rejected suggestions that the outcome is predetermined.
"If one specific company wins, that reflects market conditions and businesses' willingness to take on the risks of a project like this," he said.
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.
"The city will end up being a major tenant or user and pay the developer," he said. "That's completely absurd."
--
Editor: Karin Koppel, Aili Vahtla












