Tallinn eyes EU funds and investors for €150–200 million Linnahall project

Tallinn wants to secure European Union structural‑fund financing for the renovation of Linnahall while simultaneously seeking investors with proven interest, Mayor Peeter Raudsepp (Isamaa) said. Decisions about the building's future must be made in the autumn.
While Raudsepp said in the spring that the city should discuss demolishing Linnahall and building a true landmark in its place, he now says he did not mean demolition had been decided.
"When I've said we might eventually reach that point, I've always stressed that this is an honest and straightforward view — that it could someday be inevitable. For decades, attempts have been made to find a use for Linnahall, but for various reasons it hasn't succeeded. In my view, we need to move past nostalgia and wishful thinking, face reality, and acknowledge clearly that if we cannot find a use for Linnahall, if we cannot find an investor, then the reality may be that it will have to be demolished in the future," Raudsepp said.

Tallinn's Linnahall is a monumental waterfront building designed by architects Raine Karp and Riina Altmäe. Completed for the 1980 Summer Olympics, it has housed a concert hall, ice rink and cafés. During the Soviet era, its official name was the Tallinn Palace of Culture and Sports named after V. I. Lenin. Today the building is no longer in active use and awaits decisions about its future.
The city's Strategy Centre has been tasked with preparing a development concept for Linnahall and identifying operators who can demonstrate genuine interest in running the venue, the mayor said. The centre must also prepare a financing plan and provide a detailed overview of renovation cost options.
The Strategy Centre has until autumn to complete this work. Decisions will then need to be made, Raudsepp said.
The financing plan focuses on using EU structural‑fund resources from 2028–2034 to create the conditions needed to secure funding for Linnahall, the mayor noted.
"Given the scale of investment needed, it's clear that the City of Tallinn cannot handle it alone. That's why private investors and EU structural funds are being considered. Even at the lowest estimate, the investment need corresponds to roughly one year of Tallinn's investment budget," Raudsepp said, adding that the amount would be between 150 and 200 million euros.

In the search for investors, "proven interest" means concrete commitment that can be formalized in a protocol of intent, Raudsepp explained. "That's what proven interest means, and without it we cannot proceed," he said.
The city government will make a final decision on Linnahall only after the entire process is completed and the city has fulfilled its due‑diligence obligations, Raudsepp said.
"We will not allow the city government to make unjustified expenditures on Linnahall in the meantime if its future vision is unclear. Right now we are doing what can be done — creating the concept and enabling the possibility of involving investors and EU funds," he said.
"If all this fails, then there's nothing to be done. Then comes the moment of truth, when further decisions must be made. It's obvious that Tallinn needs both concert halls and a conference centre. Linnahall could serve those needs, but it cannot be an end in itself. The goal is not to renovate Linnahall at any cost — with a blank cheque, regardless of expenses or low returns. We cannot take on such a task," Raudsepp said.
--
Editor: Marko Tooming, Argo Ideon












