Demolition of the old plant is already underway and expected to continue through next spring, with some of the existing buildings slated to be preserved.

The developer, Port Artur Max head Viljo Vetik, said construction of the new complex could begin within a few years and would proceed in stages. He says the 13-hectare site, located on the Tallinn side of the Pärnu River, would serve as a new gateway to the city.

"We're building a new city district here," Vetik said. "We call it the City Gate. Plans include various buildings, as well as stores, businesses and some light manufacturing — because demand for it exists and continues to grow."

Plans also call for a multipurpose arena capable of hosting various events and with seating for up to 3,000.

"The city has its own plan too, but we started working on our ideas before the city has unveiled its own plans, so we'll just keep moving ahead with our project," the developer added.

Other arena plans

Alongside Tallinn and Tartu, Pärnu was also one of three cities to submit bids by the deadline to host a major new arena planned by the Estonian Olympic Committee (EOK).

The summer capital's proposed site is next to Papiniidu Bridge on the Pärnu riverfront, adjacent to the city's future Rail Baltica terminal.

Plans for the arena began to be pursued more seriously after Estonia secured the right to co-host the 2029 European Basketball Championship, or EuroBasket. Currently, the country's largest indoor arena is Tallinn's Unibet Arena, which can accommodate up to 7,000 spectators.

The Estonian government will make the final decision on which city the arena will ultimately be built in following the completion of an independent economic impact analysis and a recommendation by an expert committee formed in May.

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