"Multihalle" proposes Riga City Council to establish joint venture, "Rigas arena"
"Multihalle Ltd.", the company that is to implement the multifunctional ice hockey arena project, has proposed the Riga City Council to establish a joint venture, "Rigas arena", to secure the city council^apostrofs;s participation in the project, LETA has found out.
"Multihalle Ltd.", the company that is to implement the multifunctional ice hockey arena project, has proposed the Riga City Council to establish a joint venture, "Rigas arena", to secure the city council's participation in the project, LETA has found out.
The Riga City Council would hold a 48 percent interest in the new company, a 52 percent interest would go to "Multihalle". The offer stipulates that both sides would have to raise the new company's share capital to more than LVL 3 million in one month.
The Riga City Council's prospective investment, a land plot, is assessed at LVL 1.5 million.
"Multihalle" says that about EUR 26 million are needed to implement the project. Of these, EUR 2 million would be provided by "Multihalle", EUR 11 million would be attracted, and EUR 13 million would be taken out in loans. The document submitted to the Riga City Council does not envisage any specific financing strategy, however.
If Riga City Council decides to participate in founding "Rigas arena", it will also have to assume part of the organizational work.
As reported, "Multihalle" board member Ojars Kehris told a press conference today that the Riga City Council had been submitted a concrete proposal for its participation in raising the ice hockey arena, needed to hold the 2006 world ice hockey championship in Riga. The issue would be reviewed at a meeting of the council's City Development Committee on January 28, Kehris said.
The Riga City Council would hold a 48 percent interest in the new company, a 52 percent interest would go to "Multihalle". The offer stipulates that both sides would have to raise the new company's share capital to more than LVL 3 million in one month.
The Riga City Council's prospective investment, a land plot, is assessed at LVL 1.5 million.
"Multihalle" says that about EUR 26 million are needed to implement the project. Of these, EUR 2 million would be provided by "Multihalle", EUR 11 million would be attracted, and EUR 13 million would be taken out in loans. The document submitted to the Riga City Council does not envisage any specific financing strategy, however.
If Riga City Council decides to participate in founding "Rigas arena", it will also have to assume part of the organizational work.
As reported, "Multihalle" board member Ojars Kehris told a press conference today that the Riga City Council had been submitted a concrete proposal for its participation in raising the ice hockey arena, needed to hold the 2006 world ice hockey championship in Riga. The issue would be reviewed at a meeting of the council's City Development Committee on January 28, Kehris said.
