Riga City Council turns down construction company's demands on hockey arena
The Riga City Council regards as inadmissible a solution which stipulates having the municipality buy out the proposed Riga hockey arena for the 2006 Ice Hockey World Championship, Riga City Council chairman Gundars Bojars pointed out.
The Riga City Council regards as inadmissible a solution which stipulates having the municipality buy out the proposed Riga hockey arena for the 2006 Ice Hockey World Championship, Riga City Council chairman Gundars Bojars pointed out.
As LETA was informed by Riga City Council information and PR department, Bojars believes that the decision on future operations pertaining to construction of the ice arena must be adopted by the Latvian Ice Hockey Federation (LHF), because a majority of deputies are incapable of radically changing the adopted decisions on land lease terms for construction of the arena.
The council has received a letter from the "Latvijas buvnieku strategiska partneriba Ltd." (LBSP) where the company informs about dropping construction of the arena, opening the door for other investors.
LHF again had entrusted the arena to constructors that now decline to implement the project, therefore LHF must take responsibility and decide which of the investors would carry out the project, the Riga mayor said.
"Riga City Council is not ready to assume responsibility for buying out the arena without knowing what will happen with the building after the hockey championship. It would be irresponsible," Bojars said. He believes that EUR 30 million (LVL 19.8 million) would be too heavy a burden for the municipal budget at a time when the municipality has to finance repairs for roads and schools.
Bojars stressed that the arena could be still constructed on time if the LHF passes a decision to trust construction of the arena to companies not asking for municipal or state guarantees.
As reported, the International Ice Hockey Federation (IIHF) congress in Prague decided that Latvia would be given the opportunity by July 1 this year to prove its capability of organizing the world championship. IIHF has said that it wants to see all agreements concluded by LHF, Cabinet of Ministers, Riga City Council and construction companies on building the arena in Latvia, as well as all related authorizations, construction designs and other documents.
LBSP had notified the Cabinet of Ministers and the Riga City Council of its intention to withdraw from building the hockey arena in Riga.
LBSP calculated that construction costs will now amount to about EUR 30 million, not EUR 26 million as planned earlier.
As LETA was informed by Riga City Council information and PR department, Bojars believes that the decision on future operations pertaining to construction of the ice arena must be adopted by the Latvian Ice Hockey Federation (LHF), because a majority of deputies are incapable of radically changing the adopted decisions on land lease terms for construction of the arena.
The council has received a letter from the "Latvijas buvnieku strategiska partneriba Ltd." (LBSP) where the company informs about dropping construction of the arena, opening the door for other investors.
LHF again had entrusted the arena to constructors that now decline to implement the project, therefore LHF must take responsibility and decide which of the investors would carry out the project, the Riga mayor said.
"Riga City Council is not ready to assume responsibility for buying out the arena without knowing what will happen with the building after the hockey championship. It would be irresponsible," Bojars said. He believes that EUR 30 million (LVL 19.8 million) would be too heavy a burden for the municipal budget at a time when the municipality has to finance repairs for roads and schools.
Bojars stressed that the arena could be still constructed on time if the LHF passes a decision to trust construction of the arena to companies not asking for municipal or state guarantees.
As reported, the International Ice Hockey Federation (IIHF) congress in Prague decided that Latvia would be given the opportunity by July 1 this year to prove its capability of organizing the world championship. IIHF has said that it wants to see all agreements concluded by LHF, Cabinet of Ministers, Riga City Council and construction companies on building the arena in Latvia, as well as all related authorizations, construction designs and other documents.
LBSP had notified the Cabinet of Ministers and the Riga City Council of its intention to withdraw from building the hockey arena in Riga.
LBSP calculated that construction costs will now amount to about EUR 30 million, not EUR 26 million as planned earlier.
