The representatives of Olomouc approved the request for notification of support for the multifunctional hall

Olomouc - The Olomouc City Council today approved the submission of a request for notification of public support to the European Commission for the upcoming construction of a multifunctional hall after more than three hours of discussion. According to updated calculations, the city, together with the Olomouc Region, is expected to contribute to the development group Redstone with an investment grant of 2.497 billion CZK for its construction.

The estimated investment costs for the construction of the multifunctional hall near the center of Olomouc are 2.574 billion CZK, with the investor contributing land worth 265 million CZK to the project. The memorandum of cooperation on this project has already been approved by the councils of both Olomouc and the Olomouc Region. If the plan receives the approval of the EC for public support, the developer intends to build the hall in 2028 and 2029.

The construction of the hall will be financed through a combination of private funds, bank financing, and public financial support from the city and the region. The main portion of the planned investment grants from the local authorities is allocated to Olomouc, which would send Redstone 1.714 billion CZK in annual installments over 30 years, accounting for inflation. The contributions from the region are projected to total nearly 782.5 million CZK over the thirty years.

The planned annual investment grant from the region starts at 16 million CZK and can be increased to account for inflation. According to the financial model, it should rise to 39.6 million CZK after 30 years due to price increases. The initial annual contribution from the city is set at 35.1 million CZK and will rise to 86.7 million CZK in the 30th year of repayment. Thus, the overall annual grant from the local authorities would increase from the initial 51 million CZK to 126.3 million CZK.

According to Mayor Miroslava Ferancová (ANO), Olomouc cannot afford to build its hall. She compared the New Great Moravian project to operational leasing, through which a new hall will be built in Olomouc and by the end of the thirty-year repayment of the grant, the city will no longer have to worry about further investments in its maintenance or reconstruction. Some council members pointed out that this model is not advantageous for the city and unsuccessfully proposed to terminate the notification process and discussions on preparing the project.

The founder of Redstone, Richard Morávek, told ČTK that the submission of the notification request is a fundamental condition for further project preparation and potential construction. "We perceive the approval from both the region and the city as an important signal that Olomouc is interested in modern infrastructure that meets the current needs of the region," Morávek stated.

Today, the representatives of the ProOlomouc movement, which is part of the city coalition, voted against the submission of the request for notification of public support. They believe the city should invest its free funds in neglected infrastructure. Coalition representatives from the Pirates and the spOLečně movement also raised their hands against the proposal, while it was supported by opposition representatives from the SPD and Tricolor, as well as the majority of representatives from Spolu.

The planned hall is intended to include stores with sports merchandise, offices, and an underground parking lot. The city hall is negotiating with Redstone because the city has been unable to implement the project for its own hall.