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Friday 23.03.2018 | Name days: Mirdza, Žanete, Žanna

Riga City Council's property being sold for three times of actual worth

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Nil Ushakov

Nil Ushakov

Riga City Council (RCC) is selling municipal real estate property for inadequate prices. This leads to believe the individuals close to the management of the city council are interested in municipal property ending up in the hands of speculators, Unity believes.

The current situation suggests introducing strict and clear rules that will clearly define situations under which it will be allowed to sell property, as well as how the evaluation of property should be carried out, as stated by RCC faction of Unity. It was recently uncovered that the property sold on January 13 is currently being re-sold for a price that exceeds the initial worth three times.

“The example with the property on Vienibas gatve 13 clearly demonstrates RCC’s improper management of its precious property. This raises concerns about the existence of some special scheme in play,” – Unity‘s RCC official Valdis Gavars says.

The initial price of the aforementioned property was 77 000 LVL. According to real estate market experts, land in this district is much more expensive and that the initial price should have been at least two times larger – 150 000 LVL. Also, the city development plan provides for modernizing the territory in the near future. This means the value will go up even more, Unity’s press-secretary Laila Timrota reports.

“Nevertheless, the auction was held, with only a single participant. Now, three months later, this property is being sold again. But for a much higher price this time – 214 000 LVL. Unity previously noted Riga Mayor Nil Ushakov’s led coalition’s hastened property sales with the goal of opening up the city’s budget and seeking more revenue from it. Unity notes that such short-term solutions only damage the state budget and cause only losses,” – says Gavars.

The municipality continues its attempts to get rid of its owned property in spite of objections from the opposition and the conclusions provided by real estate experts, which state that now is the time to purchase property, not sell it.

It should be added that fears about the current situation were also voiced by the Reform Party. In the middle of March, RCC tried selling one of the capital’s most important pieces of land for long-term development – near Riga International airport.

“One of the most perspective long-term development scenarios for Riga is finding an appropriate location for holding conferences for the tourism industry. This requires a multifunctional congress and seminar centre – something the industry’s specialists have been going on about for years. Unfortunately Riga City Council is planning to sell the best possible piece of land that would make a good location for the development of this centre,” – RP’s Riga Mayor candidate Ilona Platonova says.

She believes the complex would hold international conferences, exhibitions and congresses with up to 10 000 people. The municipality should be looking for investors that would agree to develop this centre. The city should also provide its support by setting in the necessary infrastructure, RP reports.


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