„Tallinn has found strategic partners in partnership with whom it will be possible to carry out the development of the City Hall property. We will develop the City Hall into an international conference and concert centre, which will enliven the tourism sector and economy in general, will create jobs and earn profit for the City in the future. Adding a new passenger port to the centre will bring enough tourists into the centre to make the investment profitable,“ Mihhail Kõlvart, Mayor of Tallinn, said. „Executing the project in this way should mean that the City Hall area will be developed wholly from the City’s planning perspective and from the point of view of creating synergies between different fields of activity,“ Kõlvart added.

In order to carry out this development project, the City of Tallinn, AS Tallink Grupp and AS Infortar will establish a joint venture in which the shares will be distributed as follows:  City of Tallinn will hold a 34 per cent stake, AS Tallink Grupp 33 and AS Infortar 33 a per cent stake each. Upon the establishment of the joint venture, the shareholders will make an initial total contribution of EUR 1 million, with individual contributions depending on the individual shares in the joint venture. In addition, the City of Tallinn will contribute the City Hall and its adjacent properties to the joint venture  and AS Tallink Grupp and AS Infortar will guarantee the contribution of the necessary capital required for the investment. The City of Tallinn will not have any additional financial obligations. The total estimated cost of the project is approximately EUR 300 million.

„The City of Tallinn and the Estonian government have long been waiting for a viable proposal and vision for the listed City Hall concert hall property and a development proposal for an international conference and concert centre, which would help give the Tallinn and Estonian tourism sector the development boost it needs. Estonia desperately needs a conference and concert hall that would seat up to 5,000 guests and would enable bringing large conferences and cultural events requiring a good quality large hall to Estonia. In order to successfully compete with the other capitals in the Baltic Sea region, such as Helsinki, Riga and Stockholm, Tallinn needs new opportunities for developing tourism and it needs a big step forward,“ said Paavo Nõgene, CEO of Tallink Grupp.

„Our vision, in partnership with the City of Tallinn, is to establish an attractive and wholly functioning conference, passenger port and entertainment complex here in the area of the Tallinn City Hall and its immediate surroundings, which would open up another area in the City close to the sea for the residents of Tallinn and would attract new foreign visitors to the City as well. Adding a passenger port to the conference centre is of key importance as it will enable private sector companies to operate such a project profitably and to bring new life into the area in question in general,“ Nõgene added. According to Nõgene’s estimations more than 10 million people will be visiting the area in the City annually.

During the coming months the parties to the MOU will agree on the principles of cooperation and set an activity plan. The joint venture is expected to be established already this spring, assuming the Tallinn City Council supports this decision. An architectural competition will be launched for determining the best architectural concept for the renovated City Hall property and the port, Conference centre, business centre and other new buildings built on the other properties in the vicinity.  When drafting the terms of reference for the architectural competition, the fact that the City Hall is a listed property with significant historic value will naturally be considered and all the special requirements for renovating a listed property will have to be adhered to.

The  estimated construction period of the new centre and adjoining buildings is three years from the point when all the necessary permits have been obtained and all the required contracts have been signed.