Olomouc and the region are set to send 2.1 billion CZK for a multifunctional hall over the next 30 years

Olomouc - The city of Olomouc, along with the Olomouc Region, is set to contribute approximately 2.1 billion Czech korunas towards the planned multifunctional hall in Olomouc over the next 30 years. The funds will assist Nová Velkomoravská from the development group Redstone in repaying a bank loan for the construction of the hall. The current estimated cost of the hall's construction is 2.574 billion korunas. If Redstone reaches an agreement with the local governments and the project obtains approval for public support, the developer intends to build the hall in 2028 and 2029. The information was obtained today by ČTK from materials for regional councilors, who will discuss a draft memorandum between the regional authority and Nová Velkomoravská in April.

The main sum of planned investment grants from local governments will go to Olomouc, which would send Redstone 1.422 billion korunas in annual installments, taking inflation into account, over 30 years. Contributions from the region are expected to total nearly 650 million korunas over thirty years. The hall's construction will be financed through a combination of private capital and bank financing, with public financial support from the city and the region being an essential prerequisite, without which the private entity cannot realize the project, as stated in the draft memorandum.

The planned annual investment grant from the region starts at 16 million korunas and can be increased by inflation. According to the financial model, due to rising prices, it should increase to 28.4 million korunas over 30 years. The initial annual contribution from the city is set at 35.1 million korunas, increasing to 62.3 million korunas in the 30th year of repayment. Thus, the total annual grant from local governments would rise from the initial 51 million korunas to 91 million korunas.

Olomouc City Council approved a memorandum of cooperation with Redstone last year, continuing preliminary market consultations and preparing materials for notifying public support to the European Commission. The draft memorandum was also approved by the regional council. When deciding on potential support for the construction of the multifunctional hall, the regional authority relied on market analysis, a financial plan, and its operational model and financing. The regional council will discuss the draft memorandum shortly after Newton Business Development completes a market analysis for the Olomouc city hall regarding the multifunctional hall. The city will submit a request for notification to the EC after the draft memorandum is discussed in the regional council.

The hall is part of the planned New Velkomoravská district. The project was prepared by the Redstone group, led by entrepreneur Richard Morávek. It is expected that there will be 42 sports events per year in the hall, including 30 hockey matches. The plan also includes 24 cultural and 12 social events. The hall will feature sports retail shops, offices, and an underground parking lot. The city is negotiating with Redstone because it has been unsuccessful in launching its own hall project on the site of the long-standing ice rink.