Olomouc will continue negotiations with the developer regarding the planned construction of a multifunctional hall

Olomouc - The Olomouc City Hall will continue negotiations with the developer group Redstone about the multifunctional hall project, which, according to current estimates, will require an investment of 2.1 billion crowns. The continuation of preliminary market consultations with the investor and the preparation of documents for the notification of public support to the European Commission (EC) was approved today by the Olomouc council after long discussions. At the same time, a memorandum on further cooperation with Redstone was approved.

The city has been negotiating with the company about the construction and operation of the five-story hall for a longer time. The city has not managed to implement its own hall project, which it wanted to build on the site of the old ice rink. This approach would require an investment of up to 1.2 billion crowns, and the city would need to obtain a subsidy and finance the operation of the hall.

"Today’s decision allows us to build on our existing work and, together with the city, prepare all the necessary documentation for the notification of public support to the EC, as well as a proposal for specific contractual relationships between the city and the investor," said Redstone founder Richard Morávek.

The estimated costs of the multifunctional hall designed by the Redstone group have increased by a quarter of a billion crowns to 2.1 billion CZK since 2022. The investor has also increased the annual contribution requirement that the city is expected to send for 30 years. In 2022, it was quantified at 36.9 million crowns and has now increased to 43.7 million crowns annually due to inflation. An additional 7.3 million crowns per year is expected to be contributed by the regional government.

The approved resolution for further negotiations with Redstone was not supported today by councilors from ProOlomouc, Pirates, and spOLečně. The coalition ANO pushed the proposal through with the votes of opposition councilors Spolu, SPD, and Trikolora. Some coalition and opposition councilors pointed out that if the city signs a contract with the investor, it would be obligated to send tens of millions of crowns to the project for three decades, which would burden its budget and limit investments in areas such as water management infrastructure.

If the council had decided today to halt further negotiations with Redstone, only the costly reconstruction of the ice rink would be considered. "Repairing the old stadium will cost about the same as the contribution for the new hall," said Deputy Mayor Miroslava Ferancová (ANO). She pointed out that thanks to the continuation of market consultations, the city will gain answers to additional questions. After the notification of public support, councilors will be able to finally decide whether the city should contractually engage in the Redstone project. Until then, the city is not committing to anything.

The multifunctional hall is part of the planned district New Velkomoravská. The project was prepared by the Redstone group, led by entrepreneur Richard Morávek. The hall is expected to host about fifty sports events annually, including 26 hockey matches. The ice hockey club HC Olomouc intends to use the hall. The plan also includes 24 cultural and four social events. The basement of the hall is projected to have 1,184 parking spaces.