The Olomouc Region Assembly approved a memorandum on the construction of a hall in Olomouc

Olomouc - The Olomouc Region Assembly today approved a memorandum with Nová Velkomoravská regarding cooperation on the construction of a multifunctional hall in Olomouc. The agreement includes an annual investment subsidy from the region starting at 16 million Czech crowns. The city of Olomouc will also help finance the construction of the hall, with an annual contribution of 35.1 million CZK. Both contributions will gradually increase with inflation. Nová Velkomoravská plans to build the hall in 2028 and 2029.

Municipalities are expected to contribute a total of 2.1 billion CZK to the hall over 30 years, according to the investor's calculations. The construction costs of the hall amount to 2.574 billion CZK, and the investor will contribute land valued at 265 million CZK to the project.

The Olomouc City Council, with which the region coordinates the process, approved a memorandum of cooperation with Nová Velkomoravská last year, preliminary market consultations, and the preparation of documentation for the notification of public support to the European Commission (EC). The request for notification will be discussed by the Olomouc City Council on April 27, and the city council has recommended that the material be approved. If the EC agrees to the public support, the developer can continue preparing the project with the municipalities.

The decision of the regional assembly, according to Olomouc mayor Miroslava Ferancová (ANO), opened the way for the initiation of the notification process. The Olomouc City Hall began negotiations with Nová Velkomoravská from the Redstone group because the city was unable to bring the project of its own hall to life in the place of the long-standing winter stadium. "It would be a huge investment that Olomouc cannot afford at present,” she stated. According to Governor Ladislav Okleštěk (ANO), the new hall will greatly support regional sports and culture. "It will enable the organization of interesting sports and cultural projects at least at a national level,” he noted.

The construction of the hall is to be financed by a combination of private funds, bank financing, and public financial support from the city and the region. Over 30 years, Olomouc is expected to send Nová Velkomoravská 1.422 billion CZK in annual installments, taking into account a two-percent inflation rate, while the region's contributions are estimated to total nearly 650 million CZK over thirty years. The funds will help Nová Velkomoravská repay a bank loan for the construction of the hall.

The planned annual subsidy from the region starts at 16 million CZK and may increase with inflation. According to the financial model based on a two-percent inflation rate, it should rise to 28.4 million CZK after 30 years. The city's annual contribution is set at 35.1 million CZK and could reach 62.3 million CZK in the 30th year of repayment. Opposition councilor Matouš Pelikán (Spojenci24) pointed out that actual inflation could be higher than two percent, which would be reflected in the increase of the planned contributions from the municipalities. He proposed setting a cap for their increase at two percent per year, since the investment in the hall will occur in the first three years of the project. The proposal was not approved, as the governor stated that inflation could be addressed in the contract.

The hall for sports and cultural events is part of the planned New Velkomoravská district. The project was prepared by the Redstone group, founded by entrepreneur Richard Morávek. The hall will include shops, offices, and an underground parking lot.