On September 20, in the middle of the financial year, Riga City Council announced that the land rent for the “Rimi” Olympic Sports Center is being increased by 1210%. What’s more, the new conditions come into effect already on October 1. Jānis Rūtens, member of the board of SIA “Olimpiskais sporta centrs” (OSC), states that such an increase has a destructive effect on the company’s operation in economic terms, is erroneous in terms of content and disproportionate in nature.
In 2001, the Riga City Council leased a plot of land to the Latvian Olympic Committee with the aim of building and managing a sports complex, as well as improving the area, until 2050. Taking into account the purpose specified in the lease agreement, the Olympic Sports Center was qualified as a public institution. Also, within the framework of the contract, the lessee undertook and performed infrastructure improvement works, as well as compensated the expenses of those owners whose buildings were on the land before the start of construction. In 2010, when making additions to the lease agreement, the differentiated land plot rent was introduced, but it was not compensating for the lessee’s investment. The lessee carried out his works and investments relying on the 50-year lease term, assuming that a negotiation procedure will be organized for changes, if any, and increases, if any, will be proportionate and reasonable for a public institution that serves the convenience of Riga residents.
“Currently, the question is, does the Riga City Council want to ensure that Riga residents and their children do not have the financial opportunity to attend regular sports classes? Children and young people are our future, that is why it is emphasized in the guidelines of both the Ministry of Health and the Ministry of Education and Science, creating such precedents goes directly against the common rhetoric. We expect that the increase in the cost of the service will have a significant impact on those who want to play sports, the health of children and young people, and the sports industry as a whole,” emphasizes Jānis Rūtens.
The Latvian Olympic Committee is the owner of capital shares in eight Olympic centers throughout Latvia, mostly together with the specific municipalities. The exception is the “Rimi” Olympic Center, which is fully owned by the Latvian Olympic Committee. The Riga City Council was offered several times to participate in the construction of the Olympic Center and become a shareholder, especially in the period from 2001 to 2005, but the management of the capital at that time did not show interest. In Olympic centers, which are also co-owned by municipalities, other conditions apply to services and obligations provided by municipalities, applying the status of a municipal building and taking into account the status of a public institution.
Apart from the fact that the main purpose of SIA OSC’s activity is to carry out economic activities, that is, to manage and maintain the building in such a way that the service is available to every visitor of the Olympic Sports Center (children, schoolchildren, students, high-achieving athletes, teams, seniors, people with special needs needs, etc.), SIA OSC plays an important social role by providing an environment where every member of society can take care of their health. In order to be able to pay such an extremely high fee for the land lease, SIA OSC should significantly increase the fee for providing the existing sports classes, providing services and renting premises.
The task of SIA “Olimpiskais sporta centrs” is to manage the building of the Olympic Center for the provision of sports functions. The Olympic Center is a multifunctional sports center suitable not only for national, but also for international basketball, volleyball, handball, football, athletics, gymnastics, wrestling and other sports competitions and training process. The complex has six gyms, a weight room and two gyms for a variety of fitness and therapeutic exercise classes. The Olympic Center has the largest and most modern swimming pool complex in Riga – in addition to the large 50 m swimming pool (six swimming lanes, depth from 1.30 m to 2.30 m), two small 10 m swimming pools (depth 1 m and 1-1.4 m) are open to visitors ), intended for children from the age of six months for the development of swimming skills and water lessons. There is also a large recreation area and a playground for children up to 11 years old. The place where the hippodrome used to be is now home to sports and various public events – for example, in 2006 the NATO summit was hosted in the center, participants of the World Choir Olympics and the Song and Dance Festival gathered here. Organizations related to sports and health have made a home in the premises of the complex.
In the Olympic center, more than 3,000 people can practice sports per day, in 2023, 1,071,997 visitors visited the center. More than 5,500 children and young people engage in sports and physical activities once a week. In order to be able to pay the disproportionately large rent decided by the Riga City Council, if it comes into force, it will be necessary to increase the amount of payments to athletes, sports enthusiasts, supporters of a healthy lifestyle and parents of children for using the Olympic Sports Center. This is expected to reduce the circle of these persons and proportionally increase the number of children and young people on the streets, lowering the level of public welfare. Of course, this will also cause problems for the Olympic Movement itself, as it will reduce the possibility of creating athletes for high-level achievements.
2024-10-01 12:51:21