On 4 November, the auction of development rights for three industrial development areas of 17 ha, 10.2 ha and 7.4 ha in Valmiera Industrial Park was opened. It is possible to apply for either a single area or multiple areas – for the construction of industrial buildings, for the improvement of the lease area, for the construction of internal engineering networks and connections to trunk networks.
By obtaining the rights to use a part of the territory in the open auction of development rights, the entrepreneurs will greatly benefit from access to the public infrastructure of the park, which is being built with the financing of the European Recovery Fund in the amount of EUR 20 million, implementing project No 3.1.1.i.0/1/23/A/CFLA/008 “Development of Valmiera Industrial Park”.
Construction work is already actively underway at the park site. Concreting of the industrial area (logistics point) for cargo handling and storage (44 600 m2 with a load capacity of 60 t) has started, as well as the construction of two public parking areas (for cars and trucks). The construction of the utility corridor (main water supply and sewerage network) on Ozolkalns Road is nearing completion. Construction work has begun to establish a connection between the public railway and the internal railway of the area. The construction of this connection will significantly expand the cargo transportation and logistics opportunities in the Vidzeme region. It should also be mentioned that the territory of the industrial park is planned to be enclosed with a metal panel fence, green infrastructure will be installed, and lighting will be provided for the public parking lots, as well as for railway and road infrastructure.
Importantly, industrial electricity is to be provided to the tenants of the site. The electricity infrastructure will be provided from 31 December 2025 at a capacity of 15 MW and with a power generation capacity of 9.8 MW, and can be increased up to 100 MW at the option and need of the tenant.
Another important factor for potential investors will be the duration of the lease or development right, which ranges from 45 to 70 years depending on the size of the investment. In addition, for the first 24 months, the development right holder will pay a reduced development right fee corresponding to 50% of the then current development right fee, and will receive a reduction of 90% of the amount of real estate tax calculated for the tax year until the industrial building is put into operation.
The oral auction of the development rights will take place on 11 December 2024 in the administration building of Valmiera Municipality, 2 Lāčplēša Street, Valmiera. More detailed information regarding the requirements for applicants can be found in the auction rules and their annexes (in Latvian) here. Applicants for development rights may submit their applications until 2 December 2024 at 17:00 EEST:
- by handing it in person at the Valmiera Municipality Document Management and Customer Service Centre, Lāčplēša Street 2, Valmiera, Valmiera Municipality, LV-4201, on Mondays from 8 am to 6 pm, Tuesdays, Wednesdays, and Thursdays from 8 am to 5 pm, Fridays from 8 am to 4 pm.
- by post to the Auctioneer at the address Lāčplēša iela 2, Valmiera, Valmiera Municipality, LV-4201. The postal item must be delivered at the place and within the time limit set out in this point. The Bidder personally bears the risk of untimely delivery;
- by sending the application electronically, signed with a secure electronic signature, to the municipality’s e-mail address: pasts@valmierasnovads.lv.
On 12 November at 11 am media representatives will be introduced to the planned, completed and planned works of the Valmiera Industrial Park, as well as the auction areas. More about the media day here.
The development of the Valmiera Industrial Park is based on the development documents of the Valmiera Municipality, which also include conditions for potential investors, defining sectors of activity (smart specialisation), average wages for employees, the need to respect the circulation of materials in production technology or to meet the conditions for climate-neutral and green products, etc. The auction rules also specify certain export volumes, non-financial investments, research and development investments, number of jobs, and other criteria.
In the development planning documents of Valmiera Municipality, the municipality has defined a strategic goal – wider industrialisation by 2038, promoting the creation of jobs with high added value and export-oriented jobs, as well as reducing regional development disparities between the Riga region and the rest of Latvia. In order to achieve this goal, and focusing on the overall development of the new Valmiera Industrial Park, the technical layout envisages attracting up to five strategic investors (102.54 ha), while creating a cluster approach between potential regional and municipal businesses in the area. It should be mentioned that as a result of the public auction, on 27 August 2024, a contract for the development of the 26 ha land unit in Phase 2 of the Valmiera Industrial Park was concluded with Fibenol Latvia Ltd, which will start construction of the biorefinery in the event of successful feasibility studies and environmental impact studies.