Major donation for music centre project

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Three foundations representing Finland’s Swedish-language community have donated EUR 5 million for the planned Music Centre in the centre of Helsinki. The donation will be used for reducing the rent costs of one of the centre’s tenants, the Sibelius Academy.
     “We will have our rent reduced by EUR 350,000 a year”, says Rector Gustav Djupsjöbacka.
     The lowered rents will be in force for 25 years. Senaatti Properties and the Sibelius Academy are expected to sign a long-term lease soon.
     Djupsjöbacka sees the donation as a “magnificent gesture from the foundations in this neo-liberal society”.
     
The donation helped the Ministry of Finance and the Ministry of Education to make a decision on financing for the project.
     “One rarely gets a stipend like this”, said Minister of Finance Jyrki Katainen (Nat. Coalition Party).
     Minister of Education Sarí Sarkomaa (Nat. Coalition Party) also praised the joint donation from Svenska kulturfonden, Konstsamfundet, and Svenska Folkskolans vänner.
      “This is a boon to the Sibelius Academy, which will now have appropriate and acoustically excellent premises”, Sarkomaa emphasised.
     One of the donors, Svenska kulturfonden, celebrates its centenary this year. “Already 100 years ago, Robert Kajanus, conductor of the Helsinki Philharmonic Orchestra, tried to get a concert hall into the city. Now it has succeeded”, said the foundation’s chairwoman, Wivian Nygård-Fagerudd.
      After the donation, the state’s share in funding the project will still be EUR 67 million.
     
The total price tag of the Music Centre, estimated at EUR 140 million, might fall, because of the weakening of business prospects in the construction business.
      “Now there are considerably more contractors making bids than there were a couple of years ago, and competition over contracts is getting tougher. Therefore, the costs can decline”, said Juha Lemström, chairman of the board of the Music Centre.
     If costs come down, the benefit will be shared by the main contractor SRV, and the shareholders in the project - the state, the City of Helsinki, and the Finnish Broadcasting Company (YLE). The City of Helsinki made its formal decision on taking part in the funding of the project in May. The state made its decision on Thursday.
     The Administrative Council of YLE meets on Tuesday next week. The board of the Music Centre is prepared to formalise a decision on construction of the centre on Tuesday afternoon.
     
Minister of Finance Jyrki Katainen (Nat. Coalition Party) said that he hopes that the Administrative Council of YLE will make its funding decision quickly. To spur the decision, the state and Senate Properties have made a concession to YLE.
     “YLE has wanted to prepare for the possibility of selling its share of the Music Centre. If YLE decides on the sale, Senate Properties will help find a buyer”, Katainen says.
     If no outside real estate investor is found in such a situation, the state-owned Senate Properties will buy out the YLE share at a price corresponding to the construction costs, in 2016.
     At that time the Finnish Radio Symphony Orchestra will become a long-term tenant, much in the same manner as the Sibelius Academy.


Previously in HS International Edition:
  Public broadcaster interested in Music Centre again (8.4.2008)
  More than 20 million cut back on costs of Helsinki Music Centre (15.1.2008)
  YLE CEO Jungner: Lease contract with Helsinki Music Centre still wide open (9.1.2008)

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