The Tallinn City Government has drafted a bill to sell a group of 82 properties in the notorious, rundown area of Kopli Liinid in the northern part of the city.
The aim is to find a developer to construct a new residential area and update infrastructure, the city said in a press release on Tuesday.
Deputy Mayor Ega Võrk said the city has tried to offload the properties before, without much success. She added that the new approach is to sell the properties, not to hand out building leases.
Developers will be obliged to construct a promenade and a park near the beach, and a swimming beach area.
The starting price is quoted at 1.5 million euros.
The area, running parallel to tram tracks on the Kopli peninsula, is mostly known for its abandoned buildings, occasionally inhabited by the homeless.
In winter, many of the squats catch fire, as the down-and-out people of Tallinn try to warm themselves, often with deadly consequences.