Transport Administration in second attempt to open Tallinn lighthouses
The Transport Administration has announced a repeat procurement in hopes that in the coming years, both the upper and lower lighthouses on the Tallinn range will be opened to visitors. The lower lighthouse property, located on Valge tänav, is seeking investments totaling €1.5 million from interested parties.
If everything goes according to plan, the upper Tallinn lighthouse could welcome visitors as early as next summer. However, this depends on someone taking responsibility for the renovation of the lower lighthouse, located on Valge tänav.
The Transport Administration hopes that a single company will manage both lighthouses for the next 20 years. At the upper lighthouse, located in Lasnamäe between Peterburi tee and Pae tänav, the prospective partner would have relatively minor tasks – mainly building a walkway to the lighthouse and opening its doors within six months of signing the contract.
The lower lighthouse property on Valge tänav, however, requires an investment of €1.5 million.
"All the buildings at the lower lighthouse need substantial repairs and construction," said Andres Unn, a manager at the Transport Administration. According to Unn, the lighthouse building itself must adhere to heritage conservation requirements. "The other buildings, which will also be available for the operator's use, can be renovated at the operator's discretion. The condition, however, is that the external appearance of the buildings must be preserved," he added.
The lighthouse complex has been in continuous use since the early 19th century. A restoration project was completed a few years ago, outlining work that would require an investment exceeding €400,000. The property also includes tsarist-era residential and auxiliary buildings, which have stood vacant for years and would need nearly €1 million in renovations.
However, these buildings could potentially generate revenue for an operator's investment. According to Unn, operators have considerable freedom in how the buildings are used. Nevertheless, some restrictions were specified in the procurement documents.
"We certainly do not want a wholesale or retail alcohol business to be established, but on-site alcohol sales are allowed if a café or restaurant is created," Unn explained. "Additionally, we do not want the lower lighthouse complex to be entirely converted into office space. Partial conversion is permitted, and the city has also expressed a preference that no cheap hostels be established there."
Summer tender fails to fetch a good price
Unn clarified that a high-quality hotel could still be established in the lighthouse complex. The Transport Administration made a second attempt last week by announcing a new procurement after the initial effort over the summer failed to attract any bidders.
Unn explained that feedback from the first attempt prompted some changes to the conditions. For example, the summer procurement documents indicated that alcohol sales were prohibited on the lighthouse premises.
The requirement that the lighthouses be open for at least 30 hours per week was also removed.
"During the winter, for instance, there is unlikely to be much interest in visiting these towers. This change gives the operator flexibility to keep the tower closed during such periods, meaning they are not required to staff it without a purpose," Unn explained. "In the summer, they will certainly be open for as long as possible. The operator will run the towers based on ticket revenue, so it is also in their interest."
The deadlines for the operator were also relaxed. While the original summer plan expected the lower lighthouse to be opened to visitors within two years, the new terms allow for partial renovations within three years and full completion within four years of signing the contract.
Agency believes the investment will pay for itself in a decade
One potential interested party, the Estonian Lighthouse Museum NGO, noted in their feedback to the Transport Administration that it would be more beneficial if the buildings could be leased to an operator for at least 30 years, as this would better justify the investment. However, Andres Unn explained that extending the lease period is restricted by law.
"In reality, the investment should be recouped within ten years," Unn added. "A 30-, 40-, or 50-year timeframe would not actually make lighthouse operations any more attractive."
The Transport Administration also did not agree to the NGO's proposal to sell the buildings associated with the lower lighthouse to the operator.
"We want to maintain the integrity of this lighthouse complex. In the past, some of these complexes have been partially privatized, but preserving such historical heritage remains essential," Unn emphasized.
In determining the winner of the procurement, 10 percent of the evaluation criteria will be based on the operator's proposed concept. The remaining 90 percent will be determined by the amount of monthly usage fees the operator is willing to pay to the Transport Administration. Nevertheless, Unn stated that the state does not expect significant financial gains from the contract. "The state's benefit will be the renovated buildings. Therefore, the usage fee will likely be symbolic," Unn added.
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Editor: Urmet Kook, Marcus Turovski