Mayor: Tartu cultural center cost must not exceed €92 million

The projected cost of the Tartu city center cultural center has risen significantly, prompting opposition members to call for a critical review of the plans. According to the latest forecast, the building, set to be completed by 2029, is expected to cost €92 million. The City of Tartu has assured that the funds are available; however, if costs continue to increase, budget cuts may become necessary.
The cost of Tartu's central cultural center, Siuru, is forecast to reach €92 million by 2029 under the agreement between the City of Tartu and the Estonian Cultural Endowment. The initial cost of €73.7 million, indexed to reflect construction price changes, has risen to €92 million, a figure that, according to Siuru project director Aavo Kokk and city representatives, was anticipated from the outset, "Aktuaalne kaamera" reported.
"We have been very clear when planning Tartu's finances and negotiating with the Cultural Endowment that the cost cannot and must not exceed €92 million. Tartu has many other essential investments to consider. Control budgets are being drawn up regularly and the latest, received just recently, shows everything is balanced," said Tartu Mayor Urmas Klaas (Reform).
"This €92 million figure has been factored in from the beginning. The common mistake, especially in public sector projects, is to focus solely on the initial contract cost without considering that construction will take four or five years or longer. Those years must also be accounted for when calculating actual expenses," added Kokk.
The Estonian Cultural Endowment stated that it has not fixed the €92 million as a strict limit but has accounted for cost increases tied to construction price indices. However, according to Margus Allikmaa, head of the Cultural Endowment, it is premature to discuss definitive costs before the construction tender is finalized. He also confirmed that even if construction prices increase further, the necessary funds are currently forecasted to be available.
"We have not set a specific limit. What we have done is adjust the cost according to the construction price index. We check whether the €73.7 million, when multiplied by the index, is less than or greater than the total cost resulting from the tender. If the tendered cost exceeds this, the project must be revised and the tender rescinded," explained Allikmaa.
To prevent costs from exceeding the planned budget, adjustments have already been made during the planning phase, such as re-evaluating material choices. Kokk emphasized, however, that cheaper materials are not always the best option if their lifespan is significantly shorter. Other potential cost-saving measures are also under consideration.
"For example, do we need as much extensive indoor landscaping as initially planned? A recent decision was to independently design the excavation work, which we believe will reduce overall project costs. Often, developers will plan for 400 chairs, but if funds fall short, they might purchase 200 chairs and rent the rest, buying more later as funds become available. Decisions like this can be made right up to the final stages," said Kokk.
Mayor Klaas noted that some costs, such as redesigning nearby roads, could be postponed, though he said such decisions are not yet necessary to speculate on.
The opposition, however, believes Siuru's costs should be reduced further. Anneli Kannus, a member of the Eesti 200 party, argued that the investment could push Tartu to the brink of bankruptcy, delaying other critical projects and affecting cultural workers' salaries.
"When we are in an economic downturn and need to increase defense spending, it is irresponsible to build a concrete monolith in Tartu's park for €100 million. If, in the end, the city lacks funds to complete Siuru, we will be left with a partially destroyed park, no new connection to the river and insufficient funds to pay the salaries of those working in the building. Right now, we have two options: either pause the project until economic growth is sufficient or scale it back, ensuring that the art museum and library receive a new building," said Kannus.
Tõnis Lukas, a member of Isamaa's Tartu branch board, also called for a critical review of the project, particularly if costs continue to rise. However, he emphasized that providing new facilities for the art museum and library should remain a priority.
"The other extras in the design could be reconsidered. Not every dream can be realized. We already have the Vanemuine Concert Hall nearby and the Estonian National Museum (ERM) has several halls, some of which remain underutilized. We need to ensure that Tartu does not overbuild when it comes to event spaces," Lukas said.

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Editor: Aleksander Krjukov, Marcus Turovski