Olomouc to continue negotiations with Redstone on multifunctional hall project

The City Council of Olomouc has agreed to continue negotiations with the Redstone Group regarding the construction of a planned multifunctional hall, estimated to require an investment of CZK 2.1 billion. The council approved the continuation of preliminary market consultations and the preparation of documents necessary for notifying the European Commission about public support for the project. Additionally, a memorandum outlining further cooperation with Redstone was approved.

The city has been in discussions with Redstone for some time concerning the construction and management of the proposed five-story hall. Olomouc previously attempted to develop its own hall on the site of the old ice rink, a project estimated at CZK 1.2 billion, which would have required external subsidies and operational funding from the city.

“Today’s decision allows us to continue our efforts with the city to prepare the necessary documentation for public support notification and to draft the contractual framework between the city and the investor,” said Richard Morávek, founder of Redstone.

Since 2022, the projected costs of the multifunctional hall have risen by CZK 250 million, bringing the total to CZK 2.1 billion. Alongside this, Redstone has revised the proposed annual contribution from the city, increasing it from CZK 36.9 million to CZK 43.7 million, reflecting inflation. An additional CZK 7.3 million annually is expected to come from the regional government.

The council’s resolution to continue negotiations was not supported by representatives from ProOlomouc, the Pirates, and spOLečně. The decision was passed with the support of the ANO coalition and opposition parties Spolu, SPD, and Trikolóra. Some council members raised concerns that entering a contract with the investor would commit the city to annual payments for 30 years, potentially straining the municipal budget and limiting funding for other priorities such as water management infrastructure.

Deputy Mayor Miroslava Ferancová (ANO) noted that halting negotiations would leave the city with the alternative of a costly reconstruction of the existing ice rink. “Repairing the old stadium would cost approximately the same as the annual contribution to the new hall,” Ferancová stated. She emphasized that continued consultations would provide further information, enabling the council to make a final decision after the notification process. Until then, the city remains under no contractual obligation.

The multifunctional hall is part of the broader New Velkomoravská district project being developed by Redstone. The facility is planned to host around 50 sports events annually, including 26 hockey matches, and will be used by the HC Olomouc hockey club. Plans also include 24 cultural and four social events per year. The building’s basement is designed to accommodate 1,184 parking spaces.

Source: CTK