In a dispute over a private mansion village, MEPRD Salaspils is threatened with dismissal In Latvia

After the bursting of the “fat years” bubble, many private villages built in Pieriga were inaccessible due to darkness and dirty roads. This year, the residents of Zirņu Island in Salaspils region found themselves in such a situation. Once the houses have been sold, the village developer no longer has an interest in maintaining roads and living conditions, while the municipality does not want to take over the territory.

In 2004, Salaspils municipality leased the peninsula to the Riga Hydroelectric Power Plant for 25 years to the company Spēks Zirniusala. There were no roads, plumbing or other communications in the area. The real estate market grew, and Salaspils also wanted to attract more taxpayers. The head of the municipality at that time explained that he would not earn much from renting, but from the taxes that would be paid by the inhabitants of Zirņu Island. The company planned to build about 100 private houses on municipal land.

But the crisis came and “Strength Zirniusala” went bankrupt. In 2013, the half-built houses were bought by the real estate developer “MCity Sala”. A new lease agreement for Zirņu sala was concluded with the company until 2024.

Mcity built 33 private houses on Pea Island. The municipality also earned, because when buying a house, residents bought it from the municipality. The company installed roads, water supply, sewerage, sewage treatment equipment, lighting. All this belongs to a private company, but the land – to Salaspils City Council. The contract stipulates that the roads built are public and traffic may not be restricted. After their commissioning, the roads must be handed over to the municipality.

Raimonds Čudars

Chairman of Salaspils District Council (New Unity)

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“(NP: In essence, the municipality has only benefited from this project, there is rent, a landscaped area, the residents pay taxes, and they have bought land plots.) In that sense, of course, yes. (NP: The lease stipulates that the lessee also has some obligations to manage this area, right?) Yes, this is, of course, stipulated in the lease, and it must be done. There are houses built there, there are residents – although maybe not very much at the moment. The same project has been implemented only to a relatively small extent, if we compare it with the intentions of 2004. And we know that there is now some disagreement between the developer and the public about management rules. ”

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When the developer had only one unsold house left, problems began in the village. The lights stopped working and the roads were no longer cleaned.

Mcity holdingam was no longer interested in building in the remaining territory of Zirņu Island. With the beginning of this year, the management agreements concluded with the residents expired, but no new ones were concluded. The company published advertisements on real estate portals that it is selling the Zirniusala project with the entire municipal lease agreement for 86 hectares.

Andris Stankevičs

Technical Director of MCITY Holdings, former member of the Board of MCITY Sala

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“Currently, the strategic goals of the holding have changed this year, we, groups, companies, those related to business, they continue to operate and continue to expand, those related to various residential projects, we are currently selling or transferring them to other companies.”

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Residents felt that the municipality should be involved in the dispute. However, Mcity ignored complaints about its tenant. Requests to get acquainted with the agreement between the company and the City Council were not answered. The inhabitants of Pea Island wrote to the Ministry of Environmental Protection and Regional Affairs. When asked by the Ministry for an explanation, Salaspils replied that it was a private dispute in which the local government had no right to intervene. The mayor of Salaspils compares the village with an apartment building, where the streets are common areas. MEP does not agree.

Ilze Oša

MEPRD Deputy State Secretary for Regional Development

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“The municipality pays attention to any person who has obligations to maintain property in the territory of the municipality.”

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The company justifies that it tried to get rid of the management obligation, offered to transfer roads, water management and other public buildings to the municipality. This is also confirmed by the letters sent to the council.

Andris Stankevičs

Technical Director of MCITY Holdings, former member of the Board of MCITY Sala

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“We did not have talks with the municipality, the correspondence we have had, we have not received answers.”

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Raimonds Čudars

Chairman of Salaspils District Council (New Unity)

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“It cannot be a situation that a municipality buys from a private investor, for example, these investments, the value of which, I told you, is about 350,000 euros. I will not ask such a question at the council meeting. “

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In reality, however, the price charged by Mcity was halved. The company was ready to negotiate another solution, but did not receive any response.

In July, the Ministry of MEPRD reminded Salaspils that the organization of public utilities is a municipal function and gave the impression that the dismissal mechanism of the City Council could be activated.

The Ministry considers that the municipality can transfer its responsibilities to a private company, but then it must set requirements for the quality of the service. Thus, the municipality controls the managers of private villages. The law also provides the council with the possibility to grant the status of a municipal road to a private carriageway. It also allows you to maintain a private road without coming to the attention of the State Audit Office.

In informal talks, the ministry threatened to dismiss Salaspils County Council if it continued to ignore the complaints of the residents.

Ilze Oša

MEPRD Deputy State Secretary for Regional Development

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“In order for us to be able to pursue such cases, we also have a certain procedure in writing before, there was no such procedure in writing. (NP: Have you warned that you will start such a procedure if the municipality does not act more smoothly?) Most likely, in the negotiations we always mention the responsibilities of the municipalities and also what I have just told you that in the actions that we think are in the public interest. And if they are not done, they are not done for a long time and repeatedly, then we can always consider the issue of materiality and the fact that the activities of the municipality are not in the public interest. ”

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The dismissal of the municipality is unlikely. In recent years, this has only happened to the Riga City Council. Close to the dismissal was the Talsi District Council, which was unable to agree on a chairman. In January of this year, the MEPRD planned to suspend Garkalne Mayor Mārtiņš Bauzis-Krastiņš for repeated violations, but he resigned himself. However, the former Minister of Regional Development concludes that local authorities usually respond to the Ministry’s accusations, so the threat remains unrealized.

Juris Pūce

Former Minister of Environmental Protection and Regional Development (For Development / Par!)

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“Such reprimands from the MEPRD regarding the activities of local governments are not uncommon. And quite often a simple letter is sent stating that something has not been done, but also using the possibilities provided by Articles 93 and 94 of the Law on Local Governments, which is already, in fact, a fairer threat, so to speak: , otherwise you may be penalized. In most cases, this is the case: we demand an explanation, and the municipality does something, acts. Something changes, appropriate adjustments are required. The last thing I remember from the ministry was the Jurmala city municipality with the building that was illegally built for non-compliance with a court judgment. In fact, when I left, I realized that enforcement of the judgment had begun. ”

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After correspondence and a meeting with the MEPRD, Salaspils City Council turns to Zirņu Island and listens to the offer of a private developer.

Raimonds Čudars

Chairman of Salaspils District Council (New Unity)

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“Given the situation that the project will obviously not move forward at the moment, there are also legal obstacles, then the municipality is ready to talk about taking over part of the toll roads and including them in the common municipal rural road network.”

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Mcity has managed to find a successor to Pea Island. This will be done by an employee of the company who wants to develop the undeveloped part of the island. Two weeks ago, Salaspils City Council voted to sell 12 plots of land to Mcity Island, which has now been renamed Zirniusala. The company now offers the municipality to take over the infrastructure free of charge.

Jānis Meiers

“ZIRŅUSALA” board member and owner

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“Our goal is to buy back land plots from the municipality, to develop private houses, semi-detached houses on them, to sell certain land plots as building plots. That is the model of our business, not purely management or water supply. ”

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So far, MEPRD has started inspections in response to complaints. But now the ministry plans to conduct systematic audits in all municipalities.

The MEPRD was left without political leadership two weeks ago, the most realistic candidate for the post of Minister is the current parliamentary secretary Artūrs Toms Plešs from the party “Latvia’s Development”. Doubts have been expressed about support for his candidacy from the party “For!” In the association.

Juris Pūce

Former Minister of Environmental Protection and Regional Development (For Development / Par!)

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“I am convinced that we will nominate a ministerial candidate within the association. It is quite proportionate, now also practical possibilities to normally organize the internal process and in a discussion situation where most faction deputies from 9 am to 7 pm and next week I understand until 9 pm, actually sitting with small breaks in the Saeima, it is very difficult to organize normal meetings, although remotely, but normal meetings to address this issue, but we will certainly agree and be a candidate. I have no doubt about that, it’s a matter of weeks. “

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