Palace of Culture “Metalurg” in Novomoskovsk will be leased while maintaining its purpose in the interests of the city community
The State Property Fund has announced an online auction for the lease of the Palace of Culture “Metalurg” in Novomoskovsk (Dnipropetrovsk region) with a total area of 5890.64 sq. m., which is state-owned.
PC “Metalurg” has an important social and humanitarian significance for the community of Novomoskovsk. The Palace is a center for meeting the creative and cultural needs of the city's residents, as well as the only institution in the city that has a professionally equipped stage, an auditorium for 700 seats and a room for creative centers.
Therefore, the State Property Fund has made a decision in the interests of the city community on the mandatory preservation of the main purpose of the object as an institution for educational, cultural, sports and entertainment events, as well as the provision of related services in connection with their implementation.
The auction is scheduled for March 31, 2021. The deadline for applications is March 30.
Link to the auction - http://bit.ly/3aUjxgY.
PC “Metalurg” is proposed to be leased for 15 years. The starting price at which it is put up for online bidding is UAH 68,886.48.
The object needs current repairs. The future tenant will be obliged to invest at least UAH 3 million in its modernization and repair during the first 2 years of the lease, but without the right of further redemption.
The Palace building is fully equipped with communications. Connected autonomous heating, electricity (275 kW), sewerage, gas, ventilation, air conditioning. Internet is connected to the building.
The future tenant will also have the right to sublease part of the leased premises of PC “Metalurg” to provide related services to its visitors. Subleasing will not require additional approvals from officials. The new lease law allows tenants who have received the right to lease at auction not to transfer the difference between lease and sublease to the budget and to use the funds that make up this difference at the discretion of the tenant.
Note that until the beginning of 2021, the building of the Palace of Culture was on the balance of PJSC “Interpipe Novomoskovsk Pipe Plant” as non-statutory state property assigned to this private company. During the management by this company and as of the beginning of 2020 at the Palace of Culture 14 clubs and sections of creative and sports orientation were operating. The Fund decided to keep the right of these groups to continue working in the Palace of Culture. This decision will be provided by a special additional lease condition, according to which the future tenant will be obliged to enter into sublease agreements for a period of 15 years with each of these teams according to the listofficially received by the State Property Fund from Novomoskovsk local authorities.
“Given the need to maintain the non-profit orientation of a large part of the Palace of Culture, the Fund asks the mayor of Novomoskovsk to reconsider the mayor's plans to increase the land tax rate in four times, which in 2020 amounted to UAH 59,989.79. The mayor announced his intention about such increasing by letter to the Fund dated February 11, 2021. According to the Fund, if public property is used to meet the cultural needs of citizens, the goal of profit maximization cannot be the main one when management decision process. It is for these reasons Fund proceeded when decided to approve additional lease terms for this object”, - Leonid Antonienko, First Deputy Chairman of the State Property Fund of Ukraine, said.
To attention.
PC “Metalurg” was built by funds at the Soviet era times, and during the privatization of the plant in 1995 it was excluded from the list of its property subject to privatization.