Vantaa defends ice rink guarantee in court, calls financial risk insignificant

The city of Vantaa has rejected claims that its €11 million guarantee for a new ice rink poses a significant financial risk, according to a response filed with the Helsinki Administrative Court and reviewed by national broadcaster Yle.

In December, Vantaa’s city council approved a ten-year guarantee covering ice rental fees for sports clubs at the planned Elmo ice rink in the Asola district. The project, valued at over €21 million upon completion, aims to address a long-standing shortage of ice sports facilities in the city.

Three city councillors from the Finns Party challenged the decision, arguing the guarantee violates municipal law by exposing the city to excessive financial risk without adequate collateral. They demanded the council’s decision be overturned.

In its defence, the city board dismissed the claims, stating the guarantee represents less than 0.5% of Vantaa’s €2.1 billion balance sheet—a fraction of the 10% threshold the Supreme Administrative Court ruled in 2020 as constituting a “significant risk” for smaller municipalities. The board also noted the risk decreases annually by €1 million as the guarantee period progresses.

The response asserts that collateral—including a mortgage on the rink itself—provides sufficient security. While acknowledging that guarantees from sports clubs hold little monetary value, the city retains the option to lease ice time directly if clubs default on payments.

The complainants further argued the project should have been retendered after the city’s guarantee altered its financial terms. The city board countered that procurement matters fall under the Market Court’s jurisdiction and urged the Administrative Court to dismiss this aspect of the complaint.

Construction of the rink, adjacent to a new swimming hall in Elmo sports park, has reportedly begun despite the ongoing legal challenge.