Helsinki weighs leasing 85 percent of Lapinlahti hospital to company

Helsinki City Executive Board is discussing a proposal to lease 85 percent of the Lapinlahti hospital building to an unnamed company, Yle reports. The board is meeting on Thursday morning to consider plans for renovating the hospital complex.

The proposal, initiated by Helsinki Mayor Daniel Sazonov and City Executive Director Jukka-Pekka Ujula, would give the company space for its headquarters and offices. The remaining 15 percent would stay available to existing tenants.

The city has not disclosed the company’s name because the proposal has not yet received political backing. The city administration and the Urban Environment Division have negotiated with the company about leasing the main building.

The Lapinlahti community has criticised the lack of transparency. It includes organisations operating in the Lapinlahti hospital complex, current tenants and private individuals and residents who support its activities.

“We are not asking for a veto, but for participatory planning in which Helsinki residents and the Lapinlahti community are genuinely involved at the same table,” said Ville Pellinen, chief executive of Lapinlahden Lähde.

Pellinen said previous city decisions had defined the future concept for Lapinlahti as being based on community-led mental health work, art and culture. He said leasing most of the space for a company headquarters or offices could not be seen as consistent with that goal.

He also warned that the complex’s existing low-threshold community activities could be squeezed out if most of the space were closed to current users. The area has been developed for years as a centre for art, culture and mental wellbeing, and currently has about 200 tenants.

Pellinen said the Lapinlahti community was open to business activity in the hospital building, including the participation of a large, responsible and reputable company. However, he said this should happen through participatory democratic planning rather than a decision made behind closed doors.

The city is planning to establish a property company to own the main building and oversee its renovation and subsequent leasing. Mari Koskinen, a project manager at the Urban Environment Division, said a large tenant paying market-rate rent would provide financial stability and could allow other spaces to be leased at somewhat lower rates.

If the proposal moves forward, the city plans to organise a joint development process with current operators and residents to decide what activities and spaces the complex should have in the future. If it does not receive support for further preparation, the city could use alternative plans drawn up by the Urban Environment Division.

The renovation is expected to cost about 48 million euros and will affect rents regardless of which plan is adopted. The final rent levels have not yet been decided and will be negotiated during the project planning process.

The main building, designed by architect Carl Ludvig Engel, was completed in 1841. It operated as a psychiatric hospital until 2008.