Múlaþing executive council advises against buying Valaskjálf

Múlaþing’s executive council has recommended that the municipality reject a purchase of Valaskjálf in Egilsstaðir, saying the cost of buying and renovating the building would be too high, mbl.is reports.

The total investment is estimated at about 2.25 billion Icelandic krónur, with roughly 2 billion krónur in borrowing required. The municipal administration would need 1,150 to 1,200 square metres of office space in the long term, but the hotel section of Valaskjálf would not meet that need on its own.

Municipal calculations suggest that buying and renovating the building would leave the operating result of the municipality’s A-part more than 200 million krónur worse each year from 2028 than making limited improvements to its current offices at Lyngás 12. The accumulated difference through 2040 could reach about 3.4 billion krónur.

Valaskjálf has a long history as a venue for cultural events in Egilsstaðir. It opened as a community hall in 1966 and has hosted concerts, plays and other cultural activities.

The future of the hall came into focus this summer after it suffered extensive water damage. Its owners raised ideas for changing its use and adding guest accommodation. More than 1,100 people later signed a petition calling for the hall to continue serving cultural events.

Múlaþing has considered several options, including renting the hall and buying the whole building. In September, the municipal council rejected the proposed terms for renting the hall but agreed to examine a purchase more closely. The executive council has now recommended against buying Valaskjálf; the municipal council will make the final decision.