Múlaþing council advises against buying Valaskjálf

Múlaþing’s executive council says the municipality should not buy Valaskjálf, a historic community hall building in Egilsstaðir, mbl.is reports. It recommends that the municipal council reject the purchase.

The estimated cost of buying and renovating the building is about 2.25 billion Icelandic krónur, with around 2 billion krónur in borrowing required.

The municipality has considered buying Valaskjálf to move its Egilsstaðir offices there. A needs assessment found that the administration would require 1,150 to 1,200 square metres of space over the long term, which the building’s hotel section alone cannot provide.

According to municipal calculations, buying and renovating Valaskjálf would make the operating result for the municipality’s A section more than 200 million krónur worse each year from 2028 than carrying out limited renovations to the current offices at Lyngás 12. The cumulative difference could reach about 3.4 billion krónur by 2040.

Valaskjálf was opened as a community hall in 1966. Its assembly hall has long hosted concerts, theatre performances and other cultural events. Its future drew attention this summer after serious water damage, followed by proposals from the owners to change the hall’s use and add more accommodation. More than 1,100 people later signed a petition calling for the hall to continue hosting cultural activities.

Múlaþing has considered several options for the building, including renting the hall and buying the entire property. The municipal council rejected the proposed terms for renting the hall in September and decided to examine a purchase further. The executive council now considers the financial impact of buying the building too great. The municipal council will make the final decision.