Lahti pauses some zoning plans as construction slows

Lahti has suspended some zoning work as weak construction and economic uncertainty slow private development, Yle reports. A planned tower hotel in the city’s Paavola district is still being pursued.

Construction is expected to remain weak next year, says Anu Kärkkäinen, a director at the Confederation of Finnish Construction Industries RT. Uncertainty over the economy and interest rates is slowing home sales, which is also affecting new building projects.

In September, Lahti paused zoning work for the Luhta block in Paavola. The site is planned to include a tower hotel, homes and commercial premises. Norwegian hotel group Strawberry is expected to operate a Clarion hotel there, but financing has not yet been secured.

Tiina Luhtanen, chief executive of Luhta-Kiinteistöt, said financing talks had progressed, though no agreement had been reached. The pause in zoning does not mean the hotel project has been abandoned.

Lahti planning director Juha Helminen said the city had suspended zoning work when landowners lacked a clear plan for how to develop their sites. Owners were also reluctant to commit, he said, because property taxes would begin to reflect the new zoning once it became legally binding.

The city plans to restart the work when the projects become clearer. The purpose of the Luhta block zoning plan is to bring the rules into line with construction already completed and planned for the future.

Helminen said pausing the work could save public money by preventing the city from commissioning new studies when earlier ones become outdated. Kärkkäinen said the move was unusual and could instead increase costs if studies have to be repeated after becoming outdated during the pause.

Kärkkäinen said mixed-use projects combining hotels, homes and commercial space were particularly difficult to advance in the current economic climate. She said cities should consider ways to support projects rather than suspend their zoning plans.

Several significant zoning plans in Lahti are continuing. Plans for developing the travel centre and Kisapuisto, as well as a plan enabling a water sports centre, are due to be considered by a city committee in October.