Lucerne: New financing for EWL site on the way
After the construction cost calculation of the Totel contractor Halter was confirmed, a second attempt was made to finance the major project.
Progress is being made again on the major EWL project in Lucerne. After hitting the brakes in spring 2023 due to increased construction costs (IB reported)The city council has now drawn up a revised financing proposal. The share capital of EWL Areal AG is to be increased through various special loans, the tenant fit-out and rents are to be financed and a loan is to be granted to EWL Areal AG. The referendum is expected to take place on June 9, 2024.
Two independent experts confirm owner
When it became known that the project costs had risen from CHF 211.5 million to CHF 244.8 million, a planning freeze was imposed. EWL Areal AG commissioned two cost planning companies to check the unexpectedly sharp increase. "Both arrived at total costs of CHF 244 million and CHF 248 million independently and without knowledge of the new cost ceiling price," according to a statement from the city of Lucerne. The new cost calculation of the total contractor Halter, which had caused controversy, was thus confirmed.
Almost half of the additional costs are attributable to the construction cost increase of around 14%, which was incurred between April 2019 and April 2023. In addition, project adjustments and the reassessment of the subsoil also led to additional costs. Parallel to the cost review, the city council reviewed the planned uses for the city of Lucerne and decided to dispense with the originally planned rooms for the road inspectorate and urban greenery. Another solution is to be found to supplement and replace their external depots. The city council is now submitting a revised proposal to the city council to finance the city's concerns and is requesting various special credits.
Apartments and space for the public sector
A mixed-use district is being created on the site, which is intended to achieve a high ecological quality. In addition to non-profit apartments, apartments for the elderly, commercial and office space for EWL Energie Wasser Luzern and the city of Lucerne, the site will also house a new fire station for the fire department as well as bases for the civil defense and rescue services. The developer of the "Rotpol" project is EWL Areal AG with the owners EWL, Allgemeine Baugenossenschaft Luzern (ABL) and the City of Lucerne.
ABL is planning 92 non-profit apartments. In addition, 57 age-appropriate apartments are to be built. The EWL building, which was built in 1975 and is in need of renovation, particularly in the energy sector, will be replaced by a new building. The three municipal departments of Civil Engineering, Environmental Protection and the Geoinformation Center will also be given office space in the new building. The former apparatus building - the so-called Red House - which is listed in the Canton of Lucerne's inventory of listed buildings, will be retained and will become a meeting place for the district and the public.
Start of construction targeted for summer 2026
According to the proposal, the share capital of EWL Areal AG is to be increased from the current CHF 6 million to CHF 65 million. As ABL has a significantly lower utilization share, it is to increase its stake to CHF 15 million. The shareholdings of EWL and the City of Lucerne will each amount to CHF 25 million. The City Council is requesting a special credit of CHF 17.8 million from the City Council for this capital increase. It is also requesting that the external financing be supported with a subordinated municipal loan of CHF 50 million. The Grand City Council is expected to decide on the special credit on March 21. The referendum is scheduled for June 9.
The aim of EWL Areal is to start the first construction phase in summer 2026 and put the new EWL main building into operation in mid-2029. (aw)
