Lucerne City Council applies for loans and credits for ewl site
The Lucerne city council wants to upgrade the site of the energy service provider Energie Wasser Luzern (ewl). To this end, the city council is applying for a municipal loan of 50 million as well as special credits of 83 million Swiss francs. The citizens can decide on this in a referendum on 18 June.
The city council is requesting a municipal loan of CHF 50 million for the conversion of the ewl site in Lucerne. In addition, it requires special loans of almost 83 million francs for the so-called Rotpol project, according to a press release from the city of Lucerne.
The plans include 90 non-profit flats and 60 flats suitable for the elderly, as well as the construction of a new fire station for the professional and militia fire brigade, including a location for the civil defence organisation ZSOpilatus and a base for the rescue service of the Lucerne Cantonal Hospital. In addition, there will be a new building for the ewl building and new office space for several municipal departments. The listed Red House is to become a meeting place for the public.
Since the planned mix of uses is tailored to public needs, ewl Areal AG ‘s business plan shows a total return of only 2.6 per cent. “The low return is basically justifiable due to the extensive uses for public purposes,” says the media release. However, the equity ratio is also at a low level. Therefore, the city council is requesting a municipal loan of CHF 50 million.
For a capital increase of ewl Areal AG from CHF 6 million by CHF 39 million to CHF 45 million, the city council is also requesting a special loan of CHF 7.8 million. Furthermore, 25.5 million francs for the tenant fit-out for the municipal uses as well as their rental and ancillary costs amounting to 49.5 million francs over the next ten years.
The City Council will decide on the special loans on 30 March. Due to the amount, a referendum is also to be held on 18 June.