SJSC “State Real Estate” (SRE) has started urgent works in the Corner House related to the dismantling of the fire detection and alarm system and the construction of a new system throughout the building. During the works it is expected that the museum will be able to continue its activities without interruptions, says SRE Board Member Andris Vārna.
A.Vārna emphasises: “Our aim is to ensure that the Museum of the Occupation of Latvia (LOM) continues to operate without losing its essence and historical significance. To this end, urgent works have already started this week, using financial resources that will be subsequently recovered from the proceeds of the building's expropriation. It is important to note that our aim is not only to keep the museum open to the public during the works, but also to contribute to its long-term stability and development.”
The work plan, together with a request for an extension of the deadline for the work, will be submitted to the State Fire and Rescue Service (SFRS) in a letter by 5 April. The work plan includes the dismantling of the existing fire detection and alarm system and the construction of a new system throughout the building, the dismantling of the fire-fighting water pipes and equipment and the construction of a new system and pump station, the dismantling of the non-operational electrical wiring, as well as the filling of the densities of the fire-resistant constructions.
In parallel, SRE and the Museum of the Occupation will review the lease agreement for the Museum premises to ensure that the agreement identifies and clearly stipulates all the premises required for LOM's exhibitions and activities. The lease agreement and the entry in the land register for 30 years will guarantee the operation of the LOM for the specified period, regardless of the status of the building.
Taking into account that 92% of the premises are not in demand for state functions, the Corner House, also known as Tetera House, is being advanced for expropriation following the decision of the Cabinet of Ministers meeting on 26 March, and the continued operation of the Museum of the Occupation of Latvia will be ensured in parallel.
Investing significant capital and public funds in the renovation of a building whose content and future development possibilities are not clearly defined is not a responsible use of funds, as required by the Law On Prevention of Squandering of the Financial Resources and Property of a Public Entity. To date, no renovation or development projects have been carried out at the Corner House, as the need for the property to fulfil public functions has not been clearly defined.
SRE has promoted the Corner House for both lease and expropriation in the past – in 2019, a lease auction was held, offering private tenants the opportunity to lease the Corner House for 30 years. However, difficulties arose regarding the ownership rights and the necessary investments for the renovation of the building, as according to the Law On Prevention of Squandering of the Financial Resources and Property of a Public Entity, a real estate lease agreement could be concluded for a maximum period of 30 years. This period was considered too short by potential investors. Therefore, in 2020, after targeted work and identification of potential users, SRE decided to expropriate the Corner House, preserving its space for the museum. The expropriation process was suspended after the National Alliance called for the building to be given the status of a historic site.
About SRE
SRE provides professional real estate management and maintenance for 419 building and structure properties, comprising 1049 buildings with a total area of 0.98 million m2, as well as land beneath structures with a total area of 585 ha, and 3385 land properties with a total area of 937 ha. SRE is one of 17 Latvian companies that received the highest platinum award in the Institute for Corporate Responsibility and Sustainability’s Sustainability Index 2023, demonstrating good governance and sustainability of its operations. The company was founded in 1996 and the Ministry of Finance is its sole shareholder.
