How and Why Was the Draudzība Cultural Centre Sold in Sarkandaugava?

This week, with a press release distributed through the media, clarity emerged on what will henceforth be located in the Draudzība cultural centre in Sarkandaugava, at Tilta Street 32. True - now the former cultural centre, since in 2011 the Riga City Council, under the leadership of its mayor Nil Ušakovs and deputy mayor Ainārs Šlesers (later Andris Ameriks), sold this building of the Pavasaris Society, designed in 1888 by architect Konstantīns Pēkšēns, at auction for 230,000 lats to a private company, "MRF Mājoklis". As the head of LNK Properties' commercial real estate department, Pāvels Broitmans [1], reports, henceforth the building will house a RIMI grocery store, as well as a few other small shops and a postal station.

Let us momentarily set aside in the dustbin of history the tales of the well-attended events and "gentlemen's evenings" of the early last century, the "sheik" evenings of the seventies, and the discotheques, concerts and theatre events of the eighties. The cultural institution operated until 2009, and then one fine day it became unnecessary for the Riga City Council. This time we will focus on the fate of the building in the period from 2006 to 2013.

In the appendix to Riga City Council Binding Regulation No. 44 of 16 May 2006, concerning the programme for the use of the City of Riga municipal property privatisation fund resources for 2006 (mayor - Aivars Aksenoks, JL), it can be seen that 35,000 lats were allocated for the repeated approval of the technical reconstruction project for the Draudzība cultural centre building at Tilta Street 32. In the same document it can also be seen that 190,000 lats were planned for the development of the renovation project for the Ziemeļblāzma cultural centre (in Vecmīlgrāvis). These are almost the last testimonies to the Riga City Council's wish and intention to restore this historic building.

Before Andris Ameriks was appointed to the post of deputy mayor, he worked for some time (since 2005?) in the development committee, and after losing that position, became head of the property and privatisation committee. During this phase of his activity, reports spread in the press about Ameriks's possible corruption [5]. In 2009, Ameriks was re-elected to the Riga City Council from the LPP/LC list. He retained his post at the head of the property committee, while in 2010, when his party colleague Ainārs Šlesers was elected to the Saeima, Ameriks took the vacated chairs of chairman of the Riga Free Port board and deputy chairman of the Riga City Council.

In the summer of 2009, with the election of "Harmony Centre" and "Latvia's First Party" to the Riga City Council, the emphasis on cultural and public space use also changed. On 10 December 2009, the Riga City Council transferred the Draudzība cultural centre building to privatisation without particular publicity. On 28 December 2010, an oral auction with a starting price of 372,000 lats attempted to sell it, but without success. The second auction on 15 February 2011, with a starting price of 297,000 lats, also ended without success. On the third attempt, on 13 April 2011, with a starting price of 230,000 lats, it was finally sold. The number of bidders is unknown, but if there was one bidder (MRF Mājoklis), it was most likely sold at a price close to the initial auction price.

From the document we can conclude that the cultural centre had a reconstruction (not renovation!) plan drawn up, which had moreover at some point been approved, since in 2006 there was a need to re-approve the project. It is possible that SIA "MRF Mājoklis", which purchased the Draudzība cultural centre building at auction, used the reconstruction project already developed by the Riga City Council (at taxpayers' expense). In the agenda of the Riga City Building Department council session of 10 May 2012, it can be seen that "MRF Mājoklis"'s development proposal for the reconstruction and new construction of a shopping centre (project group codes RR2 and J1) at Tilta Street 32 was considered. The designer noted is SIA "Sarma & Norde Arhitekti". The designer of the new construction (hangar?) is SIA "ILEX Projekts".

On 28 June 2012, at the proposal of the "Sarkandaugava Development Association", the building was granted the status of a local heritage monument. Accordingly, the building was required to preserve: the spatial-volumetric arrangement in the urban environment, the architectural and decorative arrangement and finish of the facades, the historic structural elements and carpentry products.

The Designer

The firm "Sarma & Norde Arhitekti" was founded in 1993. The company's owners are Visvaldis Sarma and Jānis Norde. Attention was caught by a 2011 publication [2] discovered by chance, in which Visvaldis Sarma sets out his vision:

"Riga is a typical 'shrinking city', so one must think about intensifying construction in the centre and as quickly as possible forget about various suburban development projects."

Both gentlemen have also been active in the little-known SIA "RIXSN", which was later liquidated, and since 30 November 2011, together with 3 other board members, are on the board of SIA BALTIC CONSTRUCTION CONSULTANCY. An interesting fact: in 2002 Jānis Norde donated a rather substantial sum to Ainārs Šlesers's "Latvia's First Party".

The Owners

The current owner of the Draudzība cultural centre building is SIA "MRF Mājoklis". The Riga City Building Department issued it a permit for the reconstruction and new construction of the building on 4 February 2013. By decision No. 17 of the Riga City Council's Planting Preservation Commission dated 2 July 2013, SIA "MRF Mājoklis" was permitted to fell: 1 maple, 2 elms, 2 birches, 1 horse chestnut, 5 linden trees and 9 shrubs. For this, compensation for losses was set at 3,165.60 lats.

SIA "MRF Mājoklis" was founded in 1992, though as SIA "Alojas centrs". For some time Boriss Rozentāls was on its board, but until 25 May 2012, Anna Gulbe. The current sole board member is Artjoms Milovs.

Artjoms Milovs has historically served on the boards of many companies. Of particular note is the LNK Group parent company, under which LNK Industries, LNK Engineering and LNK Properties are united. Studying the board composition, one cannot shake the feeling that it is a family company, since on the board alongside Artjoms Milovs are Nataļja Milova and Vadims Milovs, with the board chairman being Aleksandrs Milovs, born in 1947. Notably, all of them were generous supporters of Ainārs Šlesers's "Latvia's First Party", up until 2011, when the party, unwilling to repay the overspent half-million lats, was liquidated.

In 2008, in connection with a 13.6 million lats money laundering scheme uncovered by the State Revenue Service, a shadow of suspicion also fell on AS "Latvijas tilti". Riga Stock Exchange data show that the board of "Latvijas tilti" includes Aleksandrs Milovs, Vadims Milovs, Boriss Rozentāls, Oļegs Burovs, Andrejs Subočs, while the board chairman is Sergejs Brovkins, with Vladimirs Muhomors and Regīna Vitrjaka also serving on it. Notably, Boriss Rozentāls was at one point also a member of the MRF Mājoklis board, while Oļegs Burovs is currently director of the Riga City Council property department and a member of Harmony Centre.

On 17 November 2012, AS Latvijas tilti procurator Artjoms Milovs presented to Riga mayor Nil Ušakovs a gift to the city - the Vanšu Bridge illumination project "Vanšu Bridge Light Strings". To which Nil Ušakovs (hopefully without subtext) added: "this is a good example for other companies".

LNK Properties director Pāvels Broitmans and Artjoms Milovs are connected by both several companies in which they replaced one another on boards with remarkable regularity, and by both having a passion for football. Meanwhile, with the late Boriss Rozentāls, by activity in SIA "Baltic Logistics Park (BLP)", where they likewise replaced one another on the board. Pāvels Broitmans too was in 2009 a generous supporter of Ainārs Šlesers's "Latvia's First Party".

An interesting but unrelated fact: SIA "LNK Industries" on 4 February 2013 (which entirely coincidentally coincides with the issuance of the building permit for the reconstruction of the Draudzība cultural centre) won a procurement competition for the purchase of supporting metal structures for technological equipment for SIA "Riga Fertilizer Terminal". [3]

Sources:

[1] http://abc.lv/?article=sarkandaugavas-tirdzniecibas-centra-draudziba-investeti-25-miljoni-eiro
[2] http://www.db.lv/ipasums/nekustamais-ipasums/arhitekts-riga-jaattista-pilsetas-centrs-un-jaaizmirst-par-nomalem-237518
[3] http://www.db.lv/razosana/transports-logistika/riga-fertilizer-terminal-ieperk-materialus-mineralmeslu-terminala-buvei-kundzinsala-387341
[4] http://www.sarkandaugavai.lv/2012/05/bez-kulturas-sarkandaugava/
[5] http://en.wikipedia.org/wiki/Andris_Ameriks