LTV's "De Facto" reported last weekend on the presentation of a vision for the development of Riga's Andrejsala, for which an Arab investor is ready to give money. The developers of the more than 50-hectare Andrejsala development project "Riga Waterfront" have already started to entice potential applicants with residence permits.
Ali Alabbar, CEO of Eagle Hills, promises to invest €3 billion in Riga Waterfront, building apartments, hotels and more. The first homes are expected to start this year. But no official concept for Riga Waterfront has been submitted to the Riga City Council.
Now, the Riga City Council has announced in a press release that it will ask the investor to explain "possible arbitrary actions and non-compliance with the signed memorandum of cooperation".
The Riga City Council stressed that "the vision presented for the development of Andrejsala does not correspond to the original concept presented to the municipality before the memorandum was signed, nor does it seem to be in line with the current city spatial plan".
According to the Urban Development Department, such a dense development on the banks of the Daugava River is not permissible in Riga, and the height of the proposed buildings is likely not in line with the spatial planning documents.
Moreover, contrary to the memorandum's cooperation on communication issues, the developer has launched a one-sided and intensive public campaign for the project, the municipality said.
The Development Department also found that an advertising poster with the inscription "RW Riga Waterfront", for which no permit had been obtained, had been arbitrarily placed on Eksporta Street. An administrative offense case will be initiated.
In addition, more than ten flags with the same inscriptions were found to be displayed on lighting poles in Eksporta Street, which also did not have an advertising permit, for which an administrative offense case will also be opened.
The Riga Municipality stressed that it agreed to the Memorandum of Cooperation with Eagle Hills on the good faith assumption that the developer would comply with the terms of the Memorandum, as well as appreciating the investor's intentions to develop a degraded area.
But "at present, the developer's activities demonstrate arbitrary behavior that is unacceptable to the city", the council said.
The developer will therefore be asked to explain the actions. Once received, the municipality will decide on the next steps, reserving the right to unilaterally withdraw from the memorandum of cooperation.
