The Municipality of Eindhoven has signed a deal with real estate developer Lee Foolen about the construction of Victoriapark and Victoriatoren. In the deal, Foolen pays €2.5,000,000 for the construction of the park.
The deal allows Eindhoven to start construction of Victoriapark in early 2024. Foolen has bought off his share in the construction of the park. Foolen will receive that amount back when construction of the tower starts in time, before September 2024. Every month that construction starts later, the developer receives over €400,000 less back.
The demolition of the LAC building is also part of the deal. After the signing of the agreement, the building must be demolished by the developer and the land will be sold to the municipality for €1.
Tug of war
With the deal, Eindhoven hopes to prevent the demolition of the LAC building from leading to a lot of legal wrangling. In addition, the municipality hopes to encourage the developer to start construction of the tower on time by linking the amount of €2.5,000,000 to the construction.
Whether that has the desired result remains to be seen. The Municipal Executive says that the city council has no legal options to impose a building obligation. If construction costs and interest rates continue to rise, developer Foolen can wait until prices drop again and construction of the tower becomes more lucrative.
If that happens, the city will at least have a Victoriapark, which has been largely paid for by the developer, is the idea.
Translated by: Bob