Helsinki moves to expropriate Ilmala arena

The Helsinki City Board at a meeting on November 11 will consider measures to acquire use of the city’s largest sports and entertainment arena at Ilmala, said the city in a press release on Thursday.

The city has been looking to find a new owner for the shuttered Ilmala arena by facilitating a voluntary sale, but despite the efforts of private operators and city negotiators, the preparation of the transaction has not progressed.

The city will therefore proceed to prepare an application for an expropriation permit, after a decision-in-principle to this effect.

The application is expected to be submitted some time in November or December. Finland’s central government will decide on whether or not to grant the expropriation permit.

The proposal up for consideration on November 11 urges the City of Helsinki’s Urban Environment Division to proceed with the application for pre-possession and expropriation of the arena.

It also recommends the City Executive Office prepare the necessary appropriation proposals.

Pre-possession means the possibility for the expropriating party to gain control of the property before its legally binding delivery.

The proposal goes on to advise the city’s Urban Environment Division and the Culture and Leisure Division to start preparing, under the City Executive Office’s guidance, for the city possibly taking possession of the Ilmala arena and the rapid launch of arena operations.

The expropriation process has several phases, and it is difficult to predict its duration and outcome due to possibility of appeals. Even if the city is granted the right to pre-possession, it will take at least a year for the city to assume control over the arena and potentially start operations. If there are appeals, the expropriation process could assumedly take several years.

Because expropriation is a measure of last resort, impinging on the protection of property that is enshrined in the Constitution of Finland, the application for the expropriation permit will be waived if use of the arena can be secured in another fashion.

Earlier on October 30, the City of Helsinki submitted an application for a summons to the Helsinki District Court regarding unpaid rent on the Ilmala arena’s leased land.

Due to payment difficulties, the company that owns the arena has drifted into a situation that also threatens to compromise the building's condition.

The Helsinki City Board’s decision proposal entitles the City Manager to approve, if necessary, the reasonable and appropriate expense to the city that is necessary to secure the technical condition of the arena and to demand payment of the resulting arrears from the party originally responsible for them.

The city’s largest arena has been shuttered since the end of February 2022, when Russia started its war of aggression in Ukraine.

Making it available for use again is very important for the fields of culture and sports, as well as for major entertainment and business events. The arena has also traditionally been an important venue for junior hockey training sessions.