Investment tender announcement

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Lviv City Council announces investment tender

The tender is conducted by the Department of Economic Development of the Lviv City Council in accordance with the City Council’s Decree No 2547 of July 18, 2013 “On Approval of the Provision on Investment Activities in Lviv”, dated July 14, 2015 No. 4956 “On Approval of the Investment Object – buildings and structures on D. Vitovsky St., 57 and Brativ Timoshenko St., 4 “, dated May 18, 2017, No. 1967” On Amendments to the City Council Decree No 4956 of July 14, 2015 and Approval of the Investment Project “Reconstruction of the Tram Depot for the purpose of establishment of Innovative and Creative Space”, the Regulations on the Tenders for the choice of the investor for the implementation of the investment project ” Reconstruction of the Tram Depot for the purpose of establishment of Innovative and Creative Space” and the list of essential terms of the investment agreement and other obligations, terms of lease of the investment object in order to ensure Economic development, increase the competitiveness of the city and investment activity, create new jobs and develop market infrastructure.

1. Information on investment project.

1.1. The investment project implies the attraction of investments for the reconstruction of buildings and structures, premises in buildings and structures at D. Vitovsky St., 57 and Brativ Timoshenko St., 4 in accordance with the current legislation and conditions of the tender and tender documentation on the choice of the investor for the implementation of the project ” Reconstruction of the Tram Depot for the purpose of establishment of Innovative and Creative Space” – the establishment of a modern innovative complex for the development of creative, intellectual and other activities, development of business and entrepreneurship, trainings and activities for various categories of the residents.

1.2. Indicators of the investment object:

Name of the object: Buildings and structures, premises in buildings and structures

Address: D. Vitovsky St., 57, Brativ Timoshenko St., 4

Area: 5371,22 sq m

Number of facilities: 5

1.4. The estimated cost of implementing measures for the implementation of an investment project may vary according to the actual costs for the implementation of the project.1.3. The final technical and economic indicators and detailed information about the investment object and its individual components will be determined by the investor.

2. Conditions of the tender.

2.1. Financing by the investor of all expenses related to reconstruction, restoration, commissioning, improvement of the innovation complex, costs for the production of technical documentation for buildings and structures, the cost of work on the production of certificates of technical status and passports of architectural monuments and the cost of works for the independent real estate valuation.

2.2. Payment of the registration fee in the amount of 12,000.00 (twelve thousand) UAH on the account of the Department of Economic Development of LCC № 35414001020170, MFO 825014, YRDPPO 34814859. Funds paid as a registration fee are not refundable.

2.3. Submission by a physical or legal entity of an application for participation in an investment competition in accordance with the tender documentation, and in particular, documents specified in Section 7 of the Decree of the Lviv City Council dated July 18, 2013 No. 2547 “On Approval of the Provision on the Investment Activity in Lviv”.

2.4. Submission of the tender in writing, signed by the authorized person of the contest participant, stitched, numbered and sealed * in a separate sealed envelope.

2.5. The winner of the tender is the participant whose proposal meets the requirements of the competition and who has offered the best investment proposal in accordance with the criteria for selecting the winner of the contest.

2.6. The main terms of the investment project and the obligations of the investor-winner of the investment contest are:

2.6.1. Reconstruction of buildings and constructions and premises in such buildings and structures on D. Vitovsky St., 57 and Brativ Timoshenko St., 4, defined as an investment object, within 4 years from the date of receipt of all permits

2.6.2.The repair of the facade of the building A-3 on the street. D. Vitovsky, 57, which is in actual use of LCE “Lvivelectrotrans”.

2.6.3. Construction of all the necessary components described in the investment project “Reconstruction of the tram depot for the purpose of creation of innovation and creative space”: working space, common space, training and development center, workshop, gastronomic space, park space, car and bicycle parking area, space of events – internal and external zones, student space (campus).

2.7. After performing the reconstruction works and other necessary measures, the investor transfers the reconstructed buildings, structures and their premises to the balance holder for further registration of ownership rights in the Lviv city territorial community.

2.8. Within 30 days, the investor must notify the Department of Economic Development about the commissioning of buildings, structures or their premises and submit all necessary documents for the payment of rent.

2.9. The investor must comply with the current legislation of Ukraine, in particular, the Lviv City Decree No. 2547 of July 18, 2013, No. 1967 of May 18, 2017.

2.10. An investment contract is concluded within 30 business days after the winner of the investment tender.

2.11. The investment contract is concluded between the winner of the investment tender and the authorized executive body of the city council or a utility company to which such powers are granted.

2.12. The agreement comes into force after its signing by the parties and approval by the executive committee.

2.13. The investor (winner of the competition) undertakes to submit quarterly in writing the information on the state of implementation of the investment project as a whole and its individual stages to the competition organizer.

2.14. The lease agreement for an investment object is concluded between the municipal property department of the economic development department and the investor.

2.15. Buildings, structures and their parts are leased to the investor for a term of 50 years with the rent specified in the terms of the tender, which is subject to adjustment on the inflation index, during the validity of the relevant agreement, with the inflation index not charged at the time of the investor’s release from the rent

2.16. The investor is exempted from the rent for the use of the investment object for a period commencing from the date of receipt of all permit documents necessary for the execution of the works provided for in the investment project and lasts until the date of putting into operation of the corresponding reconstructed buildings and structures, but not longer than 4 years.

2.17. In case of commissioning of buildings and structures before the term provided for in paragraph 2.16., The rent is calculated from the moment such installations are put into operation.

2.18. Based on the estimation of the investment object, taking into account the projected amount of investment, and guided by the need for an effective investment competition, a lease calculation using a lease rate of 5% adjusted for inflation is carried out.

2.19. After the investor performs the works specified in paragraph 2 of this list and the commissioning of the relevant buildings, structures and / or parts thereof, amendments to the lease agreement (with the consent of the parties) specified in paragraph 4 of this list may be made, with the assessment of  the object of investment and the conversion of rent is not carried out.

2.20. In case of non-compliance with the conditions of the investment agreement and the investment project, the investor shall be liable in accordance with the requirements of the legislation of Ukraine, and the contract shall be subject to termination in court.

3. The main criteria for determining the winner:

3.1. The best conditions for using an investment object to provide services to meet public needs.

3.2. The most advantageous, reliable and short in the time interval is the scheme for the implementation of the investment project.

3.3. Compliance of the application and the proposal to the main terms of the investment contest.

3.4. Involvement in the investment project implementation of technological, innovative, local and / or global companies and organizations with experience in implementing innovative, creative projects.

4. Submission of the application and the tender offer:

4.1. Place: Lviv Investment Office, Rynok Sq. 1, office 317, Lviv, 79006, tel. +38 (032) 2546006.

4.2. Deadline: 18:00, 08/28/2017

5. Disclosure of tender offers:

5.1. Place: Lviv Investment Office, Rynok Sq. 1, office 317, Lviv, 79006, tel. +38 (032) 2546006.

5.2. Time: 11:00, 08/29/2017

5.3. Participants or their authorized representatives, representatives of mass media, as well as representatives of the local community of Lviv are invited to participate in the procedure for the disclosure of tender offers.

6. Additional information: Interested applicants for participation in the investment tender may contact Mrs. Olha Syvak, Head of Lviv Investment Office of Lviv City Council: Rynok Sq. 1, office 317, Lviv, 79006, tel. +38 (032) 2546006, e-mail: olha.syvak@city-adm.lviv.ua.