“Despite thorough negotiations, we were unable to find a functional model for allocating the responsibilities, costs and risks related to the Senate Square summer terrace,” comments Managing Director Peggy Bauer from Helsinki City Premises Ltd.
The operator search was carried out in January–February as a tendering process in accordance with the Act on Public Procurement and Concession Contracts. As a change from previous years, the prospective operator was provided with an opportunity to make a several-year agreement in order to make the investments involved more profitable and give time for developing the concept.
Bauer believes that interest proved scarce because entrepreneurs find the market square environment challenging, as the local rent level and the lack of water supplies, sewer systems, electricity, toilets and other basic infrastructure cause the initial production costs to be high.
“Projects such as this have high quality criteria, as we are talking about a site with major cultural and historical significance. Furthermore, the impacts of the coronavirus pandemic years can still be seen in businesses’ level of risk tolerance. The general increase in costs and the prevalent labour shortage also have a strong impact on the restaurant and event industry,” Bauer summarises.
Previously, Helsinki City Premises Ltd has produced a summer terrace for the Senate Square in 2020 and Kasarmitori Square in 2021. The Senate Square and Kasarmitori Square terraces were exceptional during the coronavirus pandemic, which is why the City played a strong driving and supporting role in the projects. The aim has been to make the giant terrace concept more entrepreneur-driven, but the search for an operator failed for the second time.
“Of course, the disappointment is immense for us and many Helsinki residents alike. The giant terrace would have played an important role as a display window for the food culture of Helsinki and an enlivener of the city centre. Fortunately, there are still plenty of pleasant, distinctive terraces in Helsinki on which people can enjoy sunny summer days and good food and beverages,” Bauer concludes.
The City of Helsinki will now reassess the prospects of using the Senate Square as a terrace site in the coming years. The objective is to come up with solutions that will promote the vitality of the Helsinki city centre and contribute to a pleasant city.
Despite the cancellation of the summer terrace, the Senate Square and its surroundings will be enlivened by many events in the summer. The main events of the area include Helsinki Samba Carnaval in June, Helsinki Pride in early July and the Helsinki Midnight Run running event on 9 September.