The construction site at 14 Audeju St. is right next door to the
shopping mall Centrs. The company Universalveikals Centrs Ltd. is the
lessee of both the warehouse and department store properties.
"This hideous building is a monument of bad treatment of foreign
investors," said Petter Salomonsen, general director of Linstow
Varner.
Linstow Varner was planning to redevelop its warehouse into another
shopping mall, and a lease has been signed with Universalveikals
Centrs Ltd. The bottom story with windows facing Audeju Street was
to be a restaurant.
"Parex Trust Company has never informed the lessees of the premises
(Universalveikals Centrs Ltd.) that they were going to build
something so close to our building. The law states buildings must be
built 4.3 meters apart from one another, not 25 centimeters," said
Salomonsen. "We will incur severe financial losses if the
construction goes ahead. The planned restaurant can not be developed
if customers have a view of a brick wall.
"We had the Latvian Building Inspection Department place an arrest on
the construction, but the former minister of environment, Vents
Balodis, overturned their decision," he said.
Viesturs Koskins, a lawyer at Parex Trust Company, said "we have
every right to build the building. Parex Trust Company has complied
with all regulations to construct the project.
"It is the fault of Vladimirs Blinovs (Unversalveikals Centrs Ltd.
president) that he has been sleeping. Everyone was notified of the
construction, including 23 neighboring shops," said Koskins. "We had
the right to build 50 centimeters in front of their building. These
people need to be aware there are two laws governing construction in
Riga. One law pertains to Riga's Architectural Administration, the
other to Old Riga's Architectural Administration. The project is in
Old Riga, and Old Riga's building laws do not state anywhere that
buildings need to be 4.3 meters apart."
Koskins' views of Old Riga's building laws are not shared by Janis
Irbulis of the Latvian Building Inspection Department. Irbulis was
responsible for placing the construction arrest on Parex Trust
Company's building.
"Linstow Varner is completely right. Suhova and Krasovicka have
overstepped the law. The historical view has been destroyed, the
proposed windows have been covered at the original building and the
required fire wall being built in front of the original building does
not meet regulations. There are at least 15 points violations in
Parex Trust Company's project," said Irbulis. "I have no idea why
Balodis overturned our department's arrest. Balodis said we had no
right."
Article 165 of the State Building Code gives the inspectors the
right to stop the construction when guidelines and laws are broken,
Irbulis said.
The Riga Architectural Administration's head architect, Viesturs
Bruzis, said there is no problem with the construction.
"Everyone was warned that there could be a building constructed at 14
Audeju St. Linstow knew their proposed windows could be covered,"
said Bruzis. "There was only one problem. The original plan was for a
five storey project to be built. We knocked back the proposal, but
approved the construction of a three-storey building. There is
absolutely no law in Old Riga's building laws stating there needs to
be a 4.3-meter separation of buildings. Take a look around, do you
see 4.3 meter spaces between buildings?"
On June 6, the Riga Supreme Court rejected a civil suit brought by
Unversalveikals Centrs Ltd. seeking to halt construction. Linstow
Varner and Unversalveikals Centrs Ltd. have also lodged claims at
the Riga Regional Court to stop the building and at the Riga Supreme
Court for compensation for loss of income.
Salomonsen and his advisors at Linstow Varner are bitter at the
alleged maltreatment they have been experiencing from Latvia's
bureaucracy.
"If we cannot halt the construction, we can only claim a minimal
amount of damages. Under Latvian law, we can only claim a maximum
amount of just under a quarter of a million dollars," said Guntars
Grinvalds, a lawyer for Linstow Varner. "It is the only amount we can
get. Losses of future earnings are more in the vicinity of $833,000."
Parex Trust Company is confident Riga's judicial system will settle
in their favor. Andris Grutups, lawyer for Suhova and Krasovicka,
said all documentation has been passed by all the necessary
institutions. Construction is being carried out lawfully and in
accordance with project specifications.
"Abidance by the laws has been carried out on the construction based
on the rights provided by regulations on renewal of former buildings
or their complete upgrading," said Grutups.
The courts now have to decide what goes up or down at 14 Audeju St.
"In Riga's Old Town this will be the building of shame if
constructed. It will be proof the system does not work in Latvia,"
said Salomonsen.
Koskins said the building will be ready for trade Oct. 4.
"I know their pain, but dreams have to be reality. They are just
afraid of competition. Universalveikals Centrs just wants a monopoly
in the area," said Koskins.
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