At its meeting yesterday, Chemnitz City Council decided to provide unbudgeted funds to secure the payment obligations from the arbitration proceedings for the complete remodelling of the stadium on Gellertstraße. The proceedings, which have been ongoing for several years between the City of Chemnitz and the consortium (ARGE) carrying out the work, have been concluded with a partial final award. This provides for a total payment amount of around EUR 1.6 million, which may result in a maximum payment amount of around EUR 1.8 million due to arbitration costs.
In order to fulfil these obligations, unscheduled funds are to be made available in the 2025 financial year, both for investments and in the income budget. This will be offset by a reduction in personnel expenses of EUR 1.8 million resulting from the wage agreement of 6 April 2025 and from job reductions implemented earlier than planned. As this means that fewer positions are filled than originally planned, savings are being made that can now be used to cover the financial requirements.
The underlying remodelling of the stadium on Gellertstraße was awarded to a consortium in 2013 and completed in 2016. During the construction period, there were several addenda and postponements. In order to avoid construction being halted, both sides had already agreed to arbitration proceedings at the time. This was conducted from 2018 onwards after the consortium submitted its final invoice at the end of 2017 and asserted extensive claims in it. The arbitration award now available largely follows the legal opinion of the City of Chemnitz and significantly reduces the disputed claim of around €4.9 million.
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