Investors selected for city centre development areas

The city council today passed a resolution in principle to sell the city centre development sites E3 and E4, the future "Neue Johannisvorstadt" between Augustusburger Straße and Zschopauer Straße as well as the current car park at Tietz - in future "Carrée am Tietz". This allows the administration to enter into sales negotiations with the two investors, Simmel AG Chemnitz and Hansa Real Estate Beteiligungs AG Leipzig. Both companies were able to convince city councillors on the specialist committees with their plans in the investor selection process for the development of the city centre.

Lord Mayor Barbara Ludwig: "The development of the two partial areas at Tietz and Johanniskirche approved by the city council is an urban development milestone. It closes gaps in the city centre, some of which have existed since the war."

Building Mayor Michael Stötzer: "Today's decision in principle sets the course for a lively and growing city centre with a good mix of retail, work and residential areas. My thanks go to all those involved who have actively contributed their expertise to the overall process. My special thanks go to the investors - for their visions, for their confidence in the future of our city and not least for the capital that has been deployed here."

The invitation to tender was the result of the expert appraisal process for the urban development of the area around Bahnhofstrasse and Brückenstrasse in 2015, in which the Munich/Magdeburg-based firm lohrer.hochrein landschaftsarchitekten und stadtplaner won first prize with its design. The various designs were presented to the public at the time to great interest.

Two bidders will design the "Neue Johannisvorstadt" neighbourhood with building plots 1 to 4: Simmel AG Chemnitz and Hansa Real Estate Beteiligungs AG Leipzig. Simmel intends to build a fresh food market and probably a drugstore on the ground floor and ground floor of building plots 1 and 2. The upper floors are intended for offices and flats. Hansa is planning a medical centre and commercial space on the ground floor as well as generational and service apartments on construction site 3. Building site 4 is intended for high-quality city centre living.

The current car park next to Tietz is also to be developed as the "Carrée am Tietz" by the Leipzig-based property company Hansa. A hotel is planned along Bahnhofstrasse as well as gastronomy and retail on the ground floor of construction site 5, while construction site 6 behind it will be home to high-quality city centre living. The ground floor zone will also be reserved for commercial use.

The purchase agreements are being negotiated with the investors. The selection of investors, which was professionally accompanied and supported by Aengevelt Immobilien GmbH & Co KG, was put out to tender nationwide in May 2016. Around 25 experienced property developers and project developers then expressed their interest. In the two-stage process, four bidders ultimately had the opportunity to present their final development proposals to city councillors and specialist committees in May 2017.

The City of Chemnitz expects the sale of the land to generate income of around 8.2 million euros. The proceeds will be used to finance various measures, including site clearance and the internal development of the neighbourhoods with roads, paths and squares. In addition, the redesign of the streets on Zschopauer Straße, Bahnhofstraße and Augustusburger Straße and the design of the public space with tree planting and furniture as well as the financing of the external partner in the selection of investors from the proceeds are planned.

Archaeological excavations could begin in the area in front of St. John's Church in the third quarter of 2018. At the same time, building rights are to be created with a legally binding development plan. Following the necessary planning permission procedure, which can take place in 2018/2019, construction is expected to begin in the course of 2019 at the earliest.