Selection of the operator for Syöte LumiAreena (right of use) for 2027-2029 (-2030-2031)

Selection of the operator for Syöte LumiAreena (right of use) for 2027-2029 (-2030-2031) The city of Pudasjärvi owns the LumiAreena event and sports arena in Syöte. The facility was commissioned in 2019.

The current operating contract for booking and rental activities ends on 31.12.2026. Revenue-generating event and sports use of the arena has been relatively limited. The city recognizes the importance of LumiAreena for the development of tourism in Syöte and the entire city, and the city is committed to the operation and its development. The facility is estimated to have commercial potential, but it has also been identified that realizing this potential will require significant changes in the arena's operation. Entrepreneurs have been involved in the preparation of the new operating model.

A new operator will be selected through a public procurement process (right of use agreement) for a 3-year contract period, which can be extended by two one-year option periods (3+1+1).

The commercial spaces on the upper floor of the arena and the gym on the lower floor are in use and form a functional unit, and these spaces are not included in the operating agreement.

The new model means leasing the arena to the selected entrepreneur, whereby the rental activities will take place on behalf of the entrepreneur from 1.1.2027 onwards as follows:

- The operator will receive:

- the right to use the arena hall, the upper floor (upper level) lobby area (with access to the commercial spaces from the lobby), restrooms, cleaning rooms, and the storage area adjacent to the arena hall.

(Further information: Currently, the use of the arena hall for closed meetings/events is challenged by the fact that there is only a curtain between the upper lobby area (which also contains commercial spaces) and the arena. This was not a problem during, for example, concert use, when the upper lobby area served as a cloakroom and since the upper commercial spaces are practically not open during concert times, external access can also be prevented from the upper lobby area. However, the ability to use the space for closed meetings is likely commercially important for the operator. In this regard, an option procedure will be used in the procurement, where in addition to the basic option (no technical changes will be made regarding the aforementioned issue), a price will be requested for an option where the client (the city) will install a partition wall between the upper lobby and the arena hall before the contract period begins.

Another limiting factor identified is the lack of warm storage space, as the storage area adjacent to the hall is small and filled with furniture suitable for equipping the hall, sports equipment, and AV/PA technology. This makes it difficult to store materials needed for regular use (e.g., serving drinks). In this regard as well, an option procedure will be used in the procurement, where in addition to the basic option (no technical changes will be made regarding the aforementioned issue), a price will be requested for an option where the client (the city) will install at least 10 square meters of additional warm storage space (e.g., a container) near the arena hall before the contract period begins.

Further information about the facility, including an indicative floor plan from the attached LumiAreena brochure (contains partly outdated information). The area named Multifunctional Hall in the Upper Level floor plan on page 3 has been modified so that commercial spaces, which are not part of the operating agreement, occupy most of it. However, the entrance to the arena hall and the cloakroom fit within the free spaces of the aforementioned area that will be available to the operator. More information about LumiAreena can also be found on the city's website at https://www.pudasjarvi.fi/liikuntapalvelut/sisaliikuntapaikat/lumiareena/)

- all arena rental income; the operator decides on pricing
- The operator may sell, included in the rent or as additional services, other related services such as lobby services, AV support for presentation technology, other meeting services, catering services, and/or alcohol service
- The operator sells the facility as their own, which also allows integration into the operator's other marketing/sales.

The operator is responsible for/pays:

- the monthly fee offered in the procurement
- arena cleaning, including sanitary products
- costs directly arising from the use of the premises for events, excluding the costs of property maintenance arising from the construction and dismantling of the stage and the covering and dismantling of the floor surface intended for sports use
- insurance required for the operation (at least liability insurance, and operator's own operational insurance if necessary)

The arena owner (the city) is responsible for/pays:

- other costs, including electricity, heating, water, property maintenance, waste management, security, building insurance
- arranging the right to use the changing rooms required for sports use for the operator (the changing rooms next to the arena are leased to another operator)
- guidance via a link from the city's website to the operator's website
- familiarization with the facility's AV equipment
- familiarization with the facility's safety matters

The procurement asks for the amount of compensation (VAT 0) that the tenderer offers to the city per month (VAT 0). The selection criterion is scoring, with the basic price having a weight of 85% and the prices including options having weights of 5% (partition wall implemented), 5% (additional storage space implemented), and 5% (both partition wall and additional storage space implemented). The higher the offered prices, the higher the score. The operator will be selected in the autumn of 2026, so that the operator can start marketing/sales from 1.1.2027 onwards.

NOTE! When making the procurement decision, the client decides whether to choose the basic offer from the winner of the procurement or an option including one of the options. The tenderer can try to secure the partition wall and...