1. MIESTENTIE PROJECT Council 18.5.2017

2. Miestentie Aalto Village

3. Miestentie AYY and HOAS buildings to be in same block
Real property is located in Otaniemi
Real property is owned by City of Espoo
Permitted building volume 4351 k-m2
The scheme is valid
Architect company Sarc Oy
Construction advisor ISS Proko Oy
AYY house:
131 apartments, 3700 m2 total
Contract value max 13,6 m€
We already have pre decison from ARA: interest subsidy loan (90 %) and investment subsidy (10 %)

4. Miestentie
Construction to be started at once after the positive decision of Council is made and when the contract with Jatke Uusimaa has been signed and the final ARA decision is valid
The building is due to be ready at December 2018
New tenants to 131 apartments at January 2019
The planned rent is 17,65 m2/month
Apartments mainly one room apartments about 23,5 m2, 18 two room apartments
Apartments will be floor

5. Company
AYY has founded a new real estate company for Miestentie project:
Name is Kiinteistö Oy Espoon Miestentie 2 B
The real estate company is 100 % subsidiary company to AYY
Application has been sent to trade register
Board: chairman Reija Väätäinen, members Esa Markkanen ja Hannes Helminen
Audit Company is KPMG Oy

6. Contract Tendering process: Tenders were asked from 11 contractors
We got three tenders: Jatke Uusimaa Oy, NCC Suomi Oy and Uudenmaan Mestari-Rakentajat Oy
Estimated contract time period to be 14 – 17 mths
Contract negotiations been held with Jatke Uusimaa Oy
There will be additional contracts beside the main contract: mining cotract ja elevator contract (Kone)

7. Miestentie The funding plan: Subsidy from ARA 10 % to be about 1,3 m€
Interest subsidy loan 90 % to be about 12,3 m€
Tendering process of loan between Kuntarahoitus, Handelsbanken, OP

8. Decision In accordance with Section 38 of the regulations:
The representative council shall make major financial decisions. A proposal concerning major financial decisions may be made by the board, financial committee or the representative council. The board and the financial committee shall address presentations concerning major financial decisions before the decision hearing of the representative council.
The student union's major financial decisions shall refer to purchase, sale or mortgage of properties or the initiation of construction projects, or significant tying up of the student union's assets.

9. Decision
Timetable for the decision meetings for this Miestentie project is as follows:
Board decision meeting
Financial committee meeting
Council decision meeting
The Council will authorize the Board of Kiinteistö Oy Espoon Miestentie 2 B
to approve the results of the contract tender process regarding the new building of Miestentie 2
to sign the work contract agreements with Jatke Uusimaa Oy
initiate tendering for the interest-support loan and decide on the necessary pledges.