Reconstruction

Grant of publicly-owned buildings for a designated purpose (a concise step-by-step guide)

The procedure for the grant of publicly-owned buildings for a designated purpose is to be initiated by the investor himself by way of filing a corresponding application to the competent authority.

Once the building is provided for reconstruction, an investment agreement is signed with the investor, on the basis of which he will reconstruct the building and then register his right to the newly created object.

Step 1. The investor submits an application to the Investments Department, a public institution ("Investments Department")

The application for the grant of the building for reconstruction ("Application") and the required documents are to be submitted to the office of the Investments Department.

Before considering and deciding the Application, the Investments Department will first enquire about the legal status of the building. For this purpose, the Investments Department will send queries to the following competent authorities:

• Committee for Town Planning and Architecture;
• Committee for Public Supervision, Use and Conservation of Cultural Monuments;
• Committee for Land Resources and Land Use;
• Department of the Federal Registration Agency in and for St Petersburg and Leningrad Region;
• City Property Management Committee;
• St Petersburg regional administration at the location of the building.

Within 5 days from the receipt of all necessary reports, the Investments Department will prepare complex resolution whereby it may decide as follows:

• to proceed with the Application; OR
• to return the Application to the investor.

In practice, given the need to determine the legal status of the building, consideration of the Application and preparation of the complex resolution may take from about 1.5 to 2 months from the date of registration of the investor's Application.

Step 2. The investor applies to the Committee for Investments and Strategic Projects

If the Investments Department decides to proceed with the Application, the investor will then need to apply to the Committee for Investments and Strategic Projects and submit the corresponding documents.

The Committee for Investments and Strategic Projects will consider the Application within a period of 15 days from its receipt and, if the answer to the Application is positive, they [the committee] will prepare a memo which is to be sent to the Governor of St Petersburg.

Based on the Governor's decision with respect to the memo of the Committee for Investments and Strategic Projects referred to above, an order will be issued to the Vice Governor of St Petersburg to go on with considering the possibility of granting the building for reconstruction.

Step 3. The time limit for the preparation of the investment and tender documentation is considered by the Secretariat of the Investments Department

In practice, the time allowed to the investor to prepare the investment and tender documentation ranges approximately from 9 to 11 months. This time limit may be extended upon the request of the investor. The investor will participate in the meeting of the Secretariat of the Investments Department considering the time limit for the preparation of the investment and tender documentation.

Step 4. The investment and tender documentation is developed and agreed

At this stage, the investor will need to elaborate and negotiate the investment and tender documentation. On the basis of this documentation the competent authority will adopt decision on granting of the real estate object for the reconstruction.

Elaboration of the draft of the territory planning

If the Committee for Town Planning and Architecture decides that a draft of the territory planning is required, then the investor will have to elaborate the respective draft.

The draft of the territory planning will be based on the technical brief obtained in the Committee for Town Planning and Architecture and on the source data which were prepared on the basis of the technical brief and then given out to the investor. The elaboration of the draft of the territory planning is carried out by a specialized company on the basis of the contract signed with the investor and in the time limits set in the contract.

Elaboration and approval of the engineering and town-planning documentation

The engineering and town-planning documentation includes the following:

• a letter of approval from the Committee for Town Planning and Architecture;
• a resolution of the Committee for Power Engineering and Utility Supplies with regard to utility supplies to the target property (including capacity, key terms of connection to utilities, list of the work on construction (renovation) of utilities and other information) ;
• a resolution of the Committee for Public Supervision, Use and Conservation of Cultural Monuments;
• a hygienic certificate of the Federal Agency for Supervision in the Field of Consumer Protection and Human Welfare;
• a resolution of the Federal Agency for Supervision over the Use of Natural Resources.

Obtaining the approved draft of the boundaries of the land plot in the Committee for Town Planning and Architecture

Engaging an appraiser for preparation of a valuation report with regard to the market value of the building

The specific feature of the grant of buildings for reconstruction into hotels is that on the basis of the resolution of St Petersburg Government the rent for the building undergoing reconstruction may be brought down to the investment value of the building. For this purpose, the investor will have to get a technical brief from the City Property Management Committee (Economic and Investment Policy Department) which is supposed to be prepared on the basis of the petition of the Committee for Investments and Strategic Projects.

Step 5. Carrying out land measurement work and registering the land, on which the target building stands, in the land cadastre

To carry out land measurement work on the land plot, the investor needs to submit an application and a package of required documents to the local division of the St Petersburg Committee for Land Resources and Land Use at the location of the building.

Land measurement work includes determination of the land plot boundaries and approval thereof. The boundaries of the land plot set in the course of the land measurement work will be approved on the basis of the resolution of the Committee for Land Resources and Land Use.

Under the law, cadastral registration is to be done within 20 working days.

After the cadastral registration, a "cadastral passport" is drawn up with respect to the land plot.

Step 6. A draft order of St Petersburg Government is prepared to allow reconstruction of the building under the "for-designated-purpose scheme"

Having prepared the investment and tender documentation, the investor will need to apply to the division of the Investments Department responsible for the preparation of legal acts and submit the corresponding documents.

Within 15 days the Investments Department will prepare a report with regard to compliance of the documents submitted to the requirements of the current law and either forward the documents to the Construction Committee or return them to the investor, pointing out what needs to be corrected.

Within 5 days, the Construction Committee will examine the resolution and the package of documents submitted by the Investments Department and prepare a draft of the governmental order allowing reconstruction of the building.

Step 7. The draft order of St Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" is to be agreed with the Vice Governor

When prepared by the Construction Committee, the draft order of St Petersburg Government, including the investments terms for the granting of building for reconstruction, is to be agreed at the meeting with the Vice Governor of St Petersburg who is responsible for deciding on construction of permanent buildings and reconstruction of real property, road building, architecture and town planning, and land policy of St Petersburg with regard to construction of permanent buildings. The representatives of the competent public authorities participate in the meeting.

When giving a building for reconstruction, the Government of St Petersburg will set a number of investment terms binding on the investor. The investment terms will be recorded in the Order of St Petersburg Government on the grant of the building for reconstruction.

Step 8. The draft order of St Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" is to be agreed with the Juridical Department of the St Petersburg Governor's Administration

The Juridical Committee of the St Petersburg Governor's Administration ("Juridical Committee") will check the St Petersburg Government's draft order for compliance with the requirements of the current law. Besides being examined from the law perspective, the draft order will also undergo a linguistic examination.

The statutory time limit established for the Juridical Committee to consider and approve the draft order of St Petersburg Government is 7 days (where necessary, this time limit may be extended upon the resolution of the Head of the Juridical Committee to a maximum of 25 working days).

Step 9. The order of the St. Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" is to be agreed with the Government of St. Petersburg

In practice the draft of the order of the St. Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" shall be forwarded to the Secretariat of the Governor's Administration for review of the St. Petersburg Government. The draft of the order is reviewed at the open sessions of the St. Petersburg Government. In case of absence of any remarks or proposals the draft shall be forwarded to the Secretariat of the Governor's Administration.

Step 10. The order of the St. Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" is to be signed by the St. Petersburg Governor

Having passed the required approval procedures, the draft order of St Petersburg Government on the reconstruction of the building under the "for-designated-purpose scheme" will be forwarded to the Secretariat of the Governor's Administration for the signing by the Governor.

Step 11. The order of St Petersburg Government on the grant of the building for reconstruction under the "for-designated-purpose scheme" is published

The order of St Petersburg Government on the grant of the building for reconstruction will come into force the next day after being officially published. The governmental order is supposed to be published in official sources not later than within 15 days following its adoption. Publication of the order is the responsibility of the competent public authorities.

Step 12. The investment agreement (for reconstruction) and the land lease agreement are signed

When enacted, the order of St Petersburg Government will be the ground for the investor to conclude an investment agreement and a land lease agreement with respect to the land plot beneath the building. To sign these agreements, the investor will need to apply to the local division of the City Property Management Committee.

The investment agreement and the lease agreement are both concluded for the period of reconstruction.

Registration formalities

Please note when the land lease agreement is concluded for a period not less than one year, it is subject to registration by the St Petersburg and Leningrad Region Department of the Federal Registration Agency.