Ísold invited to negotiations about lot at Krókháls
Real estate company Ísold will be invited to negotiations about a preliminary allocation agreement for the lot at Krókháls 20-22. Partners were sought for developing the lot, and Ísold's offer proved most favorable. The City Executive Council approved this proposal at yesterday's meeting.
Ísold presented an idea for a building that would house storage space on 2-4 floors, with 25-50 square meter storage units with drive-in doors on the ground floor. These storage units would serve small businesses and sole proprietors who need space for tools, small material storage and similar items. The upper floors would have smaller storage units designed for individuals. This would create a single location that could serve the needs of both individuals and small businesses, whereas these two groups have been somewhat separated until now. The goal would be to build an attractive structure that fits well with its surroundings.
The lot at Krókháls 20-22 is the first lot that Reykjavík City is planning from Reykjavík Golf Club land following an agreement between the parties. Partners were sought on Dec. 28, 2023, with a Feb. 1 deadline for submitting proposals. Four proposals were received by the advertising deadline.
- Kynnisferðir submitted a proposal to use the facility as a depot for public buses that it operates as a subcontractor for Strætó Public Transport. The bid for building rights was 300 million.
- Tandur hf. submitted a proposal for manufacturing and warehouse space plus an office building, as the company specializes in manufacturing and distributing hygiene products. The bid was 250 million.
- Ísold real estate company submitted an idea for storage space for sole proprietors, small businesses and individuals. The bid is 352 million based on the upper limit of the requested building volume.
- Öxar construction company submitted a final bid to develop a quality of life community for seniors on the lot. That bid was 300 million.
Öxar's bid does not comply with the municipal plan since residential development is not permitted in this area. It was therefore not considered further.
The results of negotiations with Ísold will be presented to the City Executive Council, and if the preliminary allocation is approved, the company will have a set time to work on land-use plan changes that align with its wishes. A fee will be paid for this preliminary agreement, which amounts to 10% of the building rights fee for each valid year.