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New heart of Valkeala

Kouvolan kaupungin suunnittelupäällikkö Risto Mikkola kuvattuna vaaleaa taustaa vasten.
According to Risto Mikkola, quality and environmentally friendly solutions were emphasised in the tendering phase.

“Eagerly anticipated”, sums up Risto Mikkola, planning manager at the City of Kouvola, describing the new community centre in the urban area of Valkeala, whose construction is set to begin in late summer. The comment is apt, considering that the project began in 2017, but had to be put on hold due to a school network reform in 2018.

The restructuring of the school network cut the number of schools in the area from 34 to 20. The old village schools are making room for new multi-purpose buildings that will also host day-care services, youth services, hobby clubs and local associations. The Valkeala community centre will be the first of these modern buildings.

“The building will rise on the main street, at the site of Valkeala’s old town hall. The community centre will become Valkeala’s new heart in many ways”, Mikkola predicts.

After the school network reform was settled, the work on the community centre has progressed on time – although without any visible construction, the design phase may have appeared slow to the local residents.

“Lots of work has been done, but so far there are no physical results to show for it. Now that we are about to enter the construction phase, the project will start feeling more tangible for the residents, too”, says Hellevi Kunnas, director of finance at the City of Kouvola.

In this project, the contractor is YIT Group. The contracts will be signed on 4 June, and the groundwork is set to begin late this summer.

High praise from the Green Evaluation Team

The Valkeala community centre is funded with MuniFin’s green finance, and the project scored the highest ever points from the MuniFin Green Evaluation Team in the suistainable buildings category. Risto Mikkola confirms that there were no special tricks involved: the high score was the result of determined and systematic work.

“In the tendering phase, we emphasised quality and environmentally friendly solutions, which worked out well. We’re very happy and also a little surprised to have scored this well”, Mikkola notes happily.

MuniFin’s Green Evaluation Team praised the community centre project for its material choices, energy efficiency, renewable energy sources, high utilisation rate of services, and the exemplary treatment of stormwater. The building will mainly use district heating, which is produced locally in Kouvola with exceptionally low emissions.

Green values played an important role not just in the building’s environmental impact, but also in its design. In the tendering process, the city set clear criteria for the role nature should play at the community centre. For example, all plans included the possibility of backyard farming.

“Children should have a chance to dig their hands in the dirt, if only for health reasons. This has been one of our goals right from the start”, Mikkola emphasises.

Breathing new life into the old population centre

Kouvolan kaupungin talousjohtaja Hellevi Kunnas kuvattuna vaaleaa taustaa vasten.
The community centre is by far the largest project the City of Kouvola has funded with lease financing, says Hellevi Kunnas.

The Valkeala community centre is by far the largest project the City of Kouvola has funded with lease financing and the first so called lifecycle project. The city has traditionally used its own funding and maintenance, but now wanted to try something new.

“We wanted to explore new alternatives because there are so many options available today. We have built some day‑care centres with lease financing before, and now we’ll get to test the lifecycle model in practice. It’s important not to get stuck doing things the same way”, explains Kunnas, the City of Kouvola director of finance.

Experience was also sought from outside the city, for example from the Heinsuo school in Hollola, where the lifecycle model has already proved successful. Another reference project is the Mansikkala school in Imatra, which is currently under construction. The purpose of visiting these schools with teachers was not only to learn about the lifecycle model, but also to hear opinions on what a modern learning environment should look like. After all, multi-purpose facilities are not without their challenges.

“When the curriculum was reformed in 2016, it swinged rather heavily in the direction of an open model. Soon after, it became clear that there cannot be too many groups working in the same space without the groups disturbing each other. Now we have taken a step back and combined the more separate and more open approaches”, Mikkola says.

The city and the service providers are currently drawing the big design lines for the community centre together with the teachers. Mikkola praises the lifecycle partner YIT for their model of participatory design.

“In May, before the summer holidays, we will make the major decisions that affect the building’s shape and yard functions. In the autumn, we will continue with details like the shelves and cabinets. YIT has provided a really good framework for this process.”

A small section of the old high school will be demolished in the summer to make room for the new 10,000-square-metre multi-purpose building. Excavation and piling work will begin towards the end of the summer, and foundations will be cast in the autumn.

The Valkeala community centre will kick off a series of large school projects in Kouvola. The next multi-purpose buildings are planned in Inkeroinen, with renovations planned for Kuusankoski and the Kouvola city centre as well. For local people, the school projects instil confidence in the vitality of their home region.

“Residents have had serious concerns about the future of this area. The community centre is an indication that we will continue to invest in Valkeala. The old town is gaining new vitality”, Kunnas summarises.

Written by Roope Huotari

Picture by YIT Oyj & Linja Arkkitehdit Oy

Photos by interviewees

CaseGreen bondGreen financeSustainability

Class A all the way

In early summer, a group of lucky performing artists and other professionals in the industry will move to a building designed for them in the Kaleva district in Tampere. Situated right next to the new tramway line, the building is a collaboration between the Live Music Foundation ELMU and M2‑Kodit, a company owned by the Y‑Foundation Group offering affordable state-subsidised rental housing.

In 2015, the two foundations found that they share similar values, and 2017 saw the completion of their first collaboration project, the Jallukka building in Helsinki. In Jallukka Helsinki, some of the apartments are earmarked for musicians, and some are regular rental apartments that are rented out by M2‑Kodit. In Tampere, the Jallukka building only inhabits music industry and performing arts professionals.

“Tampere is an important music and theatre city, but it doesn’t have an artist house. This made it a natural choice for the second Jallukka”, explains ELMU’s chair Juha Tynkkynen.

The choice of location was spurred by the Tampere Tramway, which will start operating this year and make the city more interconnected. But luck also played a role.

“The MAL agreement on land use, housing and transport stipulates that 30% of the housing production in Tampere must be state-subsidised. We won a plot with a great location and the project moved forward quickly”, says Pekka Kampman, development director at the Y‑Foundation.

A convenient location with good connections is important for musicians and performing artists who often work late at night.

“The Tullikamari concert and events venue is within crawling distance”, jokes Tynkkynen.

Rehearsal spaces accessible in slippers

Jallukka Tampere has 39 apartments in total. Of these, 17 are earmarked for music industry professionals, and their tenants are chosen by the ELMU foundation. The remaining 22 apartments are earmarked for other performing artists, and they are administered by the Y‑Foundation’s company M2‑Kodit, which also chooses the tenants to these apartments. The demand is great.

“We received about 250 applications for the M2‑Kodit rental apartments”, says Kari Komu, CFO at the Y‑Foundation.

Based on the experiences of the Jallukka building in Helsinki, Jallukka Tampere will also have soundproof band rehearsal spaces and other shared facilities, such as club rooms and saunas. Each apartment has its own storeroom, but residents can also rent out storage spaces for their instruments. Although these special facilities bring extra costs, they are considered important.

“Performing artists appreciate having a studio outside their home, but one that they can access by elevator, for example in their slippers. This is why we wanted to include rehearsal spaces in the building, although we had to cover the costs ourselves”, explain Kampman and Tynkkynen.

The apartments themselves are regular rental apartments and fairly small in size. Sleeping lofts provide extra space in top-floor apartments, which are particularly sought after among artists with families.

Strategy dictates choices

The Y‑Foundation’s strategy is connected to the UN Sustainable Development Goals. The foundation’s three spearhead objectives are the eradication of homelessness, the economic and social well-being of tenants, and a fair transition towards carbon neutral living. The Y‑Foundation seeks to achieve carbon neutrality by 2035.

“Our strategy states that in new construction, we build energy class A residential properties that are implemented with a high level of material efficiency”, Kampman says.

Jallukka Tampere also represents energy efficiency class A, and it has been financed with MuniFin’s green finance.

“Green finance offers us an interest benefit of a few basis points. This difference may not seem significant at an annual level, but over long loan periods, green finance actually saves us hundreds of thousands”, explains Komu.

Savings are also achieved through AI-controlled heat regulation, which anticipates peaks in heating and keeps indoor air in the apartments at an optimal level.

“The apartments have sensors for monitoring temperature and other indoor air conditions. Based on the data, AI finds the most energy-efficient solution to heating. Thanks to this smart solution, we have already been able to bring our annual heating costs down by 5–10% in our other buildings”, Komu says.

The Y‑Foundation owns more than 17,300 rental apartments in over 50 cities across Finland, so this reduction translates to significant savings.

The Y‑Foundation is also committed to improving the energy efficiency of its existing properties by making renovations and upgrades focused on energy consumption and by increasing the use of renewable energy in heating.

“In the future, we will focus heavily on recycling construction materials. Our goal is to increase the recovery rate of non-hazardous construction and demolition waste”, explains Kampman.

The Y‑Foundation’s sustainable ideology is also seen in how the foundation encourages its tenants to adopt low carbon means of transport. Jallukka Tampere does not have parking spaces for all tenants, but residents have access to a communal car or van that they can hire. The building also has a designated room for servicing and maintaining bicycles, just like Jallukka Helsinki does.

“We are offering residents carsharing in Jallukka Tampere for the first time, but we will offer this option in our other new properties in the future”, promises Kampman.

Meeting places wanted

Jallukka Helsinki has received praise for the restaurant and bar that operates on the bottom floor of the building and offers residents an easy place to meet. In Jallukka Tampere, a spacious club room on the first floor will serve as a convenient meeting place.

“People value a sense of community. The residents of Jallukka Helsinki have organised barbeques together and also with other residents in the quarter. However, the building also offers peace and quiet for those that prefer it”, says Tynkkynen.

Inspired by the Jallukka buildings, the Y‑Foundation will start to include lobbies and club rooms in its other new buildings as well. According to Kampman, the use of shared sauna facilities is on the decrease, as the hopes and wants of residents are shifting.

“Our role is to offer facilities for communal activities. We are also planning to include completely novel and innovative shared spaces in our buildings, such as remote work facilities and a small apartment that residents can book for their short-term visitors.”

What about the ELMU foundation’s plans: will there be more Jallukka buildings?

“The demand seems great, especially in the Helsinki region. We are a small foundation with limited resources, so we’ll take one Jallukka at a time”, muses Tynkkynen.

Written by Hannele Borra

CaseGreen bondGreen finance

The most powerful wastewater treatment plant in the Nordic countries built partly on MuniFin’s green finance

Built by the Helsinki Region Environmental Services Authority HSY, the Blominmäki wastewater treatment plant will replace the current Suomenoja treatment plant from 1963, whose operational limits will soon be reached.

The Suomenoja plant processes the wastewater from Espoo, Kauniainen, Kirkkonummi, Siuntio and Western Vantaa, where population is expected to increase significantly in the coming decades. The adoption of the Blominmäki plant will reduce the nutrient load per capita on the Baltic Sea from the current load.

“Our goal is to remove more than 98% of the phosphorus and more than 90% of the nitrogen from the wastewater. The new plant will also improve wastewater treatment reliability and capacity: the Blominmäki plant will be able to process the wastewater of more than half a million people”, says Tommi Fred, director of support services and water supply at HSY.

The treatment goals set for the Blominmäki plant are clearly stricter than the EU requirements and the recommendations of the Baltic Marine Environment Protection Commission HELCOM.

Modern plant blends in with the surroundings and generates its own energy

The Blominmäki plant will be built deep inside bedrock. This solution is sensible both for the environment and the plant’s operations.

“This way, the basins and machines will be safe from pests and our trying weather conditions. The land area on top of the caves will remain mostly unchanged, allowing its continued use as a recreational area. The routes used by flying squirrels and other animals were mapped and taken into account at the initial planning stages: we wanted to keep the green corridors as wide as possible”, says Fred.

Wastewater treatment plants are notorious for their stench, but the Blominmäki plant has found a way to eliminate this problem: a chimney will lead the plant’s exhaust air so high up in the sky that the odour will not be of bother to local residents.

The treatment plant will also achieve almost full energy independence: it will generate more than half of its electricity needs and exceed its heating energy needs.

“From the perspective of circular economy, the Blominmäki plant excels at everything! We can even store excess heat energy to use when the weather gets freezing. No other wastewater treatment plant employs similar technology”, Fred says.

At the Blominmäki plant, every detail is carefully considered. Because the plant is built deep inside bedrock, the land area on top of the caves will remain almost unchanged.

Environmentally friendly work attracts investors

From the environmental perspective, the Blominmäki plant has a crystal-clear main goal: protecting the Baltic Sea. 

Thanks to the plant’s ambitious treatment goals, the project was eligible for a wider-than-usual range of funding options. By acknowledging environmental considerations at all stages of the planning process, the Blominmäki plant qualified for MuniFin’s green finance and the Nordic Investment Bank’s loan.

The largest ever investment in the history of HSY has also been funded by the European Investment Bank. 

“Positive developments do not come about spontaneously; they require action. Because the Blominmäki plant processes wastewater sustainably and promotes a cleaner Baltic Sea, it is a long-term investment in a brighter future. It is not often you get to carry out a project of this scale”, says Pekka Hänninen, finance director at HSY. 

Wastewater treatment has advanced in leaps and bounds in the past thirty years. In Finland, treatment plants have already completed the most important improvements, bringing their treatment power to almost 100%. But according to Hänninen, the work is not yet complete.

“By setting an example, Finland has had a massive impact on the operations of other Baltic Sea states. We believe that Blominmäki’s innovative solutions will also be of interest to our colleagues in other countries. For example, there aren’t really any treatment plants built in bedrock outside the Nordic countries. In the end, the entire world will benefit from any effort we put in clean water. Water unites us all.”

The Blominmäki wastewater treatment plant is a state-of-the-art project that will set an example to others in the field.


Written by Sanna Puutonen
Photos by HSY

CaseGreen financeSustainability

The world’s first zero-energy ice hockey arena built in Äänekoski

The first puck dropped in the new hockey arena on 28 August. The opening practice match between JYP and Pelicans was sold out in a couple of hours.

“The construction was completed in the planned schedule, and the opening was a success despite the coronavirus situation. The top league match also put the quality of ice to a real test right away”, says Antti Virmanen, CEO at Proavera Ltd.

The Suolahti arena is an eagerly anticipated investment in Äänekoski’s sports scene. The arena replaces a decades-old tarpaulin hall and brings high-quality sports facilities within reach of everyone. The arena in itself is not an unusual structure, as Finns are used to having a hockey venue in every town. Its design, construction and operation are exceptional, however, earning it the nickname of “zero-energy hall”.

“The arena is actually a provider rather than just a consumer of energy. An indoor ice rink is basically a massive refrigerator, which takes an enormous amount of energy to keep cold. But in doing so, it also creates condensing heat similarly to regular fridges. Usually this heat is simply expelled outside, but we store it and make use of it instead”, Virmanen explains.

The idea is as straightforward as it sounds. All of the required technology already existed, although the arena can be described as a pioneering project. “Green” is still not the default standard in new construction projects. The decisive part of the progress made in Äänekoski was a shift in thinking.

”We decided to do things differently. The investment had to be made anyway, so why not make it in a sustainable way? If we look at the obvious solutions critically, and look for ways to improve them, I think that puts us in the right track”, Virmanen notes.

Income from selling energy

Energy efficiency as a cornerstone of the project may initially sound expensive. An indoor ice rink is a large undertaking for any Finnish municipality even without the new design and construction methods. Virmanen admits that the initial investment was larger compared to a “regular” hall, but only by a relatively small amount – and the finances should be considered far beyond the initial costs.

For a large, long-term project like this, the overall energy economy and operating costs are more significant than the initial design and construction costs. The Suolahti arena creates enough energy for all its own thermal needs with excess to share with others.

”We have aimed to control our energy balance and run the venue with minimal operational economy. We are therefore more than self-sufficient: not just using but also selling our energy. Our waste heat turns into usable heat for the nearby school and swimming hall”, Virmanen says.

Green financing

The project is financed by a green loan from MuniFin. Green loans can be sought for projects that create substantial and measurable benefits for the environment. The Suolahti arena uses less than half of the energy required for other similar halls. Attention has been given to details as well: the ice resurfacers are electricity-powered, electricity is bought only from renewable sources, and the refrigerant used is carbon dioxide, which is more friendly for the environment than other options. The project has already gone a long way, but new ideas keep appearing in Virmanen’s planner.

”Projects like this require attention to both small and large details. Our next goal is to increase our degree of self-sufficiency. We’ll reduce the amount of purchased electricity by installing solar panels on the roof of the arena”, Virmanen envisions.

The Suolahti Arena measures everything possible. Approximately 1,500 measuring points produce data on things like heat and energy production and transmission. Incoming energy is also measured in many ways so that it can be monitored in the long term.

More ice rinks following the example

The Suolahti Arena is the first concrete example of a green ice rink in Finland, and as far as we know, the first one in the world, too. But Äänekoski is by no means the only municipality thinking about energy-efficient ice rinks. Green projects are rapidly gaining popularity.

“I have a feeling that green energy will soon be used all over the country. Almost every time I’m on a hockey trip someone tugs at my sleeve and asks for advice, and I think that’s a great thing. I tell everyone to feel free to copy this design, and improve on it too”, Virmanen notes happily.

Text: Heidi Penttinen
Photo: Jiri Halttunen / JYP

CaseGreen financeMuniFinSustainability

Side by side with Lapland’s nature – Ivalo’s new education centre is MuniFin’s northernmost green finance project

A modern new education centre is being built amid the rugged northern landscape along the Ivalo River. It will cover about 9,000 square metres and provide premises for a total of 500 pupils all the way from pre-schoolers to upper secondary school students.

It will be the largest investment in the municipality’s history to be financed with MuniFin’s green finance. The first discussions about the new school were held in 2017. Construction was launched in late summer 2020, and the plan is to open the school gates to pupils in time for the start of the school year in August 2022.

“These kinds of projects are huge in scale – a lot of time is spent on design and planning. Nothing happens in the blink of an eye, even though we’ve been actively moving forward with the project all the time. Expectations are running high throughout the entire municipality,” says Inari’s Municipal Manager, Toni K. Laine.

The new centre is a firm investment in the future and an important step towards a more modern municipality with better services.

“It’s high time for municipalities to get their schools and other public premises into shape. The Municipality of Inari wants to lead by example. We have a clear programme for renewing our public buildings and this education centre constitutes a significant opening,” says Laine.

He reminds us that many Finnish municipalities were largely built in the 70s and 80s. The building stock is becoming irrevocably outdated.

“In some places, the buildings are even older than this. Something has to be done. However, local authorities also hope that the government will be more involved in funding service investments in the future, at least to some extent. There is definitely plenty to do and build in Finnish municipalities,” says Laine, sending his greetings to the decision-makers.

The signing ceremony for the new education centre. Pictured from left to right: Lehto Tilat Oy’s Sales and Project Development Director Juha Paananen, Regional Director Perttu Haapalahti, Inari’s Municipal Manager Toni K. Laine, and Director of Education Ilkka Korhonen. Smiling in the background over a remote connection are Lehto Group’s CEO Hannu Lehto and MuniFin’s Daniel Eriksson. 

 

Flood risk poses its own challenges

As in many other Finnish schools, Ivalo’s old school premises have had problems with indoor air. However, this is not the only reason for building the new education centre.

“Indoor air issues are often triggers that spark a rapid response, but there may be many other factors in the background. One significant factor was the introduction of the new national curriculum, whose pedagogical requirements could simply not be met in the old premises. The current school environment was designed for a completely different curriculum and era. It has fallen behind the times,” says Laine.

Laine says that, even at the project planning stage, there was already a prevailing consensus within the local authority that a new school was required and should be built. The only real discussion centred around the school’s location.

“Ivalo is a very difficult place to build in, as large areas are at risk of flooding. Although we do naturally already have flood protection in place, we must still carefully consider the location of new construction projects.”

The new school will be built on the site of the old elementary school, on the northern side of the river.

“We also wanted the school to be in harmony with the river,” says Laine.

Side by side with Lapland’s nature

Thanks to its energy efficiency, the building was approved for green finance by MuniFin and is currently the northernmost green finance project. Consolidating operations in modern premises will achieve clear cost benefits, while also guaranteeing safe, high-quality and, above all, healthy teaching premises for children and young people.

“Inari is aiming for the most ecological construction possible in all of its projects. Due to the cold winters, northern weather conditions naturally make ecological construction much more difficult to implement in practice than in the south,” says Laine.

Lapland’s stunning nature and unique landscapes have been the inspiration for the school’s designers.

“The brief for the architects was to create a style of architecture to suit Lapland in particular, by drawing on local nature and culture. Wood is highly visible as a structural element and glass is a similar element to water, keeping it in harmony with the nearby river.”

Wood and glass are highly visible elements in the new education centre. Lapland’s nature was the inspiration for its design.

As Inari is a multi-lingual municipality, working in small groups was a particular focus.

“In addition to excellent spaces for group work, the centre will also have a first-class auditorium that can also be used as a cinema, as well as a top-notch space for cultural shows and exhibitions. We’ll be getting a new, full-size sports hall and a central kitchen, which will be essential for the local authority’s service provision. Extra Lapland enchantment will be provided by a separate kota – a traditional Sami hut that will be used as both a learning and meeting place,” says Laine.

Laine says that Inari has long been on the winning side when it comes to migration. These investments in education will further increase the area’s appeal.

“The new centre will definitely give our image a big boost. We’ll have the opportunity to show people who are considering moving here that we want to provide safe and healthy premises for children and young people and that we’re strongly invested in pedagogical development and education through physical factors. Future generations will be educated in the new centre. A more important factor is hard to find,”says Laine.

FACT: GREEN FINANCE

MuniFin’s green bond and leasing are targeted at financing environmentally friendly investments. Customers can apply for green finance for both small and large scale investment projects that will bring clear and measurable pro-environmental effects.

To receive funding, projects must fall within the scope of one of these areas:
– renewable energy
– public transport
– sustainable construction
– water purification and wastewater treatment
– energy efficiency
– waste treatment
– environmental management and nature preservation

The terms and conditions for green finance are otherwise the same as for MuniFin’s other financing, except that green finance is more affordable for customers than an ordinary loan or leasing agreement.

Text: Pihla Hakala
Photos: Lehto Group (illustration), Municipality of Inari (signing ceremony)

CaseGreen bondGreen financeSustainability

Joensuu’s new landmark – a wooden “lighthouse” soars above the rooftops

Lighthouse’s topping out ceremony was held at the cusp of spring in March 2019 and the first residents were able to move into their new homes at the end of August. The last apartment had been rented by the beginning of September.

“The whole process – obtaining permits, tendering out the contract, design, planning and construction – ended up taking about forty months,” says Jarmo Ojalainen, Managing Director of Joensuun Elli. Joensuun Elli is responsible for the city’s student housing and was the developer in this project. Although design and planning began back in 2016, actual construction was not launched for a couple of years.

He admits that the design phase was rather tough at times.

“Luckily, the foundation work and construction went smoothly and much more quickly. Things started to get easier as soon as we reached the second floor, and we managed to avoid any major adversity.”

Ojalainen says that the idea to build Finland’s tallest wooden building came from the City of Joensuu. Several districts already had important wooden buildings, but the City wanted one in the Penttilänranta residential area as well.

 “As the City’s subsidiary, we wanted to demonstrate that wooden construction is a style with great potential. The plot already had a city plan that permitted construction up to a maximum height of fourteen storeys, so we had to make full use of those building rights,” he says.

The many benefits of wooden construction

Although the design and planning for Lighthouse began back in 2016, actual construction was not launched for a couple of years. Photo: Rami Saarikorpi

While the wooden building was under construction in Penttilänranta, its structures were kept dry throughout the entire process. Working with wood is usually easier than working with concrete.

“Once a wooden frame has been completed, there’s no need to dry it as is often the case with a concrete frame. Conditions on the construction site were also more pleasant than they usually are in concrete construction,” says Jarmo Ojalainen.

He says that although wood is not vastly different to concrete in terms of livability, it does have one special advantage.

“Sound does not echo as much in a wooden house, which results in very pleasant acoustics.”

When it comes to costs, Ojalainen estimates that building a wooden building as a one-off investment costs about ten per cent more than a concrete one. He believes this will change in the future as construction methods evolve.

“Advancements will make wooden buildings more competitive, that is, the price level will certainly start to fall.”

All the essential wooden elements were obtained from Stora Enso. The wall elements are made of laminated veneer lumber (LVL) manufactured in Varkaus, while the intermediate floor elements are cross-laminated timber (CLT).

Satisfied residents

The building was already attracting plenty of attention during the construction phase. A couple of open doors events were arranged on the site.

“Almost five hundred people attended the second event over the space of three hours. The building seemed to be of interest even during the construction phase. The location is great – close to educational institutions, the city centre and the railway station – with the added bonus of really amazing views,” says Ojalainen.

Pinja Juurakko, who is studying to become a forestry engineer at Joensuu University of Applied Sciences, is a Lighthouse resident. Juurakko says that she loves her studio apartment.

“I was extremely surprised at how much I like living here. There have never been any problems. I fully intend to live here throughout my studies,” says Juurakko, who moved into the building in September.

She also confirms that living in a wooden house is acoustically pleasing.

“It’s really quiet – no echo. This is definitely one of the positive aspects of the place. Another is the residents, who are friendly and communicative even though they don’t know each other,” she says.

FACT: Action to promote Finland’s wellbeing society

Lighthouse, Finland’s tallest wooden building, was funded by Municipality Finance. Projects funded by Municipality Finance maintain and enhance Finland’s wellbeing society.

Text: Pihla Hakala

Photos: Rami Saarikorpi

Case

Pöytyä invests boldly in education

Considering that it only has a population of just under 8,400 people, Pöytyä’s investments in education are bold: almost EUR 30 million in the space of three or four years. Despite this, the local authority has turned its deficit into a sizeable surplus. How is this possible?

“We plan our investments and choose the ways in which to finance them by looking at the long-term effects on the town’s economy. We have also worked hard to increase the efficiency of our operational economy”, explains the town’s mayor, Anu Helin.

Pöytyä’s school system has been under systematic development since 2015, when the local authority decided to amalgamate the primary and secondary levels of education. This is also the objective of the local authority’s investments. A new comprehensive school in Riihikoski opened in August 2019, and the biggest investment in the local authority’s history – a school in Elisenvaara that combines primary, secondary and upper secondary education and that is estimated to cost between EUR 14 million and EUR 15 million – is due to be completed in 2022. The local authority is financing the project by means of property leasing.

“We started looking into sustainable ways to finance another major school investment last autumn. We researched property leasing carefully in order to make sure that we knew what we were getting into. Experts from MuniFin explained the details to our executive team, the municipal board and the municipal council. Their advice was invaluable. I think it is important that the people in positions of trust in our local authority also understand the financing model”, Helin says.

Experts’ advice on investments

The building that will house the new Elisenvaara School is technologically innovative and features several unconventional solutions. The project involves demolishing most of the old schoolhouse that currently sits on the property but keeping the old library. The pupils will also continue to use the old school canteen until the new building is completed.

The local authority planned the project in close cooperation with MuniFin and technical consultants in order to ensure a smooth transition and the new school’s eligibility for property leasing.

“Leasing gives us time, as we will not have to start making payments until after the building is finished. On the other hand, we are currently paying almost as much rent on the temporary school building as what our leasing payments will be once the new school is ready.”

In addition to advising the local authority on the Elisenvaara School project, MuniFin’s experts have contributed to Pöytyä’s long-term economic plans. The local authority has also hired external financial market advisors and legal experts to ensure the success of its more ambitious and complex investments.

“A local authority as small as Pöytyä has to, and should, rely on external experts. It is not worth us paying the price for lack of knowledge and poor planning on investments of this magnitude”, Helin explains.

“The investments in schools and our school system are part of our development programme, which we are calling our journey into the future.”

“We believe that a high standard of local services and state-of-the-art schools will help us to keep our residents here and make the town more vibrant. It has been great to see the opportunities that modern, safe, high-quality learning environments have already opened up for our schools”, Helin says.

Text: Hannele Borra
Photo: Pasi Määttälä

Case

Proud to be local

The company’s brand and products have become part of the small town’s identity, and the business has created jobs, brought tourists and boosted the confidence of the local community.

Miko Heinilä, Kyrö Distillery Company’s Distillery Manager, has told the story so many times that he even remembers the exact date when it all started: 10 May 2012.

It was on that day that a group of friends gathered in a sauna at a rented cottage in Karjalohja and Miika Lipiäinen, who later became the CEO of Kyrö Distillery Company, suggested a whisky tasting. The men were blown away by one particular specimen – a rye whisky – and wondered aloud why no-one makes rye whisky in Finland.

“I told the others that I grew up on a farm and know how much a tonne of rye costs. I even had the perfect place in mind for a distillery”, Heinilä says.

That place was Heinilä’s hometown, Isokyrö, between Vaasa and Seinäjoki. Initially, starting a distillery in a local authority of just 4,600 people in the remote region of Ostrobothnia was just a crazy idea. It was particularly outlandish because, with the exception of Heinilä, all the others lived 250 miles away in and around Helsinki.

However, the group soon learned that Isokyrö’s old dairy, which is known for being the original home of Oltermanni cheese, could be turned into a distillery. Heinilä invited the others over and told them about Isokyrö’s history.

The men knew that many distilleries and especially those in Scotland, the world’s best known exporter of whisky, are hundreds of years old. Their whiskies already had history and a unique story. Kyrö Distillery Company had nothing except for an outlandish idea conceived in a sauna, but the history of Isokyrö had everything from mysterious human bones found in a well in Leväluhta to the Battle of Napue, the last battle of the Great Northern War.

Suddenly the idea no longer seemed that crazy.

“We can tell the history of Isokyrö and use that as a foundation for building more history”, Heinilä says.

“In a way, we are part of a bigger story.”

There was only one problem: it takes at least three years for whisky to mature in Europe. This was bad news for cashflow, and the men had to think of something else in the meantime.

Could they make gin from Finnish rye and herbs? It was worth a try.

Investing in training

Heinilä admits that the distillery’s remote location was a concern.

“Helsinki is the birthplace of most trends in Finland, and we are located physically far away from there. We were setting up a visitor centre and at the same time wondering whether anyone would actually ever visit.”

They need not have worried: both the distillery’s reputation and demand for its products shot up overnight when a gin and tonic made with Kyrö Distillery Company’s Napue Gin won first prize in the International Wine and Spirit Competition in 2015, just one year after it first went into production.

According to Heinilä, the distillery’s visitor centre, named the Kyrö Tourism Board, attracted a total of 14,000 tourists last year, more than three times the population of Isokyrö. Kyrö Distillery Company has even begun to host its own festival, Kyröfest, which takes place every year in August. The company is on a mission to make its visitor centre the most prestigious tourist destination in Finland by 2022.

The company’s main objective – making Kyrö Distillery Company the best known rye distillery in the world – has the same deadline. In practice, achieving the goal requires considerable investment in growth: the new distillery that the company has been building this year will raise its annual capacity up to 500,000 litres.

Kyrö Distillery Company employs a total of around fifty people, of whom 10 work in the company’s offices in Helsinki. According to Heinilä, having a presence in two places makes recruitment easier, but the company also puts a lot of emphasis on training its distillery workers in Isokyrö.

“I think that we have only ever hired one person who had previous experience of working in a distillery. Our priority is finding great people to join the team”, he says.

“With the right attitude and personality, anything can be learned.”

“We cannot do this alone”

Heinilä is also the chairman of the municipal council of Isokyrö, which made his new project a big talking point in the town. The fact that the company’s official name is Rye Rye Oy – which is homonymous with a Finnish phrase for drunken frolicking – and the fact that Isokyrö has a history in producing moonshine added fuel to the rumour mill.

“The chairman of the municipal council being a bootlegger was naturally a juicy story”, Heinilä says.

The locals nevertheless soon warmed to the distillery. Heinilä has endless praise for the community’s team spirit, support and open-mindedness. He also sees Isokyrö’s location between the biggest towns in Ostrobothnia and South Ostrobothnia as a major selling point. There is even an airport in Vaasa.

Isokyrö is firmly intertwined with the brand of Kyrö Distillery Company. For Heinilä, the town will always be the company’s home: there are no plans to relocate let alone sell the business.

Kyrö Distillery Company currently exports its products to a total of 33 countries. Heinilä explains that global competition in the industry is fierce. The fact that the company has a whole town standing behind it and feeling proud about the association is a huge asset.

“This is not an endeavour of five men or even a team of 50 workers. To succeed, we need everyone’s support. We cannot do this alone.”

Heinilä’s tip for aspiring entrepreneurs in other small towns is to think about the strengths of the area they come from and look for links between their idea and the region. Heinilä’s favourite kind of feedback is people telling him that the success of his crazy idea in a place like Isokyrö has inspired them to try something similar where they live.

“I cannot think of a greater achievement for a group of guys than to give someone the courage to follow their dream.”

Small and nimble

It is hardly an overstatement to say that Kyrö Distillery Company has put Isokyrö on the world map. The distillery has been featured on the BBC and in Monocle magazine, and a journalist from VICE visited the town and wrote a piece about the frozen Kyrönjoki river.

Tero Kankaanpää, Mayor of Isokyrö, is used to talk quickly turning to the distillery wherever he goes in Finland.

“The town has become famous thanks to Kyrö Distillery Company”, he says.

According to Kankaanpää, the number of tourists in Isokyrö’s traditional attractions, such as its medieval church, has also increased.

The local authority has supported Kyrö Distillery Company as best it can. Most importantly, the local authority has rezoned the town and sold more land to the growing business. The small size of the town is a benefit in this respect: it makes the local authority nimble.

“One of our strategic promises is to grant planning permission within two weeks of receiving the papers, and we have always kept that promise”, Kankaanpää says.

Kyrö Distillery Company has also applied for and been given permission to build a biogas fuelling and distribution station in the town. The company intends to use biogas to fuel its steam generator, but the station will also benefit anyone driving a biogas-powered car in the future.

“The company is therefore also bringing new services to the town”, Kankaanpää explains.

As much as Isokyrö has added to Kyrö Distillery Company’s brand, the company has also benefited the town. Its story is perfect for Isokyrö, which has made a strategic choice to promote entrepreneurship from primary school onwards.

“Businesses are imperative for the vitality of small local authorities. The competition over residents these days is bordering on silly, and to attract more people, local authorities first need to have jobs.”

Isokyrö is building its profile on the town’s team spirit and positive “craziness”. The local authority has even brought out a rear windscreen sticker that reads “You don’t have to be crazy to come to Isokyrö, but it certainly helps”.

According to Kankaanpää, local residents are embracing their reputation.

“I would definitely say that the average person from Isokyrö now has a more positive view of their hometown and its achievements, and a lot of that is thanks to Kyrö Distillery Company”, Kankaanpää says.

“People are now proud to call Isokyrö their home.”

Text: Kaisa Saario
Photos: Samuli Salo

Case

A school, library, music institute and adult education centre – the new Tohmajärvi Centre of Education offers it all

A municipality of 4,500 inhabitants, Tohmajärvi has recently begun the largest project in its history. From the beginning of 2021, the Tohmajärvi Centre of Education will offer schooling from preschool to general upper secondary school and leisure activities in its library, music institute and adult education centre.

Located close to the Russian border between Kitee and Joensuu, Tohmajärvi has started the largest project in its history this spring: the building complex under construction in the centre of Tohmajärvi will bring all the municipality’s educational services under one roof.

When complete, the Centre of Education will have close to 5,500 square metres of floor space and is designed to meet the needs of 350 students. The idea of combining cultural and educational services arose from a problem that, sadly, many municipalities are familiar with: its school buildings, which were built in the 60s and 70s, are reaching the end of their useful life.

“We knew that decisions about renovating the current school centre would have to be made within the next five years. We decided to deal with the problems at one stroke,” says Tohmajärvi municipality’s Director of Finance and Administration Vesa Karhapää.

The colossal contract is implemented with flexible real-estate leasing

At a cost of more than EUR 11 million, the contract is a huge project for a municipality the size of Tohmajärvi. The size of the project set its own challenges: financing the new Centre of Education with a traditional balance sheet loan would have exerted a considerable burden on the municipality’s self-sufficiency. That is why alternative solutions were sought from the outset.

“To our surprise, only one commercial bank was able to provide real-estate leasing as a financial solution for the project. The solution offered by Municipality Finance was so much more affordable that there was no question of acquiring funding from anywhere else,” says Karhapää.

Mika Korhonen, the Account Manager at MuniFin responsible for the project, says that flexible real-estate leasing is growing more and more popular year by year.

“We have been offering real-estate leasing for seven years, and there is no end in sight to its growing demand. This form of funding is particularly popular in small and medium-sized municipalities. The building of a school is a typical real-estate leasing project,” says Korhonen.

According to Korhonen, the contract period for real-estate leasing is adapted as far as possible to the buildings’ depreciation periods in the municipality. A typical lease period is 20 years, after which the municipality can either redeem the building at a price equivalent to its actual residual value, continue the leasing contract or resell the building.

The right partner can bring savings of millions

On the basis of the preliminary financing negotiations, it was clear that the project would exceed the EU-wide public procurement threshold set by the European Commission. This meant additional requirements for the project that, due to its size alone, would stretch the capabilities of the small municipality to the utmost.

To support the tendering process, MuniFin offered the municipality the services of its subsidiary Inspira. Inspira’s team of ten specialises in planning and implementing municipal and city investment projects and restructuring arrangements.

According to Ville Riihinen, the Inspira Director in charge of the project, utilising an expert partner can save a municipality a lot of money.

“In all our projects, we take advantage of the know-how we have gained over the years and our existing network of experts. At this very moment, we are running six major tendering processes for investment projects, involving more than ten buildings and totalling more than EUR 100 million in investment costs. Small municipalities, in particular, simply don’t have the experience for dealing with such processes. In major projects, choosing the right expert partner can save the municipality millions,” Riihinen sums up.

Partnering with Inspira in the Tohmajärvi contract are Ramboll, which is as an expert on technical matters, and the law firm Krogerus, an expert on legal matters.

“The partnerships were an excellent suggestion by Inspira. All three have such extensive experience in their own specialisms that they were able to provide us with ready-made templates for best practices and advice on what pitfalls to watch out for. Without such skilled partners we would have been in deep trouble,” Karhapää smiles.

The tendering process for the project was carried out through the negotiated procedure. During the eight-month process, various construction companies worked on their own plans in accordance with the guidelines and planning guidance provided by the municipality. Various user groups participated in the design of the Centre of Education, such as teachers, students and real estate maintenance providers.

The new Centre of Education is an investment in the future

In terms of paperwork, the colossal project is coming to an end, but the construction is only just beginning. In May, the work to cast the foundations of the centre began along the stretch of road named after the most famous daughter of Tohmajärvi, the singer Katri Helena.

For a municipality grappling with an ageing population, migration losses and an unbalanced employment structure, the Centre of Education is much more than the sum of its parts. The project is an integral part of a more vibrant Tohmajärvi than ever – and a major investment in its future.

“We hope that the Centre of Education will increase Tohmajärvi’s attractiveness, especially for families with young children. Our goal is to make Tohmajärvi a better home than ever – a place where everyone has the best possible conditions for living a rich, varied life,” Karhapää says.

Text: Roope Huotari

CaseSustainability

Ambitious targets drive the City of Helsinki’s housing production

Three new buildings for the Helsinki City-owned housing company, Heka, were recently granted Green Financing. The buildings’ E-values represent the best in the industry: for example, the annual efficiency of their heat recovery ventilation is extremely high, between 70% and 79%.

This is not unusual for Heka buildings, as energy efficiency is an important factor in all the company’s construction. As the largest lessor in Finland, Heka’s actions carry considerable weight. The company’s nearly 50,000 dwellings are home to more than 92,000 Helsinki residents. The company orders its new building and renovation projects from the City of Helsinki’s Housing Production Department, which manages the projects in full from design to implementation.

“The City of Helsinki aims to be carbon neutral by 2035. This is a tough goal, and we will have to employ all the measures possible to achieve this,” says Minna Launiainen, HVAC Design Manager at the City of Helsinki’s Housing Production Department.

The three new buildings with Green Financing will be built in the districts of Kulosaari, Myllypuro and Mellunmäki. The energy efficiency class of one of the buildings will be A and the others B.

“These new buildings will have efficient heat recovery ventilation, LED lights both inside and out, and solar panels. Our goal has long been to produce buildings with an energy efficiency class that is above the regulated level and with E-values below 80,” Launiainen says, describing the City’s energy saving measures.

The will is there but more solutions are needed

The City of Helsinki’s Housing Production Department is continuously seeking ways to also reduce the energy consumption of its existing buildings. The thermal insulation capacity of the buildings is improved in connection with façade renovations, the windows are replaced, and the ventilation is replaced with mechanical supply and exhaust ventilation and equipped with heat recovery. Some buildings are also fitted with exhaust air heat pumps, and the heat obtained from them is used in heating domestic water.

Renewable energy is utilised wherever possible.

“We have installed solar panels in some of the existing buildings. We have also investigated utilising geothermal heat, but have not yet succeeded in making it work for one reason or another. In some locations, for example, the reserve in the underground formula prevented the drilling of geothermal holes,” Launiainen explains.

A centralised and remotely controlled building automation system is installed in all new and renovation projects implemented by the City of Helsinki’s Housing Production Department. For example, the indoor temperature of the apartment in addition to the outside temperature is utilised in controlling the heating.

“We are already able to apply a wide range of automatic functions to optimise energy consumption. We will be able to do much more in the future. Adding smart functions is just a matter of programming.”

There is plenty of will to improve energy efficiency, but the solutions are not always easy to find.

“Sometimes the absence or complexity of ready-made solutions prevents the implementation of plans. We need equipment manufacturers to create ready-made concepts and solutions that would be easy to plan and implement even outside renovation projects,” Launiainen says.

Money can also present an obstacle to the most energy-efficient solution, especially if the cost of the renovation verges on that of a new building.

“It’s truly vexing if, for example, heat recovery, which is the most effective way of conserving heating energy, cannot be installed for economic reasons. It’s important to consider life-cycle costs, instead of just investment costs,” Launiainen emphasises.

In its housing production, the City of Helsinki examines life cycle costs more and more also when constructing new buildings.

“We have acquired a tool that allows us to calculate a project’s life cycle costs already at the start of project planning.”

From an expert point of view, what would be the best way to achieve the climate goals in the housing sector?

“There should be a lot more renewable energy in buildings! Of course, producing district heating in a renewable way would be the best solution.”

From individual houses to energy efficient city blocks

A new residential area will be built during the next decade on the north side of the district of Pasila where the former ground transport centre used to be. The area has an environmental theme and energy efficiency targets consistent with it. According to Launiainen, the new areas will be built in one city block at a time. The same block may include rental, right-of-occupancy and owner-occupied dwellings.

“All the buildings in the four city blocks currently being planned will belong to energy efficiency class A, and all will have the Finnish RTS environmental rating. In addition to solar panels, the buildings will include waste water heat recovery, which is a fairly effective way to save on heating costs.

According to Launiainen, it is not heating but water heating in modern, energy-efficient buildings that eats up a large proportion of energy and euros.

“We strive to reduce water consumption by using new technologies and equipment. Our new buildings have apartment-specific water meters, which seems to clearly reduce water consumption.”

Text: Hannele Borra
Photos: Lahdelma & Mahlamäki Architects

CaseSocial housing