City of Cologne: 50 million euros for controversial Kaufhof rental contract!

City of Cologne: 50 million euros for controversial Kaufhof rental contract!

The city of Cologne faces financial challenges for the rental agreement for the former Kaufhof headquarters in Leonhard-Tatz-Strasse. At a time when real estate prices in the city rise sharply, renting the property has become more expensive than initially planned. The majority of the city council has so far voted against the release of 50 million euros for the renovation, and politics is critical of the additional costs, which are now a total of 300 million euros by 2050, as reported] (https://www.ksta.de/koeln/ungerei-beim-miet contract-der-stadt-koeln-koel-klad-klaver-1053156).

On July 3, the city administration would like to try a new attempt to receive approval in the city council. The discussions are no coincidence, because within the urban building industry there are differences in the rental agreement, the original goal of which was to serve as an interim location for the inner city fire station. However, this project was withdrawn due to the high costs.

rising costs and new use

The city of Cologne is now supposed to pay a special payment of 50 million euros for the renovation measures. The rental agreement, which was originally concluded on June 9, 2022 on the basis of a council decision, also provides for an extension by five years until December 31, 2050. The total area of ​​the property is around 45,000 square meters, and offices are planned for various offices, including the cultural department and the health department. However, the originally intended objects, such as the fire-wake interim and the reading room, have now been deleted, such as [roundschau-online.de explained] (https://www.rundschau-online.de/koeln/umbau-werd-teurererererer-der-kaufhof-zentrale-koeln-koeln-koeln-50-millione-euro 99368).

The total cost of the renovation is now estimated at around 77 million euros, which means an increase of 50 million euros compared to the original budget. The reasons for these cost increases are extensive resolutions, time delays and losses of rent. For example, there is an increase in additional price, since 20% of the additional costs result from loss of rent, and 10% due to increased requirements for security technology and IT.

political reactions and concerns

The reactions in politics are mixed. The Greens and the CDU require a simultaneous decision about the interim on Löwengasse and the Kaufhof headquarters, while the SPD and the left are demanding more transparency in the processes. Recent estimates state that the annual rent payments will increase to around 12.3 million euros from the end of 2026. This corresponds to an increase of 156 percent compared to previous rent payments, which further increases the financial burden for the city.

Although the market price in the city center, which is customary in the market in the city center, is 33.50 euros per square meter, a price of 19.70 euros per square meter was agreed for the Kaufhof headquarters. However, this rental price is expected to increase to EUR 24.30 per square meter due to the additional costs. The city must carefully consider its interests and ensure that the planned usage concept actually offers added value for the citizens: inside.

summarized the case around the Kaufhof headquarters shows how important transparent and careful budget planning is. The upcoming political decisions will be crucial for how the city deals with this financial challenge and whether it can successfully cope with the ongoing increase in price on the Cologne real estate market. In this dynamic environment, in which the population of Cologne is to grow to over 1.2 million by 2040, such challenges are very popular, as the real estate market itself.