Talas Resident Center

1. What is the Talas Community Space?

Talas is a new shared community space for the shareholder associations of Kalasatama’s service companies, such as housing cooperatives. It is intended for use by residents, housing cooperatives, and various resident groups for activities such as gatherings, parties, meetings, remote work, exercise, hobbies, sauna nights, and collaborative activities.
Talas also features spaces open to everyone, which can be used during the restaurant’s operating hours without a separate reservation.
Talas is a multipurpose shared space for Kalasatama residents of all ages.

2. Who is Talas intended for?

Talas is intended to serve as a shared space for the entire service area of the Kalasatama service companies. The goal is for it to serve users of all ages: families with children, young people, working-age adults, seniors, housing cooperatives, and other residential communities in the area.
Since the space is new, its uses will evolve based on experience and feedback.

3. Why was Talas built?

Talas is part of a complex of community club facilities based on the Kalasatama zoning plans. Shared recreational and gathering spaces have been planned for the area from the very beginning.
The construction of Talas is therefore based on the provisions of the Kalasatama zoning plans, which stipulate that some of the community spaces for residential lots must be located in a regional service building. Talas has therefore not increased residents’ costs (apartment rent or purchase price), since otherwise the facilities would have had to be built separately in each building.
The idea behind the shared community spaces is to reduce redundant construction: not everything needs to be built separately in every housing complex; instead, some of the spaces can be made shared for the entire area. This provides more versatile spaces for all Kalasatama residents. Additionally, housing developments save on their own construction costs, and the space in question is freed up for other uses.
The plan is to build a total of at least approximately 3,000 square meters of shared community spaces in Kalasatama. Talas is the first phase of this project, comprising 1,200 square meters.

Financing, Costs, Pricing

4. General Information on Financing and Costs

The financing model for service companies is two-part. It consists of investment fees and usage fees.
During the construction period, an investment fee is collected from the homeowners’ associations, which is used to fund investments under the responsibility of the service companies, such as common courtyards, common club rooms, parking spaces, and other neighborhood services.
Usage fees cover all monthly operating costs associated with shared services, such as repair, cleaning, maintenance, and renovation costs, land rents, rents, insurance, or service charges, as well as the company’s administrative expenses. With regard to administrative expenses, it is particularly important to note that service companies also function as regional contracting, development, and supervisory organizations. Administrative expenses are therefore related to both the service company’s day-to-day operations and the practical implementation of the projects and shared services under its responsibility.
Service companies’ service fees are not usually shown to residents as a separate bill, as they are billed to shareholder associations, such as housing cooperatives. They are included in the housing associations’ costs and passed on to residents, for example, through maintenance fees.

5. How much did Talas cost?

The final financial report for Talas is still being prepared, so the total cost will be specified at a later date. The contract price was approximately 5 million euros, excluding value-added tax.

6. How was Talas financed?

Talas was financed by investment fees collected from the shareholder associations of Kalasatama’s service companies—such as housing cooperatives—for the communal facilities. The investment fees are based on the building rights for the lots and on agreements between the service companies and the shareholder associations.
The model is based on city decisions as well as land lease agreements and deeds of sale that the City of Helsinki has entered into with tenants or owners of residential lots, such as housing cooperatives.
In practice, funding has been collected from residential lots during the construction phase as part of the area’s overall shared services package.

7. Was a loan taken out for Talas?

Talas was implemented without loan financing, even though construction costs have risen significantly in recent years.

8. Have the costs of Talas increased the monthly usage fees?

The construction of Talas was funded by investment fees collected for the community club facilities. No separate loan was taken out for Talas, and its construction has not incurred any separate loan servicing costs.
The goal of the reservation fees for Talas’s facilities is to cover the costs arising from their use as fairly as possible, based on the “user pays” principle, and to support Talas’s ability to serve residents over the long term.
Talas’s reservation fees are based on estimated initial utilization rates, which have been conservatively estimated because the building was only recently put into use and Talas is not yet widely known.
Based on feedback from residents, the building should be financially self-sustaining. If the utilization rate exceeds the estimated target, we can consider reducing the reservation fees.
If we wish to lower the reservation fees for Talas’s facilities when the utilization rate is low, one option is to increase the monthly usage fee charged to the shareholder associations. In this case, all residents would contribute to covering Talas’s operating costs, even if they do not use the facilities.

9. Why are usage fees charged if the space has already been built?

Construction and usage are two different things. Construction was financed by investment fees collected for the community club facilities, but usage generates ongoing expenses, such as cleaning, heating, water, servicing, and maintenance. Reservation fees cover these day-to-day expenses and ensure that the facility remains in good condition over the long term.

10. How is the price of a sauna reservation calculated?

The sauna area at Talas is a bookable facility intended for groups. The reservation includes the sauna, shower, and changing rooms, as well as the sauna lounge with its tableware.
The price includes, for example, cleaning, heating, water, and maintenance. The price is also affected by the duration of the reservation. Since Talas is a new facility, pricing will be monitored and, if necessary, adjusted in the early stages based on experience and feedback.

11. How are rental income and reservation fees used?

Rental income and reservation fees cover the costs arising from the maintenance and use of Talas. Service companies operate on a cost-recovery basis: they do not seek to make a profit nor do they distribute dividends. Any surplus is used to support the company’s operations and to develop shared services.

Construction and Supervision

12. How has the construction of Talas been supervised?

The construction of Talas has been supervised by the boards of directors of the service companies, the project management team, and the construction consultant.
In addition to the boards of directors and steering groups, the CEOs of the service companies have been involved in project management, supervision, and acceptance, and A-Insinöörit has served as the lead construction consultant. The board of directors has overseen the project and made key decisions.

13. Were the design, construction, and contracts put out to competitive bidding?

The design, construction contract, and agreements related to the implementation of Talas have been put out to competitive bidding, and the boards of directors have made their selections based on the results of the competitive bidding.

14. How have conflicts of interest been avoided if the developers have decision-making authority?

Decision-making complies with the Limited Liability Companies Act, the articles of incorporation, and good corporate governance practices. In cases of conflict of interest, the persons concerned recuse themselves and the companies they represent from deliberations and decision-making.

Residents’ wishes, opportunities to influence decisions, and communication

15. How were residents’ wishes taken into account?

The planning of Talas began by identifying residents’ wishes. Wishes regarding the types of spaces and activities needed in the area were collected from Kalasatama residents and the boards of housing associations.
These wishes were gathered through various channels, including forums, social media, and direct surveys of housing association boards. In addition, the project was presented to residents at Kalasatama resident meetings. Based on the responses received, the spaces and activities that received the most support were selected.
Resident representatives on the boards and steering committees of service companies have also played a significant role in the planning process. They brought forward the views of the housing companies and residents.

16. Will residents be able to influence how Talas is used in the future?

Yes. Talas is a new space, and its use will be developed based on residents’ experiences and feedback.
Residents’ input is needed, for example, regarding the types of events, clubs, reservation slots, activities suitable for families and children, and other ways Talas will be used in the future.

17. How will information about Talas be communicated?

The easiest way to find information about Talas is on the service company’s website at fisuverkko.fi
In addition, information is distributed through the property managers of the housing companies, who relay it to residents in accordance with each housing company’s communication practices.
Going forward, the service companies aim to develop and clarify their communication so that residents have up-to-date and easily accessible information about Talas and other service-related matters. This will also help reduce misunderstandings and ambiguities.
In practice, this means, among other things, developing the Fisu network, improving the discoverability and visibility of information, and developing feedback channels so that the wishes and views of the area’s residents are better taken into account.
More detailed information on the operations and costs of the service companies can be found in the long and short service company guides on Fisuverkko.

Decision-Making and Administration

18. Who currently makes decisions regarding the service companies?

During the construction phase of Kalasatama, decision-making authority rests with the boards of directors of both service companies, their CEOs, and the shareholders with voting rights at general meetings—namely, the developers and the City of Helsinki.
The residents’ perspective is incorporated through resident members of the boards, steering groups, and shareholder associations.

19. When will decision-making authority be transferred to the shareholder associations?

The plan is to transfer decision-making authority to the shareholder associations once the Kalasatama service concepts and operational areas have been fully implemented. This is estimated to occur in the 2030s.

20. Why don’t the shareholder communities already have decision-making authority?

Kalasatama is still in the construction and development phase, and the service companies still have significant regional investments to carry out.
The current model is based on decisions by the City of Helsinki, zoning plans, lease agreements for residential lots, and deeds of sale, as well as agreements between the service companies and the shareholder associations, articles of incorporation, and the phased implementation of the area. Following the transfer of administrative authority, the shareholder associations will exercise decision-making power.

21. How are resident members elected to the board?

Shareholder associations are asked to nominate candidates for resident member positions on the boards of the service companies. Shareholders with voting rights elect the members at a general meeting in accordance with the Limited Liability Companies Act. However, the City of Helsinki does not participate in the selection of resident members.
The role of resident members is to represent the residents’ perspective even before the transfer of management.

22. Can shareholder associations participate in general meetings?

Yes. Shareholder associations have the right to attend general meetings, with one representative per association. Shareholder companies will have the right to speak and vote after the transfer of management.

The Role and Expenses of the Service Company

23. What is the role of the service company?

Service companies develop, own, manage, and maintain Kalasatama’s shared services, such as communal courtyards, community clubrooms, ground-level parking spaces, parking facilities, and the neighborhood portal.
They act as the regional commissioning, development, and supervisory organization, handling everything from planning to handover and maintenance.

24. Why is a service company needed?

A service company enables the centralized implementation of shared services for residential properties. This way, individual housing companies do not need to separately build and manage all such facilities and services.
The centralized model reduces duplicate construction and enables more diverse shared services for the entire area.

25. Where do service companies’ administrative and personnel costs come from?

Service companies have a wide range of responsibilities, and Kalasatama’s areas of operation are extensive. Among other things, they are responsible for contract negotiations, planning oversight, competitive bidding, construction management, supervision, reception services, maintenance, repairs, customer service, and communications. The service companies are regional construction and maintenance organizations.

26. Do the service companies aim to make a profit?

Service companies operate on a cost-recovery basis. They do not seek to make a profit, nor do they distribute dividends. Any surplus is used to support and develop the companies’ own operations and to benefit shared services.

27. How is the use of fees monitored?

The use of fees is monitored by the service companies’ boards of directors, CEOs, owners, and auditors. Operations are governed by the Limited Liability Companies Act, the articles of incorporation, and agreements. Financial statements and annual reports are published annually.

28. It has been claimed in the media that the service companies’ operations also include underground waste collection and/or waste management.

The service companies’ operations do not include underground waste collection and/or waste management. Kalasataman Jäteputkikeräys Oy, which is a separate legal entity, manages regional waste collection via pipes in Kalasatama. The service companies have no business dealings with the aforementioned company.

29. Do the service companies exercise public authority or use tax revenues?

The service companies do not exercise public authority, nor do they operate using tax revenues.
The city’s role in relation to the service companies has often been misrepresented in the media. Service companies are independent corporations in which the city is one of the minority shareholders. Service companies are not part of the city group.

30. Are the fees charged by service companies a form of so-called “neighborhood tax” or a compulsory tax?

This is neither a neighborhood tax nor a compulsory tax. Everyone has the freedom to choose whether, for example, they want to purchase condominium units in Kalasatama or not and, at the same time, join certain centralized services in the area. The seller is obligated to inform the buyer of these matters before the sale.
For the sake of clarity, it should be noted that similar centralized services in residential areas, such as parking companies, have been common in Helsinki for decades. Therefore, this is not a new issue.

31. Allegations of overlapping decision-making and billing by the service companies?

The allegations are unfounded.
The Talas community club is jointly owned and operated by the service companies. Consequently, the overlapping deliberations on the service companies’ boards relate to the planning, construction, and use of Talas, requiring both boards to separately approve key matters and agreements. In addition, the boards of the service companies each handle matters related to the shared Fisuverkko regional portal.
The alleged double billing by the service companies does not occur. Both service companies collect usage fees from their shareholder communities—such as housing associations—only in connection with their own agreements.
With regard to administrative costs, it should be noted that the service companies are slated to merge. For this reason, the companies are currently investigating and preparing the preliminary steps for the merger.