Financial investment budgeted in public projects in 2016 in PLN
Major public investments within the City's budget 2016
a) The improvement of the technical condition of educational facilities – PLN 21,110,903
b) The acquisition and upgrading of buildings and available residential premises - PLN 16,129,000
c) The extension of the Primary School No. 39 building, by providing extra classroom area - PLN 13,300,000
d) The reduction of air pollution in Szczecin – Stage II – The Kawka Programme – PLN 13,127,584
e) The improvement of road-traffic safety at the junction of Wernyhory, Mickiewicza, Reduty Ordona Streets – PLN 12,100,000
f) The reconstruction of Wiosenna Street - PLN 10,040,000.
The most important projects completed between October 2015 and September 2016
The City's most important investment undertakings completed between October 2015 and September 2016:
a. The reconstruction of the following streets: Potulicka and Narutowicza Streets in Szczecin - PLN 31,248,493.70
b. The construction of the North Route (Trasa Północna) in Szczecin - stage Ib - PLN 7,152,564.00
Major projects planned for 2017
The City's major undertakings planned for 2017
a) The purchase of environmentally friendly buses - PLN 53,080,075 in total (including in 2017: PLN 53,080,075)
b) The reconstruction of the following streets: Niemierzyńska, Arkońska, Spacerowa Streets to the Wojska Polskiego Alley, stage III - The reconstruction of Arkońska Street (from the "Las Arkoński" tram loop to the Wojska Polskiego Alley) - PLN 92,921,160 in total (including in 2017 PLN 40,000,000)
c) The construction of a primary-school building in Kredowa Street in Szczecin - PLN 59,790,000 in total (including in 2017; PLN 30,000,000)
d) The reconstruction of the F. Krygier City Stadium - PLN 84,965,070 in total (including in 2017: PLN 25,000,000)
e) The modernisation of the Castle Route (Trasa Zamkowa) - PLN in total 30,000,000 (including in 2017: PLN 20,000,000)
f) The reconstruction of the Cłowy Bridge - PLN 25,000,000 in total (including in 2017; PLN 20,000,000)
Major current projects
See point 1
Financial resources (in PLN) for investment in each of the last five years
Resources alloted for investments in each of the last five years:
1. 2011 - PLN 438,434,809
2. 2012 - PLN 442,120,388
3. 2013 - PLN 303,934,737
4. 2014 - PLN 424,258,228
5. 2015 - PLN 669,462,279
The proportion of the city’s budget invested in projects for buildings in relation to other expenditure (in pct and PLN)
The amount of asset-related expenditures and their % share in total expenditures:
2011 - PLN 438,434,809 27.1%
2012 - PLN 442,120,388 24.4%
2013 - PLN 303,934,737 17.1%
2014 - PLN 442,258,228 22.1%
2015 - PLN 716,954,781 30.5%
2016 (planned) PLN 463,531,532 21.5%
How many projects does the city carry out using EU funds, and what is their value?
Between 2015 and 2016, 35 investments were carried out by the City, with a value of PLN 1,550,750,494.09 (co-financed from the EU Funds: PLN 729,591,456.54)
How open is the city to outside investors? Does it offer special incentives and investment development programmes? What are they?
Exemptions from real-estate tax
De-minimis aid for the creation of new jobs. Eligible costs include 24-month costs of new employees; maximum exemption – 80% of eligible costs.
Regional aid for initial investment. Eligible costs include the costs of purchasing land or the perpetual usufruct rights, purchasing or constructing buildings and structures, including associated facilities, acquiring bankrupt establishments. Maximum exemption: 35% of eligible costs; 45% of eligible costs for SMEs.
Income tax exemptions within the EURO-PARK MIELEC Szczecin Sub-Zone for the cost of new investment and the two-year costs of new employees. The exemptions are:
35% for large enterprises
45% for medium-sized enterprises
55% for small enterprises.
The services of the Szczecin County Employment Office (in 2016 the City has allocated PLN 6,299,275 for promoting employment and counteracting unemployment):
Internships
Internship vouchers
Vocational preparation for adults
Government co-funded employment
Refund of remunerations to employees up to 30
Co-funded remuneration to employees over 50
Activation benefits
Refund of social-insurance contributions to the unemployed up to 30
Refund of costs of fitting or retrofitting work stations
Refund of social insurance contributions
Loans for creating jobs for unemployed persons
The National Training Fund
Refund of costs of fitting work stations for disabled persons or converting rooms and facilities
Sureties for business credits and loans:
The Szczecin Metropolis Development Agency grants sureties for loans/credits raised by microenterprises and SMEs registered and/or operating in Szczecin and neighbouring communes, and offers investment real estate located in Szczecin.
The Szczecin Loan Fund provides investment and working capital financing, and start-up financing for micro and small enterprises from Szczecin and neighbouring communes (preferential sureties, assistance in securing loans and credit/loan sureties)
Supporting the development of technology and innovation:
Developed by the Szczecin Science and Technology Park, Technopark Pomerania creates conditions fostering the development of innovation in Szczecin and the region. Technopark provides quality technological, laboratory and office space for start-ups and spin-offs, and established ICT companies.
Which factors make the city attractive to invest in? What is the potential of the city? (location, infrastructure, proximity to expressways connecting
Szczecin holds the position of the administrative and economic centre of the Westpomeranian Voivodeship, being also the capital of the Pomerania Euroregion and a hub of political, social and cultural cooperation for local authorities from Poland, Germany and the Scandinavian countries.
Szczecin is located at the junction of all major types of transport routes. It constitutes an important international transport hub within the North-South Trans-European Transport Corridor leading from Southern Scandinavia, through the Oder River route, the Czech Republic and Austria, to the Mediterranean seaports. Furthermore, it is located on the route connecting Russia and Finland to Western Europe through the Baltic Sea.
Distances:
12 km from the German border
65 km from the Baltic Sea
127 km from Berlin
281 km from Copenhagen
505 km from Prague
450 km from Warsaw
(Distances measured in straight line.)
Szczecin has a unique location which ensures perfect connectibility and access to sales and purchase markets in Poland, the rest of Europe and worldwide
Air connections
Szczecin Goleniów Airport (SZZ) is a 45 minute drive from Szczecin. It has reg-ular international connections to Norway, Ireland and England. The 2,500 metre runway can handle any type of aircraft
Airports that are located approximately 1.5-hour drive from Szczecin: Berlin Tegel (TXL) and Berlin Schönefeld (SXF) which soon will be replaced with the biggest airport in Europe – Berlin Brandenburg Airport (BER).
Water transport
The Port of Szczecin Świnoujście, one of the largest port complexes in the Baltic region, located in the middle of the city, facilitates trade with the most remote regions in the world – West and North Europe, China and Africa. It is also the closest port for the Czech Republic and Slovakia.
Access to the European inter-land waterway system through the Oder – Havel Canal with Berlin and river ports of the Western Europe.
The most important sea transit port for the Czech Republic and Slovakia.
Location on the shortest sea route connecting Scandinavia to Central and Southern Europe, and the sea route which connects Finland, Russia and Baltic countries to Germany and the Western Europe through the Baltic Sea.
Road connections
The city has an excellent connection with the motorway system of Western Europe through the A6, and with the new express roads and motorways in Poland through the S3 express road.
Rail connections
There are some direct railway connections to Germany, the Netherlands and the Czech Republic, among others. The most important railway lines run from the cargo terminal of the Świnoujście Port to Berlin, Vienna and Sofia, and on the route Hamburg – Berlin – West Pomerania – Gdańsk – Kaliningrad – St. Petersburg.
The City’s investment attractiveness can be confirmed by:
The rating by the Fitch Ratings Agency, which, in August 2016, ranked Szczecin at the BBB+ level, recognising its stable financial policies and high standards of municipal financial management.
The functioning of the Szczecin Sub Zone within the Euro Park Mielec Special Economic Zone, which provides investors with an all round management of investment projects, public assistance in the form of exemptions from income tax and reduced costs of business activities.
The City’s support and public assistance include exemptions from real property tax, loan guarantees and loans for entrepreneurs, support for technological progress and innovations, instruments supporting entrepreneurial activities, offered by the District Employment Office in Szczecin.
The “one stop shop” – an efficient investor-assistance system operating at the Municipal Government.
A young and well-educated society – 77% of residents are people of working and pre-working age, and the academic potential comprises 40 thousand students and 10 thousand graduates.
A very good knowledge of foreign languages among the residents of Szczecin – over 94% of students declare that they speak English, and 64% German.
High office-market potential – about 111 000 m2 of rentable area and around 19 000 m2 of modern office space.
Undertaking and supporting business development initiatives.
Which major real estate investors have decided to invest in the city in 2016? Who are the potential investors in the city?
Szczecin is an area of high attractiveness to the investors, which is shown by the fact that the following companies are based here.
• Investors based in the Special Economic Zone:
Bilfinger Mars OFFshore Sp. z o.o. - A plant was built in the area of Ostrów Brdowski
manufacturing the foundation structures for off-shore wind farms. It started its activity in October 2015 (since August 2016, the owner of the plant has been ST3 Offshore Sp. zo.o.)
Teleyard Sp. z o.o. - in May 2015, a state-of-the-art production plant was built in the area of over 40 hectares located between the former paper mill and the Skolwin Steelworks (Stołczyńska Street)
In early 2016, the area of approximetely 2 hectares was purchased by an investor, AM UNI-MEBEL Sp z o.o. S.K. The company is planning to develop a modern production hall where ship furniture and equipment, as well as regular furniture will be manufactured.
The Asprod Company was granted a permit to run its activity in the area of the Euro-Park Mielec Special Economic Zone, and acquired the rights to the real property.
• Warehouse market investors
Panattoni Europe - This warehouse and production space developer is building a state-of-the-art distribution centre in Szczecin on site of the former factory in Kablowa Street, in the area of Załom. The complex will consist of two halls with an area of 51.6 thousand sq. m. The works are due to be completed in December 2016.
In October 2015, Weimea Holding S.A. signed a preliminary agreement for the lease of the area of 30 hectares, where the development of a state-of-the-art logistics centre in the area of the Szczecin-Świnoujście Port is being planned. Thanks to this investment, in the area of the West Pomeranian Logistics Centre, new warehouse facilities are being built, with a total usable area of at least 40,000 sq. m.
• Office market investors
In late 2015, demolition works in Gdańska Street of buildings housing the former offices and warehouses of Baltona were initiated. The Szczecin Odra Park, one of the largests class-A office, service and hotel investments in our region will be developed here. The available area wiil amount to 42,500 sq. m. BCG Szczecin, a company with a Spanish capital, is the investor. In the first stage, an office building and a hotel are due to be built in Q3 2017. The second and the third of the office buildings are to be completed in 2018 and 2019.
In March 2016, new office space was completed and is now available to lessees. It is an office and service building complex Storrady Park Offices in Storrady Street. The main contractor was Gryf development, and the administrator is the Gryf Strojny company.
• Trade market investors
One of the first shopping centres built in Szczecin, CH Galaxy was built by Echo Investment, is planning to expand the building by 17,000 sq. m in the area of the site of the former Neptun Hotel. The works are due to be completed in 2017.
In November 2015, stage II of the Outlet Park Szczecin investment was completed (the investor is Echo Investment S.A.) The shopping centre was expanded by 8,200 sq. m of retail space and 250 parking spaces, and currently has 24,800 sq. m of retail space and 1000 parking spaces. Stage III is currently being implemented. It will provide additional 3500 sq. m of retail space.
• Hotel sector investors
The developer, J.W. Construction Holding S.A., upgraded the building of the former clothing company, Dana, where a four-star hotel is currently situated. This five-storey building on the corner of Odzieżowa Street and Wyzwolenia Alley houses 102 hotel rooms and presidential suite in the top floor. There are plans to build a club, several conference rooms, a mini-spa with a sauna as well as a fitness in the basement area. The total usable area is approximately 4 thousand sq. m.
The Porto Company, owned by the Calbud company, on the site of the former Posejdon department store (Niepodległości Alley - Partyzantów Street - Kaszubska Street - the Portowa Gate) is carrying out construction works, within which two Marriott hotels are to be built – a four-star Courtyard and a three-star Moxy (248 rooms in total), along with a car park for 302 cars and approximately 3 thousand sq. m of retail space, as well as office and conference space. The building complex is due to be completed in 2019.
The Redi company based in Warsaw, is carrying out renovation works of a 19th century townhouse located on the corner of Zwycięstwa Square and Potulicka Street, where the Piast hotel was situated. Following the completion of modernisation works, the building will house the Hilton Garden Inn hotel, with 100 rooms and a casino in the four-and-a-half star standard. The first guests will arrive in mid-2018.
In Druckiego-Lubeckiego Street, a company being both an investor and a contractor, J. Rosiek & D. Sobczyński S.C. Zakład Usług Inżynieryjno Budowlanych [Enineering and Construction Company], is carrying out construction works of a three-star hotel (107 rooms, including 5 suites, a restaurant, a spacious conference hall with 105 seats, and several smaller halls. The works are due to be completed in autumn 2016.
• Other investments
DGS Poland, a hearing-aids manufacturer, rented an entire floor in the Oxygen office building, where it provides accountancy, quality assurance and software development services for companies belonging to the William Demant Group from Denmark.
CUBIC Polska Sp. z o.o. - a company with Danish capital, a manufacturer of power distribution boards, is the largest lessee of the North West Logistic Park (approximately 7.4 thousand square metres). The company initiated its activity in Szczecin in May 2015.
Shadowline Sp. z o.o. - a manufacturer of high-quality interior and exterior blinds, has run its activity in the area of the North West Logistic Park in Kniewska Street since February 2016.
How good is the zoning plan coverage?
The area of the City of Szczecin included in the applicable local zoning plans is currently 14,439 hectares, i.e. 47.9 % of the area. The total area of Szczecin is 300,056 hectares, including 7,180 hectares of water-covered land, which constitutes approximately 23.9% of the city's area.
What is the waiting time for building permits?
The waiting time to receive the permit: up to 30 days. The term does not include the terms to complete specific activities provided for by the law, periods of the proceedings' suspension, and delays on the part of the applicant or for reasons beyond the control of the authority.
Why does the city deserve the award? (please stress the most important factors that make the city friendly to investors)
To create favourable conditions for investors and the development of industry and services – job creation factors – Szczecin undertakes measures aimed at:
creating investment incentives
initiating and supporting actions building human capital for Szczecin-based businesses
preparing investment areas for development
attracting major investors
cooperating with local businesses (the Northern Chamber of Commerce, Odroujście).
Events creating a business environment and human resources which foster new services in the City and create new jobs in the BPO/ICT sector are being implemented or supported.
Initiatives to increase office space.
Supporting innovative entrepreneurship, business development and the transfer and commercialisation of new technologies (cooperation with the Regional Centre for Innovation and Technology Transfer within the West Pomeranian University of Technology). The RCITT provides advisory and training services involving technology transfer, R&D financing, supporting academic entrepreneurship and coordinating cooperation between business and science. SERVICE INTER-LAB – a Centre for the Transfer of Knowledge and Innovation for the Service Sector at the University of Szczecin. This state-of-the-art business-innovation support centre deals with the transfer of knowledge between science and business, and also provides services to entrepreneurs, students and scientists.
Cooperating with Szczecin’s schools, universities and HR companies.
Producing reports and analyses, using specialised media, preparing/participating in fairs, conferences, etc.
Maintaining cooperation with the new-services sector and strengthening cooperation with BPO-industry associations, such as ABSL and ASPIRE.
Cooperating with the West Pomeranian ICT Cluster in Technopark Pomerania, which provides optimum conditions for companies to develop, including for start-ups. Also, it helps companies to access knowledge and establish business contacts. The cluster comprises more than 50 companies with a total workforce of over 900 people.
Organising or supporting trade or promotional events for the IT industry.
Implementing advanced ICT in the City Hall – implementing e-administration projects (an educational website, hot-spot networks in schools, a spatial information system). The City Hall received the 20th Century IT Leader award in the administration category. The contest was officially supported by the Ministry of Digitisation and the Ministry of Development.
Szczecin has a number of aftercare initiatives which aim to:
• Maintain and develop utilities, provide assistance in acquiring new real estate for investors who are expanding their operations or during the investment process
• Solve issues related to changes in zoning plans, building permits and difficulties in acquiring appropriate plots
• Help in employee recruitment and training:
o A Home for Graduates – programme, which entails renting, under preferential conditions, apartments to university graduates. The pilot edition of the programme aimed to encourage young IT specialists The following editions will include other specialists.
o “Academic Szczecin” – implemented by the City and universities to support the development of Szczecin’s scientific & academic resources and cooperation between scientific, economic and cultural circles.
o Competitions and scholarships for students and doctoral students, awards and diplomas.
o The Industrial and Didactic Council – cooperation with entrepreneurs to create an optimal programme for the development of vocational education.
o Szczecin_your place_your future – a project implemented by Szczecin, BPO/ITO companies, universities and ProProgressio to recruit employees and showcase the potential of the BPO/ICT industry.
• Bring education profiles in line with the needs of the labour market
o Conducting surveys on the expectations of local employers and the competence of people involved in higher education.
o Cooperating with vocational schools, local entrepreneurs from the industrial sector and the West Pomeranian maritime cluster, to optimise and promote vocational training
o Promoting foreign language learning and skills development in innovativeness and new technologies among university, high-school and middle-school students.
• Cooperate with the West Pomeranian Economic Development Association – the Szczecin Business Centre. Operating within its framework is the Enterprise Europe Network, which advises on how to render services and conduct business activities on foreign markets
Investors named the following factors as influencing their decision to invest in Szczecin:
Szczecin’s intellectual capital – access to well-educated research staff, top-class specialists, well-developed academic centres, well-educated young people speaking foreign languages
Excellent location in the heart of Europe, providing good connections to both Berlin and Warsaw. Strategic location – access to a seagoing port on the Baltic Sea, access to a navigable river providing inland connections to the system of waterways across Western Europe and connections to the European motorway network
Proximity to Scandinavian markets, location facilitating the ever-developing Polish-German-Scandinavian cooperation
Flexibility and commitment of, and support from, the City authorities and other entities, including universities
The development of various sectors, involving primarily new technologies
The availability of the Szczecin Sub-Zone of the Special Economic Zone
Public aid in the form of real estate tax exemptions
Increasing availability of office space
The trans-shipment potential of the Szczecin-Police-Świnoujście port complex as the largest sea-port complex in Poland
New development projects, visual transformations of the city and increasing investment opportunities, clear development policies.