St. Petersburg Government is eager to share a number of advantages with a potential investor:

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Valentine Shelton
5 years ago
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2 FACILITATING INVESTMENT ATTRACTION IS A STRATEGIC PRIORITY FOR THE CITY St. Petersburg Government is eager to share a number of advantages with a potential investor: Geographic proximity of sales market and labor resources; Transport accessibility and integration of various means of transportation; Sufficient energy resources; Simplified administrative and licensing procedures for the residents; Saturated residential and social infrastructures; Opportunities for expansion and diversification of industries; Partnership between regional Government and scientific community.

3 TYPES OF INVESTOR SUPPORT A project receives STRATEGIC INVESTMENT STATUS starting with RUB 3 BLN invested it in industry or logistics and transportation, stating with RUB 15 BLN in other areas. Tax Tax rate with a discount Discount duration Discount requirements 1) Company profit tax 13,5% 5 years Investing no less than RUB 800 mln for maximum 3 consecutive years starting into one of the following areas: manufacturing activity, communications or transportation (excluding leasing cargo, air transportt, auxiliary transportation activity, aerial transport management, etc.) Investing no less than RUB 50 mln for maximum 3 consecutive years starting into software development, medical equipment and electronics production. 7 years Investing no less than RUB 15 bln for maximum 5 consecutive years starting ) Company property tax 0% 5 years Doing business in the following areas: electronic communications; St. Petersburg property management. Investing no less than RUB 800 mln for maximum 3 consecutive years starting into one of the following areas: manufacturing activity, communications or transportation.

ST. PETERSBURG TOP INVESTMENT OPPORTUNITIES Construction and management of a convention 1 and exhibition facility in the Moskovsky District Construction and management of an amusement park

4 ST. PETERSBURG TOP INVESTMENT OPPORTUNITIES Construction and management of a convention 1 and exhibition facility in the Moskovsky District Construction and management of an amusement park 2 in the Frunzensky District 3 4 Krasnoselsky industrial park of light industry Technopark for innovative urban systems Construction and management of a pedestrian 5 bridge across the Neva

6 CONGRESS TOURISM GROWTH POTENTIAL St. Petersburg is a renown international culture center with over 8 thousand historic monuments, 100 theatres and 200 museums. Downtown of St. Petersburg is on UNESCO World Cultural Heritage List. On the list of the country s innovative development St. Petersburg take up the second place, while boasting the highest 1A investment rating. There are over 20 event management companies and exhibition organizers working in the City. The profitability rate fluctuates between 30% and 70% thanks to adjacent industries: transportation, commerce, food and beverage, accommodation. Social and Economic Strategy 2020 for the North-Western Federal Region aims to help St. Petersburg to reach the top 20 congress cities around the world and top 10 in Europe by 2020.

7 CONGRESS TOURISM GROWTH POTENTIAL Construction of a large congress and exhibition facility would raise the City s attractivity as a both local and international congress and business center. According to the International Congress and Conference Association in events held in St. Petersburg were declares as international. The development of congress and exhibition infrastructure should take the number of qualifying events up to 180 by Significant events include The G8 Summit in 2006, The Summit G20 in 2013 and the annual St. Petersburg Economic Forum, St. Petersburg Innovative Forum, International Culture Forum.

8 CONVENTION AND EXHIBITION FACILITY PARAMETERS The facility has been designed with a variety of customers in mind: Grand hall 3000 people capacity, amphitheater, 3600 square meters. One hall 1000 people capacity Two rooms 500 people capacity Two rooms 200 people capacity 6 transformable halls that can create a large open space for an exhibition Hotel proximity Convenient logistics (public transport or walk-up accessibility) Cafes and restaurants with up to 1000 capacity, including catering opportunities parking

(Vertoletnaya street) Pulkovo Highway The territory of the projected

9 CONVENTION AND EXHIBITION FACILITY IN THE MOSKOVSKY DISTRICT Total area of the facility: sq m Area of the land lots: 8,5 Ha and 18,9 Ha (Vertoletnaya street) Pulkovo Highway The territory of the projected District 17, lots 10 and 11 in the Pulkovo Airport influence zone. Airport Pulkovo

10 MOSKOVSKY DISTRICT ADVANTAGES Positioning within the City structure According to the City plan the adjacent area is to be developed as a business zone. The adjacent are has potential for organized parking, lots are reserved as City property. Transportation accessibility The territory is located near two regional and federal motorways: the Western High-Speed Diameter and St. Petersburg Circular Highway (the lot requires the construction of exits). Logistical advantages Western High-Speed Diameter St. Petersburg Circular Highway Pulkovo Airport Moskovskaya Subway Station Hotel infrastructure Park Inn Pulkovskaya, 4* Crowne Plaza St. Petersburg Airport, 4* Rossiya Hotel, 3*

11 INVESTMENT AND IMPLEMENTATION Projected capital investment, including design, construction and launch is at RUB 5 BLN

13 ENTERTAINMENT INFRASTRUCTURE IN ST. PETERSBURG City population 5 mln Annual tourist flow 6 mln Adjacent districts Admiraltejsky, Moskovsky, Nevsky, Pushkinsky, Kolpinsky, with 400 thsd to 1 mln population. There are 5 large entertainment establishments in St. Petersburg, all of them far away from Frunzensky district: Water Park in 300-Years Park, Primorsky District Water Park in Rodeo Drive Mall on Kultury Distict, Kalininsky District Water Park Waterville on Vasilevsky Island, Vasileostrovsky District Amusement Park Divo Ostrov on Krestovsky Island The aforementioned parks do not demand for entertainment in the City

TERRITORY AND PROJECT IMPLEMENTATION Total area of the land 63,8 Ha (most of the territory is covered with greenery with some infrastructure and bodies of water)

14 TERRITORY AND PROJECT IMPLEMENTATION Total area of the land 63,8 Ha (most of the territory is covered with greenery with some infrastructure and bodies of water) Bukharestskaya st. Location: St. Petersburg, Frunzensky District, Between Bukharestskaya st, Yuzhnoe highway, Sofijskata st. and Dimitrova st. Dimitrova st. Sofiskaya st.

15 PARK LAYOUT The park operates year round using both outdoor and indoor facilities. А Entrance zone Б European fairytale zone В Kid s rides zone Г Physics pond (reference: Park der Sinne, Hannover, Germany) Д Creativity pond Е Treasure Island active recreation pond Ж World of Music zone З Workshop Zone И Mini Europe К Noise-making mechanical rides (partly in the unified roofed space) Л Second entry zone (near St. Petersburg Circular District, Sofiyskaya st.)

REFERENCE: TIVOLI, COPENHAGEN Tivoli Park in Copenhagen is the most adequate reference for the project Total area: 8,3 Ha Annual flow: 4 mln visitors Tennant s revenue in 2012: EUR 138,5 MLN Tax

16 REFERENCE: TIVOLI, COPENHAGEN Tivoli Park in Copenhagen is the most adequate reference for the project Total area: 8,3 Ha Annual flow: 4 mln visitors Tennant s revenue in 2012: EUR 138,5 MLN Tax revenue in 2012: EUR 5,5 MLN Operates 220 days a year ( ; ; ) During high season employs up to 3000 people Third most visited amusement park in Europe Tivoli s listed at EUR 231 MLN

18 LIGHT INDUSTRY DEVELOPMENT POTENTIAL IN ST. PETERSBURG Light industry in St. Petersburg took off over 200 years ago. After the collapse of USSR the industry found itself in demise due to inability to compete because of low quality of the goods. Today, the industry is on the rise in the Central and Southern Federal Regions. In St. Petersburg it has great growth potential due to the following factors: 1. Access to high-skilled employee base and the sales market of St. Petersburg and neighboring NW regions; 2. Infrastructure for industrial development; 3. Significant potential for innovation based on close cooperation between legislative and executive branches of Government, business and science communities.

19 STATISTICS As of August 1, 2013 light industry of St. Petersburg (clothing, leather goods, shoemaking) has put out RUB 10.8 BLN worth of goods for RUB 17.6 BLN turnaround. Textile production growth index amounted to 125.7%, leather goods 91.2% compared to the same period of Key players in the light industry: Tirotex Krasnaya Nit Kirova Factory Baltijskaya Manufaktura

20 DEVELOPMENT LOTS IN KRASNOLESKAYA INDUSTRIAL ZONE Osvobojdeniya street Svobodi street Kingisepp Highway

21 PLANNED DEVELOPMENT AND COMMUNICATIONS Lot number Water consumption, m3 per day Drainage, m3 per day Electricity, kwh Heat, gcal/h Area, Ha 2 398,8 296, ,11 4, , ,41 5, ,9 195, ,7 6, ,2 79, ,8 2, ,1 218, ,04 7, ,3 99,3 1575,7 2,33 4, ,9 49, ,41 3, ,1 143, ,5 3,38 4, ,2 549,6 3,01 4,58 The zone there s an opportunity for tax breaks within the boundaries of the local legislation.

) ü Total area: 4,2 Ha ü Lot is located outside any protection areas, cultural or ecological within a TP1

22 KRASNOSELSKY LIGHT INDUSTRY PARK St. Petersburg, Krasnoe Selo, Ryabchikova st., lot 1 (NW crossing with Gvardeiskaya st.) ü Total area: 4,2 Ha ü Lot is located outside any protection areas, cultural or ecological within a TP1 (кадастровый номер 78:40:9003:24). ü Lot has all necessary permissions for industrial activity. The industrial park will include: ü Production facilities; ü Storage; ü Administration buildings; ü Research and development canter; ü Parking

23 ENGINEERING COMMUNICATIONS Water cubic meters a day upon completion. Expected between 2014 and Heat 2,33 hcal/h. At the earliest 4th quarter of Drainage 99,3 cubic meters a day upon completion of Krasnsesly Sewer. By 2015 Electricity 1575 kwt upon completion of PS110/10kWt and PS330/110kWt of Krasnoselskaya Energy System. Natural Gas from city ditribution plant once Krasnoe Selo -2 and Lagolovo are connected to the city grid. By 2014

24 INFRASTRUCTURE Main access from Gvardeiskaya street. Main transportation veins: - West: a major highway bypassing Krasnoe Selo, 0.3 km away; - North-East: Krasnoselskoe highway, 1 km awau; - South: Kingiseppskoe and Gatchniskoe highways, 2 km away. Ac6ng Projected Gatchinskoe Highway

26 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS St. Petersburg boasting high concentration of educational and industrial resources has great potential for innovative business. Innovative potential of the City is based in: universities, academic and industrial sciences, as well companies scientific branches; abundance of skilled workforce. Technological potential of the region also contributes to the implementation of the innovations into the City s economy.

27 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS 25 lots from 0,5 Ha to 24,5 Ha make up the territory. The territory is located near main transportation veins, in the proximity of the airport, sea port and railroad hubs.

28 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS Technopark combines the following independently functioning units: business incubators network, R&D quarter, exhibition facility, business center, management and service buildings, parking, 200 bed hotel.

29 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS Technopark s residents work in the following areas: Housing innovation development: smart heating systems, house safety systems design, water purification systems; ventilation and air-conditioning systems. The majority of businesses are innovative companies. Production facilities will be linked by common value added chains, will share infrastructure and services provided by a designated company.

30 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS GROWTH POTENTIAL Industry growth will come from the regional market volume (RUB BLN in the first 2 quarters of 2013) as well as proximity to the consumer and possibility for fast reaction to market demands. Businesses working out of the Zone will supply the consumers in St. Petersburg and the NW Region (around 12 million people) according to their income levels, climate, environmental and aesthetic preferences and changes in their consuming behavior. Upon saturation of the NW regional market, expansion possibilities include other regions in Russian as well as other countries of the Customs Union.

31 TECHNOPARK FOR INNOVATIVE URBAN SYSTEMS The industrial zone is expected to influence St. Petersburg and the adjacent regions socially and economically. High skilled employment will raise, scientific innovations and technical nowhows are to be used in mass production, as quality of life will grow through innovation in housing and utility development. This potential will be used to produce items for Smart Housing and Smart Urban Environment.

33 PEDESTRIAN BRIDGE CONCEPT Development of the West part of Krestovsky Island could be facilitated by the construction of a two-level pedestrian bridge linking the area near Zenit Stadium with 300-Years Park in the Primorsky District. The construction of the bridge develops the pedestrian infrastructure and provides the residents with comfortable access to the territory around the bridge.

34 PEDESTRIAN BRIDGE CONCEPT 1 The first level of the bridge includes: - horizontal travelators; - bike and rollers lanes, potentially a bike rental; - pedestrian alleys. 2 The second level includes: - a recreational zone with open terraces, potentially a entertainment and commercial zone transformable into a culture space for exhibitions, shows, etc. - comfortable socialization areas; - green areas with comfortable stay.

35 LOCATION. POSITIONING OF THE BRIDGE Lahta 300-Years Park Savushkina Primorsky District Staraya Derevnya Novokrestovskaya Zenit Stadium Krestovsky Island Krestovsky ostrov Underground Stations Vasilevsky Island Primorskaya PEDESTRIAN BRIDGE CONCEPT LINKS THE WESTERN PART OF THE KRESTOVSKY ISLAND WITH PRIMORSKY DISTRICT

36 PROJECTED DIMENSIONS length: 420 m; width: 28 m (with the widest place on the second level); height: near 15 m; height above the water: 17 m

37 IMPLEMENTATION FORMS Projected cost of the bridge is RUB 1.5 BLN, depending on the functionality of the included areas.

38 IMPLEMENTATION FORM INVESTMENT PROJECT AUCTION Sale of a land (ground area) through the competitive auction. Competition criteria to be defined by St. Petersburg Government. Analyzing the bidders and making the choice, the Competition Commission evaluates the compliance with the competition requirements. Property rights are finalized upon implementation of competition requirements

39 PROJECT IMPLEMENTATION PRIVATE PUBLIC PARTNERSHIP PARTIES: CITY OF ST. PETERSBURG - PARTNER (INVESTOR) PART CITY OF ST. PETERSBURG 1. Provides Partner with a land place (ground area) matching the competition description (location, area, engineering capacity and service lines; internal network and communications are built by the Partner). 2. Vacates the lot of all existing buildings and constructions. 3. Vacates the lot of all third party networks and communications if such make the project impossible to complete or considerable raise the costs of the project. 4. Provides compensational payments up to the level of a minimal guaranteed profit in case the operational activity fails to generate cash flow necessary to the pay back and service borrowed funds, plus minimal funds required to operate the project.

40 PROJECT IMPLEMENTATION PART PARTNER 1. Carries out design, construction and commissioning (with own and/or attracted funds). 2. Upon commissioning and for the duration established in the Agreement, has the property right to the Object. 3. During the operations period provides maintenance and intended use for the Object. 4. Takes up all the arising fiscal burdens. 5. Upon the expiry of the usage duration, gives up property right to the City of St. Petersburg. 6. Covers capital costs of construction with own or attracted funds.

41 LEGISLATURE St. Peterbsburg Law N dated June 17, 2004 On providing City property objects for construction and reconstruction. St. Petersburg Government Act N 244 dated March 7, 2007 On selecting the commission of those responsible for providing paperwork for lending real estate and selecting the commission of those responsible for finalizing the auction for construction and reconstruction St. Petersburg Government Act N 1813 dated December 30, 2010 On interaction between with Executive offices of St. Petersburg while deciding to provide real estate objects for construction and reconstruction. St. Petersburg Law N dated December 25, 2006 On Private Public Partnerships in St. Petersburg.

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