Economy/infrastructure minister Kristen Michal and the government need to hurry up deciding the course of Rail Baltic connecting Baltics with Europe – lest landowners grow restless and prone to protest.
Landowners discouraged as Rail Baltic trail decision delayed
4th May 2015, 17:41
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Stretched across Estonia for close to 200 kilometres, Rail Baltic will swallow 750 plots of land the owners whereof might get a tenths of the project as compensation i.e. a total of €130m. Divided in equal shares between the owners, that would be over €170,000 per person – cash. Naturally, reality is otherwise as every plot costs different.
Till recently, one felt there’s time to spare till the railway construction gets going, plenty of space to dig into details. Now, it got urgent. With doubts no longer harboured regarding the Tallinn-Ikla line, best-favoured course options are more-or-less settled. Still, the alternatives yet to be deleted from the map are really getting on landowner nerves: regarding the state, the trust is not deep enough to rest assured that the darker line on the map is what will stand.
The insecurity robs homeowners of sleep and hinders farmers from making long-term plans and investments.
The air is charged in Kohila Parish, Rapla County. The local landowners opt not to comment on the railway, as the local government is host to all undecided alternatives. As the decisions fall in Harju County above, four totally different corridors would be created in their native region.
«Until there is no decision, transfer of the lands hangs as an axe above the heads of the people, and nervousness abounds,» relates Kohila parish elder Heiki Hepner.
Of the variants, a couple are for Kohila totally unacceptable. Should the railway pass through the small town, a half of it ought to be demolished. Also, Kohila is not good with the variant closest to is as an area designated for its development would go down the drain.
«We are expecting the new economy minister and the government to decide as quickly as possible so the uncertainty would end,» says Mr Hepner.
Right across fields
The people in Kohila parish are disheartened by the outlook of landowners only compensated market value of land under the railway lines and not a cent above that. A solution like that makes them reticent regarding the project.
With only the current so-called market value paid to an owner as his house gets demolished, they will have to totally leave the home parish as Kohila area lacks any housing market as such, so there’s no option to buy a place of equal value or even worse. They’d have to buy a plot of land and build from the scratch; the endeavour would cost way over former home and bank loan would be needed.
«With a landowner in his senior midlife years, would a bank lend him money to be paid back?» asks Mr Hepner. «For the parish, the problem emerges of people leaving and local governments leaking inhabitants.»
Also troubled are the forest owners who are forced to sell woods into which they invested in several decade perspective. Selling at today’s market value, whatever they planted would amount to nothing.
«To compensate, landowners ought to be paid moderately above market price or the replace the land or real estate with physically equal assets,» says the parish elder regarding the entire Rail Baltic matter.
A place of pain beyond measure will be Mälivere Village of Kohila Parish, where all possible course variants meet. In a couple of decades, the forsaken village of Mälivere has been turned into a place of prosperity. Today, the villagers stand to lose out on any way the railway will run.
«We built our home in Mälivere some twenty years ago, seeking to have peace in the nature. This was a village forsaken and rundown. Now, with the neighbours, we have created a peaceful place of natural beauty where one beholds badgers busy at riverside and even deer,» related Mare, an inhabitant in Mälivere. She prefers not to have her family name published.
«Now, if what we would daily see instead of the animals is speeding trains, no money will compensate the loss. Therefore, we simply do not want the thing here,» adds the lady.
Should the railway still come, the villagers think it should run so as to hurt them least.
Neighbouring Rapla, the private limited company Kehtna Mõis owns 1,700 hectares of fields and pastures, along with 600 cows. The railway course would cross their lands for two kilometres, touching nearly eight hectares of farmland. On top of that, 30 hectares of pastures would be cut off so their machines would have no more access.
«Percent-wise, 30 hectares are no big loss for us of course, but still the damage is significant. By that land, we are feeding 30 cows which we would have to give up – or find another 30 hectares close by,» observes Kehtna Mõis CEO Märt Riisenberg.
«One version, thankfully now deleted, we would have had to cover a distance, in three years, equal to a trip around the globe – just to reach our fields.»
An option would be swapping lands with a neighbouring farm whose plots would be left on their side of the future railway. The deal would take time, though, and cost money – builders of railway ought to compensate for that.
«Otherwise the railway guys get all our lands at cheap price, they reap all the bonuses, and we will be left with all the minuses and extra costs,» calculates Mr Riisenberg. «Let’s hope the government will be able to quickly decide regarding the path, as several alternatives have been drawn on our lands. The path favoured by the developers is the best for us as well, but before final decision is passed we lack the assuredness a company needs to do business.»
Rut Kaeval, owner of Nõmmepere Horticulture Farm feels desolate as the railway track will cover an entire kilometre of her lands and will swallow a separate piece of forest as a whole. Last week, Technical Regulatory Authority asked her for permission for test drillings on the land. She said no, as the seeds had already been sown.
«Also, I don’t want to grant the permission because I have no assurance how the builders will treat me,» says Ms Kaeval. «It is offensive to me that any time I have definite questions regarding Rail Baltic, I get these hazy answers. If what we have here is a project of national importance, with large money allotted to build it, I think they should take more thought of my work and my life than that.»
Ms Kaeval established the Nõmmepere farm over 20 years ago, considering herself and her husband farmers by nature. By today, the farm covers 100 hectares in total, and according to ability they have been purchasing extra. The farm’s fields are side by side and a for combine harvester it takes very little time to travel. However, the railway would come right between the two fields and the harvester should cover vive kilometres via a crossing further away. One may only imagine the costs and the traffic risks.
«For us, these past two years are like a nightmare, after we heard the course would run over our lands. What’s worst, our vital questions remain unanswered and we are afraid that the compensation offered will not cover our costs and investments, leaving us in a bad situation also with the banks,» says Ms Kaeval. «Market price for the land would not satisfy me.»
Fair pay desired
According to Vahur Tõnissoo, founder of support group Avalikult Rail Balticust (ASBL Openly About Rail Baltic) says that sums received in return are far from primary for landowners.
«For landowners, it is very important that they’d be ensured not the buy-out at so-called market price, but swap with land of equal value,» he says. «This is the only solution enabling farmers and foresters get fair pay.»
Communicating with state representatives, Mr Tõnissoo has heard talk of speculators on their way to grab land under future railway. «This talk is totally unfounded. We have never hears of a single case of attempts to buy up land under the tracks,» he adds.
As shown by construction of highways, agreements are reached with 90 percent of landowners. With the remaining ten, court cases are needed for compulsory purchase. Nevertheless, Rail Baltic builders insist they aim to reach agreement with everyone so that the compulsory purchases would be as few as possible.
«The process of the transfer of lands may only begin after preliminary technical railway design documentation is completed, and the valuators of real estate begin their work. For that, the final track of the railway needs to be verified,» says Rail Baltic project manager Miiko Peris.
«We have been tasked with taking the preferred track to government this spring, for them to take their stand. We are ready for that and I believe by Midsummer Day the track has been confirmed.»
Real land transactions may take place in 2016–2017. Thereafter, the course will be marked, the process perhaps lasting till 2019. By 2024 latest, the railway is ready.
«All 750 registered immovables will be evaluated separately, and there will definitely be no one-size-fits-all evaluations based on land market price, as impact caused will be considered,» explains Mr Peris.
Technical Regulatory Authority has just declared a research whereby law office Sorainen will be investigating principles for compensations due to Rail Baltic’s impact. Compensation of damages will not concern transfer of land only, but also things like building noise barriers or improvements of sound insulation of houses should these remain within noise zone of the railway.
COMMENTS
Ingvar Allekand
Domus Kinnisvara (Real Estate), board member
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For landowner, the research by law office Sorainen regarding Rail Baltic impact will be decisive. In cooperation with research centre CentAR, they will lay down the principles of compensating landowners. Those interested in the process should keep a close eye on the development of the research: should impact important for them be left out, evaluators cannot consider these afterwards.
Owners of lands under Rail Baltic do not need to worry about only being compensated based on market price of the land. I can confirm that, having participated as evaluator at various national infrastructure projects. To pay the compensations, evaluation is needed; there will be a procurement to find certified evaluators.
As prescribed by internationally recognised evaluation standards, compensations will have to consider all damage caused to owners. By transactions with land under railway, registered immovables may become so small as to forgo building rights. A part of land may become difficult for owner to use or unreachable. If a farmer will have to make a ten kilometre round to get to his field, this will definitely have to be considered at evaluation.
If speculators with under-railway-land have not appeared yet, they surely will – sooner or later. Speculators must not be feared not looked down upon, as they will make the land transfer process smoother for all participants.
For the state, it is much easier to purchase land from a single speculator whose sole interest is to sell. A family who has lived in the same place for centuries will not want to sell their land for any money. Meanwhile, speculators will enable some weaker or smaller landowners to get fair price for their immovables.
I am definitely advising landowners to cooperate with evaluators, as this is the only way to write your interests into the transactions. Once it comes to compulsory purchase, unavoidably the owner gets the worst end of the deal.
Kaupo Lepasepp
law office Sorainen, partner
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In cooperation with applied research centre CentAR, law office Sorainen will be analysing impact of Rail Baltic, to look into the existing legal order from the aspect of transfer to the state of immovables needed to build Rail Baltic and payment to individuals concerned.
The goal is to evaluate whether the existing regulation is sufficient and befitting to carry out Rail Baltic project. We will compile an overview of problems with existing legal order and possible solutions. At that, the solutions will not be analysed on legislation level only.
Together with CentAR, we will be treating various solutions based on administrative practice and proposals already made during Rail Baltic planning process. Technical Regulatory Authority – who ordered the study – wants the analysis to be usable with other large infrastructure objects as well.
We will see to it that a correct framework be ensured for a balanced consideration of all interests. On the basis of our analysis and advice, a concrete procedure will be established to weigh specific immovables and personal interests.