Municipal economy Kyyjärvi has already sold everything that comes off – Now the future of the crisis depends on wind power

Kyyjärvi

YET there are only a few work machines roaring on the ground, but in a year’s time the first power plant should already be up and running in Peuralinna.

Wind power is being built in the municipality of Kyyjärvi in ​​northern central Finland. The investment decision is for 15 wind farms located in two wind farms. They should be completed by the end of next year.

They would bring real estate tax revenues of more than half a million euros a year to the municipality.

There are plans for up to 85 wind farms. Then we would already be talking about tax revenues of three million.

The first wind farm should rise in Kyyjärvi next summer.

FOR WIND POWER INCOME there is a need – Kyyjärvi’s future as an independent municipality depends on them.

“It’s been a bit awkward to have this situation here for a while,” says the entrepreneur Kai Oinonen.

In the municipal elections, he entered the Kyyjärvi council from the lists of the city center without commitment. Oinonen, who participated in the election for the first time, was a rake with 54 votes.

The new council will be in charge of the crisis.

Last year, the Ministry of Finance ordered a special municipal survey for Kyyjärvi.

One option was the merger of four K’s: the municipalities of Kannonkoski, Karstula, Kivijärvi and Kyyjärvi would have formed a new municipality of Suomenselä.

However, the Kannonkoski council rejected the merger.

After that, the union of Karstula and Kyyjärvi was clarified. It would have suited Karstula but not Kyyjärvi.

Even the 3.5 million euro carrot coin provided by the state was not enough as a motivation.

According to Ainonen, Kyyjärvi, with 1,300 inhabitants, would have been left underneath with the larger Karstula.

Due to wind power investments and municipal adjustment measures Lake Kyyjärvi avoided a forced connection, for now. The Ministry of Finance will continue to monitor the situation in the municipality.

PERHAPS dissatisfaction with the economic situation was reflected in the municipal election results. The power party center lost two seats to the basic Finns.

Eight of Kyyjärvi’s fifteen delegates are new, which is a good thing, according to Ainonen.

“Old experience and new insight appropriately mixed.”

Oinonen is confident that Kyyjärvi will be able to continue independently. However, the mere retention of a name is not a sufficient ground for independence.

“An independent municipality is a good thing, but much more important is that the place of residence is pleasant and there are adequate services.”

Kai and Katriina Oinonen’s family business manufactures district heating power plants.

Oinonen’s family business Tulostekniikka oy manufactures district heating power plants.

According to him, Kyyjärvi’s greatest strength is more than 100 percent job self-sufficiency. The main employer is the concrete plant Betset, which employs about 150 people. There are about 550 jobs in the whole of Kyyjärvi.

More people should be sent to Lake Kyyjärvi. According to Ainonen, the problem is the lack of housing.

“We also have one subcontractor who would be moving here if there was a suitable apartment.”

“It had nothing but risks.”

FINANCIAL DIFFICULTIES did not appear out of nowhere.

“This was visible,” says those who worked as the mayor of Kyyjärvi in ​​2009–2010. Matti Muukkonen.

One mourning cry is the Paletti shopping center, of which the municipality owns more than 70 percent. When no depreciation, ie write-downs, were made to the shopping center for years in the municipality’s accounts, the value of Palet’s shares has had to be written down by more than EUR 2.6 million in recent years.

According to Muukkonen, the investment needs of the shopping center were considerable already in his time.

A sales contract had already been negotiated for the pallet, in which a private company would have bought a municipally owned stake in the mall. However, the deal collapsed in opposition to the municipal government.

The last nail in the coffin for the municipality’s independence was believed to be Keski-Suomen Verkkoholding oy, which underwent a corporate restructuring last year.

Kyyjärvi is one of the ten municipalities in Central Finland that own a fiber optic network company. The owners had to pay the company’s debts of approximately EUR 30 million. Kyyjärvi’s share of guarantee liabilities was EUR 2.3 million.

The problems date back more than ten years to the Broadband for All project. With public support, there was also a desire to build broadband in places where it is not available on market terms.

However, several municipalities ran into financial difficulties with expensive fiber projects.

Muukkonen opposed going to the broadband project. However, after he left, Kyyjärvi decided to participate.

“It had nothing but risks.”

Already during Muukkonen, the accession to the municipality of Suomenselä was clarified. When it did not progress, he decided to leave his washer.

According to him, the municipal association is still necessary.

“It would be good for the vitality of the area if resources were put together. I think that the whole of northern Central Finland could very well be one municipality of Suomenselä. ”

Mayor Tiina Pelkonen believes that Kyyjärvi can continue as an independent municipality in the future. In any case, co-operation with neighboring municipalities must be increased.

VUOnna Started as 2018 mayor Tiina Pelkonen has had to spend his working hours rehabilitating the municipality’s finances.

“Then put it in Helsingin Sanomat that this is for sale. We are looking for a new shopping center lady or Lord, ”Pelkonen says at lunch at Palet.

Cheap reportedly leaves. No bids have been made for the mall yet.

According to Pelkonen, almost all available municipal property has been sold.

The old municipal building in Kyyjärvi was sold in the spring. The premises will be Kyyjärvi Road House.

Pelkonen shares Oinonen’s wish that the municipality should have more housing.

“We are between a tree and a bark. More than any Finnish municipality has a debt, a municipal group loan of up to 15,200 euros per inhabitant. We don’t even get more loans, so we should find an outside developer. ”

This week, Kyyjärvi repaid its loan by one million euros, so there are 12 million municipal loans left, or about 9,400 euros per inhabitant.

On the other side of the horizontal cup is Kyyjärvi’s large investment assets, approximately EUR 6.2 million.

The crisis limit is EUR 1,000 for the group deficit per capita. In Kyyjärvi it ​​is 3,900 euros per inhabitant.

Pelkonen also believes that Kyyjärvi can continue as an independent municipality in the future.

In any case, the municipalities of Northern Central Finland should cooperate more in the future. It is in everyone’s interest.

“Everyone is poor.”

“If love ignites, no one will just get married for the summer.”

QUITE however, not all of the municipality’s property has been sold.

In the spring, a Helsinki resident Roope Valden together with his sister and friend, founded Kyyjärvi Camping oy, which leased the old Kallionranta camping site from the municipality.

Valden, who longed for the humus of Helsinki, did not even know the location of Lake Kyyjärvi in ​​March. When he came to see the campsite, there was no need to consider the decision.

The lease was for ten years.

“If love ignites, no one will just get married for the summer.”

Roope Valden wanted to get away from the humus of Helsinki. A new home was found in Kyyjärvi.

The goal of the entrepreneurs is to breathe life into both the campsite and the entire municipality of Kyyjärvi.

The purpose is to organize sports events, such as the Finnish Championships, trumpets and music evenings, among other things. The main building of the campsite will have a pizzeria and bar open all year round.

The same group bought the old town hall in Kyyjärvi, which has been empty for a couple of years.

It will become Kyyjärvi Road House.

The idea is to get the employees of wind farms to stay overnight in Kyyjärvi rather than in Perho, where wind power is also being built.

Mayor Tiina Pelkonen and tourism entrepreneur Roope Valden are trying to breathe life into Lake Kyyjärvi.

Mayor Pelkonen is pleased with the new entrepreneurs.

“How can people like that come here from Helsinki.”

Pelkonen hopes that Kyyjärvi will experience the “Mathildedal phenomenon”, ie young townspeople would be excited to move to a small village.

Read more: Finland’s hipster place is a small village in Salo, abandoned by Nokia – “My life situation is so good that I can hardly talk about it”

Both Pelkonen and Valden believe that at least there are enough tourists for Lake Kyyjärvi.

Brand work is already underway.

“You could talk about Snake Lake,” Valden thought.

“Kyy York, would that sound attractive?” Pelkonen continues.

Municipal surveys

  • Kyyjärvi’s two municipal surveys cost the state a total of 109,000 euros.

  • In 2008–2021, a total of approximately EUR 6.25 million of state funds were used for special municipal surveys and grants for municipalities’ own surveys.

  • In 2008–2021, 107 municipal census surveys were conducted, of which 66 led to the realization of the municipal association.

Sources: Ministry of Finance and Association of Finnish Municipalities

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