Amendments to the legislation on determining the amount of rent for a land plot have been adopted

At a working meeting of the Governor of St. Petersburg, Alexander Beglov, with members of the city government, a draft resolution of the Government of St. Petersburg "On Amendments to the Resolutions of the Government of St. Petersburg dated 07/21/2015 No. 656, dated 11/05/2025 No. 823", developed by the Investment Committee of St. Petersburg, was adopted. The document is aimed at bringing regional legislation into line with Federal Law No. 321-FZ dated 08.08.2024, which provides for a change in the approach to determining the amount of rent for a publicly owned land plot provided without bidding. The amount of the fee for the provision of real estate at auction will be determined based on the results of the auction. "As the analysis shows, in most cases the value of the market value of rent is close to the value of the cadastral value. The new mechanism will make it possible to eliminate the loss of budget revenues and maintain investment activity," said Alexander Beglov. The project provides for exceptions to the general rule of 100% cadastral value, taking into account the degree of readiness of the unfinished construction site. In particular, when providing targeted land for the completion of construction, it is proposed to take into account the varying degrees of readiness of unfinished construction sites. It is proposed to determine the rent in the amount of the product of the cadastral value of the land plot by an interest rate equal to the difference between 100% and the percentage of the degree of readiness of the unfinished construction object, for the completion of which the land plot is provided, but not less than 4.5% of the cadastral value of the land plot, where 4.5% is the minimum threshold for unfinished construction objects with a degree of readiness is close to 100%. The changes regarding the determination of the amount of rent for a land plot based on the cadastral value did not affect building agreements. The fee for the right to conclude a building agreement will be determined, as before, based on the market value of the right to conclude an investment agreement. The draft proposes to establish the specifics of making a decision to reduce the fee, which has not been paid before, for concluding a building agreement, by setting the value of the right to conclude an investment agreement in the amount of 1.5% of the cadastral value of such a land plot for the duration of the investment agreement (in years) in some cases. In accordance with the innovations, it will not be necessary to prepare a report on the assessment of the market value of rent for a land plot when providing a land plot without bidding. Now, with the targeted provision of land for lease, when forming investment conditions in terms of determining the amount of rent, it will be necessary to be guided by information from the USRN statement on the cadastral value. This will contribute to budget savings in St. Petersburg due to the absence of the need to ensure the preparation of assessment reports, and will also reduce the time required to prepare documentation in order to make a decision on the provision of land for construction or completion of construction on investment terms. Additionally, in order to bring it into line with federal legislation, the draft proposes to exclude a number of grounds for the Government of St. Petersburg to decide to reduce the fee for the provision of land for construction, the previously set deadline for which has not arrived, by setting an annual rent for the land in the amount of 1.5% of the cadastral value of such land. Another important point was the introduction of provisions that exclude the city budget from receiving rental income in cases where the object of investment activity has not been put into operation and, as a result, the obligations to transfer premises to the city have not been fulfilled by the investor. In these cases, a bank guarantee mechanism is provided to ensure that the investor fulfills its obligations.