Guggenheim Helsinki Delayed to 2019 Amid Funding and Tax Disputes

The Guggenheim Helsinki project faces another setback, with construction now unlikely to begin before 2019. A meeting on Monday failed to resolve disagreements over public funding and tax exemptions. The city of Helsinki and the Helsinki Supporting Foundation had proposed a new financing plan, with the city contributing $90 million of the estimated $134-156 million total cost and the Guggenheim Foundation $17 million, while excluding $45 million from taxpayers that was previously contested. However, many city council members insist on fully private investment. Additionally, the project requires an IVA (VAT) exemption status from the government before construction can proceed at the Helsinki port. Ari Lathi, president of the supporting foundation, stated that the decision now rests with the government. Deputy Mayor Ritva Viljanen supported the new plan, which clarified the city's role and increased its ownership stake. The Guggenheim, which already has museums in New York, Venice, Bilbao, and a future one in Abu Dhabi (expected 2017), continues to seek new locations.