Zug, 12.05.2022

Renovation work on the St.-Johannes-Strasse causes dispute

The tenants' association has spread "false information" – the pension fund has now commented on the renovation of St.-Johannes-Strasse 23

The Pension Fund Zug (Pensionskasse Zug) has terminated the rental contracts of 30 tenants, as major renovations to the building are pending. The pension fund is dismayed regarding the strong criticism from the tenants' association, however, and has now given an explanation.

Criticism of the project of the City of Zug Pension Fund is loud. In particular, the tenants' association (MV Zug) is outraged that all the contracts of the 30 tenants on St.-Johannes-Strasse 23 have been terminated.

The pension fund has now commented on this, and says it is dismayed by the allegations, because it had "deliberately proceeded very carefully", according to the media release. The reason for the cancellations is the upcoming renovation of the building, which was built in 1968. The pension fund claims that the MV Zug has "spread false information" without detailed knowledge of the facts or any consultation with the pension fund.

The pension fund is in talks with the tenants
The pension fund had already informed the tenants about the contract termination one year in advance, and had also reduced the notice period to one month. The majority of tenants also appreciated the offer of being able to move back in after the renovation – even if the rents would be higher than they are today. Because, in a comparison in Zug, the rents would still be attractive, even after the renovation, says the media release.

The building is to be renovated
St.-Johannes-Strasse 23 (in the centre) will soon be renovated – the fact that all tenants are dismissed for this is a reason for trouble.                                          
Image: GoogleMaps

The current tenants will be guaranteed re-entry after the renovation. They will also be granted priority, and will receive discounted conditions compared to other interested parties.

Furthermore, personal discussions have shown that about half of the tenants wanted to receive support from the pension fund in their search for an interim solution. For example, vacant apartments belonging to the pension fund and Regimo Zug AG are offered to the current tenants of St.-Johannes-Strasse 23, with preferential treatment.

Today's standards no longer met
As a reason for the renovation work, the pension fund states that the building no longer meets the earthquake and wind load standards. In addition, water, sewage and ventilation pipes will have to be replaced throughout the house, most of which date back to the original construction in 1968. According to the pension fund, if the tenants were allowed to remain in the building during the renovation work, this would cause unreasonable impairments and safety risks. New bathrooms, kitchens, ventilation in the stairwell and optimised escape routes, as well as space for shared use, would also be installed in the course of the renovation.

A architectural office from Schwyz was commissioned with the project, and the construction work is scheduled to begin next spring, and will take about nine months. Like the MV Zug, the pension fund has also indicated that it is interested in a joint exchange of views regarding the renovation work.