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land administration policy, which permits only the original building lot to be included for coverage and plot ratio purposes in any modification. The reason for this policy is that, where inalienable hillside and slopes are available, it is the practice to grant garden extensions fairly freely and it would be inappropriate for owners subsequently to be permitted to obtain substantial building extensions through garden extensions and later modifications. The reason in this particular case for a divergence from the normal policy appears to be that the lot was in an area of special.. control in which zone II development up to 10 storeys only was permitted. With these limitations on coverage and height, the only way in which a redevelopment appropriate to this high class residential area could have been achieved would be by allowing both extension areas to count for coverage and plot ratio purposes. In return for the inclusion of the garden extensions the lessee undertook to limit the development to 10 storeys - containing 20 flats.

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There is no formal Government commitment to proceed with the modification on the basis proposed. Nevertheless, in view of the history of negotiations, the advanced stage they had reached and the circumstances of the suspension, it is considered that the terms agreed with the lessee should be approved. But because:

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(a), this case could be seen as a precedent for a change of

policy, which could not be followed generally, particularly in the Peak Area where there are a fair number of gardene extensions;

(b) while non-building extensions can be approved adminis-

tratively, building extensions of over 25% of the parent lot must be referred to the Governor in Council for approval;

(c) the removal of the statutory restrictions on building next April will result in increased pressures for the removal of the administrative restrictions on modifica- tions; and

(d) it will appear strange that Government should be do

permitting a modification allowing for greater development than could be achieved under normal

land policy in an area where it has suspended modifications,

it is considered that the modification should be approved by the Governor in Council.

C.S. 166

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