and on redevelopment these buildings would be restricted to the airport height limit. Claims for compensation may there- fore be made for loss of development potential over 12.00 metres up to the height limit set by the Buildings Ordinance of 1935 (24.38 metres). It should be noted that the Ordinance further restricts claims to cases where the diminution in value of interest in the land is one tenth or more of the diminished value of such interest and only 10 of the 13 buildings in question are substantially overheight.
Of these, only 8 lots contain buildings which might be redeveloped and which might, therefore, represent a potential compensation commitment.
Exemption of the Island Line Chai Wan Depot
20
The Mass Transit Railway Corporation's Island Line Chai Wan Depot at Lei Yue Mun Bay is covered by an airport height limit of 30 metres (30.48 metres in the new Order). To make better use of the site, the MTRC has applied for an exemption under section 3 of the Ordinance to allow development up to 60 metres P.D. This application includes the extension area approved in principle on 17 November 1981.
The Director of Civil Aviation has considered the MTRC's application for exemption at Chai Wan and has advised that there are no objections to the proposed exemption, provided the exemption applies only to that portion of the site lying southeast of a line drawn normal to the Hong Kong International Airport Runway extended centreline at a distance of 3,664 metres southeast of the threshold of Runway 31. However, a consultancy study is at present being undertaken of the height restrictions in the general area of Chai Wan and Lei Yue Mun and is not yet complete. The Director of Civil Aviation has, therefore, recommended that, for the time being, the 30.48m P.D. height limit should continue to apply other than to the proposed i exemption of the MTRC development. Since other major developments in this area are unlikely to commence for four to five years this is considered to be acceptable. The general height restriction in this area will be reviewed on completion of the consultancy. If Members agree to the MTRC exemption, it will be added to the exempted building schedule by publication in the Gazette, concurrently with approval of the building plans by Buildings Ordinance Office.
Financial and Staffing Implications
21
As stated in paragraph 19 above, the potential compensation commitment is restricted to certain buildings alongside the airport runway and, if relevant claims were all made immediately, the commitment would amount to approximately $36 million. However, since claims would only be considered upon application for redevelopment it is not possible to estimate when, and to what extent, this commitment will have to be met. As described in paragraph 16, some 16 rooftop
CONFIDENTIAL