MONDAY, JULY 11, 1977
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EX-GRATIA COMPENSATION FOR OWNERS
OF WAN CHAI PROPERTY
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FORMER OWNERS OF NINE BUILDINGS IN WAN CHAI WHICH ARE REQUIRED TO BE CLEARED FOR THE CONSTRUCTION OF THE NEW CANAL ROAD MARKET AND THE EXTENTION OF THE CANAL ROAD FLYOVER HAVE BEEN REMINDED THAT THE CASH PAYMENTS OFFERED TO THEM BY GOVERNMENT IN RESPECT OF THE IR PROPERTIES ARE MADE SOLELY ON EX-GRATIA BASIS AND ARE NOT STATUTORY COMPENSATION,
THE BUILDINGS SITUATED AT NOS. 255-261, WAN CHAI ROAD, NOS. 1 AND 2, CHAN TONG LANE, AND NOS. 21-25, BOWRINGTON ROAD ARE PROPERTIES FORMERLY HELD ON NON-RENEWABLE LEASES WHICH EXPIRED ON DECEMBER 28, 1973 OR JANUARY 15, 1974.
SINCE THE LAND HAS LONG BEEN RESERVED FOR THE MARKET PROJECT, IT WAS DECIDED BEFORE EXPIRY OF THE LEASES THAT NO RE-GRANTS SHOULD BE GIVEN.
UNDER THE CONDITIONS OF THE EXPIRED LEASES, THE FORMER OWNERS ARE NOT ENTITLED TO ANY COMPENSATION WHEN REQUIRED TO SURRENDER THE PROPERTIES TO GOVERNMENT UPON EXPIRY OF THE LEASES. HOWEVER, IT HAS LONG BEEN GOVERNMENT'S POLICY TO MAKE EX-GRATIA PAYMENTS IN THESE CIRCUMSTANCES.
IF THE LEASES HAD BEEN RE-GRANTED, PREMIUMS AMOUNTING TO THE FULL MARKET VALUE OF THE LAND WOULD HAVE HAD TO BE PAID.
THE AMOUNTS OF EX-GRATIA AWARDS OFFERED TO THE FORMER OWNERS HAVE ALREADY BEEN INCREASED SUBSTANTIALLY FOLLOWING A PETITION SENT TO THE GOVERNOR IN APRIL THIS YEAR. THE TOTAL AWARDS INCREASED TO $254,000 AND RANGE FROM $12,000 TO $102,000 PER BUILDING, IN THE CASE OF NOS. 255-257, WAN CHAI ROAD, WHICH WERE HELD IN UNDIVIDED SHARES, THE TOTAL AMOUNT OF $102,000 IS TO BE DIVIDED BETWEEN FORMER OWNERS AT THE RATE OF $6,000 PER UNIT.
THE FORMER OWNERS WERE INFORMED OF THE INCREASED EX-GRATIA AWARDS IN A REPLY GIVEN TO THEM BY THE SECRETARY FOR THE ENVIRONMENT ON JUNE 29, 1977.
IT WAS ALSO POINTED OUT TO THEM THAT IT WOULD NOT BE POSSIBLE TO EXTEND OR RE-GRANT THE EXPIRED LEASES UNDER WHICH THESE PROPERTIES WERE FORMERLY HELD RETROSPECTIVELY, SINCE THIS WOULD DEFEAT THE OBJECT OF GOVERNMENT'S ORIGINAL DECISION NOT TO RENEW THE LEASES UPON EXPIRY.
FURTHERMORE, THE RE-GRANT OF LEASES IN SUCH A WAY INEVITABLY INVOLVES THE FORMER OWNERS IN THE PAYMENT OF PREMIUM, THE REPLY SAID.
ANOTHER PETITION WAS SENT TO THE GOVERNOR BY THE FORMER OWNERS ON JULY 7 AND WAS AGAIN ANSWERED BY THE SECRETARY FOR THE ENVIRONMENT ON THE FOLLOWING DAY.
/IN HIS