THURSDAY, JULY 29, 1982
CONTRARY TO GENERAL BELIEF THE $1.458 BILLION IS LESS THAN THE EXPENDITURE INCURRED ON THE LAND SO FAR BY THE DEVELOPER. THE REPORTED $600 MILLION AUCTION WAS THE RESULT OF A HIGH COURT ORDER TO ESTABLISH AT THAT POINT IN TIME A VALUE WHICH COULD BE PLACED ON A SMALL NUMBER OF OUTSTANDING SHARES IN THE ORIGINAL COMPANY WHICH OWNED THE LAND. SUCH SHARES REFLECTED UNTRACEABLE SHAREHOLDERS AND REPRESENTED 14 OUT OF A TOTAL OF 770 SHARES IN THE ORIGINAL COMPANY. THE AUCTION SERVED THEREFORE THE PURPOSE OF SETTING A PRICE FOR THESE SMALL NUMBER OF OUTSTANDING SHARES.
+ THE COST OF THE LAND PURCHASED BY THE GOVERNMENT IS $46 PER SQUARE FOOT,+ MR CHAN SAID. THIS IS APPRECIABLY LESS THAN WHAT THE GOVERNMENT NORMALLY PAYS FOR RESUMING LAND FOR NEW TOWN DEVELOPMENT, WHICH IS $71 PER SQUARE FOOT TODAY OR $103 PER SQUARE FOOT WHEN THE NEGOTIATIONS BEGAN LAST YEAR.+
ON THE PAYMENT OF $1.458 BILLION, MR CHAN SAID, IT WOULD BE MADE IN THE FORM OF A DEVELOPMENT ADVANCE.
THIS MEANS THAT THE DEVELOPER MUST SPEND NOT LESS THAN $1.458 BILLION TOWARDS ITS PART OF THE DEVELOPMENT WITHIN A BUILDING COVENANT PERIOD OF 12 YEARS.
+THE AGREEMENT CONTAINS SEVERAL PROVISIONS TO ENSURE THAT THE DEVELOPMENT IS CARRIED OUT AND THAT THE EXPENDITURE IS INCURRED,+ MR CHAN SAID. + IF THE DEVELOPER FAILS TO COMPLETE THE DEVELOPMENT. THE 40 HECTARES OF LAND AND THE $800 MILLION PREMIUM WILL BE SUBJECT TO FORFEITURE. IF THE DEVELOPER SPENDS LESS THAN $1.458 BILLION ON THE DEVELOPMENT THE BALANCE WILL HAVE TO BE PAID BACK TO THE GOVERNMENT.+
THE DEVELOPER WILL BE REQUIRED TO SUBMIT A MASTER LAYOUT PLAN FOR THE 40 HECTARES FOR APPROVAL BY THE DIRECTOR OF LANDS BEFORE THE COMMENCEMENT OF BUILDING WORKS. THE WORK WILL BE CARRIED OUT UNDER GOVERNMENT CONTROL AND IN ACCORDANCE WITH THE GOVERNMENT'S PLANNING REQUIREMENTS FOR THE WHOLE 170 HECTARES.
THE 12-YEAR PERIOD WILL BEGIN AFTER THE APPROVAL OF THE MASTER LAYOUT PLAN OR THE DEVELOPER BEING GIVEN POSSESSION OF THE 40 HECTARES, PROBABLY IN TWO TO THREE YEARS TIME.
REFERRING TO THE HISTORY OF THE LAND, MR CHAN POINTED OUT THAT IT WAS PRIVATELY HELD AND HAD BEEN CHANGING HANDS SINCE IT WAS SOLD BY GOVERNMENT IN 1916. +THERE IS NO QUESTION OF THE GOVERNMENT BUYING BACK THE LAND AT AN EXCESSIVE PRICE.+
IT IS ESTIMATED THAT THE GOVERNMENT WILL SPEND ABOUT $3.92 EILLION ON WORKS ASSOCIATED WITH THE DEVELOPMENT DURING THE NEXT 12 YEARS OR SO.
SASTE
THE AMOUNT INCLUDES $1.62 BILLION ON SITE FORMATION, $960 MILLION ON INFRASTRUCTURE, INCLUDING ROADS, DRAINAGE, WATER AND SEWAGE TREATMENT SYSTEMS AND WATER SUPPLY IN THE DEVELOPMENT ZONE: $675 MILLION ON GOVERNMENT, INSTITUTION AND COMMUNITY FACILITIES SUCH AS SCHOOLS, CLINICS, OPEN SPACE AND OTHER COMMUNITY SERVICES $670 MILLION ON EXTERNAL HIGHWAY LINKS, CLEARANCE AND RESUMPTION.
AR CỦA