XN000022-1978-01-22 — Page 2

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SUNDAY, JANUARY 22, 1978

GOVERNMENT TO RE-INTRODUCE PREMIUM PAYMENTS

BY SLOW DEVELOPERS

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THE GOVERNMENT IS TO RE-INTRODUCE FROM JANUARY 1, 1979 PREMIUM PAYMENTS BY PROPERTY DEVELOPERS WHO REQUIRE TIME EXTENSIONS TO COMPLETE SITE REDEVELOPMENT UNDER EXCLUSION ORDERS IN THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE AND REDEVELOPMENT ORDERS IN THE DEMOLISHED BUILDINGS (REDEVELOPMENT OF SITES) ORDINANCE.

THIS WILL BRING TREATMENT OF EXCLUSION AND REDEVELOPMENT ORDER EXTENSIONS INTO LINE ONCE AGAIN WITH BUILDING COVENANT EXTENSIONS WHERE LAND IS SOLD FOR DEVELOPMENT IN THE ORDINARY WAY.

PREMIA TO BE CHARGED FOR THESE EXTENSIONS WILL ALSO BE CALCULATED IN THE SAME WAY AS FOR BUILDING COVENANT EXTENSIONS, THE BASIS BEING THE VALUE OF THE LAND AT THE TIME THE EXTENSION IS FIRST REQUIRED.

A GOVERNMENT SPOKESMAN SAID PAYMENT OF PREMIA FOR EXTENSIONS TO THE TIME PERMITTED FOR REDEVELOPMENT WAS DROPPED IN 1965 BECAUSE OF DIFFICULTIES BEING EXPERIENCED BY PROPERTY DEVELOPERS AT THAT TIME.

HE SAID ALTHOUGH PREMIA FOR ORDINARY BUILDING COVENANT TIME EXTENSIONS HAD BEEN RE-INTRODUCED SINCE 1969 EXTENSIONS UNDER THE TWO TYPES OF STATUTORY ORDER CONTINUED TO BE PERMITTED FREE OF CHARGE.

THE DECISION TO RE-INTRODUCE THE MEASURE NOT ONLY RECOGNISED THAT THE PROPERTY MARKET WAS IN A MUCH HEALTHIER STATE NOW THAN 12 YEARS AGO BUT WAS ALSO INTENDED TO DISCOURAGE DEVELOPERS FROM OBTAINING CLEARED SITES UNDER STATUTORY PROCEDURES, WHICH RELIEVED THEM OF OBLIGATIONS TO PROTECTED TENANTS, BUT FOR SPECULATIVE REASONS, NOT DEVELOPING THEM.

+BECAUSE WE HAVE NOT BEEN CHARGING A PREMIUM FOR TIME EXTENSIONS, SOME PROPERTY OWNERS HAVE BEEN ABLE TO TAKE SEVERAL EXTRA YEARS TO COMPLETE REDEVELOPMENT WITHOUT PENALTY, + THE SPOKESMAN SAID.

HE SAID THE GOVERNMENT HAD HAD AVAILABLE TO IT OVER THE YEARS THE ULTIMATE SANCTION OF RE-ENTRY, BUT THIS HAD RARELY BEEN USED.

THE SPOKESMAN SAID PROPERTY OWNERS WERE BEING GIVEN ALMOST A YEAR'S NOTICE OF THE RE-INTRODUCTION OF PREMIA SO THAT THEY COULD MAKE ANY NECESSARY CHANGES IN THEIR ARRANGEMENTS.

+THE ADJUSTMENT IS NOT EXPECTED TO CAUSE ANY GREAT DIFFICULTY BECAUSE, IN THE FIRST PLACE, GENEROUS PERIODS AMOUNTING TO BETWEEN TWO AND FIVE YEARS ARE NORMALLY ALLOWED FOR REDEVELOPMENT AND FURTHERMORE IN MOST CASES REDEVELOPMENT IS COMPLETED WITHIN THE PERIOD INITIALLY ALLOWED, THE SPOKESMAN SAID.

HE ADDED: +MOD IF ICATION PREMIA ARE THEREFORE ONLY LIKELY TO BE CHARGED IN CASES WHERE AN OWNER IS PARTICULARLY DILATORY.+

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