XN000022-1985-06-29 — Page 2

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SATURDAY, JUNE 29, 1985

+LDC BEST ANSWER TO URBAN RENEWAL PROBLEMS+

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THE PROPOSED LAND DEVELOPMENT CORPORATION (LDC) WAS THE BEST SOLUTION TO PROBLEMS OF URBAN RENEWAL WHICH IN RECENT YEARS HAD SLOWED DOWN BY AN ANNUAL RATE OF 10 PER CENT.

THIS WAS THE VIEW EXPRESSED TODAY (SATURDAY) BY THE ACTING SECRETARY FOR LANDS AND WORKS, MR JOHN TODD, AT A SEMINAR ON +URBAN DEVELOPMENT AND THE COMMUNITY+ ORGANISED BY THE HONG KONG COUNCIL OF SOCIAL SERVICE.

MR TODD SAID THE MAIN CRITERION BEHIND THE LDC WAS THAT THE PRIVATE SECTOR SHOULD BE THE MAIN DRIVING FORCE BEHIND REDEVELOPMENT.

HOWEVER,

PRIVATE DEVELOPERS FACED SEVERAL PROBLEMS IN URBAN RENEWAL SCHEMES. THESE INCLUDED THE HIGH COST OF SITES IN URBAN AREAS, THE DIFFICULTY IN ASSEMBLING LARGE SITES BECAUSE OF THE LARGE NUMBERS OF PROPERTY OWNERS INVOLVED, RESISTANCE TO SITE PURCHASE BY THE OWNERS AND THE NEED TO REHOUSE PEOPLE LIVING ON SITES TO BE REDEVELOPED.

THESE DIFFICULTIES LED TO +PENCIL DEVELOPMENT+ IN TOWN CENTRES, THAT IS HIGH DENSITY DEVELOPMENT OF SMALL SITES BY THE PRIVATE SECTOR.

THEY ALSO LED TO A LACK OF COMMUNITY FACILITIES ON THE SITES BECAUSE THESE WERE NOT PROFITABLE TO THE DEVELOPERS.

MR TODD TOLD THE SEMINAR THAT THE LDC WOULD PERFORM THE ROLE OF A DEVELOPMENT AGENCY AS A BUSINESS CONCERN. AS A STATUTORY BODY WITH AN UNOFFICIAL CHAIRMAN AND A MAJORITY OF UNOFFICIAL MEMBERS ON THE BOARD, IT WOULD BE SIMILAR IN STRUCTURE TO THE MASS TRANSIT RAILWAY CORPORATION AND THE KOWLOON CANTON RAILWAY CORPORATION,

THE ACTING SECRETARY SAID: THE MAIN FUNCTIONS OF THE CORPORATION WOULD BE TO PARTICIPATE IN THE SELECTION OF SUITABLE AREAS FOR DEVELOPMENT AND THE PRODUCTION OF PLANS FOR THESE AREAS.+

IT WOULD ACQUIRE LAND OR PROPERTY THROUGH NEGOTIATION WITH THE OWNERS AND IF NECESSARY SEEK GOVERNMENT ASSISTANCE IN RESUMING PROPERTY.

ONCE A DEVELOPMENT PLAN HAD BEEN AGREED AND THE PROPERTY ACQUIRED. THE LDC WOULD SET UP A SUBSIDIARY COMPANY TO DEVELOP THE AREAS. THIS COMPANY WOULD RAISE ITS OWN FINANCE FROM PRIVATE SOURCES, UNDERTAKE DEVELOPMENT AND DISPOSE OF THE PROPERTY ONCE IT WAS DEVELOPED.

WHEN THE