G.S. 84
For discussion
RESTRICTED
on 14th November 1978
197
XCR (78)241) Copy No
MEMORANDUM FOR EXECUTIVE COUNCIL of!
RE
REG STRY NO.
PROPOSED REDEVELOPMENT OF 15 NOV 1973
MACAO FERRY TERMINAL
OFFICER
REG.
INDE
PA
(Action T
Following consideration of memorandum XCR(78)200 (annexed) on 29th August 1978, the Council advised and the Governor ordered;
(a)
(b)
that negotiations with the Shun Tak Enterprises Corporation should not be concluded on the basis recommended in paragraph 8 and detailed in paragraph 9(a) of the memorandum; and
that a further memorandum should be prepared for Council's consideration containing proposals for a revised premium based on current market values in respect of the development additional to that required to "pay" for the land now proposed. The revised premium should take into account current construction costs for the piers and offices.
Q
2
Memorandum XCR (78)200 recommended that all values and building costs should be assessed as at July 1977, the date when the developers' amended report was received by Government. In discussion, however, Members made clear that although for negotiation purposes there had to be a cut-off date, the exceptionally high rise in values which followed July 1977 would result in the developers gaining too great an advantage from the development additional to that allowed to pay for the construction of the piers and Government offices. The approach adopted in this memorandum has therefore been to concentrate on a valuation of these additional rights at present prices, accepting that the valuations and costs used for the part of the terminal which is to pay off the Government piers and offices should remain as at July 1977.
3
The most recent sale of a site on the Wanchai Reclamation took place on 13th September 1978 which indicated an increase of 241.7% over July 1977 prices. Applying the same percentage increase to the Macao Ferry Terminal site results in a value of $49, 500 per square metre.
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