TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 386

G.S. 84

XCRI(78)4

7

RESTRICTED

2

Through the exchange, the owner was essentially buying

two advantages:

(a)

the use of the whole of the lot; and

(b)

the right to develop and enjoy buildings of a specified volume and nature.

8

Building plans covering maximum development of the lot have already been approved and construction is far advanced and will not be affected in any way by the resumption. Thus there will be no loss of the owner's right to develop and enjoy buildings of the volume and nature specified in the conditions of exchange. Moreover, the amount for which he will be able to sell or rent the buildings on the site will not be significantly affected by the loss of the small strip to be resumed.

9

From the above, it is clear that figures arrived at by dividing the premium, or the premium and exchange costs (paragraph 4 above), in proportion to the area resumed do not represent the value of the land resumed in the terms of the Ordinance. As stated in memorandum XCR (77)312, it is proposed to make an offer of $12, 825, which is the same as the average agricultural land value ($5.00 per square foot) used recently in the Sha Tin layout for resumption purposes. As the area to be resumed would have formed part of the garden pre- cincts of the development, it is considered that this is the most appro- priate rate of compensation in this case. If he disagrees, the owner has the right to refer a claim to the Lands Tribunal.

10

Honourable Members may also wish to note that, conversely, when it is necessary to resume a part of a lot which is essential to achieving the permitted development, the Government is bound to offer compensation for the value of the development lost, which can be far greater than a division of the total value of the lot proportionate to the area resumed. For example, where building land is acquired for road widening, and because of the application of the Building (Planning) Regulations, its removal may reduce the permitted development of the remainder of the lot disproportionately to the area acquired. In such cases compensation will be related not to the area acquired but to the reduction in the development potential.

26th January 1978 (ENV 95/77/01)

COUNCIL CHAMBER

RESTRICTED