G.S. 84
7
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- 5
XCR(78)238
In view of the large number of individual lot owners and occupants affected, acquisition by negotiation in most cases is unlikely to succeed and the institution of resumption proceedings is therefore recommended.
Financial Implications
8
The Director of Public Works has estimated the costs of acquisition of these two sites i. e. 1-38 Hee Wong Terrace and 12-20 Wing Fung Street together with compensation for disturbance and ex-gratia cash payments at $20 million, which expenditure will be met from the Society's $100 million loan fund already approved by the Finance Committee.
Public Relations
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The Director of Home Affairs does not think there will be strong opposition to these two projects. In the case of Hee Wong Terrace, a certain degree of dissatisfaction can be anticipated from some tenants, partly because the scheme is likely to bring about social disruption and partly because of the very cheap rents which they are now enjoying. Nevertheless, it is expected that the scheme will be generally acceptable both to the owners and the tenants concerned. The former, upon payment of an adequate amount of compensation calculated at full market rate, should be able to reap the best value out of their properties, which because of certain building restrictions, are unlikely to produce attractive returns upon redevelopment. The latter will consider the proposal as offering them an opportunity to better their living environment by moving from pre-war flats to modern housing units. In the case of Wing Fung Street, the tenants there are mostly in the low-income bracket. Provided that they are adequately rehoused, they should have no objection. A total number of 96 non-domestic units are involved in this exercise and a very small number of shop tenants may not be
satisfied with the cash compensation offered.
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When the resumption notice is gazetted, the Society will arrange for a suitable press release to explain the scheme and emphasise that the object is to improve the living environment in the areas concerned and to provide better accommodation with modern facilities and proper management. At the same time, departments involved and the City District Officers will ensure that everybody is made aware of their rights or entitlements.
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