TNAG-0961-FCO40-1180-Legislation-for-piers-and-harbours-in-Hong-Kong-1980 — Page 2

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XCR(80)

Copy No 17 MAR 990

MEMORANDUM FOR EXECUTIVE COUNCIL REVE

INDEXX

PA

PROPOSED REGRANT OF CERTAIN PIERS

WITH LEASES EXPIRING ON 31, 12, 79-

nction 1

DAJ123

A

B

G.S. 84

Introduction

LAST PAPER

This memorandum seeks Council's advice as to the terms and conditions under which the 21 piers scheduled in Parts I and II of Annex A should be regranted following the recent expiry of their pier leases on 31st December 1979. Kowloon Permanent Pier No 6 which is referred to in Part III of Annex A was recently the subject of a submission to this Council, as a consequence of which, terms have been offered to the Hong Kong and Kowloon Wharf and Godown Company Limited for a grant for recreational purposes. Kowloon Permanent Pier No 54 will be the subject of another special submission shortly.

Background

2

The necessary background information to the renewal, in 1964, of 47 pier leases (including the 24 scheduled at Annex A) is contained in memorandum XCR(64)128 (copy at Annex B), Council's decision at the time was that rents to be charged on renewal of the pier leases for a further term of 15 years expiring on 31st December 1979 should be assessed on the basis of the application of a multiplication factor of 5 to the rentals then currently payable. Since then, 23 pier leases have either been surrendered or determined in connection with various reclamation projects. Kowloon Permanent Pier No 63 has been partly demolished to allow construction of the seawall for Whampoa Sun Tsuen and is not to be regranted.

3

In recent years, most new piers have been granted by private treaty as an extension to the parent lot and at a premium calculated on 75% of the market value of the unformed sea bed based on the permitted user of the parent lot with the lease term co-terminous with that of the parent lot. These piers are thus unaffected by the proposals below.

Methods of Assessing Annual Rentals

4

The Crown Lands and Survey Office has considered the following approaches for arriving at an appropriate annual rental for the various piers to be regranted, but none is felt to be suitable for the reasons given:-

(a)

the "pier lease formula" described in the preceding paragraph was clearly intended to apply only in the

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