TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 33

XCR(79)144

4

2

(a) sites where permanent MTR structures above ground

will reduce the maximum allowable plot ratio; and/or

W

(b) sites where the presence of MTR tunnels or other

underground structures means heavy additional foundation costs; and/or

(c) sites where, due to lengthy heavy civil engineering

works taking place in Nathan Road or Cheung Sha Wan Road adjacent to these sites, together with MTRC requirements for works areas, immediate redevelop- ment would have been virtually impossible.

D #ał

In all cases, costs have accrued to Government which, on the basis of previously decided policy, must be reimbursed by the Corporation.

5

Whilst some of these difficulties might be overcome by engineering works, at a substantial cost, this cost, and hence the consequent reduction in land value, would be virtually incapable of quantification. Further difficulties arise as engineering conditions for the preservation of the integrity of permanent railway structures are still being formulated and, while broad principles have been agreed which indicate the imposition of severe constraints on foundation design and works, details are still to be finalised: a situation which would lead to a further diminution in value because of developers' uncertainties, if these sites were offered for sale by public auction,

6

2

This problem was, in fact, recognised at an early date and, in consequence, it was considered equitable that title to any areas affected by MTRC permanent works should be passed immediately to the Corporation for use as temporary works areas. Eventual redevelopment would be carried out in accordance with normal development principles, including any planning requirements imposed by Government, but taking cognisance of MTRC structures. In theory, payment for these sites could have been made immediately on the basis of the then current market value of the site or the cost of acquisition, whichever was the greater. Any diminution of site value attributable to the presence of MTR works would then be a matter of internal accounting within the Corporation.

7

far

J

In the event, it was not possible to pursue this approach as!! pressures of more urgent work, clearance of sites and the final adjudication of claims through the Lands Tribunal precluded it. However, reimburse- ment of payments and overheads made by Government' was undertaken by the Corporation soon after the expenditure was incurred. The Corporation has, thus, in fact, paid the cost of the interests acquired and the costs of the acquisition already.