TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 79

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C

it was

construction of the southern section of the main concourse of Sheung Wan Station, was listed in Annex C to memorandum XCC(30)137, and was thereby identified as one of the twelve sites which, inter alia, would contribute to the financing of the Island Line construction, assumed that the several owners of the private land concerned would be unable jointly to put forward development proposals including the railway structures and that resumption would therefore be necessary. The site is approximately 800 square metres in area, of which 491.26 square metres are in private ownership. The remaining portion is Crown land.

3.

In January this year the six owners of the eight private lots within the site were contacted by the Mass Transit Office and the Mass Transit Railway Corporation's requirements were explained to them, as were the alternatives of resumption or joint development with the Mass Transit Railway Corporation. Unexpectedly the owners reached agreement amongst themselves and elected to approach the Mass Transit Railway Corporation with a proposal for a joint development including the railway structures. There is therefore no longer an interface problem between building the railway and developing the site. However, their proposal is considered unacceptable by the Corporation on the grounds that it is not as financially attractive as a proposition put forward by another developer. The Chairman of the Corporation argues that memorandum XCC(80)137 provides that profits from the Corporation's property development proposals are to be treated as a contribution towards the cost of the Island Line as a whole. Assuming a common figure for sales proceeds and land premium he has stated that the offer from the other developer represents a contribution towards foundation costs and concourse and construction costs of the Island Line considerably more than the contribution from

the offer made by the owners of the private land within the site. He has also pointed out

that paragraph 34 of memorandum XCC(80)137 indicated that the triangular site would be made available to the

MTRC by means of a private treaty grant and the Corporation had anticipated that its development would contribute $100 million in 1980 prices towards the cost of constructing the Island Line. While acknowledging that there is a requirement that, wherever possible, private owners of properties affected by the Island Line should be given the opportunity to redevelop their land in conjunction with the Mass Transit Railway construction programme, the Chairman of the Corporation has stated that it has not been possible to enter into an agreement with the owners of part of the triangular site which meets the requirements of memorandum XCC(80)137 and thus, in accordance with paragraph 32, these properties should be resumed and passed to the Corporation by means of a private treaty grant in a similar manner to those affected by the Modified Initial System.

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