LAND AND HOUSING
181
ensure that available Crown land is put to the best possible use, all sales or grants are subject to a covenant wherein the lessee undertakes to develop the lot up to a certain rate- able value within a specified period, the amount of expendi- ture depending on the location and type of development allowed. In addition to this covenant, leases contain clauses controlling the use to which land may be put, in accordance with town planning. They also provide for the annual payment of Crown rent, which is very much less than the annual economic value of the land.
The policy of sale by public auction ensures, by and large, that the person best able to develop the land within the limitation laid down in the lease obtains the right to do so, and that the community receives the maximum return in cash for such leases. Due to the low Crown rent reserved, this policy does not, generally speaking, enable the Govern- ment to derive direct financial gain from any subsequent increase in the value of the land after sale. For this reason the very large increases in land values in recent years have resulted in relatively little increase in revenue from land, since the bulk of the Colony's more valuable land is held on long lease.
In the earlier part of this century the leases of lots lying in the better residential districts frequently included restric- tions limiting the type and height of buildings. These restrictions have served their purpose well, but the demands of an increasing population now require more intensive development of these areas. Such lease conditions are now modified in accordance with standard zoning schedules which, while preserving the amenities of the district, are designed to allow more intensive development subject to the payment of a premium. Considerable interest has been shown in these zoning schedules and developers have availed themselves of this opportunity to redevelop existing property by higher buildings.
Revenue obtained during the financial year 1956-7 from
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