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18 April 2002
News Stories:April Headlines

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1. LCQ15: Overall development plan of the Cheung Kong Center

2. LCQ12: Development density for Tsing Yi public housing project

3. LCQ1: Planning brief for the South East Kowloon Development

4. KCRC on route out of The Metropolis

5. Resettlement wrangle resolved

6. Kai Tak bill to land at least $6b lighter

7. Pipe supplier wants to strike Games gold

1. LCQ15: Overall development plan of the Cheung Kong Center

Following is a question by the Hon Albert Chan and a written reply by the Secretary for Planning and Lands, Mr John C Tsang, in the Legislative Council today (April 17): Question: It has been reported that when the Cheung Kong (Holdings) Limited planned to demolish Hilton Hotel for the construction of a commercial building (now the Cheung Kong Center ("the Center")), the company was granted the right to develop the government lot adjacent to the development site (i.e. where the Beaconsfield House and a public car park were then located) through private negotiations with the Government. At the end of last year, advertisement signs of the company were displayed on the public footbridge adjacent to the Center. At the same time, areas originally planned as public sitting-out areas within the boundary of the Center were being used for illegal parking, which might cause inconvenience to the public and pose risks to pedestrians. In this connection, will the Government inform this Council: (a) of the details related to the public areas, sitting-out areas and car parks in the overall development plan of the Center, including their exact locations, sizes and dates of completion; (b) of the locations of pedestrian walk ways in the development plan and their management rights; and (c) whether any mechanism is in place to regulate the above-mentioned display of advertisement signs and parking; if so, of the details? Reply: Madam President, (a) In accordance with the lease conditions, the lot owner of the Cheung Kong Center (the Center) has to complete construction of the following facilities by 3 November 2002: (i) a public open space of not less than 5,200 square metres; and (ii) a public car park with 800 parking spaces. Before the completion of the car park, the lot owner has to provide 500 temporary parking spaces for public use within the lot. A plan showing the overall development of the lot is at Annex. The area marked green (some 5,444 square metres) is public open space comprising the public plaza at ground level facing Queen's Road Central and the landscaped garden above the ground adjacent to Battery Path. The existing 500 temporary parking spaces in use are located below the landscaped garden, as will be the future 800 public parking spaces. (b) The public can have free access to all the open space within the lot. The whole area within the lot, including the public open space and the public car park, is managed by the lot owner. (c) The use of the lot must comply with the lease conditions. Non-compliance with the lease conditions can lead to lease enforcement action by Government. The footbridge adjacent to the Center was constructed in accordance with the lease conditions. Part of the footbridge is located on Government land. According to the lease conditions, the lot owner should upkeep and maintain the footbridge, including the part on Government land. However, this does not give the lot owner the right to display advertisements at that part of the footbridge that is on Government land. In this regard, the Lands Department had advised the lot owner to remove the advertisement display that was on Government land. The lot owner had complied with the advice and removed the advertisement display. As regards the problem of parking at the public open space, the Lands Department wrote to the lot owner upon receipt of complaint, requesting them to stop using the public open space for parking. The Lands Department will continue to monitor the situation and will take appropriate action if there is any further breach of the lease conditions.

[Source: Hong Kong Government, 17 April 2002]

2. LCQ12: Development density for Tsing Yi public housing project

Following is a question by the Hon Tang Siu-tong and a written reply by the Acting Secretary for Housing, Ms Elaine Chung, in the Legislative Council today (April 17): Question: Regarding the planned development density adopted for the Housing Department's proposed Tsing Yi Area 10 Phases 4 and 5 public housing development project (i.e. the redevelopment of the shopping arcade in Cheung Hang Estate and the construction of four additional public rental housing ("PRH") blocks in the estate), and the Housing Authority's switch from using the "development ratio" to "plot ratio" in calculating the development density of PRH estates since the middle of 2000, will the Government inform this Council: (a) of the original basis adopted for calculating the planned development density of the development project mentioned above, and whether the Housing Department has subsequently made an application for changing the relevant calculation basis; if so, the progress in vetting the application; (b) of the permitted maximum plot ratio for the site at Tsing Yi Area 10 as prescribed in the latest outline zoning plan for the area; (c) whether the Planning Department, Transport Department, Environmental Protection Department or other government departments have expressed objection to or reservations over the Housing Department's proposed change to the development density of Cheung Hang Estate; if so, of the details; (d) of the differences in the gross building floor area, site area and plot ratio of Cheung Hang Estate before and after the completion of the development project mentioned above, calculated in terms of "plot ratio"; (e) of the differences in the gross building floor area, net area and development ratio of Cheung Hang Estate before and after the completion of the development project mentioned above, calculated in terms of "development ratio"; and (f) of the reasons for the Housing Authority's switching to using the "plot ratio" in calculating the development density of PRH estates, and the mechanism adopted by the authorities concerned for vetting and approving applications for changing the calculation basis of development density? Reply: Madam President, (a) Prior to mid-2000, the Housing Authority used Development Ratio (DR) [as opposed to Plot Ratio (PR)] to calculate the density of its public rental housing and Home Ownership Scheme (HOS) projects. The Planning Brief for Tsing Yi Area 10 Phases 4 and 5 involving the construction of four additional blocks at Cheung Hang Estate was approved in 1999. Since then, the Housing Authority has not changed the permissible Development Ratio and there is no intention to revise the basis of calculation of development density from DR to PR. (b) The Outline Zoning Plan S/TY/17 for Tsing Yi Area 10 does not have any plot ratio restriction for residential sites. (c) Planning Department, Transport Department, Environmental Protection Department and other government departments have been consulted and they do not object to Housing Department's proposals. (d) As explained under (a), "plot ratio" has never been used in the case of Cheung Hang Estate. (e) The difference in the gross building floor area, in estate area and the development ratio of Cheung Hang Estate before and after the completion of the redevelopment project calculated in terms of development ratio is shown at the Annex. (f) The Housing Authority changed the basis of calculating development density from DR to PR in mid-2000 in order to align with private sector practice. Irrespective of whether DR or PR is used, the approval procedure for the planning briefs of public rental housing projects is the same. The endorsement of the development parameters by the relevant District Planning Conference of the Planning Department must be obtained prior to commencement of work on site.

[Source: Hong Kong Government, 17 April 2002]

3. LCQ1: Planning brief for the South East Kowloon Development

Following is a question by the Hon Timothy Fok and a written reply by the Secretary for Planning and Lands, Mr John C Tsang, in the Legislative Council today (April 17): Question: It has been reported that the Planning Department ("PD") drew up the planning brief for the South East Kowloon Development ("SEKD") about three years ago. However, the planning brief had to be revised because certain proposals therein were opposed by the trade. In June last year, the PD conducted a public consultation exercise on the revised planning brief and recently it received a research report on the revised brief from the Chinese University of Hong Kong. The PD subsequently decided that a consultant should be commissioned to study the recommendations in the report and the study would last for one year. As a result, the implementation of the SEKD has been further delayed. In this connection, will the Government inform this Council: (a) when the planning brief for the SEKD is expected to be finalized and how this schedule compares to the original schedule; (b) whether it has made a cost comparison between the original and the latest planning briefs; and (c) whether it will conduct another public consultation exercise after finalizing the planning brief; if so, of the details and timetable; if not, the reasons for that? Reply: Madam President, (a) In August last year, the Planning Department gazetted the revised planning brief for the South East Kowloon Development ("SEKD") (specified as Kai Tak (South) and Kai Tak (North) Outline Zoning Plans). During the gazettal period, the Town Planning Board (the Board) received new comments on the South East Kowloon Development plan. After careful consideration, the Board recommended further amendments to the Kai Tak (South) Outline Zoning Plan to provide more flexibility for future developments. The revised Kai Tak (South) and Kai Tak (North) Outline Zoning Plans will be submitted to the Executive Council for deliberation and decision in June this year as scheduled. (b) To tie in with the construction of public housing estates and facilities such as the stadium in the area, the Territory Development Department has entered into a consultancy contract for the detailed design of the infrastructures for the development and reclamation works at the North Apron area and Kai Tak Nullah. Good progress has been made so far. As the reclamation is substantially scaled down, the capital works expenditures of the present proposal cost about $6 billion less than that of the SEKD scheme announced in 1998. (c) The Government has conducted extensive public consultation on the SEKD in the past few years and the present development scheme is generally acceptable to the community. Therefore we will not conduct another public consultation exercise after finalizing the development scheme. However, in response to public views and to improve the urban design of the SEKD, the Planning Department will commission a 12-month consultancy study to provide detailed urban design guidelines for the development and works projects concerned. The study is expected to commence in the middle of the year. During the study, the Planning Department will consult the concerned professional bodies and other interested parties on the matter.

[Source: Hong Kong Government, 17 April 2002]

4. KCRC on route out of The Metropolis

Property giant Cheung Kong (Holdings) has moved a step closer towards acquiring the Kowloon-Canton Railway Corporation (KCRC) interest in The Metropolis commercial complex in Hung Hom. Seven years ago Cheung Kong and the corporation signed a deal for The Metropolis joint venture to be built in two phases. The two companies jointly announced yesterday that Phase 1 of the development, costing more than HK$3 billion, would be sold in an open tender. The companies have also reached a deal for Cheung Kong to buy back the railway's share in this and Phase 2 - provided no other companies match the developer's bid. The corporation has wanted to sell its share and Cheung Kong has been keen on buying it since they agreed in 1999 to sell the properties by open tender, although no timetable was set at the time. KCRC property director Daniel Lam said the railway operator had long wanted to sell out of the project. Cheung Kong executive director Justin Chiu said his company was keen on developing it. Neither Lam nor Chiu would reveal the extent of company interests in the project or share of the profits. The 1.04 million square foot property, comprising a hotel, shops and offices, are next to the Hung Hom railway station. The 12-storey hotel with 688 rooms and two premier suites provides a floor area of 449,160 sq ft. The three-storey shopping arcade has a gross floor area of 344,340 sq ft. Fifteen storeys of offices add a floor area of 253,000 sq ft. The project received an occupation certificate from the government last April. Phase 2, consisting of serviced apartments, is due to be launched in the third quarter of this year. A Hang Lung Properties spokeswoman said the company was keen on the project, but a property surveyor believed Cheung Kong would win the bid. Developers can choose to bid for either the hotel, the retail facilities or office space on separate floors. Bidders must pay a deposit of HK$10 million for the hotel or retail accommodation, and HK$3 million for an office floor. The tender closes on May 6.

[Source: Hong Kong iMail, 18 April 2002]

5. Resettlement wrangle resolved

A row between the Urban Renewal Authority (URA) and the Housing Authority over the price of 230 flats slated for resettlement projects has been resolved, it was reported yesterday. URA senior officials were said to have been "unhappy" when the Housing Authority originally proposed to charge HK$500,000 per flat, according to newspaper reports. The Housing Authority and URA have finally agreed on a figure of HK$300,000 per apartment, it was reported. That followed two years of wrangling after the Planning and Lands Bureau refused to step in to mediate, the reports said. The total value of the 230 apartments is about HK$69 million. A Housing Authority spokeswoman yesterday confirmed that it had signed a formal agreement with the URA, but she declined to disclose how much the deal was worth, saying it was a "sensitive issue". She would only confirm that the figure per flat was "not as high as HK$500,000". The URA also declined to reveal further details, apart from confirming that an agreement had been reached. A bureau spokesman insisted that it had never been involved in the talks. Virginia Ip, chief secretary of Hong Kong People's Council on Housing Policy, condemned the government, the Housing Authority and URA for concealing the figure involved in the resettlement project. "The general public has the right to the information and the government should explain clearly, as they are spending fiscal revenue," she said.

[Source: Hong Kong iMail, 18 April 2002]

6. Kai Tak bill to land at least $6b lighter

The cost of the South East Kowloon Development project at the former Kai Tak airport has been reduced by HK$6 billion to about HK$30 billion, Secretary for Planning and Lands John Tsang revealed yesterday. Replying to an inquiry on the project from legislator Timothy Fok, Tsang said the reduction in cost was due to a substantial downscale in reclamation plans. The government announced in September 1998 that the development would cost taxpayers about HK$36 billion. The outlay, for public works but excluding railway works and building developments, was based on December 1997 pricing standards. Under the proposal, the former airport site, Kowloon Bay and parts of neighbouring districts will be developed to provide housing, transport infrastructure and other facilities. Among its focuses are a cruise ship terminal and a world-class sports stadium. The original proposal covered about 280 hectares at the airport site and 299 hectares at Kowloon Bay and Kai Tak Nullah/Kwun Tong Typhoon Shelter. Tsang said the revised proposal would be submitted to the Executive Council for a decision in June. A 12-month consultancy study was expected to start soon after. The Planning Department was commissioning the study "in response to public views and to improve the urban design".

[Source: Hong Kong iMail, 18 April 2002]

7. Pipe supplier wants to strike Games gold

Water and sewerage pipe supplier World Trade Bun Kee hopes to cash in on the building boom for the Beijing Olympics after seeing net profit drop by 4 per cent to HK$43 million last year. The firm aims to expand its operations not only through providing pipes to stadia in the Olympic city but also across the mainland. Company chairman Eric Tsang said yesterday talks were "ongoing" in regards to the Games contract. The company's turnover rose 10 per cent to HK$479 million from HK$431 million in 2000. Its revenue from supplying water and sewerage pipes and fire hydrants to Hong Kong property developers accounted for more than 94 per cent of the total. The remainder came from its warehouse business where it stored lifts, air-conditioners, building materials and other equipment. It also has a small pipeline distribution business, providing equipment to the Oriental Plaza in Beijing and Time Square in Chongqing. Earnings per share were 18 HK cents, down from 25 HK cents a year earlier. An interim dividend of 8 HK cents will be paid for the whole of last year. Tsang said the firm was now ready to further explore the mainland market. "We have appointed dealers in Beijing, Guangdong, Guangxi, Yunnan, Sichuan and Hubei, and we have our office and representative in Shanghai," Tsang said. He was happy with the company's performance last year, saying it had contracts worth about HK$100 million in hand. Tsang believed the slight drop in net profit was caused by a slowdown in the Hong Kong property market. Bun Kee supplied pipelines to a number of residential and office projects, such as the Belcher's project in Pok Fu Lam, Sorrento in Kowloon station and Cyberport Phase 1.

[Source: Hong Kong iMail, 18 April 2002]

 




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