Phased development and one-off acquisition for Kwun Tong Town Centre project
The Urban Renewal Authority (URA) has decided today (Monday) to
implement the Kwun Tong Town Centre project in phases and acquire
all property interests in one go. The URA targets to issue
acquisition offers to owners of all affected 1,653 property
interests in December this year.
Earlier, the Town Planning Board (TPB) considered all public
representations made to the Development Scheme Plans (DSPs), and
has recently decided to submit the plans to the Chief Executive in
Council for approval.
One-off acquisition
Speaking to the media after today's URA Board meeting, the
Chairman of the URA, Mr Barry Cheung said, "Careful deliberations
have been given to the pros and cons of different options for the
implementation approach of this massive project. Based on the
preamble to meet the aspirations of the affected residents and the
local community, we have come to the view that the arrangements of
acquisition in one go and phased development are in the best
interest of all parties concerned. This has also taken into account
the financial implications of the project for the URA."
Over the years, the URA has been in close dialogue with the local
community and has been listening to the views of all stakeholders,
in particular those residents who have longed to move out of their
dilapidated homes since the project was first announced.
"We have heeded their views and decided to acquire the affected
property interests one-off, even though the move increases the
financial risk for the Authority when the project takes over 12
years to complete.
Mr Cheung described the acquisition task alone as the largest ever
undertaken by the Authority which involved some 1,653 property
interests. "This is an exceedingly demanding task as the
surveying firms commissioned must be able to mobilise the necessary
manpower and resources to complete the valuation exercises within a
specified time period so as to reflect as accurately as possible
the market prices," he said.
"We do understand the anxieties of the affected owners for early
acquisition, but we cannot underestimate the huge amount of work
and the complexity involved. We have been working
vigorously with one mind to expedite our work as swiftly as
possible," Mr Cheung stressed.
The URA will take a preparation period till November 2008, during
which qualified firms of professional surveyors are invited and
commissioned to perform assessment of a notional 7-year-old flat
value and market value for each and every of the 1,653 property
interests. At the same time, solicitor firms will be
appointed to verify the legal status and to prepare conveyancing
documents of properties to be acquired. Property consultants
will be engaged to conduct a market study of supply of flats and
shops in Kwun Tong, and the nearby districts
To cope with the increasing workload, the URA has expanded its
Kwun Tong Office with a larger accommodation at Millennium City and
strengthen the special acquisition team to look after this
meticulous exercise. The existing Hip Wo Street office will
be upgraded as a Customer Service Centre to serve the affected
residents.
Two enhanced measures
Apart from cash compensation, two enhanced measures recently
introduced by the URA, namely: Expression of Interest in Purchasing
Arrangement (EIPA) and Ex-gratia Business Allowance (EGBA), will be
extended to this project.
Under EIPA, owner-occupiers of domestic properties can express to
the URA their interest in getting an opportunity to purchase a new
flat within the redevelopment at market price.
For eligible shop owners and tenants who have commenced occupation
of the premises for business before the date of the freezing survey
of the project, i.e. 30 March 2007, they are entitled to an
additional payment (EGBA). This allowance is intended for
alleviating their possible business losses due to
redevelopment.
Phased development
With a total site area of 5.35 hectares, it is estimated that the
development, costing $30-plus billion, will take over 12 years to
complete. The Authority therefore considers that it makes
good sense to implement the project in phases so as to sustain the
vibrancy and vitality of the town centre throughout the entire
redevelopment period.
"We have yet to decide on the actual phasing which will be
detailed in the Master Layout Plan of the project to be submitted
to the TPB for consideration. Our priority objective is to
make sure that the project is on the right track and proceed in an
orderly manner with disruption of people's livelihood kept to the
minimum.
"Obviously, phase one will see the relocation of the Yuet Wah
Street bus terminus as the site does not involve any private
property interests or residents." Mr Cheung added.
The Kwun Tong Town Centre project is targetted to complete by
2021, with the provision of 209,640 square metres for commercial
use, 159,610 squares metres for residential areas and 16,300 square
metres for Government/Institution/ Community purposes. Besides,
there will be no less than 8,700 square metres of landscaped open
space for the enjoyment of the public and 15,700 square metres of
public transport interchange.
"It is the most challenging project ever undertaken by the URA in
terms of complexity, scale and huge costs involved. However,
with determination and understanding of all stakeholders, we shall
be able to overcome the hurdles ahead and make it a success for the
Hong Kong community," Mr Cheung said.
(ENDS)