But opponents say the deal, which would limit waterfront access for up to three years, amounts to collusion as the government hands valuable land over to a private company
LAI YING-KIT AND FANNY W.Y. FUNG
PUBLISHED : Friday, 21 August, 2015, 2:03pm
UPDATED : Friday, 21 August, 2015, 9:19pm
An artist’s impression of the proposed food hub on the Tsim Sha Tsui promenade. Photo: SCMP Pictures
Hong Kong town planners today conditionally approved a controversial development project along the Tsim Sha Tsui waterfront that will see three new buildings go up along the Avenue of Stars and limit access to the popular walkway for as many as three years.
Before the approval by the Town Planning Board, a senior government official insisted New World would not directly profit from the project. But critics said the deal amounted to government collusion that would clearly benefit developer New World Development without a competitive bidding process.
Revenue generated from a new restaurant hub, a film industry exhibition centre and a performance venue New World wants to build along the Avenue of Stars would fund the promenade’s operations, said Dr Louis Ng Chi-wa, deputy director of the Leisure and Culture Services Department.
He said a not-for-profit organisation set up by for-profit New World would manage the facilities. Once the government takes over management of the development, it will pocket any surplus income from those businesses. New World, which is a major business owner in the area, hopes to increase the amount of foot traffic by as much as 10 times.
The board approved the plan with ten conditions, first among them a requirement that the passageway outside of the proposed film gallery be no narrower than 7.5m. Under the joint proposal from New World and the department, the walkway would be narrowed to 5m as the new building would block part of it.
The Leisure and Culture Services Department and New World estimated that pedestrian flow on the now-quiet eastern section of the Tsim Sha Tsui promenade would increase by more than 10 at peak hours after the construction of more attractions - from the present 200 people per hour to 3,000. Photo: Edmond So
New World funded the HK$40 million Avenue of Stars in 2004 in a partnership with the city, has a 20-year contract to manage that project. The new development would fall under that timeframe, so the city would take over management in 2024.
Ng, who was speaking on RTHK radio, said the government would remain the owner of the land and hold the ultimate management right for the new development.
Paul Zimmerman, co-founder of Designing Hong Kong, said New World stood to benefit from the deal. The proposed eateries were of small scale and might not generate much income on their own, he pointed out.
But New World, as the biggest commercial landlord in the area, could benefit from the plan by attracting many more people there. The proposed new facilities are near its New World Centre, a HK$18 billion project still under construction that would feature a hotel, a mall and offices.
“Although the management is a non-profit company, New World makes money by making it a great environment,” Zimmerman said.
Engineer Albert Lai Kwong-tak, of the Professional Commons, opposed the development, saying it violated established procedures by not going through a tender process and public consultation.
He said the project would also breach a pledge by the government not to encourage private companies to manage public space.
But Ng said the plan was not required to go through tendering as it did not involve the sale of any land.
Watch: What do Hong Kongers think of a new development project coming to the Tsim Sha Tsui waterfront?
In their joint application to the board, the department and New World estimated that pedestrian flow on the now-quiet eastern section of the Tsim Sha Tsui promenade would increase by more than 10 at peak hours after the construction of more attractions - from the present 200 people per hour to 3,000.
That projection came from Michelle Yuen Man-sin, the Planning Department’s senior town planner for Yau Tsim Mong district, as she answered questions from planning board’s metro planning committee members this morning.
Board members pointed out critics’ doubts over the public-private partnership and raised concerns over the increased traffic flow in the area.
“Some opponents to the plan have queried: Why is the project handed to New World? Is it a government-business collusion? Is it a transfer of benefit?” said board member Clarence Leung Wang-ching. “May I ask whether the public-private partnership falls within the scope of our approval?”
Another member, Wilton Fok Wai-tung, asked, “Why is it New World but not any other developer”
But the board’s power is limited to land use, and it has no say on who the LCSD will partner with. “How the applicant is going to find its partner is outside of our scope of approval,” said director of planning Ling Kar-kan, who is also the committee’s chairman.
Of 340 public comments submitted to the board last week, 328 objected to the plan, mainly complaining about narrower passageways after the addition of facilities and obstruction of public access to the promenade.”
http://m.scmp.com/news/hong-kong/health-environment/article/1851404/hong-kong-planners-approve-controversial-plan-new
