The Civic Party has suggested that a trust fund should be established to help resolve a long-standing deadlock between the Emperor Group and the Lands Department over a land premium due on the development of a shopping mall on the Repulse Bay beachfront.
Its deputy chairman, Albert Lai Kwong-tak, believes such an arrangement will help end the dispute and bring badly needed shopping and dining facilities to residents and tourists in the area as early as the end of the year.
The dispute between the two parties is over the land premium on the development known as The Pulse, built on the site of the Lido Shopping Centre.
Construction of the multifunction beachfront leisure and recreation complex with a gross floor area of 143,000 sq ft was close to finished this year and developer Emperor International Holdings planned to commence leasing by the end of the year. But it is still at loggerheads with the Lands Department over the land premium due to be paid and the complex looks set to remain unoccupied until the dispute is resolved.
The dispute led to a legal battle in the Court of First Instance, which the developer lost. However, it reserved the right to appeal and is meanwhile negotiating with the government on the size of the land premium.
Under the Civic Party proposal, all revenue from the leasing of the shops would go into a trust account to be administered by a law firm. The developer would then be barred from accessing the trust fund until it settles the premium with the government.