The story of Discovery Bay's development and that of Taikoo Shing tell a very different story in terms of how the government enforces plan modifications.
In 2003, Swire Pacific lost the final round of a long legal battle over land premiums at the development, one that was forecast to cost it $4.5 billion. The dispute centred on an agreement struck with the government in 1985 and 1986 over the exact amount of commercial gross floor area Swire was permitted to develop at its Cityplaza complex.
More land meant more premiums to the government, and it successfully won its case, with a court ordering Swire to pay a modification premium.
Unlike the Swire case, there were no gross floor average specifications in the Discovery Bay lease. Yet changes to the master layout plan, which could incur additional premium if the value of the land changed, went through at no cost for more than 20 years.
