Developers fear loss of control over public open space on their properties
The government's decision to sue Times Square over the fees it charged for the use of public space will send shockwaves through the industry, developers' representatives warn.
'This is very unusual [and] should be of real concern to [developers],' construction sector legislator Abraham Razack said. 'The government should have very good justification for this action.' As far as he was aware, Times Square had done nothing outside its contract with the government. 'They have a right to do what they have done,' he said.
It is believed Times Square has been charging the highest rent for public space in the city for its two areas of public space: HK$28,000 and HK$40,000 on weekdays and HK$100,000 and HK$124,000 on Fridays, weekends and public holidays.
The use of public space at Times Square and many other private developments is governed by deeds of dedication that spell out the responsibilities of management and the terms under which the space can be let. In return for dedicating part of their land to public use, developers are generally rewarded with concessions on the plot ratio.
The Legislative Council panel on development is currently reviewing policies on provision of public space.
