TENANTS whose shops are demolished by the Land Development Corporation will get extra compensation if they agree to surrender by a corporation deadline. The new scheme is being tried in a Shanghai Street project in Mongkok where operators have been resisting redevelopment and demanding compensation. It applies to tenants whose shops have been sold to the corporation by the owners. The scheme not only serves as a sweetener, but also enables the corporation to collect rent from the operators until they move. In the Mongkok scheme, tenants will be given a special allowance of up to $5,300 for each square metre of floor area of their shops if they agree to move before a deadline. They will be allowed to continue operating and will have to pay rent to the corporation. Most operators can expect an extra $300,000 to $500,000 compensation under the scheme, with the average sizes of shops being 70 to 80 square metres. Under existing laws, only property owners are entitled to compensation if their premises are to be resumed. The Mongkok project has been dragging on for more than a year and the corporation has been preparing to apply to the Executive Council for the use of the Crown Lands Resumption Ordinance. Corporation spokesman Holly Lau Man-mei said surveyors would be sent to measure the shops and determine the allowance. The Mongkok project aims to redevelop the 12,200-square-metre site, bounded by Portland Street, Shantung Street, Reclamation Street and Argyle Street, into a commercial and retail complex. It is scheduled to be completed by 1998. Social worker Samuel Lau Siu-ming, who supports the affected operators, said some remained sceptical.
