Issue link: https://maltatoday.uberflip.com/i/1070939
15 maltatoday | SUNDAY • 13 JANUARY 2019 NEWS The development brief issued in 1992 limited the residential units on Tigné Point to 300, a far cry from the approved 500. Following the issue of a develop- ment brief, the government issued a call for expressions of interest in 1992 for the development of Tigné Point and Manoel Island. Midi was selected as the preferred bidder. The deed of emphyteusis was passed by Parliament with the unanimous approval of all MPs on June 15, 2000. MIDI had to pay a premium of €91,707,431 of which €32,145,353 was to be paid in kind. By 2009 MIDI paid €12,974,610 which was paid in instalments without inter- est. A further €46,587,468 was to be paid in instalments between 2010 up to 2023. The €92 million premium was based on the market value of land at Tigné and Manoel Island as de- termined by the government on the basis of expert advice at the time that negotiations were being held between 1996 and 2000. In 2009 MIDI had valued its proper- ties at €238 million. The latest plans for Manoel is- land include 610 new apartments. MIDI is now seeking compensa- tion for a reduction of 8,000 sq.m of floorspace at Manoel Island from what was approved in the 1990s with an equivalent amount in Tigné point. 7. Smart City • Direct payment to government: None • Ground rent: €150,000 a year, increasing by 5% every five years • Total sum due to government: NA • Land Area: 360,000 sq.m • Number of villas: 127 The Ricasoli land – a vast in- dustrial wasteland the size of 40 football grounds – was offered to Tecom Investments for a ground rent of Lm65,000 (€150,000) a year, increasing by 5% every five years. Instead of paying a pre- mium on the land, the developers offered 9% of the company shares to the Maltese government. The deed was preceded by a master- plan and changes to the local plan tailor-made for the new develop- ment. The former industrial area was also included in development zones in 2006 prior to the land transfer. A revision proposed by the present government foresees an increase in the residential com- ponent of the project. was ap- proved, despite a number of deviations from the brief. Curiously, the contract signed with the gov- ernment itself did not even refer to the development brief. In 2009, part of the Mercury House site (950 square metres) was sold to trade finance bank FIMBank plc for their global headquarters. Penderville, now Pendergardens Development, then sold 8,500 square metres of the Mercury House site to Gozitan developer Joseph Por- telli who is now developing a 31-storey tower on this site. 5. Fort Cambridge • Direct payment to government: €54 million • Total sum due to govern- ment: NA • Annual ground rent: NA • Land area: 29,225 sq.m • Number of apartments: 345 In 2006 GAP Developments plc was awarded the tender for the Fort Cambridge Area by the government following a pub- lic tender during which GAP Developments plc placed the highest bid. Revenue from the project was crucial for the Gonzi administration to balance its books before the adoption of the euro. A permit was issued in 2008, which allowed the erection of a 20-storey tower despite a height limitation of 16 floors set in the development brief. The PA jus- tified this deviation by limiting the 20-storey development to the height applicable to 16-sto- rey buildings – allowing the de- velopers to fit more apartments while abiding by the height limit established in the brief. The deed itself does not refer to the development brief that guided Gap Holdings on the basis of which it had applied for the tender. This means that the developers will not have to pay more if planning parameters in the area are relaxed, as would be the case if a proposed 40-storey hotel is approved. 6. MIDI's Manoel Island and Tigné projects • Direct payment to government: €59 million (ex- cludes €32 million meant to be paid in kind) • Total sum to be paid: NA • Annual ground rent: €1,118,100-€2,236,198 • Land area: 237,000 sq.m • Number of apartments: circa 1100 3 2 1 4 7 5 6