Issue link: https://maltatoday.uberflip.com/i/682623
maltatoday, SUNDAY, 22 MAY 2016 3 JAMES DEBONO SEABANK Group owned by Silvio Debono was the sole bidder in a tender for a concession on the site of the Institute for Tourism Studies, may not be able to start construc- tion on his proposed high-rise hotel before the completion of a new ITS campus at SmartCity – and that will not be completed before 2019 at the earliest. This is because the Ministry for Tourism is insisting that the ITS on- ly moves out from its present prem- ises at St George's Bay once work on a campus and a hotel at SmartCity are completed in 2019. ITS plans submitted to the Malta Environment and Planning Authori- ty in February envision the construc- tion of a hospitality campus to cater for 2,500 local and foreign students, a 135-room 12-storey high hotel, government offices, underground parking spaces, a gymnasium, a spa and a rooftop hotel. The new development will take on land already identified for develop- ment in SmartCity. Sources confirmed that it was ex- tremely doubtful whether a project of this magnitude could be com- pleted in just three years, and that the tender for the concession of the ITS complex was issued prematurely in the absence of a clear plan for the migration to SmartCity. MaltaToday is informed that the government was considering using an empty school in the interim pe- riod, between the commencement of works by Debono's company, Sea- port Franchising, and the construc- tion of the new campus at Smart City. But this was problematic because ITS includes specially-built kitchens which cost over €500,000 and which were specifically built for ITS. It was impossible to move this equipment to a new interim facility such as an empty school. MaltaToday is also informed that most ITS students and lecturers are against the move to SmartCity be- cause many of them work in nearby hotels and will have a big problem to shuttle to and from SmartCity, in Xghajra. On Tuesday, the Malta Union of Teachers held a meet- ing for its lecturing members at ITS to explain the proceedings of the discussions on the new collec- tive agreement. Sources present at the meeting described an "almost unanimous negative feedback on the move to SmartCity" among lectur- ers who reported that students were already complaining that it was too far away from the hotels and res- taurants where they work as part of their studies. But the new hotel and the presence of the campus are being seen by the government as a way of channelling investment to the southern part of Malta The new hotel may also create new employment opportunities for the students. It is as yet not clear whether the move will be financed through the sale of the present ITS land, which is conservatively estimated at anything between €56 million to €100 million. No minimum price for the ITS land was set out in the tender document issued by Projects Malta, which is responsible for PPP projects under the aegis of the Office of the Prime Minister. The Times claimed that Seaport Franchising has offered only €6.5 million for the land but the Seabank Group later pointed out that the of- fer is "well in excess" of this amount while the government is saying that negotiations on the project were un- der way, to ensure the prices paid for the hotel, real estate and commercial components of the project were in line with market standards. Moreo- ver the move to SmartCity may re- sult in greater private sector involve- ment in the ITS campus. One of the first decisions of the Labour govern- ment was to hive off the ITS from the Education Ministry to pass it to the Tourism Ministry, a move which underlined the functionality of the institute to the industry. It has not yet been decided whether the pro- posed hotel will be run by the private sector or by ITS itself. A ministry spokesperson replied that the SmartCity hotel's modus operandi is still being discussed and all models are being explored. "At this stage the most crucial aspect of this project is for ITS to provide the best practical experience to our students and a hotel in the South- ern part of Malta to serve the needs within the developing area." No reply was given about whether the ITS's Martin Luther King mini- campus in Pembroke will be retained after the relocation to SmartCity. The mini-campus was upgraded im- mediately after the election. The application for the new cam- pus, which covers development over an 11,407 square metre plot in SmartCity, was presented by Pro- jects Malta, the entity responsible for private public partnerships. MaltaToday is informed that the government will be seeking amend- ments to the SmartCity master plan to change development parameters in the area. The plots identified for the new de- velopment were previously allocated for offices. The master plan approved by ME- PA in 2010 envisioned a maximum height of 38 metres, which roughly equates to 10 floors. Kalkara was not identified in a planning document regulating tall buildings approved in 2014, among the localities where over-10 storey buildings are allowed. But the proposed hotel rises up to 12 storeys. News New ITS campus could delay Seabank towers to 2019 ble for Projects Malta, says that the concession for the ITS land was made in terms of a "request for tenders" but not regulated by the public procurement regula- tions. Despite the law regulating concessions is not yet enacted, the competitive process is in line with the legal principles en- shrined the concessions direc- tive approved by the EU in April 2014. "The competitive process clearly determined the possible uses of the site, always subject to regulatory obligations. The process does not impinge on the autonomy of the planning regulator. The risk to be borne by any proposal is always borne by proponents. "The terms of the conces- sion are clearly outlined in the request for tender document, which provides for institutional guarantees, including the guar- anteeing of a right of appeal to any interested party throughout the whole process. "This not being an outright sale of land but an emphyteuti- cal concession the price compo- nent is determined by various factors, including a premium, ground rent, conversion rates and redemption of ground rent where this is permitted in terms of the request for tenders. "That being said, the award of the concession, is not based solely on price but includes other factors, such as the eco- nomic benefit of the project and the creation of new touristic markets, and more importantly, jobs. As stated previously, in- dependent experts are assisting the government in determining a fair value for site." The new ITS campus at Smart City will include a 135-room hotel