New plan: Chief Secretary for Administration Rafael Hui tells legislators the Government will drop the single development idea for the West Kowloon Cultural District.

The single development approach for the West Kowloon Cultural District project will be abolished and additional conditions introduced, Chief Secretary for Administration Rafael Hui says.

Speaking at the Legislative Council House Committee meeting today, Mr Hui said dropping the single development idea will open the development for more market participants.

Trust fund

A statutory trust fund will be established for operating arts, cultural and other communal facilities at the district, and a statutory body will be formed to take over the project from the Government.

Additional development parameters will be introduced to reduce development intensity and ensure a balanced mix.

With the revised conditions, the successful proponent can develop half of the commercial and residential gross floor area - up to 250,000 square metres. They will need to carve out at least half of the commercial and residential gross floor area. Other developers can bid for the carved out developments through competitive bidding while the successful proponent is not allowed to bid for them.

The successful proponent will be responsible for developing all the arts and cultural facilities and other communal facilities and will need to pay $30 billion upfront to an independent trust fund to be established by statute. It will generate returns sufficient to support recurrent operation of arts and cultural facilities, the canopy, and other communal facilities and the independent body for overseeing the district, as well as major overhauls of communal facilities.

Intensity reduced

To reduce development intensity and ensure a balanced development mix, the maximum plot ratio is set at 1.81.

At least 185,000 square metres of net operating floor area (about 30% of total gross floor area) must be reserved for arts and cultural facilities and the cap residential development is set at 20% of total gross floor area (144,000 square metres).

The new development parameters and conditions will be submitted to the Town Planning Board for initial views and the screened-in proponents will be consulted to see if they are interested in continuing with the current development process. They are required to give their response by the end of January.

Subject to positive feedback, the Government will prepare legislation for the new WKCD Body for public consultation in the second quarter of 2006.

Studies pending

After conducting detailed studies with financial advisers and other professional consultants, the Government will then develop the proposed parameters and conditions into specific requirements.

It will initiate the statutory plan-amendment process with the Town Planning Board, allowing for public participation, and invite proponents to revise their proposals.

It will table the Legislative Council bill next July for enactment by the end of next year. The Government aims to establish the new WKCD Body in the first quarter of 2007.

When asked whether the canopy requirement will be deleted, Mr Hui said the Government has no intention to scrap it at this stage because public views are inconclusive.

He said the canopy will not create any safety and architectural problems, and a final decision will be made after studying the financial assessment of the proponents.