URA issues purchase offers for Reclamation Street Project
The Urban Renewal Authority (URA) will issue offer letters to
the owners affected by the Reclamation Street redevelopment project
next Monday (25 November) to purchase their properties by private
agreement. Affected owner-occupiers of domestic properties will be
offered $3,111 per square foot of the saleable area.
At a meeting today (21 November 2002), the URA Board agreed that acquisition offers be issued to the owners affected by the Reclamation Street project, the fifth commenced by the URA this year. The Authority estimates that about $92 million will be spent on acquiring the 24 property interests in the project. Overall, the total development cost of the project is estimated at about $220 million.
The purchase offers, which are open for acceptance within 60 days, are based on the Government's Home Purchase Allowance (HPA) policy that reflects the market value of a notional seven-year-old replacement flat in a similar locality.
The purchase offers also include an incidental cost allowance, where applicable, as an incentive to encourage owners to sell their domestic properties to the Authority within the 60-day period. This allowance will serve as a subsidy for the removal cost and various expenses incurred in the purchase of a replacement flat.
For an owner-occupied domestic property, the incidental cost allowance is $1,100 per square metre of the saleable area and, in any event, will not be less than $96,000. For domestic property that is either tenanted or left vacant the allowance is $73,250.
As for non-domestic premises, the existing compensation arrangements will remain unchanged.
The 24 property interests comprise three shops, four single-owned buildings and 17 residential flats. "Offer letters will be sent to individual owners next Monday, outlining all details of the offers and the incidental cost allowance," a spokesman for the Authority said.
The Authority understands that some residents may encounter personal/family problems as a result of the redevelopment exercise. Therefore, an urban renewal social service team based in Tai Kok Tsui has been designated to provide counselling service and practical assistance to the residents.
"Residents can also call our hotline (telephone no. 2588 2333) or visit our neighbourhood centre in Tai Kok Tsui (telephone no. 2391 2992). Our colleagues are prepared to answer any enquiries that the residents may have," the spokesman added.
The project, which covers a site area of 533 square metres, involves about 50 households of over 120 people. Upon completion in 2006, it will deliver 66 residential flats with a gross floor area of about 4,000 square metres and some retail units with a gross floor area of 800 square metres.