Coast at ITS site will remain public, government says

5.09pm Updated with Government statement

Coastal land that forms part of the project to turn the former Institute of Tourism Studies site into a private development would remain public and accessible in line with the new public domain law, the Government has said.

The statement comes after the Nationalist Party had sought assurances that coastal land that formed part of the project would not incorporate the nearby coast. 

The Sunday Times of Malta had revealed how a private investor was selling residences as part of the project that will replace the ITS despite having no title over the land yet.

Independent MP Marlene Farrugia had said that selling prime public land in St George’s Bay to a private investor for a pittance is “another scandal in the making”.

“This is obviously predetermined since it makes little sense to start selling apartments for a project on public land that has not yet been transferred and where existing local plans bar residential development,” Dr Farrugia said.

The Sunday Times of Malta revealed how the company, owned by Silvio Debono of Seabank Hotel in Mellieħa, had offered €6.5 million for the prime site covering an area of 25,000 square metres. It was the only bidder for the land.

Independent experts said the value of the seafront land was more akin to between €80 million and €100 million, especially if planning laws are changed to accommodate high-rise residential development.

Dr Farrugia said the facts underpinning the ITS case cast a shadow on the impending deal and other contracts the government entered into to sell off public assets.

This would have given other businessmen interested in the project the chance to bid on a level playing field

The government yesterday distanced itself from the company’s decision to start taking deposits on the sale of property, insisting “any such exercise is not sanctioned by the government”.

The statement said negotiations were currently under way to ensure that the prices paid for hotel, real estate and commercial components of the project were in line with the market standard.

But Dr Farrugia’s statement was echoed by Alternattiva Demokratika deputy chairman Carmel Cacopardo, who called it “daylight robbery” that should be investigated by the Auditor General and the Police Commissioner.

Plans seen by potential clients show two towers on the site, which includes part of the foreshore that was never part of the ITS campus.

Mr Cacopardo wrote in his blog that the company’s decision to start selling apartments and the low price offered for the land suggested Mr Debono had his mind at rest that “doors would be opened for a good piece of business”.

Dr Farrugia said if the government wanted to sell ITS and attract investment it should have first changed the local plans and then gone through the normal tendering process.

“This would have given other businessmen interested in the project the chance to bid on a level playing field,” she added. However, she pointed out the irony of having to transfer ITS to a new campus at Smart City, on land that did not belong to the government and would come at a cost to taxpayers.

Meanwhile, in a statement yesterday the company involved in the ITS deal did not deny any aspect of the story.

Arthur Gauci, CEO of the Seabank Group, said the call was for an “upmarket mixed tourism and leisure project”, including residences.

Mr Gauci said it was “obvious” that for the project to move forward it required the government’s final decision.

He justified the company’s actions, adding that for a project this big it was normal practice to have “a workflow plan ready” that involved architects, designers, suppliers, service providers and estate agents.

He said local and foreign interest in the residential units was way beyond the company’s expectations with some potential clients even asking to reserve the units or floors they were interested in.

“Despite this heavy demand, no promise of sale agreements had been signed, let alone contracts with such interested parties,” Mr Gauci said.

The Sunday Times of Malta reported that potential clients wanting to reserve apartments were asked for a deposit by an estate agent selling the project. The company did not deny this.

In its statement, the government said that if a final agreement on the project was reached, the deal would have to get government approval in line with the request for tender and applicable laws.

PN SEEKS ASSURANCES

The Nationalist Party said it was in favour of developing the tourist and economic potential of the zone, but it appeared that this development would incorporate the nearby coast, and there were wide discrepancies between the actual value of the land and that agreed with the government.

The PN therefore urged the government to assure the people that the coast would remain accessible without conditions.

The price agreed with the government for the use of the land should also reflect the current real value of the site, it said.