Yacht Club is getting a tremendous site - minister

The land being offered to the Royal Malta Yacht Club on Manoel Island is covered by the terms given in the deed with Midi and by the conditions for titles given to sports clubs, Urban Development and Roads Minister Jesmond Mugliett said yesterday.

The club had complained recently that clauses in an agreement between Midi and the government curbed its revenue-generating activities through its catering facilities and proposed pontoons.

All land at Manoel Island is part of Midi's concession. Certain areas, including the site proposed as the RMYC's yacht club, will revert back to the government but this does not mean the government can unilaterally decide to erect buildings or put the reverted land to some particular commercial use.

Midi has agreed to relinquish the land earlier and give its consent to the development of a yacht club as long as this is covered by the same conditions normally applicable to sports entities having clubs on government land.

"The club must remember that Midi were willing to waive this right, but it is understandable that they insist on certain conditions to safeguard their investment," he said.

However, Mr Mugliett added, just as important was the fact that the club was getting six tumoli of prime real estate, through a parliamentary resolution, for a rent of about Lm1,000 a year because it was a non-profit making sports organisation.

"The agreements with sports organisations always reflect the fact that the rent is subsided because the aim of the entity is not commercial. So there is always a clause to ensure that the activities of the club do not in any way change the original intended use and that it remains there for the promotion of sports and the benefits of its members," he said.

"Besides land, the club will also be getting berthing space. This is a drastic improvement on all previous proposals to RMYC. From the outset, when RMYC requested such provision, it was always understood and agreed that the use of these berths will be non-permanent and non-commercial. This explains why the club's lease would be low as compared to the Lm25,000 the Cottonera marina pays the Malta Maritime Authority."

The government - and Midi - wants to restrict the use of the club for private functions to no more than 100 members and their guests, and also to rule out events like car launches and weddings.

"You have to understand that the club would be competing not only with Midi, but also with commercial wedding venues. Would it be fair competition once RMYC will be paying a subsidised rent?

"We have to define what can and cannot be considered to be commercial activity. But all sailing related functions are allowed, without any restriction on numbers of guests."

The club argues that sponsors may want to use the club's premises for launches but Mr Mugliett believes that it should be possible to find an acceptable clause to cover sponsor-related events.

With regard to the pontoon, Mr Mugliett said the government had negotiated with Midi not to insist on a time limit of 15 (and then 30) days for berthing.

"We insisted that the clause should only specify that berthing should only be short-term and that the pontoons should be seasonal.

"Again, this is because the club should not compete with the commercial marinas. However, I cannot understand why the club is so concerned about this clause. It says that it wants to have space available for race and regatta participants. If it filled the pontoons with permanently-berthed yachts, it would be back to square one."

Mr Mugliett's frustration came through clearly.

"Since I took this project on board in 2004, we managed to get Midi to agree to a number of things: the location, extent of the land, the nature of development, the pontoons, a fair definition of allowable functions.

"Everything was moving towards a solution. But the club has to understand that Midi does have servitude rights and that we also must be answerable to the taxpayers when we grant title by parliamentary resolution."

"It is up to the club to do its maths to determine the revenue that it can generate within the parameters of the conditions...

"You know, it is a shame that the club is so wary of Midi's influence that it is overlooking just how lucky it is to be getting such a tremendous site!"