The Corinthia unveiled plans for a six-star resort on the sprawling site in St George's Bay last week, including luxury apartments alongside two hotels. But the land concession does not allow residential units, and it is unclear whether the government will charge a premium for changes to the original deed.

A direct question put to the government as to whether Corinthia will be paying a premium for a change of use of the site was met by a generic reply.

A government spokesman said that any agreement with Corinthia would be subject to planning policies, a master plan being drawn up for the St George’s Bay area and approval by Parliament.

“All terms shall be included in the final agreement, which shall be subject to parliamentary scrutiny,” the spokesman said.

The proposed development, which also includes two high-rise blocks, covers an area of 77,000 square metres. This land currently contains the San Ġorġ, Marina and Radisson hotels, all owned by International Hotel Investments, a Corinthia affiliate.

The original concessions were granted by parliamentary resolution on the condition the land would be used for the development of hotels.

Industry sources have maintained that any change to the original deed should be accompanied by a premium, given that Corinthia intends to build residential units.

The government spokesman said that no new land will be included in the concession to Corinthia that was not covered by previous agreements, except for a parcel of land measuring 750 square metres.

This parcel is currently covered by encroachment rights granted to third parties.

Corinthia will also be allowed to use part of the subsoil beneath the adjacent roads, the spokesman added.

No information was given as to whether the government will charge commercial prices for what appears to be minor additions of public land to the area already occupied by Corinthia properties.

Corinthia was asked whether it would be paying a premium for the change of use of the site to include private residences and whether these luxury units formed an integral part of the project’s financing.

But a spokesman said IHI was still in discussions with the relevant authorities over zoning, planning and land use considerations in relation to its plans for the St George’s Bay site.

“It is premature to elaborate further until this process is concluded,” the spokesman said.

The company presented its plans to shareholders last week but was scant on detail.

The luxury project is one of several others planned in the area by other developers.

All the proposed projects, none of which have yet filed planning applications, include high-rise buildings.

The Planning Authority has not yet concluded a review of the local plan for the area and is still evaluating the feedback it received from a public consultation exercise that ended last January.

kurt.sansone@timesofmalta.com

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