The head of the Malta Developers Association, Sandro Chetcuti, understands the anger over plans to expropriate property in Paceville, writes Kurt Sansone.

Compensation to Paceville residents displaced by the area’s regeneration must reflect the added value their sacrifice will contribute to the zone, developer Sandro Chetcuti believes.

The head of the Malta Developers Association said compensation for expropriated property should not be based only on its current market value.

While applauding the idea of a master plan to regenerate the entertainment mecca, Mr Chetcuti said the anger of residents and owners of commercial outlets earmarked for expropriation was justified.

“All they were presented with was expropriation of their property without being told how they will be compensated,” Mr Chetcuti told The Sunday Times of Malta in the wake of widespread opposition to the Paceville master plan.

“I would have been angry as well.”

The plan proposes new streets – called view corridors – and open spaces that will necessitate the removal of residential apartment blocks, a modern business centre, a whole triangle of commercial and entertainment outlets, a taxi company’s headquarters and other buildings.

Mr Chetcuti said expropriation was a taboo subject because of the mistakes of the past. People were still chasing fair compensation 40 or more years after their property was taken away from them, and this was not right, he added.

“It is only correct that individuals being asked to give up their property for the greater good be offered compensation that not only reflects the current market value but also the increase in value this will contribute to the regenerated area,” Mr Chetcuti said, advocating legal changes and structures that would make expropriation a more digestible solution.

READ: Shades of Minecraft in Paceville master plan thinking

Compensation could be monetary, partial exchange with new properties or even a mixture of both.

Mr Chetcuti believes it is the government’s responsibility to go beyond a mere planning and design exercise when dealing with regeneration.

It is only fair residents are compensated through an upgraded apartment

“Improving areas like Paceville and Buġibba will always necessitate a level of expropriation to make way for modern development and open spaces, but this has to be accompanied by laws that give the affected individuals peace of mind if we are serious about regeneration,” Mr Chetcuti insisted.

He said the government still had leverage in the area because there was public property available that could be used to partially compensate owners.

He cited as an example the Corinthia site, which was originally transferred to the private sector to facilitate the construction of hotels.

“If Corinthia wants to redevelop the area into a mixed-use site that includes luxury residences, the government can negotiate a gain for itself by ensuring that some of the apartments be allocated to the residents that will be displaced elsewhere. It is only fair residents are compensated through an upgraded apartment.”

However, he was adamant that the master plan should be considered a first draft and urged the government to produce more plans until the widest possible consensus was achieved.

While acknowledging that the plan centred on the nine sites in which developers have shown interest in building high-rise blocks, Mr Chetcuti refuted the criticism that it had been drawn up to accommodate them.

The developers, some of whom are MDA members, were worried, because the draft proposed things other than what they had planned to do, he added.

“The layout of where buildings will be constructed, the mix of uses on the relevant sites and the building heights determined by the master plan do not necessarily conform to what the developers were thinking of doing according to existing policies.”

Another issue he raised was the fact that the master plan seemed to ignore any future developments in areas of Paceville other than the earmarked nine sites.

“A consortium might buy up a block of buildings to pull it down and redevelop it into a modern project in the future, but the master plan seems to ignore this possibility.”

But Mr Chetcuti is not disheartened by how things have unfolded. There is room for improvement, and the country must not rush, he added.

Another aspect the government has to consider is that public infrastructure, such as roads and services, must start being upgraded before any of the nine projects start.

“The plan is ambitious, but it is still a baby, and it will have to develop and change,” he said.

But can people be blamed for believing this is a fait accompli when at least two developers of prospective high-rise projects are already taking bookings on apartments despite not yet owning the land and having no permits in hand?

Mr Chetcuti said there was nothing illegal in taking deposits but warned that it was a high-risk strategy buyers should be made aware of. He added that the government should not be conditioned by these developers. “The government is not bound to design a regeneration plan according to how developers have designed projects that are not yet approved.

“I do not agree with developers who operate as if they have a guarantee their project will go ahead as planned. My advice is to get your house in order, ensure permits are in hand – but it has to be noted there is nothing illegal here.”

kurt.sansone@timesofmalta.com

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.