One of the two residential towers proposed by the Seabank Group for their mixed-development project on the ITS site falls outside a tall buildings’ policy issued by the Planning Authority, the Times of Malta is informed.

The policy, issued in 2014, stipulates that tall buildings over 10 storeys can only be built in Marsa, Gżira, Mrieħel, the Qawra peninsula, Paceville and Tignè.

However, plans submitted by the Seabank Group in its successful bid to acquire 24,000 square metres of public land show that one of the two residential towers being proposed will stand on a current large public car park in Pembroke, an area which, according to the planning policy, cannot have such towers.

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Planning Authority sources said this was a serious problem which, unless it was solved, could jeopardise the whole project proposed by the Seabank Group.

“According to the policy, one of the towers cannot be built. The policy is very clear. Now, the authority is seeking guidance from the government on where we go from here once the group has been granted a concession,” the sources said.

Asked on whether the government would consider changing the policy to accommodate the Seabank Group, Planning Parliamentary Secretary Deborah Schembri insisted that the developers would have to follow policies in place.

“The developer is to follow all current policies and it is up to the Planning Authority to decide where and how the proposal is in conflict with the local plan.

Seabank Group has been given very favourable terms

“The government does not intervene with the Planning Authority on a project base and only seeks to ensure that the policies are in line with government objectives,” Dr Schembri said.

The Planning Authority sources noted that, within the prevailing scenario, the Seabank Group, which is still to submit its planning application, would either have to forget the tower or change its plans radically.

Apart from building a new hotel, a shopping mall and entertainment facilities, the developer is proposing to build two residential towers, one 23 storeys high and the other 29 and will have 209 luxury apartments for sale.

The deal, signed with the government last month, is shrouded in controversy because while the Prime Minister said the government sold the prime site for €60 million, the contract shows that the Seabank Group will only pay €15 million for the ‘golden mile’ plot.

Most of the other income mentioned by the Prime Minister is not guaranteed as it depends on whether the future owners of the apartments decide to redeem the ground rent.

The Seabank Group has been given very favourable terms, including paying €10 million of the mentioned €15 million over seven years, interest free, and the slashing of €1.5 million in annual ground rent dues until the completion of the project.

Various quarters, including the Chamber of Commerce, Enterprise and Industry, have openly criticised the deal stating it gave rise to “serious concern” on how it was done and the procedure followed by Projects Malta.

The Nationalist Party criticised the “cheap terms” on which the concession was given. Opposition leader Simon Busuttil said the valuable land should have been given a much higher price and the transfer of public land should be made through a parliamentary resolution.

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