The government remains legally bound to give the Ta' Qali Crafts Village tenants the land for 65 years at a fixed ground rent, even though the proposed €28 million revival project fell through due to a lack of EU funds.
In 2007, the tenants had signed a two-year emphyteusis with the government laying down that the government would pay for the infrastructure while the tenants cover their own expenses. The promise of sale is valid until August 20.
In terms of the promise-of-sale for the project's refurbishment, the government would have given the tenants the land for 65 years at a fixed annual ground rent, starting at €2.33 per square metre and rising to €4.66 for five years after the project was completed.
The promise of sale, a copy of which was seen by The Times, says that the agreement is legally valid if at least one of two clauses is fulfilled: either all the tenants sign the promise of sale or the government declares its intention to go ahead with the crafts village by September 2005.
The agreement did not give a clear definition of how the government had to "declare" its intention.
But even though not all the tenants signed, the government did give a clear "declaration" of the project, getting the green light before the September 2005 deadline on several occasions.
In fact, during an onsite visit on June 14, 2005, the then Parliamentary Secretary Edwin Vassallo had said the preparations for the implementation of the project were at an advanced stage.
As a result, a lawyer who has seen the promise-of-sale, says the government is still legally bound to give the tenants the land for 65 years at a fixed annual ground rate. When contacted, Finance Minister Tonio Fenech said he could not comment about the contract because he had to look into it.
"The government is not intent on carrying out the original crafts village project but is looking into embellishing the area as it needs a facelift," he said.
The government is having talks with the Chamber for Small and Medium Enterprises - GRTU, to discuss the possibility of tenants investing in their workshops while having the alternative of moving to Dock No. 1 in Cospicua.
However, they will only be allowed to move to Cospicua if their work is crafts, Mr Fenech said.
Factbox - The crafts village timeline
1992. Finance Minister George Bonello du Puis announces plans to rehabilitate the area.
May 1994. The Planning Authority approves plans for a crafts village.
June 1998. Permits for the Ta' Qali Crafts Village project are issued and the Malta Development Corporation issues letters of intent to owners of shops at the village.
July 2000. The government says all the necessary plans are approved and the crafts village can kick off through a public private partnership.
January 2001. During a presentation of the plan for Ta' Qali, Minister Tonio Borg announces that the public consultation period on the crafts village will be ready in March. Dr Borg says the Cabinet has to approve the project within six weeks and award tenders for the work to begin.
2002. Parliamentary Secretary Edwin Vassallo becomes responsible for the Ta' Qali Crafts Village project. An approved development brief on the project is issued.
November 2003. In the budget speech, Finance Minister John Dalli promises that the government "shall now construct the Ta' Qali Crafts Village".
August 2004. Mr Vassallo says the consultation process of the Ta' Qali project with 80 families and the Land Department is over and families will soon be called to sign the promise of sale.
April 2005. Labour appeals to the government to take up the crafts village project again.
January 2006. Mr Vassallo announces that the government will issue plans for the refurbishment of the crafts village in Ta' Qali.
September 2006. Prime Minister Lawrence Gonzi announces that the project will soon start.
February 2007. Urban Development Minister Jesmond Mugliett announces that the project will soon be launched.
July 2007. Mr Mugliett and Mr Vassallo launch the new Ta' Qali Crafts Village project.
February 2008. In the Nationalist Party's 2008 electoral programme, it is stated that "everything is now ready to begin the €28 million project on the crafts village at Ta' Qali. This will take four years to finish".
March 2008. The Ta' Qali crafts village tender for construction works closed on 28 February. Eight submissions were presented.
October 2008. Infrastructure Minister Austin Gatt announces in Parliament that the Ta' Qali Crafts Village project is being revised after an application for EU funding was refused.
January 2009. Dr Gatt announces that plans for rebuilding the Ta' Qali crafts village have stopped and the government plans to transform the Dock No.1 area in Cospicua into an Arts and Crafts Centre.