Compensation in the works for businesses on bulldozed brownfield sites
Move will pave the way for clearing of such areas for development
Business operators on brownfield sites that will be bulldozed to make way for new development may finally be eligible for compensation after years of being squeezed out due to outdated policy, according to a government proposal.
Under the current system, businesses that operate on private agricultural land are eligible for government compensation in case of land resumption only if they are covered by a 1982 squatter structure survey or had their licenses issued before 1982.
However, the lack of urban land has pushed many operators of garages, car parks and container storage facilities further afield to degraded agricultural land in the New Territories over the past two decades.
These business operators are not eligible for government compensation and have to resort to time-consuming and complex claims for disturbance payments.
With the policy extension, business owners who have operated for at least 10 years prior to a government pre-clearance survey can claim a maximum payment of HK$1.95 million for 54,000 sq ft of open-air operations.
Operators can claim allowances for covered areas at a rate of HK$115,500 for the first 269 sq ft and HK$2,310 per 11 sq ft thereafter.
