Planning is the master of development. How a planning done will determine the ultimate outcome of a development project, be the intensity, the cost, the return and the viability. Thereby, it is important for a clear and precise statement be accorded for a plan. This is proven true for the saga of Subang Ria Recreational Park. The Park is privately owned recreational area and was earmarked for development by the owners. The residents rejected the application and wanted the park be maintained as a public recreational park. By doing so, it is mandatory for the Government to acquire the land and to keep it for public use.
Following this decision to maintain the park, valuation of land was done by various parties. In the annual return of the owner, the value quotes is RM 3.6 million whereas the State Valuation Department and a private valuation consultant valued the land at RM 53.6 million and RM 165 million respectively. These figures showed vast different because different parties have applied different valuation basis, assumption and judgement. Some have considered the land for public recreational use, some have valued the land for private recreational use and some have gone into commercial use. While the basis of valuation is there to be debated by different parties, the variation showed that the fundamental for valuation is the status of land use. Category of land use and its allowable intensity will determine how much the land worth.
Thereby it is important of stating the land use and intensity of development clearly in the master plan and any uncertainty will allow further dispute, of course the possible of economic lost or gain. In this respect, it is critical to not putting some terminology that is not helping everyone to create a common understanding. For example, attempt to zone an area as "enterprise" zone which is still unclear to many development proponents will potentially delay the development process.
Thursday, January 13, 2011
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