Golf course tenancy explained

September 22, 2020

The Government said the tenancy of the land of the Fanling Golf Course is granted to the Hong Kong Golf Club at nominal rent and that it will not affect the special holding over arrangement of the 32 hectares of land, which has been planned for housing development.

 

It made the statement in response to media enquiries on the lease renewal of the golf course.

 

According to the established practice, short-term tenancies are granted to non-profit-making organisations at nominal rent for sports purposes, it said.

 

The Government announced in February 2019 that it fully accepted the recommendations tendered by the Task Force on Land Supply and decided to use the 32 hectares of land east of Fan Kam Road of the golf course for housing development, with an emphasis on public housing.

 

The technical study started in September 2019 and satisfactory progress has been made.

 

The 32 hectares of land, following the expiry of the current lease in August, are subject to a special three-year holding over arrangement up to August 2023. It will then revert to the Government in September that year.

 

Depending on the results of various studies and the progress of the required procedures, the Government will endeavour to commence land formation works as soon as possible after the land is returned to support future public housing development.

 

In accordance with the existing applicable procedures, the special holding over arrangement for the 32 hectares of land will be executed by way of short-term tenancy at nominal rent.

 

For the remaining 140 hectares of land, the Government will renew the lease up to June 30, 2027 at nominal rent in accordance with the current policy. Upon the expiry of the lease, the Government will start levying concessionary rent in July 2027 should the lease of the land be renewed.

 

When handling short-term tenancy applications for sports purposes made by non-profit-making organisations, the Home Affairs Bureau will consider whether to give policy support for the tenancy at nominal rent from the perspective of sports development.

 

The Government said the Hong Kong Golf Club has in recent years voluntarily opened up its sports facilities to eligible outside bodies, including providing facilities to the Hong Kong Golf Association for squad training and golf competitions, as well as promoting golf to primary and secondary schools and providing training courses.

 

The club has also opened up its 18-hole course at the golf course for use on weekdays by members of the public holding valid handicap certificates issued by recognised golf clubs or golfers' associations as well as its driving range for public use at night.

 

In view of the contributions made by the club in promoting sports development, the bureau tendered its policy support to the lessee on the short-term tenancy for the 32 hectares of land and the lease for the 140 hectares of land at nominal rent.

 

A clause will be added to the new lease stating that the sports facilities in the golf course have to be further opened up to make available 30% of its total sports and recreational facility capacity to eligible outside bodies. The club also needs to partner with sports organisations to organise sports programmes that are open for enrolment by members of the public with a minimum of 240 sports programme hours per month.

 

The Government will monitor the implementation of the opening up of the facilities.

 

As the lease of the golf course has to be handled by way of two separate leases which involve more procedures, the relevant departments will require more time to complete the lease renewal procedures. This will not affect the special holding over arrangement of the 32 hectares of land.

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