New job: Murray Building in Central will be converted into a hotel through open tender once its Government offices relocate to new premises.

Chief Executive Donald Tsang has raised the concept of "progressive development" to preserve Central with plans such as converting Murray Building into a hotel.

In his 2009-10 Policy Address today Mr Tsang said Central is a distinctive business district endowed with rich cultural and historical heritage worth preserving.

"The idea of conserving Central is premised on our respect for the history of the district. We endeavour to strike a balance between protecting the environment and providing quality space, which is a growing public concern, and relieving the shortage of office space in the city centre. We must create attractions in the district for public enjoyment," he said.

One of his suggestions is to substantially reduce the development density of the Central Ferry Piers sites and open up public space along the waterfront for leisure, recreational and cultural uses.

Central Market will be removed from the Application List and to be handed to the Urban Renewal Authority for conservation and revitalisation. He said it will improve air quality in the district and provide an additional leisure place.

The Main and East Wings of the Central Government Offices, which have historical and architectural value, will be preserved for use by the Department of Justice after the relocation of the existing bureaux to the new Central Government Complex at Tamar.

The West Wing, which has little heritage value, will be demolished and redeveloped for commercial use. He said the Government will ensure the public will have access to this low density site stretching from Lower Albert Road to the business area via Battery Path.

Murray Building on Garden Road will be converted to a hotel through open tender for its special architectural style and premium location.

In view of the encouraging response to the revitalisation of the original site of Central School as a creative and cultural landmark, the Government has drawn up a plan for the renovation of the two former police quarters blocks, and will in the next few months invite interested parties to submit proposals on operating creative industries there.

Giving due consideration to public views the Jockey Club is about to complete an improved design of the Central Police Station Compound revitalisation project. Details will be announced soon.

After the relocation of the Legislative Council to the new office site at Tamar, the Court of Final Appeal will move to the Legislative Council Building. The Government is open to suggestions on the future use of the French Mission Building, a declared monument where the Court of Final Appeal is now housed.

Mr Tsang said Hong Kong Sheng Kung Hui is considering revitalising its building cluster on Lower Albert Road to balance conservation and development.