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UDC's downtown assets worthless - Azan
Published: Friday | July 13, 2012 Comments 0
Gassan Azan
Businessman Gassan Azan believes the Urban Development Corporation (UDC) should use a different land strategy to promote development.
An agitated Azan aimed most of his comments at Lenworth Tracey, the UDC deputy general manager, economic development and corporate relations, who was speaking at the UDC's Downtown Kingston Network Exchange yesterday.
"The UDC is vested with a lot of development lands in the area. The lands that are vested with you, stop trying to believe that they are worth anything. They are worthless! The entire downtown Kingston that you own is worthless. If you start from that standpoint, anything you get from there would be gravy," Azan said. He suggested that if the lands were worth anything, the forum would be filled with potential buyers.
"If it was worth the price, or the reserve price that you have on these properties, somebody would have bought them long time ago," he argued.
Azan said he offered to transform a facility along the waterfront into a sports bar and restaurant, anticipating an increased people presence due to companies like Digicel setting up headquarters downtown.
"UDC responded to me and said we have a valuation on that property for J$150 million. I would love to look at your books and see what it costs you to maintain that crackhouse which you claim is worth (that). For me, you wouldn't even get one dollar," he declared.
Azan suggested the Tax Incentive Programme (TIP), through which the Government gives a tax relief incentive to individuals or companies undertaking capital investments in land or buildings in social development areas, would not generate the desired interest.
"Unless you come up with a programme that is going to get people interested, if you even have to give it (land) away for free, that's how you're going to get growth," he said.
Azan said this should go for all government assets across Jamaica, but felt it should be given to people who have a proven track record of performance.
But Tracey explained that the network series was to facilitate various viewpoints and that this particular forum would not look at investment issues. An overview of the TIP was presented at yesterday's forum. He said at the end of the series next month, the various opinions would be incorporated into a final plan for downtown Kingston. Tracey noted the deadline for the final plans was December 2012. He asked Azan and others to judge the UDC going forward.
But first vice-president of the Jamaica Chamber of Commerce, Francis Kennedy, pointed out another snag in the UDC's plan. He noted that a large percentage of the land the UDC has drawn up for its downtown redevelopment plan is not owned by the corporation, something Tracey admitted. He said the UDC was guided by procurement and divestment procedures about how your assets can be protected.
Package assets
"Outside of that, however, we would also like to package assets, where we have them... and to present them, so we can get interest from investors," he said. Tracey said the UDC has been collecting data from the private sector and that a goal of the networking series was for the property owners to see possibilities for development.
"Arising from these sessions, what you might have happening is that owners decide that they need to do something because they are aware of a particular development." He said some owners were already making moves and opined that the parish council might be able to influence other owners. Tracey was adamant it all had to start with dialogue.
"We plan to continue with the dialogue (dealing) with the intent and purpose for these buildings and also to start to fertilise the ideas of what might be done through individual effort or through partnerships."
But persons within the gathering believed that more coercive action was needed, pointing out that some properties have remained untouched for decades. But Tracey was adamant it was the best way forward.
"Sometimes you cannot find where there was a structured approach and proper dialogue with those owners."
Published: Friday | July 13, 2012 Comments 0
Gassan Azan
Businessman Gassan Azan believes the Urban Development Corporation (UDC) should use a different land strategy to promote development.
An agitated Azan aimed most of his comments at Lenworth Tracey, the UDC deputy general manager, economic development and corporate relations, who was speaking at the UDC's Downtown Kingston Network Exchange yesterday.
"The UDC is vested with a lot of development lands in the area. The lands that are vested with you, stop trying to believe that they are worth anything. They are worthless! The entire downtown Kingston that you own is worthless. If you start from that standpoint, anything you get from there would be gravy," Azan said. He suggested that if the lands were worth anything, the forum would be filled with potential buyers.
"If it was worth the price, or the reserve price that you have on these properties, somebody would have bought them long time ago," he argued.
Azan said he offered to transform a facility along the waterfront into a sports bar and restaurant, anticipating an increased people presence due to companies like Digicel setting up headquarters downtown.
"UDC responded to me and said we have a valuation on that property for J$150 million. I would love to look at your books and see what it costs you to maintain that crackhouse which you claim is worth (that). For me, you wouldn't even get one dollar," he declared.
Azan suggested the Tax Incentive Programme (TIP), through which the Government gives a tax relief incentive to individuals or companies undertaking capital investments in land or buildings in social development areas, would not generate the desired interest.
"Unless you come up with a programme that is going to get people interested, if you even have to give it (land) away for free, that's how you're going to get growth," he said.
Azan said this should go for all government assets across Jamaica, but felt it should be given to people who have a proven track record of performance.
But Tracey explained that the network series was to facilitate various viewpoints and that this particular forum would not look at investment issues. An overview of the TIP was presented at yesterday's forum. He said at the end of the series next month, the various opinions would be incorporated into a final plan for downtown Kingston. Tracey noted the deadline for the final plans was December 2012. He asked Azan and others to judge the UDC going forward.
But first vice-president of the Jamaica Chamber of Commerce, Francis Kennedy, pointed out another snag in the UDC's plan. He noted that a large percentage of the land the UDC has drawn up for its downtown redevelopment plan is not owned by the corporation, something Tracey admitted. He said the UDC was guided by procurement and divestment procedures about how your assets can be protected.
Package assets
"Outside of that, however, we would also like to package assets, where we have them... and to present them, so we can get interest from investors," he said. Tracey said the UDC has been collecting data from the private sector and that a goal of the networking series was for the property owners to see possibilities for development.
"Arising from these sessions, what you might have happening is that owners decide that they need to do something because they are aware of a particular development." He said some owners were already making moves and opined that the parish council might be able to influence other owners. Tracey was adamant it all had to start with dialogue.
"We plan to continue with the dialogue (dealing) with the intent and purpose for these buildings and also to start to fertilise the ideas of what might be done through individual effort or through partnerships."
But persons within the gathering believed that more coercive action was needed, pointing out that some properties have remained untouched for decades. But Tracey was adamant it was the best way forward.
"Sometimes you cannot find where there was a structured approach and proper dialogue with those owners."
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