The Lautoka City Council and Challenge Engineering Ltd have issued clarifications following recent reports of a proposed $5 million three-storey development near Coronation Park.
LCC acting director for building and engineering services, Daniel Chand, told this newspaper the council intended to develop lots 4 and 5, ND3747, on Tavewa Avenue.
“The council will require approval of the Ministry of Local Government, Department of Lands and then there are other requirements concerning this development which must be complied with before we can actually confirm the commencement of ground works,” he said.
“The council will have to go one step at a time.”
Mr Chand said the council did not intend to develop Coronation Park as highlighted in a The Fiji Times article on October 16.
“Our invitation to the stakeholder consultation meeting was for development of the council’s land lot 4 and 5 and the land details is ND3747, Tavewa Avenue, on a private-public partnership with Challenge Engineering.
“We never said that we are developing Coronation Park. The only place we highlighted is in addition the concept plan showing upgrading works on the existing Coronation Park.
“After the consultation we have seen negative comments, but there were positive comments too.
“We didn’t say we were going to remove the four trees. The removal part was less in number, we are taking the possibility that if we are able to save it, we will do that. If we are unable to save it then in the worst-case scenario the four trees will be gone. It’s not straight away that we are saying that the four trees will be gone.”
Challenge Group of Companies group financial controller Rimal Mogam said there was a need to understand the private-public partnership concept in this project.
“This is not a Coronation Park project and as Daniel Chand has clarified initially, the project is on two separate lots (Lot 4 and Lot 5),” Mr Mogam said.
“The project is fully funded by the developer, which is Challenge Engineering, so the LCC is not funding the project.
“I think we need to understand the private-public partnership, BOOT model concept in this project. So, basically, we will sign the lease, and we will fund the development and the lease term and then transfer the property to the council.”
Rate arrears clarification
Mr Chand also clarified the council was not owed $8.6 million in arrears in 2023 as reported in a The Fiji Times article on October 25.
“Basically, rate arrears are up to July this year, so anything before that, the residents have not paid, that is arrears which approximately totals to $8.6 million. And when we say current, that is from August this year to July next year, so we already have received some rates, and there is some balance which is still coming slowly, so that amounts to $2.3 million.
“The council was not owed $8.6 million arrears in 2023 as reported in the newspaper article.”
What council gets from this development
“We have rate arrears, but still we are trying to conduct development, so where will we get the money from? Suppose if this $8.6 million is cleared in one month, we will do that development ourselves and we can do that bus station ourselves without taking a loan because we have money, $8.6 million extra, but that is not happening.
“So, we have to look at other avenues as the Local Government Minister Maciu Nalumisa previously stated about the public-private partnership. That is where Challenge Engineering came on board.”
Returns from this development
“They (Challenge Engineering) will be paying the land premium. They will be paying the city rates, and also paying the ground rates, but that actual figure will change once we go ahead with the rezoning and amalgamation because it’s two lots and they’re for civic purposes at the moment. Once it’s rezoned for special use to facilitate that development, the amalgamation into one big lot and then a new lease, so the land value will go up, and the land premium will be renegotiated, both parties are aware of that.
“So, the rates and grounds rates will slightly change and the property, at the end of the BOOT period, it comes back to council and from there the council will operate the property for a certain period of time and after that the lease will expire.”
The council has stated that the park would be upgraded for the public and that the proposed development includes lighting, paving, and seating upgrades to Coronation Park.
The council is still open to feedback from members of the public on the development proposal.
