Government unaware of planning application for Jerma high-rise

The Government Property Division (GPD) has not yet issued any clearance for a planning application which includes land reclamation on the coastal area next to the Jerma site.

A planning application presented by Porto Notos Ltd on 23 September proposes the demolition of the existing Jerma Palace Hotel, land reclamation works and the construction of a mixed-use development consisting of three high-rise buildings.

Developers are legally obliged to notify the government of their intentions whenever they do so on public land and the government has to issue a clearance stating that it does not object to the development in principle.  

Although most of the land around the Jerma is privately owned, the sea itself is considered to be public land. Therefore in this case the Government Property Division has to issue a clearance if it finds no objection to the development proposed. 

The new procedure was introduced in April to avoid superfluous applications on public land to which the GDP is opposed to in principle.

A spokesperson for parliamentary secretary Deborah Schembri confirmed that the GPD has to date not been notified of this application and therefore has not issued any official clearance for the application to proceed.

The project also envisages the construction of a breakwater, the rerouting of the public road and an extension of the landscaped area around the historic St Thomas’ Tower. 

A site plan shows a very extensive area earmarked for land reclamation on the western coast of the Jerma peninsula facing Delimara.

The site plan indicating the area which is to be developed

The project is being proposed by Porto Notos Ltd, a company formed in September 2013 and owned by developer Charles Camilleri, known as il-Franciz, and lawyer Pierre Lofaro.

The site presently occupied by the abandoned Jerma Palace Hotel has been valued by a court expert at €20.8 million. A judicial sale by auction in October has been “suspended’, according to the justice services website. The sale was ordered by the court in an ongoing case instituted by HSBC Bank Malta against brothers Geoffrey and Peter Montebello’s firm. 

In the application, Camilleri declares that his company does not own the land in question but had the consent of the owners when presenting the application.  The number of storeys included in the ‘high rise’ blocks is not identified in the application that is still in a preliminary stage.  

The Jerma site, including the foreshore, is located within the development zone but the reclaimed land would be outside development zones.  The area earmarked for reclamation is in the vicinity of an area where posidonia oceanica is established on the sand bottom, albeit at “low density”, according to a 2002 study. 

In 2013, the government had issued a call for expression of interest in land reclamation projects, which attracted 21 proposals. None of these projects have seen the light of day so far. 

Marsascala mayor Mario Calleja has already expressed himself in favour of the development of luxury apartments in the area but insists that the local council will only pronounce its position on the proposed development after the matter is formally discussed in a council meeting.

The Marsascala local council has also voted against a proposal by PN councillor Charlot Cassar, urging the government to buy back the site and turn it into an open space for the public to enjoy. The motion was seconded by the Labour deputy mayor, Desiree Attard. 

The land originally belonged to the Franciscan Conventuals and Ivan Burridge, and was sold to San Tumas Holdings, which in turn sold it to the Libyan investment vehicle Lafico in 1976. 

Corinthia – the international operator of hotels in Europe and Africa - used to manage the hotel through a management agreement.

The hotel was never developed since closing down in the 2000s and then sold to JPM Brothers – owned by Peter and George Montebello – in 2007. 

Last year, MaltaToday reported that the Montebellos planned to redevelop the site into a complex of residential units, a five-star hotel and a yacht marina. However, their plans have been hampered by an accountant’s demands for €3.5 million in outstanding claims for his services to the Montebellos. 

The accountant was last year granted a precautionary warrant in court to stop the sale of the former hotel and the surrounding land.