Farrugia wants PM to explain lack of parliamentary resolution for ITS sale

The independent MP Marlene Farrugia has written a letter asking Prime Minister Joseph Muscat to deliver a statement in parliament, asking why the transfer of the ITS land in St George’s Bay was carried out without a parliamentary resolution.

Writing in the name of her Democratic Party, Farrugia was referring to the €60 million sale of the land at St George’s Bay occupied by the Institute of Tourism Studies, to Seaport Franchising, the company owned by hotelier Silvio Debono of DB Hotels.

One of the ways the disposal of public land can take place is through a parliamentary resolution.

The PN has also demanded full transparency on the contract, calling for the tabling of several annexes to the contract, which includes site plans, and the schedule of payments.

The valuation of the land was carried out by Deloitte Malta, with partner Raphael Aloisio, saying the firm had evaluated economic impact assessments, met stakeholders that included the Malta Development Association, and applied international valuation methodologies.

The prime site held by the ITS covers an area of 25,000 square metres, with only 20% being earmarked for residential units. Gross floor area, as designed, is calculated to reach 140,000 sqm.

According to the new methodology, areas earmarked for residential use in this project were appraised at €1,250 per square metre, with retail use valued at €325/sqm and hotel accommodation at €50/sqm.

The retail and hotel areas would cost the developer €393,000 per year unless the emphyteusis is redeemed; the residential area would cost €1.17 million.

The land was given to DB Group on a 99-year emphyteusis, with the condition that the project be completed within five years of the planning permits being issued, although a Group spokesman said they were planning to have the project up and running within three years.