IS it to raise the income and quality of life of Kg Baru landowners, to extend the Golden Triangle with expectation of increased property prices, land grab or to get rid of an eyesore?

Knowing it will help solve the issue of resistance from landowners and land valuation.

Surely it is not about race because discussions at the town hall meeting on September 21 was not around this matter.

In the meantime, some see Kg Baru landowners as greedy.

Credit is to be given to the federal territories minister for making it his personal mission to solve the issues but it seems Putrajaya is not very sure of the redevelopment plan itself.

Before the town hall meeting, projected gross development value (GDV) was RM60 billion but now it is RM30 billion. A few days ago, report says the 90-storey iconic tower is only a suggestion, and will be scrapped if there is no demand.

The minister said the redevelopment plan is still in the works, and will take 10 to 20 years of planning. At the moment, the focus is on acquiring land.

“The details of the development will need the consent of the people first. Only when these are finalised can we reveal more details on the plan,” he added.

But there was a model of the redevelopment shown at the town hall meeting with land space use increased to nine million square feet from just one. It was just a first draft of the new master plan.

The average plot ratio proposed under it is 1:10. At this level, I hope the planners could make the redevelopment a really viable plan.

How can landowners give consent when the master plan is not definitive?

Redevelopment takes time but there must already be a master plan with different phases of development. Without definite plans, even financial institutions will not give support.

The Kg Baru Development Corporation (KBDC) worked on it for seven years since it was formed but it is still very much a work in progress for an idea mooted in 1991.

The land value is to be determined through negotiations. Prof Ismail Omar said this neoclassic negotiation approach – demand and supply factors determine prices – is not suited to current times, more so when landowners do not have a clear understanding of the property market.

One option is to use the Land Acquisition Act. A professional valuer will prepare report with adequate compensation, taking into consideration land value and related costs. However, if there is disagreement, it can be taken to court and the plan delayed.

Since most of the landowners want to maintain their landholdings, there was a proposal on Wakaf Town concept where the land cannot be sold or bought. Whatever happened to the proposal? Same with the proposal by the previous government to issue long leases, say, 60 or 99-year leases.

Sadly, with the Bumiputera label, the development will be at a discount and the potential for substantial price increase will be limited. It will not fulfil the objective to extend the Golden Triangle and increase prices.

Is the government prepared to implement the Shared Prosperity Vision in Kg Baru? If so, the valuation will definitely be higher.

Further, since the construction of the residential areas will begin within 10 years time, landowners suspect this is a land grab.

Landowners must know the detailed plans, its benefits and not feel that they are being taken advantage of.

Putrajaya and KBDC must do it professionally and later market the expertise to the world and also not let Kg Baru be left behind by modern times.

Only then can Kg Baru live up to its namesake.

What say you… – October 3, 2019.

* Saleh Mohammed reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.