Q.
a) With reference to Town and Country Planning Act, 1976 (amended), explain with examples why the land owner is required to pay Development Charge. (15 marks)
b) Encik Wahab has obtained planning permission to develop mixed development on his land measuring 50,000 square feet. Details of the planning approval are as follow:
Menara Bina (Office) : 150,000 square feet
Podium Indah (Retail) : 200,000 square feet
Service Apartment : 150 units/142,500 square feet
Planning Standard requires 1 parking bay for every 500 square feet of commercial space constructed. For residential 2 parking lots is needed for every unit built. Development Charge of RM50,000 per bay is levied for every shortage of parking bay. As the subject property is located within 500 metres from a MRT station, 30% discount is given to En Wahab for the requirement of commercial parking space only.
For this development Encik Wahab will build 300 parking bays for office and retail block, and 200 parking bays for service apartment.
Advice Encik Wahab the amount of charge he has to pay. (10 marks)
(25 marks, 2017 Q4)
A.
a) Land owners are required to pay development charge
This is about land owners and not just developers.
Similar question was asked in
In summary, any such alteration which can have material change to the property would attract development charge.
- (i) involve any change in the use of the building or the land to which it is attached;
- (ii) materially affect the external appearance of the building;
- (iii) involve any increase in the height or floor area of the building;
- (iv) involve any addition to or alteration of a building that affects or is likely to affect its drainage, sanitary arrangements, or its soundness; or
- (v) contravene or involve or result in any inconsistency with any provision in the local plan;
Ref:
b)
(Correction on 14th Nov, thanks to Kenny Khoo for spotting my mistake on 30% for commercial parking space ONLY)
Commercial Space = Office + Retail Spaces
=> 150,000 + 200,000 = 350,000 sqf
Planning standard = 1 per 500 sqf
Total Parking Bay should be 350,000 / 500 = 700.
As it is near to MRT, 30% discount is given, which means 700 x 70% is the required number of commercial parking bays.
700 x 70% = 490
As En Wahab is already building 300 parking bays on this category, the shortfall is 190. This shortage is levied development charge.
=> (490 - 300) x RM50,000 = 190 x RM50,000 = RM9,500,000.
Residential units = 150 units
Planning standard = 2 parking bays per unit, i.e. 300.
As En Wahab is already building 200 parking bays, the shortfall is 100, which is levied development charge.
100 x RM50,000 = RM5,000,000
Total development charge payable
= RM9,500,000 + RM5,000,000 = RM14,500,000 (RM14.5 million)
Ref:
Own account.