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Old industrial buildings revitalisation was proposed in 2009-2010 Policy address of Hong Kong. It aims to redevelop those unused and affordable industrial buildings to house new business, especially for the six pillar industries[1]. The project has three main measures. The first one is to lower those ownership application threshold from 90% to 80%. The second one is to give owners options to pay for the assessed land premium by changing the lease of instalments at a fixed rate of 2% over five years, while the third one is the tailor-made lease modification which provides land premium based on their most suitable use. The government keeps providing art space at those favorable industrial premises. During these three years, 13 applications for redevelopment and 49 for wholesale conversion have been approved and it has supplied about 680000 square meters of non-industrial uses area.[2]

File:Performing Arts

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Distribution and type of business

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Red Wine shop
Japanese restaurant
Leather Workshop
Performing Arts Theatre

Industrial buildings located broadly in different areas in Hong Kong and the types of business found had a great variety. The following is some examples of clustering[3]:

Kwun Tong: movie post-production offices and music studios

San Po Kong: performing arts stages

Chai Wan: photo studios

Fotan: Visual arts studios

Other types of business includes sports (e.g. skiing, snowboard, baseball, softball and football facilities), creative arts workshops (e.g. leather workshop, painting, sculpture studio, music studio), restaurants and farms (e.g. aquatic farm and hydroponics plantation).[4]

Impact

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Positive impact

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Providing land for various land uses

The land resource in Hong Kong is scarce, but various developments are needed for giving an impetus to the continuous growth of city. Revitalizing abandoned industrial buildings for different land uses does not create much land pressure by making use of the existing land from old industrial buildings. The revitalized buildings can be turned into offices, residential areas, hotels and so on, thus benefitting different industries in Hong Kong, especially the cultural and creative industries. It is relatively not well-developed in Hong Kong because of lack of space and opportunities for growth. The buildings which were revitalized can be a suitable place for artists to continue or start their business. The Jockey Club Creative Arts Centre(JCCAC) is a piece of evidence. It was a factory estate in Shek Kip Mei, which has been abandoned during the 1990s. It has been converted into arts centre for cultural development. Over 100 artists and arts groups are working inside.[5][6]

Minimising construction waste and costs

Revitalizing the old industrial buildings can make use of the existing old buildings and avoid pulling them down. This minimizes the amount of construction waste and alleviates the problem of land pollution in Hong Kong, which is caused by the large amount of waste. At the same time, as buildings are not required to be destroyed, people can start their business directly inside the buildings without the need of waiting for a long period of time. Thus, the costs can be greatly reduced.[7]


Negative impact

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Increase in rental fee

With the Policy of Revitalizing industrial buildings, it boosted the rental fee in factories. The rateable value had increased 2% in 2012 and 7% in 2013.[8] With reference to the survey in 2010 by the Hong Kong Arts Development Council, over 60% of industrial buildings users faced the problem of rental increase.[9] The average increase was 14%. According to the recent survey proposed by HKADC, among 800 arts groups housing in industrial buildings, 61.5% stated that they were facing an increase in rental fee. This poses a financial threat to arts groups who have unstable income, because the rental fee, including cost of installing air conditioners and other equipments, accounts for the largest part of their expenses. It results in some arts groups or arts practitioners giving up and relocating from the old industrial buildings.

Limitations on current Land Use Policy

In accordance with the Hong Kong Development Bureau, ‘from town planning perspective, various uses of cultural and creative industries (e.g. information technology, design and media production office, audio-visual recording studio, etc.) are allowed in these two zonings.’[10] Nonetheless, Mr Leung Po Shan, the spokesperson of the Factory Artists Concern Group(FAC) stated that drama groups were not allowed to rent in factories. Some actors or actresses had to pretend to be porters whenever there were Government officials patrolling. These loopholes in the current Land Use Policy discouraged artists and they were concerned how these could be addressed.


Reference

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  1. ^ "Policy Address 2009-2010-Six Indutries"
  2. ^ "Hong Kong Industrialist by Fedaration of Hong Kong Industries 2009"
  3. ^ (in Chinese) “我要做特首2 第97集 活化工廈", ATV. Retrieved on 6 November 2013
  4. ^ (in Chinese)"廠出新天地(information)" , TVB
  5. ^ (in Chinese) "綜合能力﹕活化工廈 推創意產業", Mingpao, Hong Kong, 29 March 2012. Retrieved on 3 Novemver 2013.
  6. ^ "About JCCAC"
  7. ^ "Optimising the use of industrial buildings -Merits of redevelopment and wholesale conversion"
  8. ^ (in Chinese) "工廈租金升 藝術家呻苦", Metropolis Daily, Hong Kong, 1 November 2013. Retrieved on 2 November 2013.
  9. ^ "Survey on the Current Status of Industrial Buildings for Arts Activities and Future Demand 2010"
  10. ^ "Optimising the use of industrial buildings-Wholesale Conversion FAQs"


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Category:Hong Kong Category:Policy Category:Revitalization Category:Urban, rural, and regional economics

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