Updated | Critics call Silvio Debono’s ITS coup ‘daylight robbery’

The interest of hotelier Silvio Debono in the St George’s Bay land where the Institute for Tourism Studies stands was a known secret in business circles and one which Debono himself, the owner of the Seabank, made a subtle reference to back in 2013.

But Debono had denied the rumours when MaltaToday asked him whether he was interested in developing a hotel on the site of the ITS.

The Sunday Times yesterday revealed how Silvio Debono’s company had offered €6.5 million for the prime site held by the ITS covering an area of 25,000 square metres, when the value of the seafront land was more akin to between €80 million and €100 million, especially if planning laws are changed to accommodate high-rise residential development.

Debono had denied having discussed the land occupied by the ITS with the government. “I will be interested in any site identified by the government which is issued in a call for expressions of interest.”

“I am interested in opening a five-star hotel and I am waiting for calls of expressions of interest issued by the government on various sites, to find a site for this new hotel,” Debono had told MaltaToday.

The sole bid for the new upmarket tourism development was received by the City Centre consortium, which includes SD Holdings, Seaport Franchising, and the Seabank Hotel. Seaport Franchising is the operator of the Hard Rock Café franchise in Malta, and has also been entrusted by Hard Rock International to establish the brand in Gibraltar, Slovenia and Tunisia – a €3.5 million investment under the guidance of CEO Arthur Gauci.

It will be the last piece of a massive construction jigsaw puzzle that will transform St George’s Bay into a six-star hotel and tourism area, will fall into place very soon as tenders for the development of the former Institute of Tourism Studies are opened today.

The news attracted accusations of daylight robbery from independent MP Marlene Farrugia, and Alternattiva Demokratika’s deputy chairperson Carmel Cacopardo.

“Another example of daylight robbery of our national assets. Complete disregard of our institutions or their complete manipulation, for people’s environmental and health concerns. Another dark shadow cast on all contracts entered into by this government so far,” Farrugia said.

Cacopardo, an architect who specialises in valuations, said the ITS land was an entertainment priority area that is probably worth €120 million. “For owner Silvio Debono to have bid with such a low price, it is obvious that his mind had been put at rest that he was going to have the doors open for a good piece of business.”

The Nationalist Party expressed itself in favour of a development that strengthens the economic and touristic potential of the area.

It urged the government to ensure that the coast remains accessible to the public without any conditions or obstacles. It also said that the agreement should reflect the true value of the land.

The opposition called on the government to publish the full information of what’s going to happen and to ensure that the common good is safeguarded.

As the Maltese franchisee of Hard Rock Café, Debono was seeking land to develop a Hard Rock Hotel, having stated in June 2014 that the Seabank Group was “looking with the government to see where the available land is.”

St George’s prime land grab

The scale of reconstruction at St George’s Bay is so unprecedented, the government is to set up a St George’s Bay Regeneration Corporation to facilitate at least three major projects and coordinate traffic flows and major diversions.

Intercontinental Malta is currently undergoing a €30 million construction of six-star suites with two additional storeys, a new casino and restored exhibition hall; the Hilton at Portomaso will undergo a €15 million refurbishment in February; the Corinthia Group will drop down its Marina hotel to start work on a €400 million six-star luxury hotel and resort.

Additionally, the Villa Rosa complex is planning a redevelopment of the St George’s Bay Hotel site which will be excavated in order to construct an underground car park for 1,195 cars, together with luxury apartments, a boutique hotel, 15 villas, offices, and commercial outlets of different types.

The latter project’s traffic impact assessment revealed how traffic loads generated by the project will require a modification of junctions linking Regional Road with Paceville and Pembroke. Planned junctions linking St Julian’s, Paceville, and Pembroke to the Regional Road and St Andrew’s Road would need modification in order for their capacities to be increased.

The Villa Rosa project will also redevelop Moynihan House, a former hospital that has been left abandoned for decades.

Apart from the St George’s Bay redevelopment, together with an international expression of interest for the former White Rocks complex, offering up 449,885 square metres of land for development, the government is seeking to develop the as yet untouched eastern coastline into an unbroken line of brand new property developments.

The Seabank Group had also been actively interested in a land reclamation project worth some €150 million, with Debono saying he was considering China in his search for an international partner.

Government insists that coast area will remain public domain

The government has said that the proposed development is still ongoing and that so far the public tender had been issued, with just one bidder – City Centre.

“The government is analyzing the proposal in collaboration with independent experts to properly evaluate the project and compare it to other projects,” a statement reads.

The statement points out that the evaluation is aimed at ensuring that negotiations reflect market prices and planning rules, particularly in line with the government’s plans to regenerate the area.

The government stressed that the process would be an open and transparent one, with the final decision being up to the government.

“The government ensures that the coast will remain public and accessible to all.”