Marsaskala mayor Mario Calleja favours ‘luxury apartments’ at Jerma site

The mayor of Marsaskala is insisting that he will only take a position on the proposed development on the derelict Jerma Palace Hotel site after discussing this issue with the local council, while underlining his agreement with the development of luxury apartments, high-rise structures and land reclamation in the area.

A planning application proposing the demolition of the existing Jerma Palace Hotel, land reclamation works and the construction of a mixed-use development consisting of three high-rise buildings has been submitted by Porto Notos Limited. The plans also envisage the construction of a breakwater, the re-routing of the public road and extension of a landscaped area around the St Thomas Tower.

“Now that an application has been submitted we have something concrete which can be discussed and I will ensure that the council discusses this matter… We should discuss this not as Nationalists or Labourites but as councillors who have the interest of the locality at heart,” mayor Mario Calleja said.

Asked specifically whether he was aware of the proposed development, Calleja confirmed that he has been in contact with the developers.

“I prefer not to rely on rumours and hearsay and as mayor I feel it is my responsibility to check on what is being proposed in my locality with those who are directly involved… So yes I have talked directly to the developers.”

Marsaskala mayor Mario Calleja (left) with Prime Minister Joseph Muscat

Calleja also reiterated his position against reversing the area to its natural state after demolishing the Jerma site, insisting that he has the interests of the locality at heart.

“Why shouldn’t Marsaskala have a hotel and upmarket development as other localities like Sliema and Msida have?”

Asked whether he agrees with the development of apartments apart from a reconstructed hotel, Calleja replied that he agrees with a “boutique hotel” accompanied with upmarket luxury apartments, which complement the villas in that area. 

The mayor’s position contrasts with a submission made by the council in July 2015 on a previous application presented by the site owners, the Montebello brothers, in 2008. A letter sent by the council’s executive secretary, Josef Grech, states that “the council is opposed to any application which includes the development of apartments.” 

The council declared “that since this application includes apartments it is against it.”  Moreover the council added that this stance “applies to any application submitted on this site in the future.”

The mayor also said that from the information the developers gave him the project will include the rehabilitation of the Maghluq area, a new promenade and even a sandy beach.

Asked whether he agrees with high-rise development in the area in view of the council’s strong stance against the designation of Marsaskala as a site for medium rise development, Calleja insisted that the council was against this policy when applied on existing apartments and not on the Jerma site.

“I prefer development on the Jerma site to be vertical than horizontal as it would create more open space… it is acceptable as long as it does not obstruct the views of the existing villas and if it does not obstruct the views of the San Tumas tower, as seems to be the case from what I have been told.”

One of the advantages of high-rise development, according to Calleja, is that of having underground parking.

“One of the arguments made against this development is that it would take up parking spaces. But in fact such a project can help solve parking problems.”

He also justified land reclamation, arguing that the site needs a breakwater, which would facilitate the mooring of boats in the area. He also added that some luxury apartments might be located on reclaimed land.  

PN councillor lashes at Frankenstein developers

PN councillor Charlot Cassar, who filed a motion, seconded by the Labour deputy mayor, Desiree Attard, urging the government to buy back the site and turn it into an open space for the public to enjoy, was opposed by the mayor and the motion was rejected. He said that the application confirmed his worst fears. 

“If anything, this proposal for a high-rise on the foreshore, where previously there were only a maximum of three floors above street level, is much worse,” he said. 

Cassar lashed out at the construction magnates “who are emulating Doctor Frankenstein”. 

“They are being allowed to create monstrosities that will destroy the little which we have left. It is more than ever the time to take steps to reverse the trend of the expansion of the concrete jungle which is engulfing all the islands in the name of money.”

The birth of Porto Notos

Project proponents Porto Notos Ltd is a company formed in September 2013 and is owned by developer Charles Camilleri, known as il-Franciz, and lawyer Pierre Lofaro. Lofaro is married to Madam Justice Abigail Lofaro and chairs the Financial Services Tribunal. He owns 50% of Porto Notos. Lofaro’s portfolio includes shareholding in a number of other companies involved in the property business. 

Camilleri, who owns the other 50% of the company through White Oak Limited, is a shareholder in  a number of other property development companies including Develcon Limited, Camcas Ltd and Camland Holdings Ltd. 

The site presently occupied by the derelict Jerma Palace Hotel has been valued by a court expert at €20.8 million. A judicial sale by auction for October has been “suspended”, according to the justice services website. The sale was ordered by the court in an ongoing case instituted by HSBC Bank Malta against brothers Geoffrey and Peter Montebello’s firm. 

In the application, Camilleri declares that his company does not own the land in question but had the consent of the owners when presenting the application. The number of storeys included in the high-rise blocks is not identified in the application, which is still at the preliminary stage. 

Although Marsaskala was not designated as a high-rise zone in the policy regulating building heights approved in 2014, another recently approved policy regulating hotel heights allows stand alone hotels located within the development zone to add an unlimited number of floors. The land reclamation part of the project is outside development zones.

The Jerma site, including the foreshore, is located within the development zone. Marsaskala was also designated for medium-rise development of up to 10 floors in the general policy regulating building heights.

In 2013 the government had issued a call for expressions of interest in land reclamation projects which attracted 21 proposals. None of these projects has seen the light of day so far.

The Planning Authority recently issued an enforcement order against the Montebello Brothers to clear out the site of the derelict hotel.

The land originally belonged to the Franciscan Conventuals and Ivan Burridge, and was sold to San Tumas Holdings, which in turn sold it to the Libyan investment vehicle Lafico in 1976. 

The Corinthia Group used to manage the hotel through a management agreement.

The hotel was never developed since closing down in the 2000s and then sold to JPM (Montebello) Brothers in 2007.