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DORTS Clarifies that Distribution of Property Rights for Neihu Station Was Handled in Accordance with Legal Provisions

In response to a media report alleging that "Taipei City Disregarded the Control Yuan (CY) Members and Justices and Illegally Allowed Sales of the Ruentex Joint Development Project," Taipei City DORTS solemnly clarified that Wenhu line Neihu Station T11 JD project was handled in accordance with Article 7 of "the Mass Rapid Transit Act" and was not within the scope of Judicial Interpretation 743 (Article 6, Mass Transit Act). In addition, the initial sales ratio of this JD project was entirely a non-controversial allocation of rights and interests. For the remaining 30% of disputed entitlement, DORTS will negotiate the equity distribution results to ensure the maximum rights and interests of Taipei City Government.

DORTS explained that Judicial Yuan Interpretation 743 explained the aforementioned section as follows:"In accordance with Article 6 of the Mass Rapid Transit Act, which was publically announced on July 1, 1988, the competent authority will in accordance with relevant legal regulation expropriate the land for use in the MRT system, and the aforesaid land which is not allowed to be used as the land for JD projects in accordance with Article 7, Clause 1 of the provisions." However the Neihu Station T11 JD project was handled in accordance with Article 7 of "the Mass Rapid Transit Act" and is not covered within the scope of Interpretation 743. As for the procedure for the subsequent handling of JD projects other than those covered by Interpretation 743, DORTS will request an explanation from the central competent authority and handle future matters in accordance with legal regulations.

DORTS emphasized that the MRT JD projects were implemented in accordance with "the Mass Rapid Transit Act", "Regulations for the Joint Development of Land Adjacent to or Contiguous with Rapid Transit Systems", and "Rights and Interests Allocation Regulations for Public-owned Land Participating in Taipei MRT Land Development". Regarding the Neihu Station T11 JD project, the landowners were committed by the investors for the lower limit of rights and interests allocation at the time of bidding. In order to narrow the scope of disputes and avoid idle property rights, on December 6, 2016, the advance location distribution agreements were signed, and both parties are entitled to an initial returns value of 35% for the undisputed portions. For the remaining disputed 30%, DORTS will continue to actively negotiate with investors from a fair and reasonable perspective, and the follow-up will be the result of rights and interests allocation and government approval in order to safeguard the maximum rights and interests of the government.