Taipei City Government Terminates Nangang Depot Joint Development Project with Radium Life Tech
Taipei City Government in the early 2015 began to promote the Taipei East District Gateway Development Projects with planning for the development of five central industries in Nangang District. Furthermore, because of the old age of the public institutions in Nangang, it was necessary to reassess which public institutions would be suitable to be provided for public use. Following a council resolution, Taipei City Government on February 2, 2016 approved a policy change for the Nangang Depot, and it will be subsequently planned for public use.
Nangang Depot joint development cases were open for applications from investors. From the time that the contracts were signed in 2007 to the present, no building permits have been attained. Radium Life Tech Co. Ltd. (Radium Life Tech) was selected at a committee meeting, and promised a landowner equity distribution ratio of 47.5%; however, they failed to meet public policy requirement. In recent years, Nangang District has experienced rapid development, and land prices are far higher than they were at the time when the contracts were signed. Continuing to employ such a joint development approach to land development for the MRT system inhibits the city government from being able to acquire sufficient area. In addition, fear of repeated disputes over the Xindian Depot MeHAS project and fears that it will be difficult to ensure the right and interests of Taipei City Government have created significant harm to the public.
In accordance with legal administrative laws and contract regulations, on May 11, 2016 Taipei City Government submitted a termination notice of the joint development investment contract with Radium Life Tech. After this, the investors submitted a written demand that the city government return all previously-paid construction fees and performance bonds and in accordance with expenditure payment documents pay NT$565 million for previous construction and design expenses. After numerous negotiations, Taipei City Government and Radium Life Tech signed an agreement on August 29. The investors agreed with Taipei City Government’s legal termination of the investment contract, to have an outside settlement for the following items and amounts, to not make additional requests regarding investment contracts, and that Taipei City Government will obtain the results of the construction and designs on the previous projects.
1. Taipei City Government shall return NT$336 million to their investment partner（Lijiang Co.) for the co-constructed costs already paid. 2. Taipei City Government will return NT$245 million to Radium Life Tech for the performance bond provided for a bank joint guarantee. 3. Taipei City Government will pay NT$244 to the investment partners to cover initial construction, development planning, and architectural design costs.
DORTS stated that of the above items, for the first two items Radium Life had paid prior to the development of the case, and because they did not handle the joint development, the amount should be returned. As for the third item, prior to the development of the case, Radium Life Tech provided NT$565, and DORTS only agreed to pay NT$244 million after the audit. Furthermore, the payment for the item has not been disbursed due to the reporting of a rezoning case for the land used for transportation at Nangang Depot to the Urban Planning Commission, Taipei City Government. The plan has not yet been determined, and the initial construction and design results can still be used in the future. Taipei City Government has already submitted their plans to modify the Nangang Depot plan to City Council for approval and will temporarily pay for the above-mentioned costs by the land development fund. Furthermore, the construction and design results will be subsequently used for development units who will reimburse the costs, and it is hoped that the City Council will support this.
DORTS emphasized that the Nangang Depot joint development project contract was terminated as a policy decision following a comprehensive review. In the future, the planning that will be utilized to develop other projects, such as the five central industries, public institutions, and public housing, will meet the greatest public interests of Taipei City Government and Taipei citizens.