Summary of Meetings with Golf Club Members on Lease Plans

16 FEB 2014

16 Feb 2014 Posted in Press releases

Background

  1. Golf club leases are for a fixed term with an end date. This information is known to those who become golf club members. When the lease ends, the land has to be returned if there are other needs. It is the same for all other State leases, whether for residential, commercial, industrial or other uses.

  2. In January 2013, the Ministry of National Development said that the Government will free up land with low intensity uses such as golf courses for redevelopment to meet more essential needs such as housing and public infrastructure. The Ministry of Law began engaging golf clubs regarding their leases soon after.

  3. The Government is letting the clubs, their members and the public know the status of the expiring leases, more than seven years in advance. This is to enable the clubs to better make their investment and membership plans; and for members and the public to make informed decisions if they are thinking of selling or buying memberships in these clubs.

  4. Government agencies met with members of affected golf clubs today to brief them on the lease extension decisions, and to explain the government’s approach and considerations behind those decisions.

Summary of Lease Extension Decision and Considerations for Tanah Merah Country Club (TMCC)

  1. TMCC will be offered a new lease until 2035 (Garden course) and 2040 (Tampines course).

  2. However, the government will need to acquire about 10ha of Garden Course for Changi Airport’s new taxiways, to accommodate long-term air traffic growth and support Singapore’s continued success as a global air hub. This is likely to affect six holes of TMCC’s 18-hole Garden Course, three tennis courts and two storage sheds.

  3. The Singapore Land Authority (SLA) will gazette the land affected by the acquisition on 17 Feb 2014. SLA and the Civil Aviation Authority Singapore (CAAS) are in touch with the management of TMCC to assist the club in mitigating the impact of the acquisition.

Summary of Q&A Session

  1. President TMCC Mr Ho Beng Huat welcomed the news on the lease extension for TMCC, and hoped that membership prices would benefit from this news. Members asked how the lease premium would be calculated when the club renewed the lease. TMCC was informed that the lease premium would be calculated at the point where the lease was renewed. TMCC was able to choose when it wished to put in an application for the lease but it should not be later than 2018. To facilitate the club’s preparation for renewal of lease, the Government was prepared to give members an indicative premium. This news was welcomed by the members.

  2. Members asked about how compensation for the acquired land would be determined. TMCC was informed that compensation would be pegged to the market value of the acquired land as at the date of gazette. The Government will also consider the impact of the acquisition on TMCC’s remaining land in determining the compensation. This was welcomed by the members. TMCC was also informed that the process of determining the compensation was open and if TMCC disagreed with the compensation amount, there was recourse to an independent tribunal. The Government will also engage a private valuer to assist the collector of land revenue in determining the compensation payable. TMCC could also engage a private valuer whose reasonable fee could be reimbursed by the Government.

  3. Members asked whether the impact of the infrastructure works on the club could be further minimised and whether additional land could be given to the club. TMCC was informed that Government agencies were aware of the substantial impact of infrastructure works on the club. The Government will consider the club’s request. However, it can only be decided after the airport expansion plans were worked out fully. Government will continue to work closely with TMCC in the coming months.

Summary of Lease Extension Decision and Considerations for National Service Resort and Country Club (NSRCC)

  1. NSRCC will be offered a new lease until 2040.

  2. However, the Temporary Occupation Licence (TOL) for the land occupied by NSRCC’s 9-hole Air Force Course and part of its Par-3 9-hole Executive Course will not be renewed after the TOL expires on 31 August 2014. Part of the land occupied under TOL will be required for Civil Aviation Authority Singapore’s (CAAS) construction of new taxiways and realignment of the existing Changi Coast Road. Agencies are exploring uses for the remaining land left at the TOL plot.

  3. The government recognises the sacrifices and contributions of our NSmen and is committed to providing two courses for NSmen. To mitigate the loss of the club’s land as a result of the expansion works, the government is studying possible additional land for NSRCC, including a site east of NSRCC. This will ensure that over 190,000 NSmen, and more than 300,000 former NSmen who have completed their NS obligations, continue to have access to affordable golf and resort facilities.

  4. More details will be shared after agencies have completed the study.

Summary of Q&A Session

  1. In response to a question about the lease extension premium. NRSCC was informed that this will be based on the market value as at the date of lease extension application. Hence, the premium can only be determined when NSRCC applies for lease extension.

  2. Another question raised was when new land can be made available. NSRCC was informed that they have to make an application to SLA and the Government will consult the Chief Valuer. Currently, studies are still being carried out on the TOL land and the road works will be finalized at the end of this year. SLA will then know how much land can be sold to NSRCC and NSRCC can then write in to buy the land.

  3. Members wanted to know when the TOL land will have to be returned. NRSCC was informed that CAAS only needs the land in September 2014. SLA have therefore extended the TOL until 31 August 2014 at the request of MINDEF. NSRCC was also informed that the Government recognises the sacrifices made by NSmen and that aside from NSRC Changi, there is another golf course for NSmen at Kranji. MINDEF will also keep 18 playable holes in Changi.

Summary of Lease Extension Decision and Considerations for Keppel Club

  1. Keppel Club’s lease will expire in 2021, as the site will be redeveloped for housing.

  2. Keppel Club’s site has been reflected as a residential site in URA’s Concept Plan since 2001. This was also in the Draft Master Plan 2013 (Nov 2013).

  3. The amount of land allocated to golfing will be reduced to make way for more essential uses. As a result, there will be no replacement golf course site for Keppel Club to establish a golf club.

  4. However, to support the club’s continuity, if the club is keen, the government is prepared to offer an alternative site for Keppel Club to operate as a social club. Agencies will work with Keppel Club to identity a suitable location.

Summary of Q&A Session

  1. Members asked if it was fair to Keppel members who had bought their membership earlier. Minister explained that golf club leases are for a fixed term and members should have factored in the term of the lease when they bought their memberships. Keppel members would have also known that the land would be needed for housing development. This plan was announced as early as 2001 in URA’s concept plan.

  2. In response to Members’ request for a short extension for their current land and to retain some portion of their existing clubhouse, Minister shared that the land preparatory works will be initiated quite immediately after the lease expiry in 2021 and hence these options were not possible.

  3. As for why it would not possible to allocate another golf course to Keppel, Minister explained that the overall land allocated for golf has to be reduced over time as there is need for other uses such as housing and infrastructure. Government will therefore be unable to provide replacement golf courses to clubs affected by the redevelopment plans.

  4. With regards to the potential site for Keppel’s social club, members asked if there would be concessions in obtaining the new piece of land. Noting that Keppel will be the first club whose lease will expire without being offered a replacement golf course and in recognition of Keppel’s heritage, Minister said that Keppel would not have to bid to lease the new site. In addition, Keppel could explore partnerships with other clubs to ensure continued access to golfing. The operator of the new public course will also be encouraged to discuss the possibility of offering some arrangement for Keppel Club members.

Summary of Lease Extension Decision and Considerations for Singapore Island Country Club (SICC)

  1. SICC can be allowed to extend the Island Course until 2040, and extend one 18-hole course at the Bukit Course until 2030, and run both as members’ courses.

  2. The other 18-hole course at Bukit will be allocated for a public course to be run by the labour movement for the general public and the labour movement, upon lease expiry on 31 December 2021. This will ensure continued public access to golfing when the lease for the Marina Bay course expires in 2024.

  3. SICC will work with the labour movement to determine how the courses should be reconfigured, and to make the necessary arrangements for the sharing of facilities where possible.

  4. The offer of the lease extension for one 18-hole course at Bukit is conditional upon SICC and the labour movement reaching an agreement by 28 Feb 2015.

Summary of Q&A Session

  1. Members questioned why the Bukit location was selected to be reconfigured for the public course, instead of the Island location. Minister responded that the decision was made after discussions with SICC’s General Committee (“GC”). The Island location is the larger site and SICC had recently invested more than $100 million in the club house. Hence, both the Government and the SICC GC assessed that it was more logical for SICC to have a longer extension for the Island location. However, should SICC prefer for the Island location to be reconfigured instead of Bukit, the Government was open to consider this request. This must be subject to certain criteria, such as the availability of golfing support facilities, and the feasibility of sub-dividing the location into two courses.

  2. A few members questioned why SICC had to give up one course for the public, and not other clubs. Minister explained that other clubs such as Keppel, TMCC and NSRCC Changi were also affected. Minister highlighted that it was important to be fair to everyone.

  3. A member asked whether lease periods for golf courses would become shorter moving forward. Minister responded that the current lease periods are based on plans up to 2040 as planners were able to have clarity up to 2040 at present time and not beyond that.

  4. A member asked when active negotiations for the 2040 lease would begin, and what would be the benchmark for pricing the premium. Minister responded that the SICC management has to decide when to approach SLA to indicate its interest to extend its lease. The pricing was a standard process whereby the Chief Valuer would determine the premium to be paid for the new lease.

  5. A member highlighted that Singapore had many parcels of unused land and questioned why SICC had to be impacted. Minister shared that URA had decided that no new land could be made available for golf courses based on the overall land needs in Singapore. Hence a replacement course had to be found for the Marina Bay public golf course whose 20-year lease will expire in 2024.

  6. Members queried whether it would be possible for SICC to run and manage the public course instead of the labour movement. Minister responded that that from an equity point of view, the public course should be run outside of SICC. SICC’s management will have to agree with the labour movement on the sharing of the golfing facilities.

  7. Members queried if it would be possible to have the same expiry date for the leases of both Bukit and Island locations. Minister responded that all options had already been explored, and the lease expiry of 2030 for one 18-hole course was already a concession as the original plan was to allow the lease for the entire location i.e. two 18-hole courses to expire.

Last updated on 18 Feb 2014