The 500 ft tall Herzog & de Meuron designed tower central to the Hong Kong Jockey Club's (HKJC) proposal will add a significant burden to the site's financial sustainability, admitted William Yiu, Executive Director, Charities, HKJC at a HKGCC round table today. "The tower will create more problems in terms of economic sustainability because its GFA will primarily be for arts and cultural facilities." he said.

The HK$1 bil tower is, according to the HKJC, necessary to accommodate the mid-size cultural venues that cannot be accommodated in existing structures on the site. The Central police station is Hong Kong's largest group of historical buildings, situated between the Soho and Lan Kwai Fong entertainment districts and the residential Mid-Levels.

The HKJC announced plans to step in and revitalise the site for the good of all Hong Kong residents in October 2007. Conservation constraints mean that only certain buildings on the site can be altered, limiting the GFA available for arts and cultural venues.

Space will be created for retail and commercial uses, with the resulting cashflow used for operational expenses at the site. However, rents may be controlled to allow for smaller tenants such as local book stores. "We're not in this for profit so there is no motive of maximizing commercialisation," explained Yiu, "We don't want a third floor of Pacific Place."

While the concept of conserving the compound has been widely commended, the tower itself has met with mixed reviews. Some prominent local figures have objected to its visual impact, pointing to the seeming paradox of incorporating another futuristic tall structure in a revitalisation plan for one of Hong Kong's most historic sites. 80 percent of the tower's GFA has been earmarked for cultural venues, including a 500 sqm black box theatre, a 500 sqm music auditorium two small art-house cinemas and exhibition space.

The cost of the tower is expected to account for 55 percent of the total capital expenditure for the project. No capital payback is expected from the project, and the HKJC have also committed to funding the additional running costs of the compound until rentals exceed operating expenditure. Any operating profits will then be used to establish a Historical Trust.

If given the green light by the Government, the project is slated to complete in 2012. RFP