S.L. 455.12 Art. 6Valuation of the land.

(1) The freehold value of the footprint of the land over which the sports organisation intends to carry out the proposed development as approved by the Commission, and the resultant annual ground rents on both the areas designated for sports and commercial activities, shall be determined by the Lands Authority.

(2) The freehold value shall be equivalent to the difference between the estimated value of the land with its full development potential in accordance with the submitted project, and the value of the improvements made thereon by the same sports organisation throughout the years it has been administering the sports facility.

(3) The annual ground rent for the granting of an emphyteutical concession for a period of not more than sixty-five (65) years over the floorspace of the area designated for sports activity and the related sports ancillary activities, which estimate shall correspond to four-point two five percent of the freehold value determined in sub-regulation (2). A share of five per cent (5%) of the resultant ground rent according to the provisions of this sub-regulation shall be payable to SportMalta.

(4) The annual ground rent for the granting of an emphyteutical concession for a period of not more than sixty-five (65) years over the floorspace of the area designated for commercial activity, which estimate shall correspond to five point seven five per cent (5.75%) of the freehold value determined in sub-regulation (2). A share of fifty per cent (50%) of the resultant ground rent in accordance with the provisions of this sub-regulation shall be payable to SportMalta.

(5) Payment of the five per cent (5%) share of the annual ground rent by the sports organisation for the areas designated for sports activity and the related sports ancillary activity shall become due upon the publication of the public deed according to regulation 5:

Provided that the fifty per cent (50%) share of the annual ground rent on the areas designated for commercial activity shall become due as from the first day in which the operation of the commercial activity begins:

Provided further that if the commercial activity does not start within five (5) years from the publication of the public deed according to regulation 5, the authorisation for the commercialisation of the sport facility shall not apply anymore and the public deed in respect thereof shall be rescinded at the request of SportMalta.

(6) Should the commercial activity approved by the

Commission require infrastructural works for the start of the operation of that commercial activity, then all necessary development permits according to law are to be obtained by the sports organisation prior to the carrying out of such infrastructural works.

(7) Without prejudice to the other provisions of these regulations providing for other requirements, no commercial activities shall be undertaken by the sports organisation or its appointed third parties until the Planning Authority issues its compliance certificate.