Kee Tai Properties (基泰建設) has agreed to set aside NT$100 million (US$3.12 million) for disaster relief and the resettlement of residents of damaged homes near a Kee Tai construction site, Taipei Deputy Mayor Lee Shu-chuan (李四川) said yesterday, while the company’s chairman offered to resign.
Seven buildings adjacent to the construction site at Lane 94, Dazhi Street in Taipei’s Zhongshan District (中山) were structurally damaged and some were tilting, including one that partially sank underground on Thursday night.
Kee Tai Properties had agreed to meet with residents on Saturday, but failed to attend, leading to a rebuke from Lee, who urged company officials to act responsibly.
Photo: CNA
He yesterday said that after Kee Tai Properties general manager Feng Hsien-mien (馮先勉) contacted him, they met at Taipei City Hall at 9:30am and the company agreed to put NT$100 million in a trust for disaster relief and to resettle the residents of 25 households.
Residents whose homes are severely damaged can decide whether they wish to move to a Kee Tai building or a government-led urban renewal project, Lee said.
The city on Saturday said that the residents would be allowed to move into public housing units in Nangang District (南港).
If they choose not to accept Kee Tai’s resettlement plans and wish to rent an apartment on their own, the construction firm would cover their rent for three years, Lee said.
Kee Tai chairman Chen Shih-ming (陳世銘) yesterday apologized and offered to resign from his position at a news conference at the Taiwan Stock Exchange.
Accompanied by Feng and several other executives, Chen bowed and apologized to the residents and investors.
“Kee Tai is the business focus of my life. There has never been a major incident like this in more than 40 years,” he said. “I personally take all responsibility for the incident.”
He then immediately left, with Feng answering reporters’ questions about compensation and reconstruction.
Feng said that the company would not avoid responsibility, and reaffirmed that Kee Tai had reached three agreements with the Taipei City Government.
In addition to putting NT$100 million in a trust and paying for rent for the affected residents for three years, the company would fully cooperate with the city government on the reconstruction of the affected homes, he said.
The maximum cost for the reconstruction to accommodate the 25 households is an estimated NT$247.5 million, he said.
In addition to resettlement costs of about NT$60 million, the company is likely to face losses of about NT$300 million, not the NT$1 billion speculated by local media, Feng said.
The incident would not cause the company financial difficulties or result in layoffs, he added.
Meanwhile, the water, electricity and gas for buildings on the south side of the construction site with even house numbers have been restored, Taipei Department of Urban Development Commissioner Wang Yu-fen (王玉芬) said.
After civil engineers determine the buildings to be safe, residents would be allowed to return to their homes, Wang said.
As for the residents of the homes that would require reconstruction, hopefully they can decide if they want to move into the Nangang public housing units before Sept. 22, and if they are unwilling to move there, the department would coordinate with hotels to extend their stays, she said.
Additional reporting by Chen Cheng-hui
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