Inside Asian Gaming

IAG JAPAN APR 2021 52 Yokohama has budgeted approximately JPY46 billion (US$422million) in compensation for companies willing to leave the wharf. When IAG asked the bureau if this was enough, the spokesperson explained, “The amount has basically been calculated based on national compensation standards. As public works, we can’t negotiate price or increase the compensation in order to encourage cooperation.” That means current ownership rights in the wharf play a significant role in the process. Over 90% of Yamashita Wharf land is owned by the city and the other 10% or so is mostly owned by the national government. Very little of the land is privately owned. There are two main lease agreements that this publicly owned land falls under. The first is an agreement based on the Port Facilities Ordinance, which is renewed annually. The other, however, is a normal lease agreement, most of which have terms of 30 years. Needless to say, the majority of companies refusing to leave fall into the latter category. The bureau added, “The idea behind compensation for moving is to compensate for the value of the rights to use the land with money. Historically, Japan tends to favor the renter on leased land.” In the case of public works, another means is expropriation of land. Based on Paragraph 3 of Article 29 in Japan’s constitution, “Private land can be used by the public [if there is] compensation.” Both the national government and regional public groups can forcibly purchase land through a designated procedure. This is applied for things like road and waterway contracts. However, the bureau spokesperson explained, “Expropriation of land is allowed for the Yamashita JAPAN