Farm resort promise is fading

Jamie Ee Wen Wei Straits Times 6 Jun 10;

Life in the countryside has not been good for 17 farm operators.

They have uprooted from D'Kranji Farm Resort, Singapore's first agri-tainment centre, from last December, citing poor yields and profits.

One business knock came when they were stopped from selling their produce to visitors.

The Urban Redevelopment Authority (URA) had informed the management of the resort that it had exceeded the maximum retail space allowed - by more than six times.

Only four farm operators remain, drawing grumbles from visitors about the closed shops and lack of activity.

The $10 million lifestyle- cum-agriculture resort was launched in September 2008, promising a countryside living experience in the city.

The 5ha Lim Chu Kang resort, developed by mainboard-listed HLH Group, also houses 21 villas, a wellness spa and a seafood restaurant.

The farm operators pay a monthly management fee of $500 to use the facility, which includes a 24 sq m sheltered kiosk and a 670.4 sq m or 791.61 sq m plot for farming.

Mr Alvin Tan, a farm operator who left last December, said they were left in limbo when the management stopped them from selling produce at the retail kiosk.

The 34-year-old, who grew fruits and vegetables, sold fruit juices to supplement his income.

'Before I came, they told me I could sell things. If we don't, how are we going to cover the rent? I didn't even draw a salary for that year,' said Mr Tan.

Another kiosk operator Johnny Tan, 48, said the resort did not live up to its promise. He used to run the seafood restaurant too - another tenant now runs it - but pulled out in March. He lost more than $500,000.

'People are not coming. There's nothing to do. There were so many promises but nothing materialised.'

He grew vegetables to supply his restaurant but said the yield was poor and the plants kept dying.

The URA said it found out last year that the resort had exceeded the maximum space allowed for food and beverage or retail (F&B/retail).

Its spokesman said it had no issues with any kiosks or structures set up for retail but they had to keep within the 200 sq m allocated for F&B/retail. The total commercial space is 1,000 sq m.

Dr Johnny Ong, deputy chairman of HLH Group, said the management had appealed to the URA to increase the F&B/retail space, but without success.

'We are not asking for more commercial space but more flexibility in the use of space to ensure commercial viability,' he said.

Currently, the firm has to allocate about 500 sq m for conference facilities but he said this is not viable.

'Who will come to the countryside for business? They would rather go to town.'

He added that the current space allocated for F&B/retail is not enough to meet visitor needs and make the place commercially viable. 'Singaporeans want a one-stop shop where they can sightsee, eat and shop.'

Dr Ong said the management had expected the land use to be reviewed so they were disappointed when their request was not approved. The company has lost $1 million so far.

Told about the farm operators' unhappiness, he said the company had done its best to apply for the necessary licences, but it was unsuccessful.

He added: 'The contract says clearly that the farmers can produce for export. If the authorities give them the approval to sell, we will support them, but they did not.'

The URA said it could not approve any further requests to increase the F&B/retail space as that would compromise the rustic character of the area.

'All the tenderers were fully aware of the conditions when they bid for the site,' its spokesman added.

Dr Ong said the firm is looking for overseas players to take over the existing kiosks and is moving into organic farming. The resort is also undergoing a revamp to draw more visitors.