Chapter 227: Land Use

The matter with Fang Qingfei and Meng Qiping was just a minor episode; Li Dong didn't invest much effort in paying attention to it.

Currently, the distribution center and the Yu Fang Building were Li Dong's primary focus.

The Yu Fang Building was manageable; the land had been secured, and delaying the construction didn't pose a significant problem.

However, the distribution center could not afford any delays. As of now, Yu Fang had nearly seventy stores either in operation or under construction.

By next year, this number might increase significantly.

From site selection to becoming operational, this process requires a considerable amount of time. Yu Fang couldn't wait any longer.

Lacking a dedicated logistics system was a huge threat and a significant limitation for Yu Fang.

At the end of October, Li Dong had a meeting with the government of the Southern Suburb District.

Given the two hundred million investment involved, the Southern Suburb District government took it seriously. District Mayor Meng Tingzhu personally conducted the meeting with Li Dong.

Li Dong returned from the first meeting feeling disappointed.

Although the Southern Suburb government offered numerous incentives, they clearly didn't meet Li Dong's requirements.

Especially regarding the land, the policies provided by the Southern Suburb government were even worse than those of Yaohai.

The next day, Yu Fang initiated negotiations with the Yaohai District.

This made the Southern Suburb government anxious. Within a week, the Southern Suburb government arranged a second negotiation with Yu Fang.

In this round of negotiations, the Southern Suburb government was no longer led by Meng Tingzhu but by Zhang Yunlong, the Executive Deputy Mayor of Pingchuan.

For the Pingchuan City government, no matter which district Yu Fang invested in, it would be considered Pingchuan's achievement.

However, this didn't mean that the city leaders had no preferences. The Southern Suburb's economic development lagged behind Yaohai, dragging down the city government for years.

If Yu Fang could build the distribution center in the Southern Suburb, it might greatly revitalize the local economy.

Zhang Yunlong, who was in his fifties, had a refined demeanor, somewhat similar to Hu Sicheng from Yaohai.

Li Dong was not unfamiliar with Zhang Yunlong. During previous donation ceremonies by Yu Fang, Zhang Yunlong had been the host several times.

Of course, Zhang Yunlong had another identity that made Li Dong pay more attention—he was Zhang Qing's father.

Li Dong and Zhang Qing didn't have a particularly good relationship, and he maintained a neutral attitude towards Zhang Yunlong, neither too close nor too distant.

However, since this was a business negotiation, and Yu Fang was a major investor, Li Dong wasn't worried about Zhang Yunlong deliberately targeting him.

During the negotiations, Zhang Yunlong did not target Li Dong.

Yet the outcome of the negotiation still left Li Dong greatly disappointed.

There was a significant divergence between the two sides, with the biggest issue being the land use classification.

According to the Pingchuan City government and the Southern Suburb government, the land Yu Fang chose for the distribution center did not meet industrial land standards and should be classified as commercial land.

But Li Dong was no fool; there was a world of difference between commercial and industrial land in terms of price!

If classified as commercial land, the plot Yu Fang chose covered one hundred thousand square meters, equivalent to about one hundred and fifty acres.

At the current market rate in the Southern Suburb, the cost of acquiring one hundred and fifty acres of commercial land would be nearly two hundred million.

Li Dong would be out of his mind to agree to that.

In contrast, if classified as industrial land, acquiring that plot would cost less than fifty million.

The difference between the two is over a hundred million. A hundred million in 2005 was more valuable than several hundred million ten years later.

Li Dong insisted on treating it as industrial land, but the Southern Suburb refused to agree.

It wasn't that they didn't want Li Dong's investment or were deliberately making things difficult. The plot Li Dong chose was considered a prime location in the Southern Suburb.

Additionally, a provincial road passed through the plot, making its value far beyond that of industrial land.

The Southern Suburb government even suggested that Yu Fang select another plot. If they chose a more remote location, converting it to industrial land would be easier, and the district government would assist.

However, Li Dong was attracted to the convenience of the current location. He would never agree to switch to a remote plot.

Thus, the situation remained deadlocked.

Meanwhile, negotiations with Yaohai District had also stalled.

It wasn't that Li Dong wasn't willing to negotiate, but the city government was causing trouble, unwilling to let internal conflicts benefit Yu Fang.

...

Global Building.

Li Dong's office.

Li Dong frowned and said, "Dragging things out with Pingchuan isn't a solution. If it doesn't work out, we might have to go to Nanhui. After all, Nanhui is the geographical center of Jiangbei."

Wang Yue thought for a moment and said, "Mr. Li, if Yu Fang is content with the Jiangbei market, Nanhui is indeed a good choice. But if Yu Fang plans to expand, Pingchuan is the best option. Pingchuan is the hub connecting the three provinces of East China. Only in Pingchuan can the distribution center achieve maximum efficiency."

Sun Tao agreed, "Moreover, Nanhui relies on water transportation, and its road infrastructure doesn't compare to Pingchuan."

"I understand what you're saying, but staying deadlocked is also pointless. I definitely don't want to change the land. If Pingchuan doesn't yield, starting negotiations with Nanhui could put some pressure on Pingchuan."

Sun Tao thought for a moment and said, "That's feasible."

"But what if Pingchuan still insists?" Wang Yue asked.

Li Dong was somewhat irritated and said, "The distribution center should be on industrial land. Clearly, the Pingchuan City government is making things difficult for us. If they continue to push me, I'll withdraw the investment entirely!"

Wang Yue and Sun Tao knew this was just venting frustration and didn't take it seriously.

Even if others were deliberately obstructing, withdrawing the investment wasn't that simple.

There were more than thirty stores about to open in Pingchuan. If they withdrew the investment now, the loss would be considerable, disrupting a large part of Yu Fang's plans.

The group brainstormed, and Li Dong hesitated before asking, "What about Shen Qian?"

Sun Tao understood Li Dong's meaning but still shook his head and said, "This matter still needs to be negotiated by us. It's a government decision, not an individual one."

With Shen Qian's background, if she were negotiating with individuals, it might be possible to secure a favorable deal, even if it meant converting commercial to industrial land or getting it for free.

But with the entire Pingchuan City government involved, even Shen Qian wouldn't be effective unless her father intervened.

Li Dong took a deep breath and said, "Then let's keep dragging it out. I don't believe I'm the only one anxious. With a two hundred million investment, isn't the Southern Suburb government at all concerned?"

At this stage of the negotiations, it would come down to who cracked first.

If Li Dong showed signs of fatigue, Pingchuan would not easily back down.

After all, the land fund of over one hundred million was government money, and the government wouldn't give up easily.

But if the stalemate continued, Pingchuan might eventually relent, especially since Pingchuan City government wasn't aware of Yu Fang's strategic plans.

In their view, Li Dong had other options, such as Nanhui.

If the distribution center were built in Nanhui, it could also meet the logistics needs for Jiangbei.

If that happened, the government would likely compromise, as land costs weren't their personal expense.

Achievements, however, were tangible, and the current stubbornness was also related to Yu Fang's attitude.

Li Dong's initial eagerness gave the city government an opportunity to take advantage.

Otherwise, this negotiation might not have failed.