Local people had lobbied for the land on which the resort stands to be returned to public use but OrBorJor President Paiboon Upatising reached a deal on Friday (August 8) whereby Club Med would give up just three of the 39 Rai it leased from the OrBorJor in 1985.
Mr Paiboon said the lease with Club Med would expire in September 2015 and the resort is obliged to apply for a renewal of the lease at least six months before it expires.
He added that the lease for the 39 rai was set in 1985 at B3.7 million a year. Under the new three-year lease, Club Med will pay B27 million a year for the 36 rai it will continue to occupy.
The deal also stipulates that Club Med will meet with local authorities and residents of Kata-Karon next Saturday (August 16) to discuss what use the three rai will be put to. Club Med will be responsible for developing the land for whatever purpose is agreed on.