....
CITY OF CAPE TOWN
O
.
ISIXEKO SASEKAPA
,STAD KAAPSTAD
REPORT To COUNCIL
II.
O()3
DATE
2015 -01- Z Z
1.
2.
ITEM.NUMBER: SMC 03/01/15
SUBJECT
AUTHORISATION TO COMMENCE WITH A PUBLIC PARTICIPATION
PROCESS RELATED TO THE PROPOSED CLIFTON GARAGES PRECINCT
UPGRADE PROJECT WHICH INCLUDES THE SALE OF CERTAIN PORTIONS
OF LAND AND ALSO THE GRANTING OF RIGHTS TO USE, CONTROL AND
MANAGE CERTAIN PORTIONS OF LAND FOR THE DEVELOPMENT OF
RESIDENTIAL OPPORTUNITIES, AN UNDERGROUND PARKING GARAGE,
RETAIL FACILITIES AND USES ANCILLARY TO THESE FACILITIES ON ERF
468, A PORTION OF ERF 148, PORTIONS OF REMAINDER ERF 345, AND A
PORTION OF REMAINDER ERF 4, ALL LOCATED IN CLIFTON.
3. STRATEGIC INTENT
~
D
D
D
D
Opportunity City
Safe City
Caring City
Inclusive City
Well-run City
SFA 1: THE OPPORTUNITY CITY
Objective 1.5
Programme 1.5(a)
Leverage the City's assets to drive economic growth and sustainable development
City strategic assets investigation
4. PURPOSE
To obtain authority to commence with a public participation process in terms of the
Municipal Asset Transfer Regulations for the disposal and/or lease of Erf 468, a portion of Erf 148, a portion of Remainder Erf 345, and a portion of Remainder Erf
4, located in Clifton. The property is considered to be a high value asset (valued at
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5.
004 more than R50 million) and therefore requires Council's authority to commence with the public participation process is being requested.
FOR NOTING BY / FOR DECISION BY
[8J This report is for consideration/decision by:
• Council in terms of regulation 5(3) (a) of the Municipal Asset Transfer
Regulation (MATR).
6. EXECUTIVE SUMMARY
This report is submitted in order to obtain authority from Council to proceed with a public participation process with regards to the proposed sale by public competition of portions of land for the development of residential bungalows, and granting of rights to use control and manage portions of land for the development of an underground parking garage, retail facilities, and uses ancillary to these facilities on
Erf 468, a portion of Erf 148, portions of Remainder Erf 345, and a portion of
Remainder Erf 4, located in Clifton (see draft conceptual proposal attached as
Annexure A).
The subject properties are part of the Clifton Garages Precinct Upgrade Project which has been identified for the Mayor's Strategic Asset Development Initiative.
7. RECOMMENDATIONS
Not delegated: for decision by Council:
It is recommended that:
In terms of regulation 5(3)(a) of the Municipal Asset Transfer Regulations (MATR)
(R. 878), promulgated on 22 August 2008, Council authorise the public participation process related to the permanent disposal and also granting of rights to use control and manage portions of land for the development of residential opportunities, an underground parking garage, retail facilities, and uses ancillary to these facilities on
Erf 468, a portion of Erf 148, portions of Remainder Erf 345, and a portion of
Remainder Erf 4, all located in Clifton (see draft conceptual proposal attached as
Annexure A).
8. DISCUSSION/CONTENTS
8.1 Background
The Clifton Precinct Upgrade Project initially focused on the Clifton garages which are located on a portion of Erf 148, at the public parking area for Clifton's 4th Beach.
A recent conceptual proposal however, was expanded to include the adjacent Glen
Country Club and La Med restaurant, bowling greens, tennis courts, cricket oval, which is also used as a landing strip for paragliding enthusiasts.
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ODS
The motivation for expanding the project area is based on the need to ensure the feasibility and economic viability of the project. After various discussions and consideration of public input the current conceptual proposal was developed.
The Clifton Garages Precinct is in an area that is ageing and it is envisaged that an upgrade of the area will inject valuable investment into the precinct. Due to the age of the parking garages as well as the Glen Country Club and surrounding facilities as well as the fact that they were not constructed with quality materials, these have become dilapidated and require an urgent upgrade.
8.2 Conceptual Proposal
An interim conceptual proposal has been drafted and will be formalized after the appointment of an urban designer. A spatial argument and spatial principles will be set for the proposed development. Spatial principles to be investigated and resolved through this study include but are not limited to:
• Adding to and enhancing the natural environment;
• The management of parking;
• Creating or enhancing connections between various parts of the precinct and showing improvement in the movement network;
• Developing a network of public spaces;
• Focusing on existing community/sport facilities that will ensure that these facilities remain an integral part of the restructured precinct;
• Exploration of development opportunities that exist due to the currently scarce present commercial opportunities.
The interim conceptual proposal includes the following elements which will be developed and enhanced after the appointment of an urban designer:
8.2.1 A 3-level underground parking garage with about 750 bays;
8.2.2 about 2750m
2 of commercial space including an anchor retail tenant, a limited number of boutique line shops, the possible relocation of the La Med restaurant;
8.2.3 the rationalization of the active recreational facilities in the precinct which includes the bowling greens (including the potential development of a covered bowling green), retaining the cricket oval, retaining the tennis courts;
8.2.4 conserving and enhancing the use of the natural spaces in the precinct for active recreation;
In terms of the relevant regulatory frameworks Council must undertake a public participation process before granting the proposed rights to upgrade the Clifton garages (as well as the immediately surrounding precinct).
This process will result in a developer being sought through a competitive tender process to enter into a contract with the City to Design, Build, Operate, and
Maintain a new parking complex and other uses (at no cost to the City in
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006 accordance with the development concept to be finalized. Certain portions of the properties involved will also be sold for residential purposes.
The current garages (leased from the City by residents in the area) are too few in number and have become dilapidated, posing a risk to residents and their vehicles.
Other problems in the precinct relate mainly to safety and security, visual appeal and insufficient parking for visitors to the area.
A number of unsolicited bids proposing to upgrade the garages at the expense of the developer in return for a long-term lease on the property have been received.
This suggests that the current high demand for parking makes a private parking garage a feasible proposition.
8.1. Constitutional and Policy Implications
Council's By-Law (LA 12783) and Policy relating to the Management and
Administration of the City of Cape Town's Immovable Property as published on
2003-02-28.
Chapter B of Council's policy relating to the Management of certain of the City of
Cape Town's Immovable Property (approved 26 August 2010), permits the disposal of immovable property;
Policy on the management of Council's Immovable Property, approved 20 June
2005 (MC 29/06/05) , amended 19 October 2005, promulgated 3 February 2006
(PG 6340: LA 32323) applies until repealed.
In terms of regulation 5(3)(b) of the Municipal Asset Transfer Regulations (MATR)
(R. 878), promulgated on 22 August 2008, Council may authorise the public participation process
A resolution to proceed with the public participation process of this property is supported by the applicable legislation and policies.
8.2. Sustainabilitv Implications
Does the activity in this report have any sustainability implications for the City?
No [gI Yes
0
8.3. Legal Implications
The proposal complies with Section 14 of the Municipal Finance Management Act,
No.56 of 2003.
Council's By-Law (LA 12783) relating to the Management and Administration of the
City of Cape Town's Immovable Property as published on 28 February 2003
(Section 4) permits the alienation and letting of immovable property.
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007
The disposal of municipal capital assets is governed by Chapter 2 of the MATR, while the granting of rights to use, control or manage municipal capital assets is governed by Chapter 4 of the MATR.
In terms of Regulation 5(3) of the MATR relating to transfer and permanent disposal of municipal capital assets, and also Regulation 34(2) of the MATR relating to the granting of rights to use, control or manage municipal capital assets, Council must take into account a number of factors (highlighted in bold) when authorizing a public participation process, and it is herewith confirmed that
i. The valuation of the capital asset to be transferred or disposed and the capital asset where rights to use, control or manage will be granted, and the method of valuation used to determine that valuation
A valuation that estimates the market value of the properties to be disposed of and the properties or portions thereof where rights will be granted for use, control or management will be completed. It is however expected that due to the proposed extent of the development, the value of the portions to be permanently disposed of will exceed R50 million, while the portions where rights to use, control or manage are being considered are expected to be in excess of R10 million.
It is expected that a comparable sales method will be used. ii. The reason for the proposal to transfer or disposal of the capital asset and also the capital asset where rights to use, control, or manage will be granted
Council's services branches have confirmed that the asset is not required for own purposes. The precinct is not being optimally utilized although this is one of the most visited areas of the Cape Peninsula, Enclosed and safe parking is currently at a premium in this area and highly sought after. Reports of parking garages being sold for close to R1 million have been received recently,
A retail anchor tenant will draw clientele all-year-round and will help counteract the seasonality of former unsuccessful attempts to run restaurants/delis in the area.
The aging infrastructure currently located here (The Glen Country Club/La Med
Restaurant) and the currently leased parking garages needs ongoing maintenance and repairs, iii. Any expected benefits to the municipality that may result from the transfer/disposal or rights to use, control, or manage municipal capital assets
Council will receive a financial benefit in the form of the sales price as well as rates and taxes following the development of the properties, iv. Any expected proceeds to be received by the municipality from the transfer/disposal or granting of rights to use, control or manage municipal capital assets
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The City will receive the proceeds of the sale of certain properties and the letting of other properties while rates and taxes following from the development of the property will also accrue to the City. v. Any expected gain or loss that will be realized or incurred by the municipality arising from the transfer/disposal and granting of rights to use, control, or manage certain municipal capital assets.
Council will not make a loss, but will gain in receipt of fair market value, future rates and taxes, and will stimulate economic growth.
8.4. Staff Implications
Does your report impact on staff resources, budget, grading, remuneration, allowances, designation, job description, location or your organisational structure?
No
C8J
Yes
D
8.5. Other Services Consulted
The following services had been consulted regarding this project:
Property Management (Region) -- Wilson Baartman
Environmental Resource -- Ronelle Clark
Planning & Building Development -- Ben Schoeman
Spatial Planning -- Lorryn McVitly
Sport and Recreation a
Transport
Roads and Stormwater
Sports and Recreation
-- G. Bam (Tel. 400 5090)
-- Johan De Beer
-- Kenny Lewis
-- Sakhile Tsotsobe
Ongoing consultation will be entered into with the relevant service departments, during the public participation process.
ANNEXURES
Annexure A: Draft Conceptual Development Framework
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FOR FURTHER DETAILS CONTACT:
NAME
CONTACT NUMBERS
E-MAIL ADDRESS
DIRECTORATE
FILE REF No
SIGNATURE:
MANAGER: PROPERTY DEVELOPMENT
Neil Eybers
0214003605
Neil.eybers@capetown.gov.za
Finance
PROP HO _1A/3/3/2/5/167/A02
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Comment:
I\q>N4-
DI TOR: PROPERTY MANAGEMENT
MFS. Rl:Isy Gelderbloem /N. ~I>~.
EXECUTIVE DIRE
Mr. Kevin Jacob
: FINANCE
,., 0/ 0').
Comment:
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01'0
C-
REPORT COMPLIANT WITH THE
PROVISIONS OF COUNCIL'S
DELEGATIONS, POLICIES, By-LAws AND
ALL LEGISLATION RELATING TO THE
MAnER UNDER CONSIDERATION_
LEGAL Co
Name:
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...... .9.M4.\t\, .......... .
02.\) 400 2-7 5~
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NON-COMPLIANT
EXECUTIVE DIRECTOR: COMPLIANCE AND
AUXILIARY SERVICES (ED: CAS)
DATE
TO MAYOR
FOR o NWARV SUBMISSIO;{
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MAYCO rn /
COUNCIL
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II
___ C
C
NOT SUPPORTED
REFERRED BACK
COMMENT:
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MAYORAL COMMrffEE'MEMBER
Mr Ian Neilson
<10 /
I
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- COMMENT:
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I,
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ANNEXURE A
DRAFT CONCEPTUAL FRAMEWORK FOR CLIFTON GARAGE PRECINCT PROJECT
\
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