BOTSHABELO
TOWARD GREATER SELF-DEPENDENCE
PRESENTED BY:
DIANE ABRAHAMS
GM: ECONOMIC DEVELOPMENT
MANGAUNG LOCAL MUNICIPALITY
SOUTH AFRICA
PREPARED BY:
DERRICK LANARDO WOODY
COORDINATOR – GREAT STREETS INITIATIVE
GOVERNMENT OF THE DISTRICT OF COLUMBIA
WASHINGTON, DC, USA
April 2006
N8 DEVELOPMENT CORRIDOR
BOTSHABELO
BLOEMFONTEIN
N8 DEVELOPMENT CORRIDOR
• A development spine stretching from Bloemfontein CBD
through Botshabelo to Thaba Nchu
• Activity nodes identified along the corridor
• Aim is to upgrade infrastructure and intensify economic
activities along the N8
• Botshabelo Industrial area one of the priority nodes along
the corridor
• Focus for the ICMA consultant was on planning for the
Botshabelo Industrial area in the broader context of the
N8 Corridor
N8 DEVELOPMENT CORRIDOR
PARTNERSHIP
• Partners Involved
N8 Corridor Steering Committee:
Development Bank of Southern Africa (DBSA)
South African National Roads Agency (SANRAL)
Airports Company South Africa (ACSA)
Interstate Buslines (IBL)
Private Developers
Financial Institution
Transnet
Bloemfontein Chamber of Commerce & Industry
Government officials from:
Mangaung Local Municipality
Motheo District Municipality
Free State Provincial Government
DBSA and MLM are co-funding this plan.
BOTSHABELO INDUSTRIAL
AREA
• Botshabelo means “A Place of Refugee”
• Settled in 1978 after non-Tswana speaking were
forcefully removed by the Bophuthatswana Government
• Located 50 km east from the Bloemfontein CBD along
the N8 Corridor - which links the Municipality to Lesotho
• Population estimate ± 180,000
• Reportedly the largest township in the Free State
• Continues to grow in population, land area, public
infrastructure needs and need for jobs
ABOUT BOTSHABELO (2)
• Large under-utilised industrial complex in Botshabelo
• Factories owned by the Free State Development
Corporation (FDC)
• Botshabelo industrial complex contains 150 factories
which employ more than 12,000 in textile, plastics and
other forms of manufacturing
• Most residents are employed in Bloemfontein and
commute daily via bus or taxi
• Large portion of Botshabelo residents are employed in
the informal economy
• Contains significant unused or underused public owned
land in Botshabelo and along the N8 Corridor
ACTION PLAN
• PROBLEM STATEMENT:
Botshabelo unemployment is high and the
area’s housing supply, public facilities and
infrastructure (i.e. roads, sewage and water
removal, open spaces and recreation facilities,
schools, libraries, police substation facilities,
etc.) are in poor condition and act as a
deterrent to private investment which would
assist assist residents in becoming more selfdependent.
• GOAL:
To leverage improvements and economic
growth for the Botshabelo area (in the context of
overall N8 Corridor planning) using innovative
public+private tools to create jobs, public
infrastructure improvements and new and
rehabilitated housing and retail opportunities.
PROPOSED TOOLS (1)
1. ESTABLISHING A COMPELLING VISION
• What is the “BIG IDEA” for redevelopment along the N8
Corridor?
• Structure the vision
– As an asset and market-based tool;
– Guide for private investors in which strategic public
actions are clearly outlined and then successfully
implemented
– Private investment opportunities are amplified and
dissected
PROPOSED TOOLS (1)
• Make traditional economic analysis more proactively
oriented towards realizing private investment sooner by
asking:
At what zoning allowances and minimal public
infrastructure investments will private investors find
opportunities sooner and at which zoning
allowances might the private sector be willing to
fund and construct infrastructure improvements?
• Implement all public sector recommendations after plan
approved by the Councillors, especially zoning
• Market the plan! Be realistic about results.
TOOLS (2)
2. LEVERAGING A GOVERNMENT ACTION
• Zoning … Zoning … Zoning!!!
… perceived as confusing and complicating bureaucracy, but
… conveys private and public property value,
… determines what can and can not be done and other conditions,
… is controlled entirely by the Municipality,
… is a grossly underutilized yet powerful tool and incentive, and
… can leverage public benefits when very carefully structured.
• These benefits can flow to Botshabelo and help to bring
about improvements and opportunities.
TOOLS (2) cont…
• Planned Unit Development (PUD)
N8 Corridor rezoning to provide an incentive for private developers to
seek significant return on their investments by applying for PUD
approval from the Municipality.
In exchange for bonus density, the Municipality asks for a reasonable
combination of:
Employment & training opportunities for targeted populations;
Affordable housing funding & production;
Social services/public facilities maintenance or upgrades;
Preservation & maintenance of open space;
Transportation & infrastructure improvements or resources; and
Non-negotiable, superior project outcomes in urban design,
architecture, landscaping; site planning & efficient land usage;
environmental benefits; and effective & safe pedestrian & vehicular
access.
TOOLS (2) cont..
• Land Disposal
Roughly 1/3 of the land abutting the N8 Corridor is under public
control.
Disposal of that public land should result in the highest project
outcomes to set the example for development of all other property
which is to be developed on the N8 Corridor and in Botshabelo.
Disposal should also trigger required compliance with production of
public benefits such as employment & training opportunities for
targeted populations; affordable housing funding & production; and
transportation & infrastructure improvements.
TOOLS (3)
3. PROCUREMENT & OTHER ACTIONS
• Develop a Mangaung First Source Hiring Agreement which will be
agreed to and strictly adhered to by anyone requesting public
financial assistance, zoning allowances, land disposition, construction
or contracts equaling a minimum amount or more. The developer
must hire local and/or targeted residents at a minimum percent of
jobs created by the public action and planned private development.
• Establish a citywide Housing Production Trust Fund (HPTF) which
receives continual revenues from a dedicated funding source(s), such
as taxes, fees, or loan repayments to the Municipality particularly
from real estate transactions. Use revenues generated to fund
competitive rehabilitation of existing residential structures in
Botshabelo and construction of moderate to higher income (note that
use was not necessarily “high income”) housing. Require
employment of targeted residents for 35 to 50% of all construction
jobs.
TOOLS (4)
4. LINKING PRIVATE INVESTMENTS TO BOTSHABELO
NEEDS
• Use existing Restructuring Grant to develop a Botshabelo industrial
sector attraction, retention and expansion strategy (within broader
N8 plan) and a Botshabelo Phased Public Facilities &
Infrastructure Improvement Strategy and require private funding
and construction of the Strategy when N8 public owned land
disposed; require training & employment of Botshabelo residents
• Leverage bonus zoning requests citywide through a Planned Unit
Development process which requires developers to provide public
benefits (payments into an affordable housing pool, construction of
public facilities & infrastructure in less advantaged areas, etc.) in
exchange for the added value to their property and target
improvements to places including and like Botshabelo
IMPLEMENTATION VEHICLE
• Public and private actions to develop the N8 Corridor over the 50km
between the CBD and Botshabelo will require extensive
coordination at many different levels, akin to private sector
timelines and over several decades.
• Evolve the Steering Committee into an full-fledge quasi-public N8
Corridor Redevelopment Authority (N8-CRA)
– with a Board of Directors to act across Mayoral terms, municipal
and national agencies and
– as a private sector development agent in the acquisition,
disposition, development and oversight of N8 Corridor actions
and investments which should lead to economic growth,
investment attraction, job creation, infrastructure development,
public facilities and open space planning and development,
design review, development financing, local business
development, etc.
NEXT STEPS FOR MANGAUNG
• Integrate ICMA recommendations and tools into final N8
Corridor Planning & Implementation Framework
• Internal discussions around establishment of
development agency for implementation of specific EDS
projects
• Marketing and investment brokerage for N8
• Source funding and appropriate budgeting for
infrastructure upgrade along N8 Corridor
THANK YOU