City Makes Good Progress with Sale of Municipal Property to Stimulate Economic Development

The City of Cape Town is, for the first time, disposing of municipal properties by way of a programme aimed at stimulating economic development. Viable City properties no longer required for municipal purposes are being identified, investigated and then prioritised for disposal to the public by means of a tender process.

According to Councillor Simon Grindrod, the Mayoral Committee Member for Economic, Social Development and Tourism: "Properties that support the City's strategic objectives of infrastructure led economic growth and job creation have been identified by the City's Property Management Department and prioritized. One of the key criteria is that the properties have a positive economic impact on areas where economic growth is much needed, especially the previously marginalised areas."

Ruby Gelderbloem, Director: Property Management, says: - "I am confident that the properties identified as part of our newly established Property Disposal Programme will be processed efficiently over the next few months. This is a first for the City and we will be monitoring the market's response closely. The properties identified have the correct zoning for a combination of residential and commercial developments and there is a balance of economic and social development opportunities."

According to Mansoor Mohamed, Executive Director: Economic, Social Development and Tourism: "I have asked that all the tender documents have anti-land banking clauses inserted to prevent speculators from acquiring those proper ties and land banking it, thereby sterilizing economic development. Applicants that demonstrate the commitment to develop the properties to achieve economic progress for the residents of Cape Town will be considered favourably."

Since the introduction of the program earlier this year, the City released four tenders which included:

• 25 Industrial properties at Atlantis. Of the 25 properties that were on tender, the City awarded 16 properties to industrialists and has thus far concluded seven sale agreements. In assessing and evaluating these tenders, the City took precautions to eliminate speculation on these properties.
• Three residential properties were placed on tender in Gugulethu. A total of 48 tenders were received and these tenders are currently being evaluated.
• A tender for the sale of 41 residential properties in Robinvale closed two weeks ago and these tenders, which were aimed at both individuals as well as small developers/ contractors, are currently being evaluated. More than 100 tender responses were received for this tender.

A tender for the sale/lease of land adjacent to the Velodrome in Bellville, is currently available from the tender office. As a prerequisite for the purchase/lease and development of this vacant land, the City requires a commitment from the tenderer to upgrade and manage the current Council facilities (Velodrome and Bellville stadium) located on this property.

Tenders for the sale of properties in Athlone (residential), Gugulethu (business), Delft (mix-used), Philippi (business) and Cape Town central (business) and Melkbos (mix-use) are currently being prepared for release in the near future. Please refer to the City's website for further details: - http://www.capetown.gov.za/tenders/

Issued by:
Communication
City of Cape Town
Tel: 021 400 2201