Subcouncil 3

Resolution detail

a)Council resolve that, in terms of section 14 of the Local Government Municipal Finance Management Act 56 of 2003, that the subject property, being portion of Erf 7094 Montague Gardens, situated off Beverly Close, in extent 1 226 m² and as shown hatched and lettered ABCDEFGHJKLM on Plan TA 930v1 (Annexure “A”), is not needed to provide the minimum level of basic municipal services and has considered the fair market value of the asset and the economic and community value to be received in exchange for the asset;

b)Council grants in-principle approval in terms of regulation 5(1)(b)(ii) of the Municipal Asset Transfer Regulations for the transfer of portion of Erf 7094 Montague Gardens, situated off Beverly Close, in extent 1 226 m² and as shown hatched and lettered ABCDEFGHJKLM on Plan TA 930v1 (Annexure “A”);

c)Council, in terms of section 4 of the City of Cape Town Immovable Property By-law, 2015, approve the closure of the subject property being a portion of a Public Place, being a Portion of Erf 7094 Montague Gardens, in extent approximately 1 226 m² and as shown hatched and lettered ABCDEFGHJKLM on Plan TA 930v1 (Annexure “A”);

d)That the transfer of portion of Erf 7094 Montague Gardens, in extent approximately 1 226 m² and as shown hatched and lettered ABCDEFGHJKLM on Plan TA 930v1 (Annexure “A”) to RMI Property Company (Pty) Ltd, or their successor(s) in title, be approved, subject to the following conditions, that:

 

1. A purchase price of R1 200 000, excluding VAT, be payable;

 

2. The purchase price is to be escalated by 8% per annum compounded annually on a pro-rata basis, commencing 6 months after date of valuation, i.e. from 1 October 2019, until date of registration;

 

3. The valuation is to be reviewed if not approved by the delegated authority within 18 months from date of valuation, i.e. by 1 October 2020;

 

4. Rates and municipal charges, if applicable, be levied; and

 

5. Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority, including inter alia the following:

 
aa) That all further statutory and land use requirements be complied with;
 
bb) The subject property is to be notorially tied to Erf 2455 Montague Gardens and the usage restricted to access purposes only;
 
cc)  The full extent of the property be registered as a service servitude in favour of the City of Cape Town to protect the municipal services that traverse the subject property;
 
dd) An access servitude be registered over the subject property in favour of Erf 4585 Montague Gardens; and
 
ee) that all costs related and incidental to the transaction be borne by the purchaser.