Subcouncil resolution details
Subcouncil 18
Agenda item no
18SUB 24/11/2019
Subject
PROPOSED GRANTING OF IN-PRINCIPLE APPROVAL FOR THE LEASE OF UNREGISTERED REMAINDER ERF 130584,STEENBERG WILL BE CIRCULATED SEPARATELY
Meeting date
Thursday, November 21, 2019
Resolution
Recommend
Date closed
Wednesday, November 27, 2019
Resolution detail
RESOLVED
Delegated: for decision by the Director: Property Management
That Subcouncil 18 SUPPORTS :
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In terms of the provisions of Regulation 36 (a) of the Municipal Asset Transfer Regulations (R.878– promulgated on 22/08/2008), the vacant unregistered Remainder Erf 130584, Steenberg, situated in Sullivan Road, approximately 12 921m² in extent and zoned Open Space 2, be regarded as not being required for the municipality’s own use during the period for which the right is to be granted;
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The Director: Property Management in terms of Regulation 36 (b) of the Municipal Asset Transfer Regulations (R.878– promulgated on 22/08/2008), in making the determination in 7(a), has taken into account the extent to which any compensation to be received for the right together with the estimated value of any improvements or enhancements to be made to the property described in 7(a) will result in a significant economic or financial benefit to the municipality;
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In terms of the provisions of Regulation 34 (b) of the Municipal Asset Transfer Regulations (R.878– promulgated on 22/08/2008) the Director: Property Management grants in principle approval for the right to use, control or manage by way of public competition (call for alternative proposals), land being the unregistered Remainder Erf 130584, Steenberg, situated in Sullivan Road, approximately 12 921m² in extent and zoned Open Space 2, subject to inter alia the following conditions:
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A tariff rental of R920.00 per annum, excluding VAT of 15% where applicable, being R138.00 (in total – R1 058.00 as amended annually), escalating in terms of the annual tariff structure for the period of the proposed lease a will be payable;
ii) The lease will endure for a period of two (2) years and eleven (11) months with a renewal option, subject to the property not being required for municipal purposes at the end of the lease period;
iii)The tariff rental will increase in terms of the annual tariff structure, approved by Council;
iv) Rates and municipal charges, if applicable, be levied;
v) The property will be used for the development of a family centre for
gender-based violence only including related facilities/activities;
vi) The lessee will be responsible for the upgrading and maintenance of
the property to acceptable standard;
vii) any alterations to any municipal services necessary as a consequence of the proposal or requested by the lessee will be carried out at the lessee’s cost;
viii )any improvements or upgrades to the site requested by the lessee tofulfil its purpose will be carried out at the lessee’s cost;
ix) The lessee will be liable for any damage caused to the property;
x) The lessee will be responsible and liable for the safety of all people who will be utilising the property during the lease period;
xi) Council will not be held responsible for any damage to or loss of the property of the lessee including that of other users;
xii) Should the property be required for municipal purposes at the end of the lease period, the lessee will be responsible for the rehabilitation of the site to an acceptable standard (standard should be agreed upon between Parks and Recreation and the lessee prior to the finalisation of the lease);
xiii) Subject to compliance with any other statutory requirements; and
xiv) Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority.
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Any gain or loss incurred by the municipality in respect of the lease of the asset described in 6 (a) be included in the adjustment budget of the municipality (sections 28 and 87 of the Municipal Finance Management Act, Act 56 of 2003), if not budgeted for in the approved annual budget.