Subcouncil 6

Resolution detail

Subcouncil 6 recommended to Council the following:

1. That in terms of Section 14 of the Local Government Municipal Finance Management Act 56 of 2003, that the subject properties, being portions of Erven 8003 and 8006, Parow, situated at Jones and Fairbairn Streets, Parow East, in extent 68m² and 294m² on Plan TA 962v1 (Annexure A to the report), are not needed to provide the minimum level of basic municipal services and has considered the fair market value of the assets and the economic and community value to be received in exchange for the assets;
2. Council grants in-principle approval in terms of regulation 5(1)(b)(ii) of the Municipal Asset Transfer Regulations for the transfer of portions of Erven 8003 and 8006 Parow, situated at Jones and Fairbairn Streets, Parow East, in extent 68m² and 294m² respectively and as shown hatched and lettered ABCD and ADEFGHJ on Plan TA 962v1 (attached as Annexure A to the report);
3. Council, in terms of Section 4 of the City of Cape Town Immovable Property By-law, 2015 approve the closure of the subject properties being portions of a Public street, being portions of Erven 8003 and 8006 Parow, in extent approximately 68m² and 294m² respectively and as shown hatched and lettered ABCD and ADEFGHJ on Plan TA 962v1 (attached as Annexure A to the report); and
4. The transfer of portions of Erven 8003 and 8006 Parow, in extent approximately 68m² and 294m² respectively and as shown hatched and lettered ABCD and ADEFGHJ on Plan TA 962v1 (attached as Annexure A to the report) to Just Jasmine Investments 39 (Pty) Ltd, or their successor(s) in title, be approved, subject to the following conditions:

1.            A purchase price of R350 000, excluding VAT, will be payable;
2.         The purchase price is to be escalated by 8% per annum compounded annually on a pro-rata basis, commencing from date of valuation, i.e. from 1 August 2019, until date of registration;
3. The valuation is to be reviewed if not approved by the delegated authority within 18 months from the date of valuation, i.e. by 1 February 2021;
4. Occupational rent to the amount of R5 400 per month (excluding VAT) shall be payable as from 1 August 2019, escalating at 8,0% per annum, until date of registration;
5. Rates and municipal charges, if applicable, be levied; and
6. Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority, including inter alia the following:

1. All further statutory and land use requirements need to be complied with;

bb.  The subject portions of Erven 8003 and 8006 Parow need to be considered with the applicant’s Remainder Erven 8002 and 8005 Parow, which consolidation will be registered simultaneous with the registration of transfer; and
cc.       All costs related and incidental to the transaction shall be borne by the purchaser.