Subcouncil resolution details

Subcouncil 10

Agenda item no

10SUB 14/3/2020

Subject

PROPOSED LEASE BY WAY OF A COMPETITIVE PROCESS (CALL FOR ALTERNATIVES), PORTION OF ERF 1196 SITUATED IN MAKABENI ROAD, KHAYELITSHA FOR THE DEVELOPMENT OF EX-PRISONERS’ REHABILITATION CENTRE

Meeting date

Monday, March 16, 2020

Resolution

Approved

Date closed

Wednesday, June 10, 2020

Resolution detail

That subcouncil 10 SUPPORTS the proposed lease by way of a competitive process (call for alternatives), portion of erf 1196 situated in Makabeni Road, Khayelitsha for the development of ex-prisoners’ rehabilitation centre

a) In terms of the provisions of Regulation 36 (a) of the Municipal Asset Transfer
     Regulations (R.878- promulgated on 22/08/2008), the subject portion of Erf 1196
     in Khayelitsha, bound by Silumko Street (south), Makabeni Road (north),
     residential properties including a school (east) and Monza Street (west),
     approximately 400 m2 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;

b) 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 properly described in 7 (a) will
    result in a significant economic or financial benefit to the municipality.

c) 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 public competition (call for alternative proposals), land being a portion of
     Erf 1196 in Khayelitsha, bound by Silumko Street (south), Makabeni Road (north),
     residential properties including a school (east) and Monza Street (west),
     approximately 400 m2 in extent and zoned Open Space 2, subject to inter alia the
     following conditions:

    i) 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 five (5) years with a renewal option of a
        further 5 years, 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 centre for rehabilitation
          of ex-prisoners including related 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 consequences 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 to fulfill 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 utilizing 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);

xii) 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.

d) 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.
                 .

Action: T Madikane; S Makhuleni