Subcouncil resolution details

Subcouncil 6

Agenda item no

06SUB 22/11/2020

Subject

PROPOSED CLOSURE AND TRANSFER OF PORTIONS OF REMAINDER ERVEN 10845 AND 10852 BELLVILLE TO THE CURRENT LESSEE: FRESHWORTHS CC (BELLVILLE MARKET)

Meeting date

Monday, November 16, 2020

Resolution

Recommend

Date closed

Monday, November 23, 2020

Resolution detail

RESOLVED

Subcouncil 6 supported and noted the report and recommended to Council the following:

Council resolve that, in terms of section 14 of the Local Government Municipal Finance Management Act 56 of 2003, that the subject properties, being portions of Remainder Erven 10845 and 10852 Bellville, situated at the corner of Tienie Meyer Road and Landros Street, in extent approximately 4 368 m² and as shown hatched and lettered ABCDE on Plan 1013v1 (Annexure “A” of the report), 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 portions of Remainder Erven 10845 and 10852 Bellville, in extent approximately 4 368 m² as shown hatched and lettered ABCDE on Plan 1013v1 (Annexure “A” of the report);

Council, in terms of section 4 of the City of Cape Town Immovable Property By-law, 2015, approve the closure of a Public Place, i.e. portions of Remainder Erven 10845 and 10852 Bellville, situated at the corner of Tienie Meyer Road and Landros Street, in extent approximately 4 368 m² and as shown hatched and lettered ABCDE on Plan 1013v1 (Annexure “A” of the report);

d)       That the transfer of Remainder Erven 10845 and 10852 Bellville, in extent approximately 4 368 m² as shown hatched and lettered ABCDE on Plan 1013v1 (Annexure “A” of the report) to Freshworths CC, or its successor(s) in title, be approved, subject to the following conditions, that:

i) A purchase price of R8 750 000.00, excluding VAT, will be payable;

ii) The purchase price is to be escalated by 5% per annum compounded annually on a pro-rata basis, commencing 6 months from date of valuation, i.e. from 1 April 2020, until date of registration;

iii)   The valuation is to be reviewed if not approved by the delegated authority within 18 months from date of valuation, i.e. by 1 April 2021;

iv) Rates and municipal charges, if applicable, be levied; and

v) 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)      Service servitudes in favour of the City be registered over the         underground services located within the subject properties;

bb)      All land use requirements must be complied with prior to registration of     transfer, including the consolidation of the two portions of land;

cc)      The gross lettable area (GLA) applicable to the extent of the entire         property being transferred, will be limited to 2000 m²;

dd)      That a first right of refusal, in favour of the City, be registered against           the title of the property to be transferred;

ee)      that the current lease agreement be terminated on the date of registration; and

ff)        All costs related and incidental to the transaction shall be borne by the      purchaser, including any development contributions payable.

e)       That the objection against the proposed transfer of the subject properties, as         submitted by Ndifuna Ukwazi, not be upheld.                      .