Subcouncil 3

Resolution detail

It was recommended that the lease of a portion of City owned land, being a portion of Erf 3522 Milnerton, situated at the corner of Wood Drive and North Road, Milnerton, shown hatched and lettered ABCD on the attached Plan No TA 865v1 and marked Annexure A, in extent approximately 74 m², to Lexprof CC, owner of adjacent Erf 18942 Milnerton or its successors in title, be approved subject to inter alia the following conditions:
 

1. A market rental of R1 750,00 per month, inclusive of rates and excluding VAT, calculated at the rate applicable as the time of the transaction, be payable;

2. The monthly rental is to be adjusted on the basis of 8% per annum compounded annually for the period 2018-11-01 until 2020-03-31;

3. After 2020-03-31 the monthly rental shall further escalate at 6% per annum compounded on a pro rata basis. The escalation rate of 8% per annum was reduced to 6% per annum as from 01-04-2020 on account of the Coronavirus and the resultant economic fallout which has dampened growth prospects for the property market;

4. Occupational rental of R1 750 (inclusive of rates and exclusive of VAT) per month shall be payable as from 2018-11-01, escalating at 8% per annum, until 2020-03-31. Thereafter the escalated rental will be payable escalating at 6% per annum until date the lease contract has been signed by Council.

5. The lease will endure for a period of 10 years;

6. The property be used for parking purposes only;

7. Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority;

8. Subject to compliance with any other statutory requirements;

1. No compensation will be payable for any improvement made to the property;

10. Before the land is rezoned or to be built upon with the present zoning, capacity for servicing it for particular development must be confirmed with the Department of Water and Sanitation, at which time any conditions of development can be imposed;

11. No construction may be undertaken on the subject property without first obtaining consent from Eskom;

12. In the event that any existing services must be relocated, this will be done at the cost of the applicant and written consent must be obtained from the relevant service department or Eskom, depending on the nature of the service to be relocated.