Subcouncil 19

Resolution detail

RECOMMENDED that,

(a) Council resolve that, in terms of section 14 of the Local Government: Municipal Finance Management Act, Act 56 of 2003, that a portion of erf 5276 Simon’s Town, to be encumbered by the services and access servitude in perpetuity, in extent approximately 42 m², as shown lettered EBF on diagram SG No. 2770/2017 (Annexure “A”), not be required 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 approve the granting of in-principle approval in terms of regulation 5(1)(b)(ii) of the Municipal Asset Transfer Regulations for the granting of rights to use and control or manage a municipal capital asset by way of a services and access servitude right in perpetuity, over a portion of erf 5276 Simon’s Town, in extent approximately 42 m², as shown lettered EBF on diagram SG No.
2770/2017 (Annexure “A”);
(c) The granting of a services and access servitude right in perpetuity, over a portion of Erf 5276 Simon’s Town, in extent approximately 42 m², as shown lettered EBF on diagram SG No. 2770/2017 (Annexure “A”), to Cubisol Investments 3 (Pty) Ltd, or their successor(s) in title, be approved subject inter alia to the following conditions, that:
 

1. A servitude consideration of R100 000, exclusive of Vat at 15% being R15 000 (in total 115 000) plus costs be payable;
2. The servitude consideration shall escalate at 8% per annum compounded annually on a pro rata basis commencing from date of valuation (i.e. from 2019- 08-01) until 2020-03-31. The escalated servitude consideration from 2020-04-01 will escalate at 5% per annum until date of registration;  
    
3. The market value is to be reassessed if the transaction is not approved by the relevant decision making authority of Council within 18 months from date of valuation (i.e by 2021-02-01);       
4. Occupational rental in an amount of R750 per month (excluding Vat) escalating at 8 % per annum with effect from 2019-08-01 be charged in lieu of rental until 2020-03-31. The escalated occupational rental from 2020-04-01 will escalate at

              6% per annum until date of registration;

5. Subject to such further conditions to be imposed by the Director: Property Management in the exercise of her delegated authority:

 
(aa) Any alterations or deviations to existing electricity services necessary as a consequence of the proposal, or requested by the applicant will be carried out at the applicant’s costs
 
(bb) Subject to compliance with any other statutory requirements;
 
(cc) All costs related to the transaction be borne by the applicant;
 
ACTION: SECRETERIAT