Subcouncil 2

Resolution detail

Patricia Van Sittert was present for the item.

It is recommended that the lease of portions of City owned land, being portions of Erven 16120, 16121, 29042 and Remainder of Erf 29041 Kraaifontein, situated at the corner of Sam Njokozela Avenue and Mgulwana Street, Bloekombos, shown hatched and lettered ABCD on the Plan No TA 676v1 and attached as Annexure A, in extent approximately 947 m², to Loyiso Seventh Day Adventist Church or its successors in title, be approved subject to inter alia the following conditions:

a) A market rental of R1 800,00 per month, inclusive of rates and excluding VAT, calculated at the rate applicable as the time of the transaction, be payable;
b) The monthly rental is to be adjusted on the basis of 8% per annum compounded annually on a pro rata basis commencing 2 months from date of this valuation. Accordingly, the above recommended rental is effective and payable as from 2019-10-01;
c) 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;
d) The lease will endure for a period of 10 years, and the rental to be reviewed after a 5-year period;
e) The above rental is exclusive of municipal services, i.e. water and electricity;
f) The property be used for church and soup kitchen purposes only;
g) Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority;
h) Subject to compliance with any other statutory requirements;
i)  The applicant will be responsible for the costs of all improvements, alterations or additions to the property;
j)  No compensation will be payable by the City of Cape Town for any improvements, alterations or additions made to the property by the applicant at the date of termination of the lease;
k) Approval of building plans will be required for the continuation of the utilization of the property as a place of worship;

ACTION: GERDA DU PLESSIS
INFORMATION: AMELIA VAN RHYN / SECRETARIAT