Subcouncil resolution details

Subcouncil 24

Agenda item no

24SUB 11/7/2021

Subject

GRANTING OF IN PRINCIPLE APPROVAL FOR PROPOSED LEASE OF CITY LAND BEING A PORTION OF REMAINDER STELLENBOSCH FARM 794 AND PORTION OF PUBLIC STREET ERF 20036 SOMERSET WEST, SITUATED AT W.R. QUINAN BOULEVARD PAARDEVLEI SOMERSET WEST: CAPE POINT FILM STUDIOS (PTY) LTD PROPOSED LEASE OF CITY LAND BEING A PORTION OF REMAINDER STELLENBOSCH FARM 794 AND PORTION OF PUBLIC STREET ERF 20036 SOMERSET WEST, SITUATED AT W.R. QUINAN BOULEVARD PAARDEVLEI SOMERSET WEST: CAPE POINT FILM STUDIOS (PTY) LTD

Meeting date

Thursday, July 22, 2021

Resolution

Recommend

Date closed

Friday, July 23, 2021

Resolution detail

RESOLVED

Subcouncil 24 supports the recommendation:

Not delegated: for decision by Council

It is recommended that:

Council grants in principle approval of the lease of portion of Remainder Stellenbosch Farm 794 and portion of public street erf 20036 Somerset West, situated at W.R. Quinan Boulevard, Paardevlei, Somerset West in extent 4,330 hectares, shown lettered ABCDEFGHJKLMNP on the attached sketch EZ 123 marked annexure A, to Cape Point Film Studios (Pty) Ltd or its successors in title, in terms of Regulation 34(1)(b), and that

Council approves the lease of portion of Remainder Stellenbosch Farm 794 and portion of public street erf 20036 Somerset West, situated at W.R. Quinan Boulevard, Paardevlei, Somerset West in extent 4,330 hectares, shown lettered ABCDEFGHJKLMNP on the attached sketch EZ 123 marked annexure A, to Cape Point Film Studios (Pty) Ltd or its successors in title, subject to inter alia the following conditions, that:

A market rental of R179 000 per month exclusive of rates and VAT be payable for the portion of remainder of ST 794-0, Paardevlei, Somerset West, measuring approximately 3,3480 hectares; and that the portion measuring approximately 9 860m²for an amount of R18 100 per month exclusive of rates and VAT, escalating at 7% per annum compounded annually commencing from date of valuation i.e. 2020-03-31 and payable upon occupation and use of the treed area;

The monthly rental is to be adjusted as per the 30-year – the applicant and the City of Cape Town;

The lease term is for a period of thirty (30) years subject to a review every 10 years on land only. Rental shortfall during each preceding 10-year period is to be carried forward into the remaining period of the lease, subject to a rental review after ten years;

The property be used for film studios and any other ancillary related purposes only;

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

Subject to compliance with any other statutory requirements;

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

Action: Raafiq Kolia
Cc: Donovan Geysman