Subcouncil resolution details
Agenda item no
PROPOSED GRANTING OF RIGHTS TO USE, CONTROL OR MANAGE (LEASE) PORTION OF REMAINDER ERF3790 KHAYELITSHA, SITUATED AT 29 TANGA STREET, EYETHU KHAYELITSHA FOR THE RELOCATION OF A FREE ANIMAL WELFARE VETINARY CLINIC
Monday, August 22, 2022
Monday, September 12, 2022
The Subcouncil is in SUPPORT of the proposed granting of Rights To Use, control or manage (lease) portion of remainder ERF3790 KHAYELITSHA, situated at 29 Tanga Street, Eyethu Khayelitsha for the relocation of a free Animal Welfare Veterinary Clinic. .
It is recommended that:
a) In terms of the provisions of Regulation 36(a) of the Municipal Asset Transfer
Regulations, R.878, promulgated on 22 August 2008 (MATR), the portion of
remainder Erf 3790 Khayelitsha, situated at 29 Tanga Street, Eyethu,
Khayelitsha, approximately 3 152.39m² in extent and zoned Community 2, be
regarded as not being required for the municipality’s own use during the
period for which the right is to be granted.
b) The Director: Property Management resolve in terms of Regulation 36(b) of the MATR, that in making the determination in 7(a), She has taken into account the extent to which any compensation to be received for the right together with the estimated value of any improvements or enhancements to be made to the property described in 7(a) will result in a significant economic or social benefit to the municipality;
c) In terms of the provisions of Regulation 34(1)(b) of the MATR, the Director: Property Management grants in principle approval for the right to use, control or manage, via a report to the City Manager for a deviation from a competitive process, land being a portion of remainder Erf 3790 in Khayelitsha, approximately 3 152.39m² in extent and zoned Community 2, subject to inter alia the following conditions:
i) A tariff rental of R1039.13 per annum, excluding VAT of 15% where applicable, being R155.87 (in total – R1195.00 as amended annually), escalating in terms of the annual tariff structure for the period of the proposed lease will be payable;
ii) The lease will endure for a period of five (5) years with a renewal option of a further five (5) years, subject to the property not being required for municipal purposes;
iii) Rates and Municipal charges, if applicable, be levied;
iv) The property will be used to run an animal welfare clinic and related activities only;
v) The Lessee will be responsible for the upgrading and maintenance of the property to acceptable standards;
vi) Any alterations to any municipal services necessary as a consequence of the proposal or requested by the Lessee will carried out at the Lessee’s cost;
vii) Any improvements or upgrades to the site requested by the Lessee to fulfil its purpose will be carried out at the Lessee’s cost;
viii) The Lessee will be liable for any damage caused to the property;
ix) The Lessee will be responsible and liable for the safety of all people who will be utilising the property during the lease period;
x) Council will not be held responsible for any damage to or loss of the property of the Lessee, including that of other users;
xi) Should the property be required for municipal purposes at the end of the Lease Period, the Lessee will be responsible for the rehabilitation of the site to an acceptable standard (which standard should be agreed upon between Community Services and Health and the Lessee prior to the finalisation of the Lease Agreement);
xii) Subject to compliance with any other statutory requirements; and
xiii) Subject to such further conditions to be imposed by the Director: Property Management in terms of his/her delegated authority.
d) Any gain or loss incurred by the municipality in respect of the lease of the asset described in 7(a) be included in the adjustment budget of the municipality (sections 28 and 87 of the Municipal Finance Management Act, Act 56 of 2003), if not budgeted for in the approved annual budget. .