Subcouncil 16

Resolution detail

See item 16 SUB 39/06/16: Mr Saul Jacobs was present for this item. The valuation report was tabled. Cllr Ramsay referred to her email of 19 January to Mr Geysman and advised that she was still waiting for answers to the following questions: “Firstly, why is the property being divided into two parts i.e. one for sale (147m2), and the other for lease (48m2)? Wouldn’t it be better to sell the entire 195m2? Then I was quite interested in the comparative market analysis (CMA). The data is from 2010 to 2013 which is more than five years old. Also the pricing then was around R10,000/m2 but a price of R7,000/m2 was used instead to arrive at the valuation of R350,000. Surely even without a view this is quite a discount? Also I believe the values of properties in Bantry Bay have increased considerably in the last five years. So perhaps another CMA would be prudent? In terms of the escalation, I can’t help wondering with prime at 10.5% (since March 2016), why it is only set at 5%? This seems particularly low since, prime, repo and CPI are all above this figure. I appreciate that the City would like to sell this land, however it might set an unfortunate precedent if the price is too low?” After discussion, Subcouncil 16 agreed as follows: UNANIMOUSLY RESOLVED that the proposed closure of City-owned immovable property, portions of Erven 50 & 350, Bantry Bay (Public Street) situated on the corner of Ravine Road and Avenue Charmante, Bantry Bay BE DEFERRED: a) to receive a response to the questions raised by Cllr Ramsay b) to invite the valuer to the next Subcouncil meeting.