Subcouncil 21

Resolution detail

RECOMMENDED that a) Council resolve that, in terms of section 14 of the Local Government Municipal Finance Management Act 56 of 2003, that the subject property, of Erf 7726 Mfuleni, situated off Saxdowns Road and Nqubelani Street, Mfuleni, in extent approximately 824 m² as shown lettered ABCD on Plan 617/1 (annexure A to the report), is not needed 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 grants in-principal approval in terms of regulation 5(1)(b)(ii) of the Municipal Asset Transfer Regulations for the transfer of Erf 7726 Mfuleni, situated off Saxdowns Road and Nqubelani Street, Mfuleni in extent approximately 824 m² as shown lettered ABCD on Plan 617/1 (annexure A to the report); c) The transfer of Erf 7726 Mfuleni, in extent approximately 824 m² as shown lettered ABCD on Plan 617/1 (annexure A) to Mzamomhle Educare Center, or its successor(s) in title, be approved, subject to the following conditions, that: i) Erf 7726 Mfuleni be subdivided at the cost of the purchaser; ii) A 6.0m servitude in favour of the City of Cape Town be registered over the services traversing the property; iii) A purchase price of R62 500.00 excluding VAT be payable; iv) The purchase price is to be escalated by 6% per annum compounded annually on a pro-rata basis, commencing 6 months from date of valuation, i.e. from 01-03-2018, until date of registration; v) The valuation is to be reviewed if not implemented within 18 months from date of valuation, i.e. by 01-03-2019; vi) Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority, including inter alia the following, that: aa) all rates and municipal charges, if applicable be levied; bb) a reversionary clause in favour of the City of Cape Town be registered against the title of the property that the land can only be used for community/social care purposes and that the property be sold to the City should the applicant cease to exist or no longer provide public or community services; cc) all costs related and incidental to the transaction be borne by the purchaser; d) It be confirmed that, when considering the transfer of the land at less than market value, as provided for in terms of Clause 15.3 of Council’s Policy on the Management of Certain of the City of Cape Town’s Immovable Property, the contents of Regulation 13(2) of the MATR has been duly taken into consideration. ACTION: ANNEKE KLUE / JANINE CORNELIUS