Subcouncil resolution details

Subcouncil 6

Agenda item no

06SUB 17/7/2020

Subject

PROPOSED LEASE OF PORTIONS OF CITY OWNED LAND, BEING ERF 2536, PORTION OR REMAINDER OF ERF 2534 AND ERF 2556 BELLVILLE, SITUATED OFF BELLBUSK CRESCENT, VREDENBERG, BELLVILLE FOR PARKING PURPOSES: THE FATHERS HOUSE CHRISTIAN FELLOWSHIP

Meeting date

Monday, July 20, 2020

Resolution

Recommend

Date closed

Monday, August 03, 2020

Resolution detail

Subcouncil 6 recommended to the Director: Property Management that the lease of portions of City owned land, being Erf 2536, a portion or the Remainder of Erf 2534 and Erf 2556 Bellville, situated off Bellbusk Crescent, Vredenberg, Bellvile, shown hatched and lettered ABCDEFGHJKLMNOPQ on the attached Plan No TA 841v0 and marked Annexure A to the report, in extent approximately 4 340 m², to The Fathers House Christian Fellowship, owner of adjacent Erf 40304 Bellville or its successors in title, be approved subject to inter alia the following conditions:

A market rental of R6 000,00 per month, inclusive of rates and excluding VAT, calculated at the rate applicable as the time of the transaction, be payable;

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 to as from 2018-08-01;

The escalation rate of 8% per annum was reduced to 5% 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;

The lease will endure for a period of 10 years;

The property be used for parking purposes only;

Subject to such 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.

As the property is a Public Open Space, the leased property must remain accessible to the public at all times. This will imply that, even though the property is fenced, the gate which provides access thereto must remain open at all times in such a manner that the impression may not be created that the property is privately owned and not so accessible;

Should the conditions set out in paragraphs 5(e) and 5(i) not be diligently adhered to by the applicant, then it will be necessary for the applicant to submit a rezoning application at the cost of the applicant;

The applicant must submit an Open Source wayleave application to Telkom in respect of their services situated on the property;

The conditions set out in Annexure D to this report and as required by the Electricity Department of the City will be included as an annexure to the special conditions of the lease agreement between the City of Cape Town and the applicant, should the lease be approved by the delegated authority.

FOR INFORMATION: GERDA DU PLESSIS