Subcouncil 2

Resolution detail

RESOLVED by Subcouncil 2 unanimously to recommend that

a)Council resolve that, in terms of section 14 of the Local Government Municipal Finance Management Act 56 of 2003, that the subject properties, being Portions of Remainder Erf 2908 and Erf 4463 Kraaifontein, situated between Voortrekker Road and Second Avenue, in extent approximately 725 m² as shown hatched and lettered ABCDE on Plan TA 859v0 (Annexure “A”), 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-principle approval in terms of regulation 5(1)(b)(ii) of the Municipal Asset Transfer Regulations for the transfer of Portions of Remainder Erf 2908 and Erf 4463 Kraaifontein, situated between Voortrekker Road and Second Avenue, in extent approximately 725 m² as shown hatched and lettered ABCDE on Plan TA 859v0 (Annexure “A”);

c) Council, in terms of section 4 of the City of Cape Town

 Immovable Property By-law, 2015, approve the closure of the subject property being a portion of a Public Road, being Portions of Remainder Erf 2908 and Erf 4463 Kraaifontein, in extent approximately 725 m² as shown hatched and lettered ABCDE on Plan TA 859v0 (Annexure “A”);

d) That the transfer of Portions of Remainder Erf 2908 and Erf 4463 Kraaifontein, situated between Voortrekker Road and Second Avenue, in extent approximately 725 m² as shown hatched and lettered ABCDE on Plan TA 859v0 (Annexure “A”) to The GM Trust, or their successor(s) in title, be approved, subject to the following conditions, that:

 

1. A purchase price of R690 000 excluding VAT be payable;

 

2. The purchase price is to be escalated by 8% per annum compounded annually on a pro-rata basis, commencing from date of valuation, i.e. from 1 February 2019 until 30 March 2020, and at 5% per annum from 1 April 2020 until date of registration;

 

3. The valuation is to be reviewed if not implemented within 24 months from date of valuation, i.e. by 2021-02-01;

 

4. An occupational rental of R5 200 per month (exclusive of VAT), escalating at 8% per annum as from 2019-02-01 until 30 March 2020, and at 5% per annum from 1 April 2020 until date of registration, shall be payable;

 

5. Rates and municipal charges, if applicable, be levied;

 

6. Subject to such further conditions to be imposed by the Director: Property Management in terms of her delegated authority, including inter alia the following:

 
aa)       that all further statutory and land use requirements be complied with;
 
bb)       a service servitude will need to be registered over the sewer line traversing Portion of Remainder Erf 2908 Kraaifontein;
 
cc)       Portions of Remainder Erf 2908 and Erf 4463 Kraaifontein needs to be consolidated with Erf 11436 Kraaifontein;
 
dd)       that all costs related and incidental to the transaction be borne by the purchaser.
 
ACTION:  PIETER STUMPHER 
INFORMATION: (i) AMELIA VAN RHYN (ii) SECRETARIAT