Subcouncil 16

Resolution detail

RESOLVED to recommend that:

a) Council resolve that, in terms of section 14 of the Local Government:
    Municipal Finance Management Act, Act 56 of 2003, the subject
    Property   being a portion of Remainder Erf 148343 Cape Town
     (Public Street),  situated at Cullinan Street, Cape Town, in extent
    approximately 657 m²   (over 5 floors, total extent of 3 285m²), shown
    by the hatched figure  lettered  ABCD, on the attached Plan
    130004260 (Annexure “A”) is not   required to  provide the minimum
    level of basic municipal services; and  has considered  PTMS076 SC
    report _v SOUTHERN SUN HOTEL  INTERESTS (PTY) LTD Page 4
    of 22  the fair market value of the asset and the economic and
    community value to  be received in exchange for the asset;

b) Council approve the granting of in-principle approval for the granting of
   rights  to use and control or manage municipal capital assets by way of  
   granting a building rights servitude under a portion Remainder Erf
   148343  Cape Town   (Public Street) situated on Cullinan Street, Cape
   Town, in   extent  approximately 657 m² (over 5 floors, total extent of 3
   285m²), shown   by the    hatched figure lettered ABCD, on the   
   attached Plan 130004260 as  Annexure A which represents 5
   basement levels, in terms of regulation  5(1)(b)(ii) of the Municipal
   Asset Transfer Regulations;


c) The granting of rights to use and control or manage municipal capital
    assets  by way of granting a building rights servitude over a portion of
    Remainder   Erf 148343 Cape Town (Public Street) situated on
    Cullinan   Street, Cape   Town, in extent approximately 657 m² (over 5
    floors, total   extent of 3285m²),   shown by the hatched figure lettered
    ABCD, on the  attached Plan   130004260 as Annexure A in favour of
    Erf 171452 Cape   Town to: Southern   Sun Hotel Interests (Pty) Ltd,
    or their successor(s) in title, be approved,  subject to the following
    conditions, that:
    
   i)  A compensation amount of R10 500 000, excluding VAT be
       payable;

   ii) The compensation amount is to escalate at 5% per annum
       compounded annually on a pro-rata basis commencing 6 months
       from date of valuation (i.e as from 1 April 2022) until date of
        registration;

  iii)  That the market value be reassessed if the transaction is not
         approved within 36 months from date of valuation, i.e. 30
         September 2024.

  iv)  The subject property to be used for parking purposes, i.e. 5
        levels of  underground parking with a maximum building
        envelope of 3  285m². Should the latter extent change, the
         value will change  accordingly.

v)  Rates and municipal charges, if applicable, be levied.

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:
 
     aa)  that all further statutory and land use requirements be
            complied with;
     bb)  that all costs related and incidental to the transaction
             be  borne