Subcouncil resolution details

Subcouncil 6

Agenda item no

06SUB 18/3/2024

Subject

PROPOSED LEASE OF A PORTION OF CITY LAND BEING A PORTION OF ERVEN 12644 AND 12648 BELLVILLE, SITUATED AT SACKSON STREET, SAXON INDUSTRIAL , BELLVILLE: NORTHLINK COLLEGE FOR SECURITY AND PARKING PURPOSES

Meeting date

Monday, March 18, 2024

Resolution

Recommend

Date closed

Tuesday, April 02, 2024

Resolution detail

Subcouncil 6 SUPPORTED and NOTED the report and recommended to the Council the lease of a portion City Land, being a portion of Erven
12644 & 12648 Bellville, situated at Sackson Street, Saxon Industrial, Bellville
shown hatched and lettered ABCDE on the attached plan TA 934v1 marked
annexure A to the report, in extent approximately 13 518m², to Northlink College, or its successor in title, be approved subject, to inter alia the following conditions, that:

a) A market rental of R12 500 per month inclusive of rates and excluding
    VAT calculated at the rate applicable at the time of transaction be payable;
    subject to the following conditions:

I. The monthly rental is to be adjusted on the basis of 6% per annum
    compounded annually commencing 2021-11-01. Accordingly, the
    above recommended rental is effective and payable from 2021-11-
    01 to 2024-01-01.

Thereafter:
b) The rental of R28 400 per month (inclusive of rates and exclusive of VAT)
   is to be adjusted on the basis of 6% per annum compounded annually
   commencing from 2024-01-01. Accordingly, the above recommended
   rental is effective and payable from 2024-01-01;

i. The above rental excludes any municipal services and operational
    costs;

ii. The area depicted as parking on the sketch plan TA 934v1
    measuring approximately 2330m² is to be used for parking purposes
    only. Should an additional area be required for parking purposes the
    rental will be amended accordingly;

iii. Should the current usage of security change of the remainder area
    measuring approximately 15 526m² i.e developed into playing fields,
    parking etc, the tariff rental to be amended:

iv. Consent to be obtained for any extension, improvements,
    advertising, sub-leases and any commercial activities on the
    property, in such instance, the rental to be reviewed, if deemed
    applicable;

v. Lessee be responsible for full maintenance of land;

c) The lease will endure for a period of 10 years; with a rental review after five
    (5) years;

d) The property be used for security and parking purposes only;

e) Subject to such further conditions imposed by the Director: Property
    Transactions in terms of his delegated authority;

f) Subject to compliance with any other statutory requirements;

g) No compensation will be payable for any improvement made to the
    property;

h) All outstanding accounts with the City of Cape Town be settled.                     .

FOR ATTENTION: MELISSA VAN DER WESTHUIZEN