Subcouncil 8

Resolution detail

Not Delegated Report Submitted for Noting:
It is recommended that:
a) Council resolve that, in terms of section 14 of the Local Government Municipal Finance Management Act 56 of 2003, the subject property, being erf 8225 and a portion of erf 8771, situated off Edgar Street, Somerset West, in extent approximately 536 m² as shown cross hatched and lettered ABCDEFG on plan 130009840 (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 erf 8225 and a portion of erf 8771 Somerset West to the owners of the adjoining erf 19134 Somerset West as shown cross-hatched and lettered ABCDEFG on plan 130009840 (Annexure A);
c) The transfer of erf 8225 and a portion of erf 8771 Somerset West, situated off Edgar Street, Somerset West, in extent approximately 536 m² as shown cross-hatched and lettered ABCD on plan 130009840 (Annexure A) in favour of erf 19134 Somerset West to Bay Below Property Trust, or their successor(s) in title, be approved, subject to the following conditions, that:
 i. A purchase price of R800 000 excluding VAT be payable;
ii. The transfer price shall escalate at 5% per annum compounded annually on a pro-rata basis, commencing 6 months from date of valuation, i.e. from 2024-05-01, until date of registration;
iii. The valuation is to be reviewed if not implemented within 36 months from date of valuation, i.e. by 2026-10-31;
iv. The sale of the subject property is subject to the electrical services being relocated at the applicant`s cost; v. Erf 8225 and portion erf 8771 Somerset West be consolidated with erf 19134 Somerset West to form a new erf and that a servitude be registered over the existing services over the subject portion of land in favour of the City of Cape Town at the cost of the purchaser;
vi. No further development of the property will be allowed;
vii. Rates and municipal charges, if applicable, be levied;
viii. Subject to such further conditions to be imposed by the Director: Property Transactions in terms of their 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 by the purchaser;
cc) that the electricity services currently existing on the property must be relocated at the cost of the purchaser.