Subcouncil resolution details

Subcouncil 7

Agenda item no

07SUB 23/11/2022

Subject

PROPOSED LEASE OF CITY LAND, BEING PORTIONS OF REMAINDER ERVEN 21750 AND 23973 BELLVILLE: UNIVERSITY OF STELLENBOSCH

Meeting date

Wednesday, November 23, 2022

Resolution

Recommend

Date closed

Monday, January 30, 2023

Resolution detail

RESOLVED TO RECOMMEND that:

a)   Council resolve that, in terms of Regulation 41(2)(e) of the Local Government: Municipal Asset Transfer Regulations, Portions of Remainder Erven 21750 and 23973 Bellville, situated off Carl Cronje Drive, Golf Village, Tygervalley, Bellville, in extent approximately 6384m² and 40 728m² respectively, is surplus to the requirements of the Municipality;

b)   The lease of Portions of Remainder Erven 21750 and 23973 Bellville, situated off Carl Cronje Drive, Golf Village, Tygervalley, Bellville, shown hatched and lettered aBCDEf middle of stream and fHJKLMNPQRSTUVWXYz middle stream on Plan TA 993v1 marked Annexure A, in extent approximately 6384m² and 40 728m² respectively, to the University of Stellenbosch, owner of Erf 23974 Bellville, or its successor-in-title, be approved subject, to inter alia the following conditions, that:

i)     A market rental of R90 000 per month inclusive of rates and excluding VAT calculated at the rate applicable at the time of transaction be payable;

ii)    The monthly rental shall escalate at 6% per annum compounded annually on a pro rata basis commencing 2 months from date of valuation, i.e. as from 2022-01-01. The rental has been accepted on the basis of a phased-in approach over a period of 5 years, the recommended structure is as follows:

Year 1: R 70 000 per month
Year 2: R 80 500 per month
Year 3: R 94 990 per month
Year 4: R115 888 per month
Year 5: R145 961 per month

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

iv)   The property be used for purposes of a golf driving range, club house and associated uses and a golf shop, bar and restaurant facilities only;

v)    The above rental excludes all municipal costs i.e. electricity, cleaning, security, water etc.;

vi)   No further sub-leases will be permitted without the City’s consent;

vii) A 3 (three) month exit clause to be included in the lease agreement;

viii) Consent to be obtained for any extensions, improvements, advertising and any further commercial activities on the property, in such instance, the rental to be reviewed;

ix)   The lessee will be responsible for full maintenance of land and buildings;

x)    Subject to such further conditions imposed by the Director: Property Management in terms of her delegated authority;

xi)   Subject to compliance with any other statutory requirements;

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

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

Action: PARTICIA VAN SITTERT