khayelitsha business district - national treasury 4-5 mar 2010/khayelitsha... · property...
TRANSCRIPT
4 March 2010
André HumanActing Manager: Development
Property ManagementCity of Cape Town
Khayelitsha Business District Planning for the Operation, Management and Maintenance of
Township Nodes
Khayelitsha Business District (KBD)
Introduction- Initiated in 2000
- Aim to establish a vibrant, sustainable mix-use business district.
- Limited commercial, industrial, entertainment, public facilities and services in Khayelitsha
- One of the poorest suburbs in South Africa
Introduction
- 67% in informal dwellings- Ave. household income - <R 1500 pm- 10% of income on transport- Employed base very small - Security – branded as the most dangerous township in
South Africa
Khayelitsha Business District (KBD)
Location (Khayelitsha)
- South of N2 between CBD and Somerset-West.
- Predominately poor area –Mitchells Plain, Delft, Gugulethu, etc.
Khayelitsha Business District (KBD)
Khayelitsha Business District (KBD)
Location (Khayelitsha BD site)
- Central location- Surrounded by residential - Next to station- 73 ha vacant land - Accessible rail and road
Khayelitsha Business District (KBD)
Land rights:
- Spatial framework - Special CBD zone - EIA scoping
In 2001 declared anchor project for National Urban Renewal Programme (URP)
Khayelitsha Business District (KBD)
Public participation process:
- Funding from DBSA launched intensive Public Participation Process
- Various community, social structures and organisations were consulted (internal and external)
- Stakeholders’ Framework Agreement - development to create real benefits to the community ito equity, employment and decision-making
- City identified and approved 9 principles for the KBD development
Khayelitsha Business District (KBD)Principles:
- Flexible, innovative and integrated approach.- Sustainable business district which is entrepreneurial,
market driven- Community buy-in and commitment - Community participation, involvement and
empowerment- Community upliftment- Collective responsibility by all stakeholders- Partnerships to be formed- Culturally and socially acceptable- Stimulate tourism development
Khayelitsha Business District (KBD)
Challenges for realising the vision:
- Vision proved to be challenge.- Financial institutions regarded Khayelitsha as a
investment risk.- Private sector perceived community involvement as an
additional burden- Private sector had little knowledge of market - Opportunist trying to take over process. - No example / model to work from.
Khayelitsha Business District (KBD)
Developing and Marketing of the vision and principles:
- Various workshops to develop concept model- Undertook comprehensive market research (funded by
DBSA) - Marketing of model to private sector organisations
(financial institutions, developers, etc)
Khayelitsha Business District (KBD)
Realising the vision:
City and RMB entered into “Cooperation and Collaboration” agreement to deliver:
i) Development Planii) Financial planiii) Institutional Framework
Khayelitsha Business District (KBD)
KBD development plan
- To create a better balance between private and public facilities.
- To increase the residential component within the KBD.- To increase range of public facilities.- To concentrate private investments along pedestrian
routes- To intensify land-use (sport stadium and gardens)
Khayelitsha Business District (KBD)
KBD development plan
Provides for mix use development:
retailpublic officesprivate officessport facilitiestransport facilitiesresidentialopen spacespedestrian walkways
Khayelitsha Business District (KBD)KBD financial plan (2003)
Note:•Loan funding•Principle of bare dominium of certain buildings to reside with community•Public sector investment ito facilities
R 415 million TOTALR 55 millionEquity
Bulk services & infrastructure, upgrading of electricity, hard and soft landscaping (excl public buildings)
R 90 millionPublic sector
Retail centre, 1 000 residential units, service station, municipal offices
R 265 million *Private sector
Khayelitsha Business District (KBD)
KBD Institutional Framework
- Trust to represent community in the developments - Ensure level of decision-making and financial stake for
the community in the development. - Secure the land for the development.- Ability to deliver the developments.- May legally take up loan funding and contract with third
parties. - Sufficiently control by the City and the financiers.
Khayelitsha Business District (KBD)KBD Institutional Framework
Khayelitsha Community Trust - established in Dec 2003 with its main objective to uplift the community of Khayelitsha.
Functions in terms of the Deed of Trust:- Acquire and procure the KBD land (Land Availability Agreement)
- Establish an entity(ies) to develop the land (KManco)- Procure public and community facilities- Promote and facilitate the development- Secure the management of the KBD area- Introduce an empowerment strategy- Raise funds to achieve development - Distribute surplus income to other development projects.
City of Cape Town
Khayelitsha CommunityTrust(KCT)
RMB
Khayelitsha ManagementCompany (Pty) Ltd
(KMANCO)
KBDRetail
Community of
Khayelitsha
Loan facility agreements
Future GrowthFuture GrowthRetail Development agreement
WBHO
Construction Agreement
Retail asset management agreement
SECURITY
CLEANSING
PROMOTION
MAINTENACE
Sale Agreement
Retail land lease agreement
Retail head lease agreement
KBD INSTITUTIONAL FRAMEWORK RETAIL CENTRE
City of Cape Town
Khayelitsha CommunityTrust(KCT)
Financiers
Khayelitsha ManagementCompany (Pty) Ltd
(KMANCO)
KBDRetail KBD
OfficesKBD
Service station
KBD Housing
Community of
Khayelitsha
Shareholding Management
Property Management
Governance
Budget & Project support
Land availability & Service delivery agreement
Loan funding agreements
KBD INSTITUTIONAL FRAMEWORK
Operational agreements
City of Cape Town
Khayelitsha CommunityTrust(KCT)
RMB
Khayelitsha ManagementCompany (Pty) Ltd
(KMANCO)
KBDRetail
Community of
Khayelitsha
Loan facility agreements
Future GrowthFuture GrowthRetail Development agreement
WBHO
Construction Agreement
Retail asset management agreement
SECURITY
CLEANSING
PROMOTION
MAINTENACE
Sale Agreement
Retail land lease agreement
Retail head lease agreement
INCOME
KBD INSTITUTIONAL FRAMEWORK RETAIL CENTRE: Income Flow
Khayelitsha Business District (KBD)KBD Development 2002
Road infrastructure and Bulk services
for 50% of the property
Khayelitsha Business District (KBD)
Completion of Home Affairs building
70% of services & road infrastructure;
Phase 1 of taxi rank
KBD Development 2005
Khayelitsha Business District (KBD)KBD Development 2003-2004 Cricket oval
Magistrate offices
Social Services
Khayelitsha Business District (KBD)KBD Development 2006/7 (Completion of 20 000m² retail centre)
Khayelitsha Business District (KBD)KBD Development 2009
Hard and soft landscaping
Khayelitsha Business District (KBD)KBD Development (Current projects)
R 112 million, 230 bed regional hospital
R 20 million multi-purpose centre.
Khayelitsha Business District (KBD)KBD Development (Current projects)Residential development
Khayelitsha Business District (KBD)KBD Project:Lost momentum (07-09) due to various factors:
1) Restructuring of municipalities:● Redeployment and breakdown of project office● Integration of budgets.
2) Municipal elections - Political mandate (project, municipal offices)
3) Systems Amendment Act: KCT became municipal entity (compliance, MFMA, new trustees)
4) Economic down-swing (budgets, housing, 2010 focus)
Khayelitsha Business District (KBD)
Hospital under construction
Home Affairs Bldg
Social Welfare Bldg
Retail centre
Bus & Taxi facility
Multi-purpose Centre
Magistrate offices
Show village
Cricket oval & swimming pool
Proposed residential
Site for municipal offices
Khayelitsha Business District (KBD)KBD Project: Strategic workshop
1) Capacity of KCT
2) Roles & Responsibilities
3) Communication
4) KBD management
Khayelitsha Business District (KBD)KBD Project:
In 2008, Strategic workshop by KCT,the City and other role players on the current and future development of the KBD.
Khayelitsha Business District (KBD)KBD Project: Strategic workshop
1) Capacity of KCT
2) Roles & Responsibilities
3) Communication
4) KBD management
Khayelitsha Business District (KBD)KBD Project: KBD Management
Number of different role players involved
Various City departments / Future Growth Centre Manager
Coordination, duplication and
KCT ideal position for KBD management responsibility
City of Cape Town
Khayelitsha CommunityTrust(KCT)
KBD Area Management
(Sect 21)
Community of
Khayelitsha
SECURITY
CLEANSING
PROMOTION
MAINTENACE
Service Level Agreement
KBD AREA MANAGEMENT MODEL
Service Level Agreement
INFORMAL TRADE
INCOME
PRIVATE & PUBLIC
BUILDINGS
Rates
% of rates
% OF LEASE INCOME
COMMERCIAL
LICENCES & FEES VPUU initiative
Khayelitsha Business District (KBD)
INTEGRATED APPROACH- Security- Informal trading- Cleansing- Landscape maintenance- Parking- Marketing
KBD Project: KBD Management
QUESTIONS?
Thank you!