The eThekwini Municipality has announced that it will make available 34 sites for leasing opportunities, including prime beachfront properties in order to eradicate problem buildings while bringing back tourists to the Golden Mile and the city.
The municipality said the properties will include three key beachfront properties such as the legendary Mini Town, The Joint, and California Dreaming.
eThekwini Municipality is challenged with hijacked buildings.
Two weeks ago, Mayor Cyril Xaba and Minister of Public Works and Infrastructure Dean Macpherson revealed that they had identified 76 buildings that were derelict, abandoned and hijacked.
An agreement was also announced to establish a joint technical task team between the City and the department to address a number of bad buildings.
Thapelo Mmusinyane, head of Real Estate said the initiative was part of the municipality’s Proactive Land Release Strategy.
“There are eight properties with either leases that expired or about to expire and 26 new properties altogether.
“This process will ensure that the municipality does not have to wait for an application to be submitted in order to alienate surplus land.
“The municipality is now proactive in that process, thus avoiding a scenario where municipal land, which is not required for municipal purposes, is occupied illegally and development opportunities are lost.”
Mmusinyane added that the total extent covered by properties which have been issued for leasing opportunities amounts to 123 284m2.
“The primary lease term ranges between a period of five and 50 years. The minimum reserve rental amount per month ranges from the lowest of R2 916.67 up to R315 000 being the highest.”
DA’s caucus leader Thabani Mthethwa said the party’s position has always been that given the state of poor tourism activities in eThekwini, the municipality must not be reckless in how it deals with this issue of leases especially on the beachfront.
“Some of the lease holders are recognised brands that can assist eThekwini to recover from poor tourist attractions and save jobs.”
IFP leader in eThekwini Mdu Nkosi said the release of properties was welcomed.
“This is part of the Land Release Strategy that the council adopted in September 2021, part of the objectives was to be proactive in releasing municipal properties that are not required to provide a municipal service and invite the private sector to develop and redevelop and use them productively while also attracting investment and diversifying our sources of revenue.”
Nkosi added that the beachfront was important to tourism in the city and its redevelopment and modernisation was important.
“Two properties in the beachfront have been refurbished and redeveloped; this includes North Beach lifestyle (The old Bike and Bean) and Durban Beach Café (the old Circus Circus). These have been redeveloped following a similar process, which has also assisted in transforming the demographic profile of leaseholders. So the release is welcomed.”
Zakhele Ndlovu, a political science lecturer at the University of KwaZulu-Natal, described the City’s decision as “good news for eThekwini.”
“It will create business opportunities, benefit the economy and create employment opportunities. This is long overdue as eThekwini is faced with a similar problem as Johannesburg with hijacked buildings. These buildings are not benefiting the City with rates or tax and are becoming places for criminal activities and illegal electricity connections.”
Ndlovu added that he believed the KZN MEC for Public Works Martin Meyer was also behind the opening of leasing opportunities.
“It is still good news. The important thing is that the problem buildings are being addressed and it will contribute to improving the city.”
UKZN academic and political analyst Siyabonga Ntombela said this would curtail the scourge of hijacked buildings and criminal elements.
“Illegal foreigners especially are the ones who take over these buildings and conduct illegal activities. Particularly on your beachfront opportunities, the City is being proactive to lease the buildings to potential investors who can develop them, bring economic activity to the city and hopefully create jobs. My concern would be the issue of crime if the City has not cleaned up crime and are leasing these properties. This will impact the amount for rent that investors will want to pay as they will also have to pay for security for the properties.”
The Mercury