November 3, 2004
By Lucille Davie
A COMPETITIVE city is one that manages its assets cleverly, with a vibrant relationship between the public and private sectors.
So said Greg Clark, director of the London Development Agency and guest speaker at a business breakfast hosted by the Johannesburg Property Company in Rosebank on Wednesday 27 October.
"Successful cities depend on a vibrant property market where the property sector and the city are in it together," he explained.
He cited several other factors needed for a competitive city: a diverse economy, innovation in firms and institutions, internal and external connectivity, strategic decision-taking capacity, a skilled and diverse workforce and quality of life for its residents.
"Johannesburg is emerging as the global city of Africa," he added.
Clark said public land was not always linked to economic development. Most major cities, he stressed, had big public land problems: sites were not well catalogued, and, in some cases, public land formed the major portion of under-used land - blighting investment and regeneration.
"But," says Clark, "public land can be the catalyst for economic development. Some places are making new efforts to use it well. Some new tools are being invented. Partnership and co-investment opportunities are growing. Leveraging public land assets for economic development is beginning."
Clark listed several cities - Glasgow, Melbourne and Milan - in which these new tools were being applied and where land swaps, private financial deals, and property endowments were being used to kick start such innovative ventures.
Johannesburg is a great city for innovation; the beginnings of a "new era of how the property sector and government can work together for economic development", could be seen, Clark said.
Leila McKenna, managing director of the JPC indicated that the company had shifted its focus from selling and auctioning properties, to leasing and developing properties, often involving the private sector.
"We now prefer long-term leases to selling land," McKenna revealed.
The JPC has a three-pronged strategic framework: to maximise financial returns and revenue, improve efficiency in respect of the property owned or occupied by the City; to maximise the social benefit of property (in other words, to use city assets for the public good); and to maximise property's economic development contributions to meet the goals of Joburg 2030.
The JPC has now completed the City's property register of 17 000 catalogued properties. It was recently expanded to include land uses and land values, and is accessible on the GIS website.
McKenna also indicated that the JPC's rental income in 2004 was R21,6-million, up from R12,6-million in 2002. In addition, over the same period there was a 197 percent increase in property sales, up from 13,5 percent to 38,5 percent.
McKenna outlined a number of public-private sector developments in and around the city centre:
- Wolhuter Street: this involves an upgrade the complex opposite the Market Theatre, placing tenants such as Nando's, craft shops and general retail. The upgrade is due to begin in January 2005 and should be completed in March 2005
- Meadowlands: various parcels of land have been identified to provide residential units, in partnership with a private-sector developer
- Dobsonville Police Station: a project, which started on 1 September, in which the station will be upgraded and refurbished. Phase 2 will see the extension of the administration block, the court and other public spaces. A 100 percent black-emconomic empowerment company has been awarded the contract
- Europa Hotel: owned by the City, it will be converted into a
- Transitional Housing Facility, with shared accommodation facilities. This R5,8-million project will be finished in June 2005
- Randburg Civic Precinct: the JPC will develop a civic precinct, office park, transportation node and residential precinct, to be completed in December 2007
- Marks Park: upgrade the sports facilities, including creating indoor sports facilities, a sports convention centre and gym. The development will commence in July 2005
- Albertville: the JPC will enter into a "land availability agreement" with a property developer to provide medium to low-income housing
- Forest Town: the old substation in the suburb will be made available for the development of 30 housing units
- Parktown North: a site on 7th Street and 3rd Avenue is to be rezoned from residential to business, located along the proposed Gautrain feeder system route
- Orlando Dam Precinct: there will be private and public sector development on this site, including housing, a hotel, a park and a heroes' bridge
- Diepkloof: the private sector project will consist of a plaza, a hospice and gardens, while the public sector investment encompasses a clinic and a community centre.
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