Neil Fraser
July 9, 2004
TWO events of particular significance to the inner city took place last week.
Urban development zones
On Wednesday senior council officials from Johannesburg, Cape Town, eThekwini and Tshwane met Treasury and SA Revenue Services (Sars) officials to support their submissions for urban development zones in each of the cities.
This is the result of draft legislation that was published late last year and which followed an announcement by the Minister of Finance, in his 2003 Budget speech, of a R1,3-billion urban-development allocation to 15 municipal regions. Each would have to designate a single, inner-city development zone that met specific criteria. These were the substance of this week's submissions.
The urban-development incentive the government is offering is significant. For new development, it offers a tax deduction of 20 percent to the taxpayer in the first year, plus an annual depreciation of 5 percent for the next 16 years. For re-development projects, the incentive allows for a 20 percent tax deduction in the first year, plus an annual depreciation of 20 percent over four years.
Excellent research and wide consultation have gone into the City of Johannesburg's submission, which has been co-ordinated by its Economic Development Unit. It argues that a geographic area larger than that contemplated by the legislation be declared our local development zone.
The Treasury and Sars will now scrutinise the submissions and submit them - hopefully as they are - to the minister for approval by the end of July. Add a month for his consideration and the zones should be in place by 1 September - two months later than I had anticipated. Still, it's an important milestone in urban regeneration for the country and this city.
Newtown news
The second event, which concerned accelerating development in Newtown, took place at a Johannesburg Development Agency (JDA) media briefing held, appropriately, at Moyos at the Market Theatre. Graeme Reid, the chief executive of the JDA, made three significant announcements.
First, the Gauteng Tourism Authority (GTA) has been signed up as a major tenant of Number 1 Central Place, which is under construction. This development, on the corner of Goch and President streets, overlooks Mary Fitzgerald Square.
It is a mixed-use development with 3 850 square metres of offices and 850 square metres of retail space over basement parking.
The GTA will be taking up 1 870 square metres of office space from 1 May next year - a substantive new tenant for Newtown. It will occupy three floors of the new development, including a 60-seater auditorium. GTA will move from Rosebank to this more appropriate location, a move that underscores Newtown's tourism potential.
The second announcement was of the preferred bidder for two further developments in Newtown. This follows a proposal call last year for development of the Central Place site. The site has a number of sub-divisions - some of which are already developed - all grouped around a central open urban space: No 1, which is under construction and of which GTA will be the major tenant; No 4, the Workers' Museum and Library, which comprises a number of historic buildings; No 7, which houses the exciting Sci-Bono Discovery Centre in the Electric Workshop; No 8, which is partly used for Blue IQ's offices; and No 9, which houses the Newtown Music Centre.
C-Max Investments has now been given the development rights for portions No 5 and No 6. No 5, directly south of the Workers' Museum, covers 1 551 square metres. No 6, directly to the east of No 5 and on the corner of Jeppe and Bezuidenhout Streets, has 6 250 square metres of space.
The development of these two sites will result in 20 000 square metres of retail, commercial and residential space - the first fully mixed-use development in Newtown. C-Max Investments comprises a well-known developer, Zenprop, and a black-empowerment partner. Zenprop is an investor in and a developer of other city-centre property in Marshall Street - what is becoming known as the financial district.
The third announcement was that Nando's is to have a major presence in the inner city: it will take up a significant lease in Newtown, where it will be providing a new offering.
Newtown is clearly on the move. The Johannesburg Housing Company's Brickfields development (600 units in Phase 1) is growing at a rapid rate and Old Mutual has two significant sites (one on Becker and the other on the corner of Bree and Wolhuter). Discussions about the Turbine Hall and the Boiler Houses refurbishment are still under way. The company's two sites (the Wolhuter Street precinct off Bree Street and Pimm Street South on Bree Street) will evidently be ready for development fairly shortly.
Newtown events are stacking up too: the Blue IQ Joburg Challenge will be held on Madiba's birthday, 18 July, so get out your running shoes! The Urban Voices International Festival is on 30 and 31 July; the Women in Arts Festival is on 27 and 28 August and Arts Alive takes place in September.
A well-deserved award
Finally, two other items of inner-city interest. Reid was recently honoured by the Johannesburg Rotary Club as one of three recipients of the Paul Harris Fellowship Award, the highest Rotary award that recognises the outstanding contribution made by people providing "service above self". The other recipients were Wendy Lucas-Ball and Yvonne Chaka Chaka. More than deserved, Graeme - congratulations!
The eternal question
This week 'The City and Its Future? The Eternal Question' - a publication in Interfund's development update series - was launched at Museum Africa.
I haven't had a chance to look at it yet but it will clearly contribute to the eternal urban debate. It includes contributions from a number of well known South African commentators on six themes: Dystopias and Utopias; Radicals at Heart but Pragmatists in Power; From Globe to Ghetto; Romancing the Environment; Rhetoric and Reality, and Is Another World Possible?
Looks like a good weekend read!
