November 20, 2006
By Neil Fraser
A WEEK ago, Executive Mayor Amos Masondo announced an inner city summit to be held next year and Lael Bethlehem, the chief executive of the Johannesburg Development Agency (JDA), released the results of the agency's annual Indicators of Progress 2006 report.
Much to my disgust I wasn't able to be present as I was stuck at Durban airport for eight hours when the airport was closed because of weather conditions; my 2pm flight back to Joburg was cancelled and I eventually got home about 10pm.
Indicators of Progress 2006
This is the sixth JDA annual survey - it is carried out independently of the agency - that looks at two issues, namely progress made in the inner city and that of the agency.
The inner city performance measurement system monitors progress in relation to six benchmarks: 24-hour city; satisfaction of business stakeholders; satisfaction of stakeholders regarding cleanliness; crime; property market; and business activity.
We don't have space to deal with every issue so I have chosen those that I think will interest readers.
24-hour city
The vision for the inner city is that it should be a vibrant 24-hour city, central to Joburg's cultural life. Thus the growth of cultural and entertainment venues is critical to regeneration efforts. Progress is measured by attendance at various inner city venues and reveals the following (all figures are for 2004 compared to 2005, unless otherwise stated):
Constitutional Hill: comparing the period March to December in 2004 to 2005, there was an increase of 50 percent, which is great as a percentage but far more locals should be visiting this amazing location than 8 500 a month.
Johannesburg Art Gallery: comparing the period March to December 2004 to 2005, there was a decline of 15 percent. Generally I find that people's perceptions of the gallery are good but perceptions of the area in which it is situated are bad.
Standard Bank Art Gallery: comparing 2003 to 2005 as the gallery was closed for six months in 2004 for renovation, there was an increase of 32 percent.
Museum Africa: there was an increase of 18 percent.
SAB World of Beer: there was an increase of 10,4 percent.
Standard Bank Arena: the utilisation rate declined from 43 percent in 2004 to 27 percent in 2005 - it has lost some of the big crowd pullers such as Gladiators.
Civic Theatre: comparing 2003-04 to 2004-05, it basically remained constant.
Market Theatre: there was an increase of 84 percent.
Ellis Park: there was an increase of 52 percent.
Johannesburg Stadium: attendance dropped from nearly a quarter of a million in 2004 to 13 500 in 2005 because only two events were held there last year. The Johannesburg Stadium was a product of the last "non-democratic" council to serve the needs of the All Africa Games and should forever stand as a lesson against major investment in sporting infrastructure for non-major sports.
The overall total attendance figure is almost identical for 2005 compared to 2004, but 2005 was negatively affected by attendance at the Johannesburg Stadium and the Standard Bank Arena, so it was generally quite positive.
Business confidence
Measured through an Inner City Index, it is up from 54,5 in 2005 to 57,2 in 2006. Within this, there were the following results:
Perceptions of improved city management were up;
Perceptions of cleanliness basically stayed the same;
Perceptions of orderliness were up;
Perceptions of the crime rate were down;
The resolve to remain in the inner city was up;
Optimism was slightly down;
Turnover and employment was anticipated to rise; and
Awareness of city improvement districts, perceived success and awareness of the JDA and its projects was slightly down.
City life
A lesser number, 26,4 percent, perceived the inner city as "dirty and unsafe" than in 2005, when 32 percent had such perceptions;
33 percent felt that there was not enough entertainment;
78,6 percent stated that the variety of shops and facilities was adequate;
The most frequently requested additional retail and entertainment was for sport centres, music academies, child entertainment centres, restaurants, supermarkets, gymnasiums, cinemas and theatres; and
The number of people believing that night activities were average or non-existent declined.
Economic conditions
The attributes of the inner city promoting a positive effect on business in the area were:
The colleges and student population;
Competitive business environment;
Size - it can accommodate everyone;
Accessibility and convenience; and
Large retail market and customer base.
The attributes of the inner city promoting a negative effect on business in the area were:
Crime and grime;
Unmanaged informal traders;
Congestion; and
Taxi driver behaviour.
Three of these have not really changed for 15 years - only congestion is relatively new. Some of my American colleagues feel that a lack of congestion is a greater problem than congestion itself. I'm surprised that bad buildings, or "sinkholes" did not feature.
The most requested public sector improvements to add to the economic value of the inner city were:
Greater security presence;
Upgrading of existing buildings;
Cleaner public environment;
Additional parking;
Provision of public toilets; and
Promotion and marketing.
Property
The South African Property Owners Association (Sapoa) A grade vacancy rates in the CBD reflect a steady decline from their peak in December 1999 (25,8 percent) to 11,3 percent in December 2005.
The Sapoa B-grade vacancy rates declined from a high in September 2002 (38,5 percent) to 30,6 percent in December 2005.
The equivalent rates for the Braamfontein are: A-grade, a high of 14,8 percent in June 2004 down to 4,9 percent in December 2005 and B-grade, a reverse tendency with an increase in vacancies from 12 percent in December 2004 to 22,1 percent in December 2005. The reason for this hike is attributed to three major buildings vacated in the last quarter.
With A-grade lower vacancy rates, rentals are starting to increase - from R28 per square metre in 2004 to R34 a square metre in 2005.
Business activity
RSC levies, which give an indication of trends as regards business activity and employment levels, reflect a decline of 15 percent in turnover and 4 percent in salaries.
Crime and grime
The South African Police Service Johannesburg Central statistics reflect overall crime as having decreased by 14 percent in 1994 to 2005, with the past three years remaining static.
The number of people who feel unsafe in the inner city has dropped to below 50 percent and the statistics generally reveal a recognition that despite crime remaining a problem it has not increased.
33 percent believe street and pavement lighting to be adequate;
45,7 percent believe that litter is a problem; and
37 percent rated the overall cleanliness of the inner city as better than the rest of the metro.
Media
This was an interesting one - there was an improvement in the perception that media coverage of the inner city was improving and was increasingly reflecting the perceptions of the business community itself.
Informal trading and taxis
Fewer people support the concept of informal trading than previously; more people believe they are a big negative. Nearly 60 percent felt that informal traders should be relocated to designated areas and that the result of doing this would be cleaner pavements, freer walkways, less crime, a more hygienic and cleaner environment, increased visibility and more attractive shop windows.
More people than previously believe that the relocation of taxis to formal taxi ranks will have a positive effect on the inner city.
On an overall basis the report was mostly positive with quite a great deal of optimism reflected for the future but, I believe, we have a long way to go and, with the 2010 Fifa Soccer World Cup looming ever larger, time is few.
Inner city summit
The inner city summit announced by Executive Mayor Amos Masondo on 13 November most probably will be held in the first week of May 2007.
It will be the launching pad to re-energise the inner city urban regeneration process which, as I have stated on a number of occasions over the past months, feels as if it has lost some of its impetus. It seeks to "mobilize stakeholders towards a refocused agenda for regeneration, agree the critical issues of concern and develop a programme of solutions". This is exciting stuff and a rare opportunity for all stakeholders to have their say.
I will be able to provide more details of the processes leading to the summit next week but it will give a great opportunity for all inner city stakeholders to say what they like and don't like; what should be done and undone; what our strengths and weaknesses are; what hindrances exist to development; whether they think the city is adequately responsive; and so on. In fact, it will look at how we can accelerate all efforts, public and private, in substantially reaching the vision for the city over the next four years.
So I invite all Citichat readers to write to me with your suggestions and recommendations and I will ensure that everything is fed into the process. Every year I receive many letters from stakeholders anxious to be part of the inner city's urban renewal process or wanting to put forward suggestions for improvement or voicing concerns, well, this is your opportunity.
So let's have it - the good, the bad and the indifferent. But let's also do some thinking outside the box; it's a real opportunity for lateral thought.
Have a great week, Neil
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