DEVELOPMENT OF THE REMAINING EXTENT OF THE FARM LEEUWPOORT

LOCAL AUTHORITY NOTICE

EKURHULENI METROPOLITAN MUNICIPALITY
NOTICE IN TERMS OF SECTION 33 OF THE LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, NO 56 OF 2003: THE DEVELOPMENT OF THE REMAINING EXTENT OF THE FARM LEEUWPOORT 113 IR AND THE REMAINING EXTENT OF PORTION 51 OF THE FARM LEEUWPOORT 113 IR.  

NOTICE IS HEREBY GIVEN in terms of Section 33 of the Local Government: Municipal Finance Management Act, No 56 of 2003 that the Ekurhuleni Metropolitan Municipality (“the Municipality”) intends entering into an agreement which will impose financial obligations on the Municipality for a period longer than three years covered in the annual budget.  The Municipality intends to enter into a Land Development and an Essential Engineering Services Agreement with the Leeuwpoort Development Company to develop the fully subsidized and non-subsidized land components, supply and install the external bulk infrastructure on behalf of the Municipality and develop up to township proclamation non subsidized land components.

The obligations of the Municipality and the Developer in terms of the proposed agreements are summarised hereunder:
1.    that the Municipality proposes to enter into an Essential Engineering Services agreement whereby the Developer will adopt a Bulk Services model and will assume full financial and risk liability for the component of Bulk Services dedicated to the bonded project components and the Municipality assumes liability for those components of Bulk being described as “non-dedicated” and/or relating to Subsidised Housing for Portion 51 of the Farm Leeuwpoort 113.   
2.    The aforesaid will also include the provision of Bulk Water, Sewer, Electricity, Roads and Storm Water Services in an estimated amount of R 587 960 381.34 which is the obligations of the Municipality and the Developer will contribute R 256 941 490.14 towards the bonded land component of the proposed development.
3.    The role of the developer will be to develop the land, install bulk services, deliver subsidised housing products, bonded units, implement economic empowerment strategies, and deliver the project as Turnkey Developer. 

NOTICE IS FURTHER GIVEN in accordance with Section 21A and Section 21 of the Local Government: Municipal Systems Act, No 32 of 2000 that –

(a)    the draft agreements and an information statement summarizing the Municipality’s obligations in terms of the draft agreements are available for inspection at the venues listed in Schedule A attached to this notice.

(b)    the draft agreements and the information statement are accessible at www.ekurhuleni.gov.za , the official website address of the Municipality;

(c)    during the period 15 October 2015 to 5 November 2015, the draft agreements and information statement will be prominently displayed on the official notice-boards at the venues listed on Schedule A.  As from 15 October 2015, copies of the draft agreements and the information statement, as well as further details of the proposed development may be obtained at the Municipality from  Thandizwe Mdletshe, tel: (011) 999 7407, Room 123, 1st Floor,  29 Lakeview Crescent Kleinfontein Office Park, Benoni.  The further details may also be accessed on the website mentioned above;

(d)    the local community and other interested persons are invited to submit comments or representations in respect of the proposed contract, to the Municipality.  Such comments or representations must be received by no later than 5 November 2015 via fax at (011) 999 7518 or must be delivered at Thandizwe Mdletshe, tel: (011)  999 7407, Room 123, 1st Floor,  29 Lakeview Crescent Kleinfontein Office Park, Benoni and must be marked for the attention of Thandizwe Mdletshe;

(e)    any person who is unable to write may present herself or himself during office hours at the office of Ekurhuleni Metropolitan Municipality at Thandizwe Mdletshe, tel: (011)  999 7407, Room 123, 1ST Floor,  29 Lakeview Crescent Kleinfontein Office Park, Benoni where a staff member of the Municipality will assist such person to transcribe that person’s comments or representations.

Khaya Ngema, City Manager, Ekurhuleni Metropolitan Municipality, 2 Floor, Head Office Building, corner Cross and Rose Streets, Private Bag X1069, Germiston, 1400
15 October 2015
Notice No 14/2015
SCHEDULE A
1.    Office of the following Customer Care Centres
Alberton; Benoni; Boksburg; Brakpan; Daveyton; Duduza; Edenvale; Etwatwa; Germiston; Katlehong; Katlehong 2; Kempton Park; Kwa-Thema; Nigel; Springs; Tembisa; Tembisa 2;Thokoza; Tsakane and Vosloorus.
2.    The following Libraries:
Bedfordview Library, Birchleigh Library, Birchleigh North Library, Bonaero Park Library, Edenvale Library, Kempton Park Library, Olifantsfontein Library, Phomolong Library, Primrose Library, Tembisa Library, Tembisa West Library, Winnie Mandela Library, Alberton Library, Boksburg Library, Bracken Library, Dinwiddie Library, Edenpark Library, Elsburg Library, Germiston Library, Isaac Mokoena Library, Katlehong Library, Leondale Library, Palm Ridge Library, Reiger Park Library, Spruitview Library, Vosloorus Library, Zonkizizwe Library, Actonville Library, Alra Park Library, Bakerton Library, Benoni Library, Brakpan Library, Daveyton Library, Duduza Library, Dunnotter Library, Geluksdal Library, H P Mokoka Library, Jerry Moloi Library, Kwa-Thema Library, Nigel Library, Springs Library, Tsakane Library, Wattville Library.

For Office use
File             13/3/1/4/8
The Star        15 October 2015
Sowetan        15 October 2015
Die Beeld        15 October 2015
Notice Board        15 October 2015 to 05 November 2015

Annexure “A”
INFORMATION STATEMENT
AUTHORISATION TO CONDUCT  PUBLIC PARTICIPATION IN TERMS OF SECTION 33 OF THE  MUNICIPAL  FINANCE MANAGEMENT ACT, 2003 ON THE DEVELOPMENT OF REMAINDER OF PORTION  51 OF THE FARM LEEUWPOORT 113               
BACKGROUND
The Developer is Leeuwpoort Developments (PTY) LTD (“LDC”). A Land Development Agreement (LDA) was entered into on 11 July 2006 by the EMM and the LDC has been amended and is subject to Council approval.
The EMM during or about 2002 acquired land components, known as the Farm Leeuwpoort No. 113 in extent 1342,1727 hectares.  The acquisition was done with the assistance of the  Gauteng Department of Human Settlements (GDHS), who funded the acquisition through a grant. The aforestated GDHS also provided funds for specialist studies and investigations to be done for the preparation of a development plan, in order to determine the best location of subsidy houses within the Project.  The Development Plan was considered and approved by the Council of the EMM on 26 February 2004. The objectives of the Leeuwpoort Flagship Project/ mixed use are as follows:
•    The creation of sustainable, mixed, integrated suburbs of EMM, including the poorest and unemployed in the project area nearest to major employment opportunities; and middle and high income households to be allocated to the land to bring economic growth and employment opportunities;
•    The creation of high quality urban environment with full level of services,
•    Urban Restructuring of the vacant land around Reiger Park,
•    Linking the project with the upgrading of Joe Slovo informal settlement,
•    Urban integration between Sunward Park and Windmill Park suburbs,
•    Enhancing revenue base the rates and taxes base of EMM through new developments, Satisfying a wide spectrum of housing life cycle demand in the sub-region,
•    Access to affordable housing opportunities for working class households,
•    Creation of wide ranging economic upliftment opportunities during project execution over a period of 7 to 10 years, and
•    Empowerment of small and medium enterprises in the construction and property sectors.

This Flagship / mixed use project provides for a range of housing typologies and income groups, detailed as follows:

LEEUWPOORT PROJECT REVISED DENSITIES   
 

Section 33 MFMA

In terms of section 33 of the Local Government Municipal Finance Management Act 56 of 2003, a Municipality may only enter into a contract which will impose financial obligations on the Municipality beyond the three years covered in the annual budget in that financial year if the set out process in section 33 is followed.

The EMM proposes to enter into the Land Development Agreement and the Essential Engineering Services Agreement with the Leeuwpoort Development Company to develop the fully subsidized components, supply and install the external bulk infrastructure on behalf of the EMM and develop up to township proclamation non subsidized land components.

The aforesaid will include provision of bulk water, sewer, electricity, roads and storm water services to an approximate value of R844 901 871.48.The provision of these services is the obligation of the EMM.

Section 33 stipulates that only a Municipal Council may authorise a public participation process and a request to the municipal council for authorisation of a public participation process must be accompanied by an information statement stating the following:

1.    THE VALUATION OF THE CAPITAL ASSET

A valuation was obtained, and it indicates that the value of the subject property is high value land as it exceeds R50 million rand and a public participation process must be conducted.  Only the Council may authorize the public participation process as provided for by Regulation 5(1) of the Asset Transfer Regulations, 2008 to determine that a municipality may transfer or dispose of a non-exempted high value capital asset only after the accounting officer has in terms of Regulation 6 conducted a public participation process. Such authorization has been approved in terms of Council Resolution.

2.    ANY EXPECTED BENEFITS TO THE MUNICIPALITY
The development is expected to yield 18428 housing opportunities as per the revised township layout thereby addressing the housing backlog for various income categories. The project will inject into the local economy spin offs. The EMM will remain in all respects a party inter alia, to fulfil all requirements pertaining to community liaison, political communication and intervention with the communities and participate in the role of the community based partner as may be reasonably required in terms of any policy, or by mutual decision of the parties, or at the reasonable request of the Developer, from time to time, requiring the EMM to intervene in instances benefiting the Development or to avoid any actual or potential prejudice to the Development. It will further enhance revenue base through the rates and taxes on the land to be developed. The beneficiary community of Joe Slovo and surrounding areas has been identified to benefit from the development through various subsidized housing products and other Council interventions.

In terms of section 33(1)(a)(ii) of the MFMA, views and recommendations have to be solicited. In this regard the following documents are attached:

1.    The information statement setting out the summary of the EMM’s obligations.
2.    The draft contracts.