City of Johannesburg to sell or lease Pirates Sports Club and Killarney Country Club
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The City of Johannesburg is moving ahead with the sale or long-term leasing of Pirates Sports Club in Greenside and the Killarney Country Club.
According to the municipality, the Killarney Country Club's value also exceeds R10 million, and an updated valuation will be conducted before the property's use and leasing.
The proposed sale will be done in compliance with the provisions of the City of Joburg's supply chain management policy for land as approved by council in June 2009.
The city is embarking on the process since the fair market value of Erf 1319 (proposed subdivision into portion 1 & Re of Erf 1319), Erf 1330, Erf 1318 (Proposed Subdivision into portion 1 & 2 of Erf 1318) Greenside Township, and the remainder of Erf 2184 Parkhurst Township, exceeds R10m.
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"The accounting officer for the City of Johannesburg Metropolitan Municipality is authorised to conduct a public participation process in respect of the proposed sale, as envisaged in terms of Section 19 of the Supply Chain Management Policy for Land and Sections 34 and 35 of the Municipal Asset Transfer Regulations," the municipality is proposing.
The Killarney Country Club's value also exceeds R10m, and the updated valuation will be done before the use and leasing of the property.
The city has indicated that after public participation has been concluded, all affected stakeholders are notified and updated in writing.
It also intends to get comments from other departments, municipal entities, or ward councillors, where applicable, and if there are no objections to the intended lease and the properties are not needed for the provision of basic municipal services, a lease agreement may be entered into.
A notarial deed of lease was entered into between the City Council of Johannesburg and a Pirates Sports Club for 25 years commencing in October 1953 and terminated in September 1973, and then an addendum to the lease was drafted, which extended the lease period for a further 15 years with effect from July 1990.
The lease period was extended to June 2005, and the sports club requested a lease renewal for 20 years in lieu of their right to be compensated for the structural cost improvements, based on the amount to be determined by the valuer.
The city concluded a lease agreement with the Pirates Club in 2014 for 20 years, and the said lease is valid until 2034.
"It is important to note that the subject property is a sports facility intended for community use. It is centrally located in the Johannesburg region, the sports facility is accessible to a broad range of communities and population groups nearby," the city noted.
The club also services other suburbs such as Parkhurst, Parkview, Emmarentia, Northcliff, Craighall Park, Parktown, and Blairgowrie, and currently supports and provides facilities for 10 sporting codes such as baseball, bowls, cricket, hockey, road running, rugby, soccer, squash, gym, and tennis.
loyiso.sidimba@inl.co.za
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According to the document, the city estimates the property value to exceed R50-million meaning a public participation process must be conducted before any decision is made on it, in line with Section 34 and 35 of the Municipal Asset Transfer Regulations. It said the market value of the KCC will be determined by an independent valuator. Following the public participation process, the CEO of the Joburg Property Company (a municipal-owned entity which manages all the city's properties) will submit a report to council within 60 days. 'Advising whether the capital asset is needed to provide a minimum level of basic municipal services, as well as the fair market value of the asset,' council documents read. The CEO's report must also consider the economic and community value that will be received if the KCC is sold. 'Apartheid inheritance' Johannesburg Councillors chip in Then document presented to council on Thursday says in August 2011, the city of Johannesburg resolved to lease the property at R1000 a month for a period of about 10 years, with an 8% increase a year ( Note: The KCC told EWN it knows nothing about this and still pays a rental of R2 a year ). Nomoya Mnisi, MMC for Economic Development and ANC councillor, said the city will be guided by the outcomes from the public participation process on decide whether the land KCC is built on will be sold or the lease will be continued. 'There is a lease currently running in that property, it is ending in 2040 however it should be noted the lease is not market related. It means whatever amount the tenants (KCC) are paying there is not in accordance with the market value,' she said. Mnisi said the rental terms between the city and KCC are an 'inheritance of apartheid.' Matthew Cook from the Good Party was also in support of the public participation process. 'You cant even find a backroom in Soweto or Orange Farm for R2000 per month, how is the city currently leasing a 111-hectares of prime land, well located for under R2000 per year,' he said. Cook went further saying the land, where the country club currently resides, must be utilised for public use like low-cost housing, mixed use zones and sports centres. 'Things like that where the public in those communities can really benefit from it rather than the elite few who are able to play golf,' he said. 'I don't think there is a shortage of golf clubs in Johannesburg, Parkview (golf club) is just up the road (from KCC) and that one is not up for negotiation at the moment so within a five-minute drive you have got another golf course, there is plenty of space for golfers to go to.' The Democratic Alliance voted against the motion. As its councillor, Alex Christians rose up to speak, there was heckles of 'apartheid beneficiary' from some other councillors in the chamber. 'It is vague and does not provide sufficient information for us to make an informed decision,' said Christians. 'We are not against public participation but the process they want to follow in terms of how the public will then respond to what is in the details of that report. Also to note that 2011 was not during apartheid.' The motion was adopted by a majority of councillors. Killarney Country Club responds 'I think at face value if you see a club paying R2, you'll be like 'oh that's ridiculous how can that be' but ultimately the history of it (the land) was sold and leased back for the benefit of the city and its residents on a nominal basis because fulfilled the managing function which the city clearly can't fulfil themselves,' said Darryn Faulds, President of the KCC. 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'90% of that area in undevelopmental (sic) because it's just effectively a wetland that floods where you cannot have residential properties,' he said. Faulds said if the land were to be sold, the next best use of it would be a park which the city would have to maintain at its own cost and resources. 'We have all seen unfortunately how the parks get managed in the city,' he said. 'Any development on that property (KCC), upgrades or improvements or otherwise is for the benefit of the city because ultimately it's their asset that is going to have a value or not.' Faulds also argued the country club has indirectly contributed to the investments in Houghton and its surrounding areas. 'It's not overgrown there isn't a mass vagrants or mass camps on there or anything that we see with other areas where maintenance isn't upkept so there is a lot of commercial buildings and new residential buildings being built,' he said. In addition, the KCC also runs advertising boards on the land, the proceeds of which go to the Joburg Property Company (JPC). With council passing the motion for a public consultation, Faulds said he is hoping those that will participate have the entire picture and context of the KCC. He said the KCC is keeping an open mind throughout this process and has re-affirmed its long-standing position to renegotiate terms that will be suitable for both the club and the city. 'We happy to do another lease basis on terms that are more favourable to you (JPC) commercially and this could be a higher rental per-month,' he said. 'We could also work with the advertising companies to commission more sites and run that process for the JPC, giving them the profits of that.'
