Cape Town - FKWJ, the developer of the Vogue project on the Foreshore said cancellation of the project has stopped the employment of 1000 people on site.
FWKJ chief executive Dave Jones said: “No commercial bank would provide funding for a project that was the subject of a potentially long and drawn out legal battle, of which FWJK played no part and was merely an observer caught in the crossfire.”
The R1.4 billion project has been cancelled after the developer cited financial constraints partly because of the pandemic.
The development was the subject of a litigation matter after housing law advocacy group Ndifuna Ukwazi wanted to have the development approval set aside or reviewed after they submitted court papers last September.
Ndifuna Ukwazi reached a settlement with the City after it confirmed it did have the powers to impose inclusionary housing conditions and that it had agreed and confirmed it was currently developing an inclusionary housing policy.
“The reasons provided by Ndifuna Ukwazi for the withdrawal of the Notice of Motion are ambiguous to say the least, and sadly stopped the employment of 1 000 people,” said Jones.
Ndifuna Ukwazi objected to the development on the grounds that it was unaffordable to about 90% of residents, “most of which are poor and/or working-class residents”.
The City’s director of communication Priya Reddy, said: “The review aspect was initially privately settled between the developer and Ndifuna Ukwazi. Subsequently, communication was received from Ndifuna Ukwazi on July 27, 2020, stating that the attorneys for the developer informed Ndifuna Ukwazi that the Vogue development will not be proceeding in light of the ‘current unfavourable economic climate’. Ndifuna Ukwazi withdrew the review relief against the City.”
Ndifuna Ukwazi attorney Jonty Cogger said: “All in all, settlement with the Vogue matter has achieved important goals towards implementing an inclusionary housing in Cape Town.”
Cape Argus