Durban - The eThekwini Municipality has signed a memorandum of agreement with Main Street 57, a brick manufacturing and marketing company, to incentivise the Brickworks development in the Avoca Development Node, north of Durban.
In terms of the agreement, there was a rates rebate deal agreed upon for the development period.
Deputy mayor Belinda Scott said the agreement forms part of the city’s Rates Policy and Economic Development Incentive Policy that aids investment in Durban.
“As part of the city’s strategy to create a conducive environment for investment, it offers a substantial rates rebate to investors and developers,” she said.
Investec Property intends developing the site in three phases, with the proposed development requiring an investment of over R1 billion in infrastructure development, and will take over 15 years to develop.
The city said this would result in significant risk to the developer, particularly with respect to potential rates increases on the undeveloped phases of the project while it is undertaking the development of the first phase.
“In order to address these risks and thereby incentivise Investec Property to proceed with the development, a five-year rates rebate is being proposed for each of the three phases of the development. Although there will be an anticipated rates rebate of R34 million over the 15-year period, it is estimated that rates income for this site will increase from its current R3.4m per annum to an estimated R190m per annum post full development, in addition to the other socio-economic benefits to be realised,” the municipality said.
Scott said in terms of socio-economic transformation, the Brickworks development will also significantly contribute towards reducing unemployment. “An estimated 23000 construction jobs and 13500 permanent jobs could be created.
“The location of the development, along with the other developments in the Avoca Node, such as Caneridge and Rohill (Northfields), will create much-needed employment opportunities for the surrounding communities like the Mt Moriah, Duffs Road, Inanda and KwaMashu residential areas.”
Investec Property joint chief executive David Rosmarin said: “Through our partnership with Corobrik, who for more than 100 years have provided eThekwini with bricks to build some of the most iconic buildings in the city, we were able to identify this unique development opportunity.
“The collaborative nature of this undertaking was made possible through eThekwini’s innovative establishment of the city’s ‘One Stop’ Catalytic Project Unit alongside their pro-active and unique rates rebate policy, aimed at encouraging development.”
The Mercury