Pretoria – The city administration is not keen on the proposed plan to sell and redevelop the iconic Tshwane Events Centre (Pretoria Showgrounds), despite the R211million in direct income projected every year by the property owner.
Human settlements MMC Mandla Nkomo said: “We told them to go back to the drawing board and provide us with a tangible plan.”
The city harboured reservations after the property owner provided “an overview picture of the housing plan”, he said.
The other sticking point was the proposed relocation.
The city was concerned the showgrounds would be taken away from its current location west of the CBD, where residents could easily access it.
The property owner, Tshwane Business & Agricultural Corporation (Tshwabac), and developer Feenstra have promised that the redevelopment plan would create about 13 000 jobs and boost economic development as well as the housing sector.
Tshwabac has proposed to sell and redevelop the property, saying this would generate R211m a year for the metro.
The income would be a dramatic increase from the current R7.2m.
It has also proposed the relocation of the property to another area.
Tshwabac has a year contract with ECG Church, led by charismatic Malawian prophet Shepherd Bushiri, which expires this month.
Students from Unisa and Tshwane University of Technology also use the venue to write exams.
The Northern Gauteng Badminton Association hosts tournaments there during the year, with players coming from across the country.
The property is more than 38 hectares and valued at between R400m and R500m.
Tshwabac has owned it since 1995.
The property has space for 1000 farm animals but only utilised once a year.
It cannot be utilised for any other purpose, but still need to be paid for at CBD rates.
Tshwabac made the proposal to the city in January, according to papers filed in the Gauteng High Court, Pretoria.
But the city said it wanted Tshwabac to revisit its proposal and provide more clarity.
Tshwabac's proposal has its roots in the financial quagmire the landowner finds itself it. It is battling to settle its R8m in municipal debts.
But the company cannot not sell the property without the city’s permission due to certain restrictive conditions in the title deed.
Tshwabac chief executive Frederick du Toit said their proposal was a way to boost economic activities at the property, which was no longer profitable.
The redevelopment plan included selling the property to a developer with the capacity to run it profitably. Tshwabac said in court papers its failure to rake in higher profits meant it could no longer afford the city’s rates and taxes on the property.
The city has served the company with a 14-day termination notice of water, sanitation and electricity due to its R8m outstanding municipal debts.
But, the company turned to the high court in a bid to stop the city from effecting the termination of the municipal services. Judgment is pending.
“Operating the Pretoria showgrounds without the necessary services would be a health and safety issue for the in excess of 100000 people who visit the property every month,” Du Toit said.
“The applicants need to be able to sell the property to pay its arrears owed to the city.”
Du Toit was adamant that a joint venture to redevelop the showgrounds would make the property profitable again.
“Nothing tangible came from the very positive meetings. We have no explanation or feedback on the necessary signature to sell the property,” he said in court papers.
The company’s presentation to the city focused on new development on the property, and the relocation of the showgrounds.
Du Toit said Tshwabac was still awaiting confirmation of an available date to submit its revised presentation to the city.
“The applicant identified a new property to which it plans to move the showgrounds, which complies 100% with the executive mayor’s requirement as informed of during the meeting of January 31, being that the property should be easily accessible to residents,” the company stated.
The property’s rezoning from farmland to special-use in 2008 meant an increase in rate and taxes.
From 2008 to 2012 the company managed to pay the rates and taxes.
“We were informed that the applicant can apply for a waiver for a portion of the rates and taxes. This waiver was successfully granted in July 2012.” But in June 2015 the waiver was declined, causing the applicant to fall into arrears.