By Brian Hayward

The future of Nelson Mandela Bay‘s historic landmark, the Old Tramways building, is in jeopardy as developer Pambili is out of funds to complete another R60-million plush high-rise development overlooking the Baakens River valley.

Late last month, Bartlett Construction, builders of the eight-storey block of luxury apartments called Echo Edge, behind Greenwood Primary School, took the extreme step of exercising their right to a builder‘s lien by taking over the incomplete building from Pambili Developments. This came after almost a month of non-payment for their construction costs, as well as the 150-plus builders on site.

Not only has the stoppage caused consternation among the residents of the once-quiet Jutland Crescent, who vehemently opposed the construction of Echo Edge since it began last year, it also means the development of the Old Tramways Building is in jeopardy.

In January, Pambili was announced as the bidder for the R100-million redevelopment of the Old Tramways building by the Mandela Bay Development Agency (MBDA).

This week, Pambili referred queries regarding the Old Tramways building redevelopment to the MBDA, and said it had “no comment at this stage” regarding Echo Edge.

Lawfully, builders can take the extreme step of a lien if payment from the developer halts.

“We exercised our lien when we cancelled the original contract on August 22,” said Echo Edge building contract manager Francois van Schoor. “Construction has been stopped until we have been paid. The building is 93% complete.”

According to well-placed sources, Pambili is negotiating with financiers for more money.

Van Schoor said should finances be received and building resume this month, it would be completed by the end of February next year – seven months past its original completion date, planned for July this year.

Although redevelopment of the Old Tramways building was earmarked to start in April, the MBDA – who will lease the building to Pambili for a 40-year period – has waited until now to undertake a mandatory Heritage Impact Assessment (HIA), requested by the Provincial Heritage Resources Agency (PHRA) more than four months ago.

An HIA was requested because of the building‘s size and historical relevance here.

According to MBDA head Pierre Voges, the HIA – costing about R100 000 to complete – was under way and would be handed to PHRA next month. He added the plan to dam up the Baakens River around the building had been scrapped after an environmental impact assessment found it to be unviable.

It has not been a good year for Pambili Developments. A R1-billion Bluewater Bay development, the Blue Water Beach Boutique Hotel, stands incomplete, with its gates closed.

Source: Weekend Post