Port Elizabeth, which has seen virtually no development for decades, is a hive of construction activity, with new developments combining the history of the area and the natural environment into areas where locals and tourists can live, work and relax alongside beautiful scenery.

Several multimillion-rand property development projects in Nelson Mandela Bay are under way and investors and residents are lining up to become part of the vibrant inner city of this once sleepy coastal town, says Nondumiso Maphazi, Executive Mayor of Nelson Mandela Bay.

“Thanks to various intensive urban renewal efforts the coastal city is starting to take shape and become a dynamic African city with world-class facilities that encourage a sense of community in a beautiful environment.”

The Mandela Bay Development Agency (MBDA) began the urban renewal process in the inner city and surroundings by concentrating on the basics of urban renewal — cleaning and securing the area.

“Unless there is security in the CBD and people feel safe there is no chance of attracting people and private-sector investment. The MBDA invested in a security team that represents a visible presence in the area. Investments have also been made in security cameras for particular areas,” she says.

Maphazi says that cleaning has also received special attention in the CBD and additional resources have been employed by the MBDA to ensure an attractive and clean environment as a top-up service to the service provided by the Nelson Mandela Bay Municipality (NMBM).

“Next, bylaws were drafted to permit the establishment of a City Improvement District. The bylaws will enable the participation of property owners to improve the civic environment as well as levying contributions towards communal investments,” she says.

MBDA CEO Pierre Voges says: “Once we had the basics right we began to focus on clusters of development in the inner city and surroundings, which needed to be created so that a network of activities, all within walking distance of each other, could be formed.

“We felt that through their combined scale they would have an improved impact and also result in a catalytic effect, encouraging further developments in the area. The end result is that the city is provided with a more competitive residential, retail, office and leisure component."

Voges says although this process has started, it is accepted that the entire redevelopment project will span several decades over many hectares of land.

A number of projects have been either recently completed or are currently under way in the Port Elizabeth inner city.

The include pedestrianising the main shopping street; the construction of a multinodal transport interchange; financing the upgrading of the civic spaces in the traditional entertainment street in the CBD due for completion in March 2009; improving various streets; upgrading the main public open space close to the CBD; planning redevelopment of the Baakens Valley area that runs partly through the mandate area; redevelopment of the historic tramways building at the entrance to the harbour from its derelict state to a multi-use tourism, entertainment, retail centre through lease to the private sector; and the development of an international convention centre.

Voges said stimulation of investor interest was already visible for many of the projects.

“The expansion of the shopping centre, Pier 14, in the CBD is a good example of the private sector regaining confidence in the district. This centre is undergoing a R40m upgrade to increase the total office and retail space from 26 000m² to 40 000m²”

Sophia Steyn, the centre manager, says the expansion of the centre supports the metro's strategy to upgrade the CBD.

Pier 14's development will also attract tax incentives for the developer because it involves capital improvements on existing premises, which will then be used for business, in the Port Elizabeth urban development zone (UDZ). Tax incentives, along with inner city revitalisation and freeing state-owned land, are a powerful combination to lure property developers to Port Elizabeth.

Ashwin Daya, chief financial officer of the MBDA, says: “The incentives are directly in line with our strategic objective of developing the inner city.”

Source: Business Day