Ignoring input from commercial property industry could prove costly

Posted On Monday, 05 December 2011 02:00 Published by
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The ANC led City of Johannesburg continues to switch off to the needs of its commercial property owners and homeowners and its new town planning scheme spells disaster for the city

The City of Johannesburg’s new town planning scheme is unworkable, will have significant negative effects on the property industry and has ignored virtually all input from SA’s property professionals. This is according to the South African Property Owners Association (SAPOA), the voice of commercial property in SA.

SAPOA also points to a number of alarming bombshells buried in its fine print.

An effective appropriation of rights without compensation arises from a clause that provides for approved rights which are not exercised within 24 months to become “null and void”.

The scheme also states that the municipality is not bound by its own town planning scheme.

The City of Joburg implemented a new town planning scheme last week  - The Consolidated Johannesburg Town Planning Scheme 2011 - intended to combine over a dozen different planning schemes or zoning regulations in the municipal area of Johannesburg into one set of uniform zoning provisions, without altering existing zoning or development rights attached to any particular property.

However, SAPOA argues that instead of streamlining town planning in this growing city, the errors and inadequacies of the scheme are so severe that the city needs to go back to the drawing board.

“We acknowledge that there is a need for a town planning scheme that ensures the regulation of land is uniform and more efficient throughout the municipal area, but this is not what this document does" says Neil Gopal, CEO of SAPOA.

According to SAPOA’s professional and legal advice, the 2011 Joburg Town Planning scheme contradicts itself in numerous places, refers to schedules and annexures not in the document, contains an abundance of inadequate and confusing definitions, and even contradicts other legislation, such as its definition of an ‘Erf’ which doesn’t conform with the Land Survey Act.

SAPOA also contests that the scheme doesn’t adequately protect existing zoning rights or deal with any unforeseen consequences and its application particularly to undeveloped or partially developed land results in a most serious inadequacy which could adversely affect the future development value of countless properties.

“In general the new scheme is poorly compiled. The meaning and interpretation of many provisions is impossible to understand – either logically or legally,” says Gopal, who elaborates that this is the conclusion reached by a large number of professionals and practitioners in the field of town planning.

“In fact, three full sections were missing from the copy supplied to SAPOA and despite repeated efforts requesting this information; we have yet to receive it”.

“The lack of interaction in terms of acknowledgement of letters, submissions made, requests for information, and so forth, from the City of Johannesburg is a worrying trend”.

And this is a big part of the mounting frustration for the city’s property owners. SAPOA submitted comments, objections and concerns regarding the scheme from the property industry in 2010 and again in March 2011 - almost all of which have been entirely ignored by the municipality.
“In short, the city implemented the scheme without the buy-in or consultation of its property owners and property developers, who are partners in the development of the city. This does not bode well and every property owner in the city, current and future, stands to suffer as a result,” Gopal points out.

He notes that this is only one in a long chain of events where the city has switched off to the needs of its commercial property owners and homeowners, who are the largest rates payers.

“We, and other professionals, intend to lodge an appeal to the Townships Board,” says Gopal.

SAPOA promotes and protects the commercial interests and activities of its members. SAPOA’s membership consists predominantly of commercial property owners and related enterprises. It represents 90% of all commercial property owners in South Africa.


Publisher: eProp
Source: SAPOA

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