DELAYS in the passing of building plans by the city of Johannesburg are having a detrimental effect on developers who have to bear "enormous holding costs", says SA Property Owners' Association (Sapoa) CEO Brian Kirchmann.
"The government is talking about black empowerment and assisting small, medium and micro enterprises.
"These are precisely the people who could go out of business because they can't afford the holding costs caused by the long delays in Johannesburg's planning department."
Rezoning applications are also being held up in Gauteng, says Kirchmann, and there are similar problems in Johannesburg's rates department.
Sapoa's Gauteng council has set up a legislative subcommittee to offer the Greater Johannesburg Metropolitan Council the "hand of partnership" in trying to alleviate the "serious problems" affecting not only property developers but the economy as a whole.
Sapoa believes such a partnership would be in everyone's interests, and has asked for a meeting with the senior city officials to discuss the proposal.
"Sapoa is prepared to offer solutions by using the wide range of expertise available through its members," says Kirchmann.
He says other problems concern payments and collections of fees for utilities such as water, lights and rates, especially after a property has been transferred form one owner to another.
Although the council is informed immediately of the transfer, in many instances the information is not loaded into the computer system and rates accounts keep going to the former owner. "This can go on for 18 months after a transfer," Kirchmann says.
Delays of more than a year are experienced in the processing of applications in the planning department.
Kirchmann says the systems need to be overhauled. There is a huge demand for developments in Johannesburg, but bureaucracy is impeding them.
City of Johannesburg spokesman Mbangwa Xaba says that the city is interested in what solutions Sapoa has to offer.
"According to our statistics, we have been doing relatively well. However, if bodies within the city have suggestions to improve our service delivery, we welcome them. We're looking forward to having discussions with Sapoa."
Jul 16 2003 07:59:16:000AM Nick Wilson Business Day 1st Edition
Publisher: Business Day
Source: Business Day
Bureaucracy costs Jo'burg developers'.
Posted On Wednesday, 16 July 2003 02:00 Published by eProperty News
DELAYS in the passing of building plans by the city of Johannesburg are having a detrimental effect on developers who have to bear "enormous holding costs", says SA Property Owners' Association (Sapoa) CEO Brian Kirchmann.
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