The Khayelitsha Business District (KBD) development received a huge boost when the City of Cape Town signed two agreements with the Khayelitsha Community Trust (KCT) to conclude the sale of the retail land and to regulate the availability of land.

It is the single largest private/public investment in a traditional township to be undertaken in South Africa. The KBD development is an anchor project of the Presidential Urban Renewal Programme and will establish a mixed-use, viable and vibrant central business district for half a million residents of Khayelitsha.

The total development will include a 17 500 m2 retail centre, a service station, municipal offices, public sector offices and facilities, offices for the private sector, sports facilities, 1 200 residential units, a bus and a taxi terminal, landscaping, public spaces and greening.

The estimated development cost for the first phase is R415,6 million. The bulk of the money, R265 million, is to be sourced from the private sector and equity holding of Khayelitsha residents. The additional R95 million will come from the public sector.

In 2001 the City signed an agreement with Rand Merchant Bank to secure the necessary private sector funding for the project.

To date more than R48 million of public funds has been spent to provide bulk services and infrastructure to some 75% of the property, a regional magistrate's office, offices for the Department of Social Welfare, a sports facility and swimming pool complex.

A further R12 million has been committed for the construction of offices for the Department of Home Affairs, phase two of the transport interchange, phase one of the multi-purpose centre, and landscaping.

Negotiations for the establishment of a CID branch of the South African Police Services are in an advanced stage. A techno centre and a health clinic will be approved as soon as a funding proposal has been formulated.

Various initiatives are planned for the next seven months to implement the overall development plan. These include the issuing of tenders, construction of a retail centre, preparation of agreements, the establishment of a housing association, signing of development and loan agreements, finalising tenant agreements, marketing and the construction of 150 houses.

"Today's agreements officially transfer the 55 ha of land to the Khayelitsha Community Trust which will develop it in line with the overall development proposals. It allows the KC Trust to use, on-sell, lease and permit sub-leases of portions of the KC Trust development land to other entities," says Cape Town City Manager, Dr Wallace Mgoqi.

The market value for the sale of the various portions ranges between R10 and R100 per m2 depending on the specific use and size of the land.

The City will be responsible for the installation and payment of bulk service infrastructure.

Source: Cape Business News