Buffalo City has given the green light to a proposal by the Billion Group to build East London's first mega shopping mall.
The proposed R800 million project is to be built next to the Hemingway's Casino and puts the Billion Group at the forefront of the race to build what will be the city's largest shopping mall.
But the Billion Group was this week still locked in a struggle with a second developer to attract national retailers.
This group, comprising Thynk Property Group and Investec, is proposing a R450 million shopping mall complex for Gonubie.
There is consensus in the industry, however, that East London can support only one new 40,000m² regional mall.
Industry analysts predict that neither project will begin construction until 75% of retail space is signed up.
The rival developers will be courting the same retail brands to fill their planned buildings.
The council's approval of the Billion Group's site, however, has removed the last piece of municipal red-tape from their proposal.
In a council meeting to consider the application and several objections to it, Buffalo City Municipality director of development planning Craig Sam noted that the site was "an ideal location".
He listed its accessibility to East London's central business district and its proximity to the East London-King William's Town railway as key advantages.
The site is situated alongside the N2 at the Western Avenue interchange.
Only two objections were received ? from Alan Introna, a local resident, and Leon Quenet, managing director of Thynk Retail One.
Their objections were based on the possible negative effects to stormwater drainage and the existing road infrastructure.
Both felt the development would increase traffic congestion in the centre of East London, and would expose children and non-gamblers to the "temptation" of gambling.
Quenet also complained that an environmental impact assessment was never carried out and no public participation programme had taken place.
But in his reply, Billion Group executive manager Warren Rovelli dismissed both complaints as essentially trade objections. He said Thynk had a competing scheme in Gonubie and Introna had a stake in the project.
In a letter to the council, Rovelli said: "I trust that you will ... surely accept this objection as a trade objection that really has no substance or value."
He also argued that the developer had agreed to abide by BCM's requirements to upgrade infrastructure and services for the mall.
As for exposing young people to the casino, he said it was illegal for minors to visit it while older individuals were allowed to exercise freedom of choice.
Buffalo City officials confirmed that the development would not need to complete an EIA, as it would use the same study done for the original casino development.
In recommending that the application be approved, Sam said the objections were weighed against what council considered to be the best interests of the city.
However, the developer would be required to upgrade existing infrastructure, including the surrounding roads, he said.
On Thursday, Sam said that the municipality never supported one development over another. "We look at the desirability of the land use at each site from all points of view," he said.
An independent consultant had been commissioned to inform BCM about the potential for regional shopping centres in the City. "This way we will be able to give direction to future investors," he said.
On Thursday, Vincent Park Shopping Centre manager Joseph Parsley said the "mall race" would stimulate economic development in the area. "Competition is not necessarily a bad thing," he said.
Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge
