The pace of East London's inner city restoration has picked up over the past year, with many landlords renovating their buildings and turning around the tide of urban decay.

In the past month, restoration work began on four CBD buildings, with more than 50 buildings already registered for the Buffalo City Development Agency's urban development incentive.

The incentive offers tax benefits to landlords who build new buildings or renovate old ones within East London's Urban Development Zone (UDZ).

This includes all CBD buildings south of Fleet Street, the Quigney beachfront, Marina Glen and Signal Hill.

One landlord, Frans Strauss, who owns the Motorland car dealership in Fleet Street, has responded to the incentive by painting his building deep purple and touching up a native American chief logo on the wall with rainbow colours.

"The building was dull and dirty, and because our corporate colours are blue I decided to paint it accordingly. I like bright colours.

"Since the building was painted people have phoned me and commented on the Indian head. They say it wasn't visible before," said Strauss, who bought the 55-year-old building in December.

Strauss said his business was already benefiting from the inner city revitalisation. He recently invested in a R7 million showroom at the back of his premises.

"That is how city centres are. They die and then start living up again. A lot of city businesses have moved from here to Devereux Avenue, but new businesses have come in because they see we are doing well here," he said.

Another property, the Cambridge Union Building, was recently repainted and although it is not within the UDZ, tenant Dries Bezuidenhout said he had already received positive feedback from his customers.

"Customers notice the renovations and give us compliments. The city centre's trade is still lively although a lot of our customers enjoy shopping centres. We are actually not in the best spot. Oxford Street is the prime location," he said.

Further up Oxford Street the Absa bank building is getting a facelift behind stacks of scaffolding.

Rod Mill from Superway Construction said they were busy removing loose tiles from the building's facade and replacing them with plaster work.

"Some of the old tiles have come off and just before Christmas we protected the walkways while we were waiting for materials to arrive from Gauteng. The work will take another three months," Mill said.

The University of Fort Hare has recently announced R800 million plans to link their numerous buildings within the UDZ into a city campus.

Newly appointed BCDA chief executive Siphiwo Mdila said 53 property owners like Strauss had registered for the tax incentive since it was launched in late 2004. "We have seen a marked increase in applications over the last year and we are receiving many enquiries from persons interested in utilising the tax benefits," he said.

According to the UDZ legislation, property owners who build new properties within the zone qualify for a 20 percent rebate from the taxman in the first year, and thereafter five percent for the next 16 years.

If the building is renovated, the investor can claim 20 percent of the costs for five years. The benefit will lapse at the end of March 2009.

The BCDA's next step is to commission an Inner City Improvement District Feasibility Study which will start in May.

Daily Dispatch