By Max Matavire

Businesses in Nelson Mandela Bay might find themselves paying a development levy which will be used to build the proposed international convention centre.

The site of the building has not yet been decided.

Details of how the levy will be implemented are still being worked out, and the plan could even be discarded in favour of other proposed options.

This is one of the three possibilities being discussed by the Mandela Bay Development Agency and the Port Elizabeth Regional Chamber of Commerce and Industry in trying to raise the R400 million needed for the construction of the ICC.

The other two options are that the MBDA call for expressions of interest from the private sector, or that the developer should be offered municipal land that could be developed in exchange for the developer’s constructing the ICC.

This option is being investigated by the MBDA and its consultants.

These options are revealed in an MBDA report which will be tabled before the economic development and tourism committee. The report should have been tabled at the committee’s meeting last week, but was withdrawn because there was no MBDA official to answer questions from councillors on it.

The option proposes that the development levy be imposed on businesses for a “limited” period, and will work on principles similar to the now discontinued regional levies.

“This is also receiving attention by the agency with a view to a funding mechanism model being developed.

“Various potential sites will be identified and invited parties may recommend any sites and plans that they may feel could be suitable,” said MBDA finance and administration manager Ashwin Daya.

Several sites have been suggested, including the Pollok Beach area.

Consultants engaged by the council two years ago favoured Kings Beach as the site of the ICC. This was after a feasibility study involving financial viability and site criteria.

There has been massive resistance from neighbouring property owners and environmentalists to the proposed siting of the centre at Pollok Beach.

Mayor Nondumiso Maphazi has now asked the consultants to repeat their presentation so that she and her mayoral committee can make an informed decision on the ICC’s siting.

The report outlines the progress of all major MBDA projects, the Govan Mbeki Avenue environmental upgrade, the tramways building redevelopment, the ICC, the Parliament Street environmental upgrade, the Baakens River valley development , the Strand Street development and the proposal for a transport corridor.

The Govan Mbeki upgrade was on track, said MBDA consultant Jonathan Mercer. He said despite the discovery of certain water and gas services underneath the street, the project would be completed on schedule – by the end of June.

“Informal trader kiosks and steel structures are being made and are expected to be installed during April and May.

“The municipality has approved an adjusted budget of R6 million for an escalator between Chapel Street and Govan Mbeki Avenue, at the staircase between the Shoprite and Old Mutual buildings. This will create a very important linkage for pedestrians,” Daya said.

This aspect of the project is expected to be completed by October as the escalator will be ordered from Otis in China.

Due to huge interest from the private sector, the proposal calling for the redevelopment of the tramways building has been extended to the end of this month.

Proposals for the development of Parliament Street were advertised last month.

Funding has been received from the Industrial Development Corporation for a feasibility study on the eastern part of the lower Baakens River precinct. The other project involves the proposed Griffin Street public transport interchange.

Eastern Province Herald