By Max Matavire

In another boost for development in Nelson Mandela Bay, the Mandela Bay Development Agency‘s (MBDA) mandate has been extended from the inner city to incorporate urban renewal in Motherwell, Despatch and Uitenhage.

The agency has also been tasked to start the search for an operator for the 2010 soccer stadium.

Initially, the MBDA, which is now converting from a Section 21 company to a private one, and turning into a fully-fledged municipal entity, was mandated to operate in the Port Elizabeth central business district, Central, Humerail, Baakens Valley, the waterfront and North End.

The decision to expand the MBDA‘s mandate is part of a rationalisation process in which the municipality is restructuring six of its entities to do away with duplication and in some instances make savings.

MBDA chief executive Pierre Voges said on Wednesday that municipal lawyers were changing the institution into a share- holding company.

“This will be the first municipal entity in South Africa to operate on a private company basis. This will create many capitalisation opportunities as any municipal assets will be transferred to the MBDA.

“There are several municipal assets lying dormant. When these are given to the MBDA, it will use them to earn revenue for the city,” said Voges, giving the example of the old tramways building at the corner of Valley and Baakens roads.

The MBDA is taking over that building from the municipality to use it to earn revenue.

Voges said he did not need more staff because the MBDA‘s mandate had been expanded, but will use consultants.

“If I am to appoint more staff, it will mean quantity surveyors, engineers, town planners and other professionals, and this will cost lots of money. We would rather appoint professionals as we need them, but use consultants now.

“It is the basic principle internationally that you do not employ additional personnel in such a specialised industry, but engage consultants,” he said.

However, Voges added he would have to ask for more funding from the treasury department to cover the expanded area effectively.

He would employ the same approach he used in the CBD to address urban decay in the new areas.

“We will start by developing a master plan. It will identify where there are gaps. It means research in retail, leisure, residential entertainment to identify what is lacking. We will then also improve the infrastructure so as to boost the confidence of potential developers.

“There has to be a significant investment in the public infrastructure to attract investment,” said Voges.

On the MBDA‘s relationship with the board, he said the municipality was the controlling shareholder, and board members were appointed by the mayor. The chief executive is appointed by the board.

“Although the chief executive officer is appointed by the board, practically, in the day- to-day operations, he reports to the municipal manager.

“As the mayor is above the board, it means the municipality is above the board.”

On whether the MBDA would lose its original focus of urban development now that its mandate had been expanded, Voges said: “That is always the danger,” but stressed that they would stick to urban renewal.

“We have said we want to retain our core focus, which is urban development. Anything passed on to us must be urban renewal-related. We are going to duplicate the approach we have used in the CBD for the development of the new mandated areas,” he said.

Municipal manager Graham Richards said on Wednesday that although wholly-owned by the municipality, the MBDA had certain autonomy as a private company, and the relationship between the two was bound by agreement.

On the MBDA now going into Motherwell, where the Motherwell urban renewal programme is already operating, Richards said there would be no clashes.

“If the MBDA is going into Motherwell, it will be in support of the MURP.

“Its main focus is on the CBD. With the successes we are now seeing in Port Elizabeth, there is a feeling that the MBDA should also apply this in Despatch and Uitenhage.”

On the running of the 2010 soccer stadium, he said an operator should be appointed by July or August this year.

He said an operator should in fact have been appointed during the early stages of construction so that it became familiar with the structure.

“We are looking for a professional operator to make the stadium sustainable. That means the incumbent will have to identify and implement sports- related revenue streams, such as rugby, football and other disciplines,” said Voges.

He emphasised that the municipality would remain the owner of the stadium, with the operator running it on behalf of the municipality.

He said the MBDA was preparing to call for proposals from interested operators.

However, Richards said no formal decision had been taken, and he and 2010 executive director Errol Heynes were still looking at a proposal presented to them by Voges on how the stadium should operate.