Proposals for Cape housing developments

The City of Cape Town may invite proposals for housing developments for 80 hectares, valued at R70 million, between Pelican Park and Eagle Park.

It is proposed that about 2 000 subsidised homes be built on the land and integrated with a further 1 000 market-related houses and a strip of mixed-use properties fronting Strandfontein road.

Zeekoevlei forms the opposite border.

The mayoral committee has given the green light this week for the alienation of the city-owned land, which means that it can be sold but only when the full council has given its permission will the decision to dispose of it be advertised and a public participation process launched.

After this advertising process, a report on the public's feedback would be submitted to the council for approval, and only then would tenders for the development be invited.

Apart from its being used for housing, the city believes it will benefit from the land being developed as it is "infested" with invasive Port Jackson wattle and "extremely vulnerable" to illegal occupation, use as a refuge and cover for criminal activity, illegal dumping and fires.

"All of these risks will be minimised as the land is developed and occupied," the housing department noted in a report to Mayco.

Also, the development of market-related housing and businesses offering light services would bring "increased revenue to the city in terms of rates and service charges".

The city would embark on a "comprehensive" tender process and invite proposals from developers to develop the "total package".

"The developer will be required to purchase... and take transfer of the market-related component of the land."

Part of the land would be earmarked for subsidised housing and transferred to people who qualified for the subsidies.

The subsidy housing component is to be funded through the city's housing allocation from the National Housing Subsidy Scheme.

However, a condition of the development agreement would be that the developer also contribute funding for the subsidised homes.

The intention of this requirement was to improve the quality of the properties in comparison with standard subsidised homes. This would protect the value of the neighbouring properties, the housing department believes.

Cape Argus

Posted at 03:25PM Jul 23, 2010 by Editor in Residential  |