A City of Cape Town adjudication committee has awarded the tender for the development of the Clifton Precinct – commonly known as the old La Med property – to K2015298271 South Africa (Pty) Ltd. The bidders were notified of the outcome of the bidding process on 28 September 2017. However, the outcome was officially announced late on Wednesday. The Cape Messenger editor Donwald Pressly notes that the city claimed the development “will improve public access to the beach, ocean and recreational facilities as well as protect the natural vegetation, enhance local and international tourism potential, and unlock investment to drive job creation”. Others are far less enthusiastic about the development
In a statement released by Councillor Brett Herron, mayoral committee member for transport and urban development, it was reported that the city advertised the tender for the development of the city-owned land between the Clifton bungalows and Camps Bay in March last year. Eight tenders were received by the closing date of 13 June 2016.
The adjudication committee awarded the tender of about R1 billion of what it calls “the Clifton precinct” to a company headquartered in Tamboerskloof and is known as K2015298271 South Africa (Pty) Ltd. It is understood the company has three directors. Queries about the company have been put to the city’s media desk but these had not yet been received at the time of going to press.
The tender has been a matter of controversy for some years as it involves the selling and leasing of city-owned land. News24 reported that the African National Congress, African Christian Democratic Party and Freedom Front Plus councillors opposed the tender being awarded. The Democratic Alliance councillors, constituting a significant majority, voted for it.
News24 quoted Chris Willemse, chairperson of the Camps Bay and Clifton Ratepayers’ Association as saying that the awarding of the tender was a matter of much disappointment as the city had not taken cognizance of the “huge public disapproval of the scheme”.
Another Cape Town website 2oceansvite.com was more outspoken, saying the campaign to develop the Clifton area was driven by Mayor Patricia de Lille. “Oh dear”, it reported. She was striving to have the prime coastal land handed over to private developers and she received an unsolicited bid from a private consortium involving two acquaintances of hers, the website stated.
But Herron was emphatic that the process had all been above board and according to the rules of engagement. “A thorough and rigorous supply chain management process was followed. This included a due diligence process conducted by external auditors. A statutory appeal period of 21 days is now underway, allowing those bidders who have been unsuccessful the right to appeal the outcome of the process.”
The city provided the following details of the development.
Clifton bungalows and Camps Bay is approximately 16 ha in size, of which 5ha has now been made available to the successful bidder for the development of:
- two pockets of single residential developments consisting of 52 residential stands
- a boutique hotel or serviced apartment site consisting of 3 500 m²
- a commercial component (restaurants and retail) consisting of 5 000 m²
- a mixed-use component (offices, studios, apartments) consisting of 2 250 m²
- an underground parking facility consisting of approximately 725 parking bays
Sections of the four even located in this area will be sold and others leased for a period of up to 50 years. This means that sections of the land parcels will be developed and managed by the private sector as sustainable assets for future generations. The leased land will return to the City after the 50-year lease period has lapsed.
Herron explained that the successful bidder is, in terms of their contract with the city, required to deliver on the upgrading of the surrounding public infrastructure as follows:
- The Maiden’s Cove picnic area must be upgraded into a coastal park similar in stature to that of the Green Point Urban Park
- Victoria Road must be upgraded to improve the safety of pedestrians and cyclists
- Parts of The Glen trail and Kloof Road sidewalks must be upgraded to improve pedestrian movement and access
- The Clifton and Glen Beach steps must be upgraded and rehabilitated
- The Clifton Surf Lifesaving Club buildings must be rehabilitated
In addition to the above, the successful bidder must also provide new public infrastructure as follows:
- Construct a boardwalk between Camps Bay and the Maiden’s Cove coastal park in Clifton
- Construct a Bantry Point Caves boardwalk to give the public access to this part of the shoreline
- Redevelop the Glen Country Club clubhouse and recreational facilities
The cost of the investment in the upgrading of existing public infrastructure and the construction of new public infrastructure will be funded by the City.
The city will allocate at least 10% of the financial offer to affordable and inclusionary housing projects on well-located land in the inner-city.
The city-owned land between the Clifton bungalows and Camps Bay – inclusive of the Glen Country Club, Maiden’s Cove, a sports oval and garages for bungalow residents – is currently in a degraded state, reported Herron.
The proposed development will rejuvenate the surrounding area; improve public access to the beach, ocean and recreational facilities; protect the natural vegetation; enhance local and international tourism potential; and unlock investment to drive job creation.
The planning processes and required statutory public participation for the development of the site will take place in accordance with the Municipal Planning By-law and Municipal Finance Management Act, said Herron.