Massive incentive schemes for city developments
Tshwane metro and the private sector have drafted an incentive framework aimed at sugaring developments by private companies to assist in the transformation of Pretoria to a city that benefits all.
An unprecedented incentive framework with tax rebates and slashing through the usual red tape at its core, has been placed on the table by Tshwane metro for private developers who purchase municipal properties in the city’s land release programme.
The incentives framework, announced by Tshwane mayor Kgosientso Ramokgopa at a business dinner on Tuesday and detailed at the Tshwane inaugural investor summit on Thursday, will be dealt with on an individual application basis and will involve, among others, the rapid development of the metro-owned land going on public auction over the next few months.
“The fundamental objective of the incentives is to attract investors who will bring the expertise, funds and the capacity to develop new structures and industries.
“This initiative was born out of the realization that Tshwane will not achieve the desired growth and development without cultivating an investor friendly environment, efficient processes, proactive but sustainable policies and funding strategies of its own,” Ramokgopa said.
The framework will see the establishment of a high-level committee that will sit every week to look at development stumbling blocks such as rezoning and solving these problems, said Tshwane chief economist Shaakira Karolia.
She added that the South African property development owners association (SAPOA) has partnered with the metro to assist with the incentive structures. The framework involves bulk services contribution rebates, property rates exemptions and rebates and tax incentive programmes.
It seeks to create an enabling investment climate from a direct financial perspective or indirectly through improving the feasibility and marketability of a particular development in a specific area and falls into five monetary categories namely micro – less than R10 million, small – R10 000 000 to R49 000 000, medium – R50 million to R399 000 000, large – R400 million to just under a billion rand and mega – R1 billion and above.
The incentives also include land use management (special development zones, incentive zoning, fast tracking of land use applications and fiscal tools), bulk services contributions, subsidies and urban development grants, good quality public transport, social and community facilities and safety and security.
The incentive structure is also based on property categories such as residential, business and commercial, industrial, agricultural, educational institutions and others.
Ramokgopa stressed that the incentives were available to everybody, regardless of race or political persuasion.
“By selling metro-owned land to the highest bidder and offering incentives for development on this land, we as the municipality, are solving political problems such as housing for the poor while you, as developers are making money – it is a win-win situation for all,” the mayor said.
Talking about the public auction of metro land, a decision strongly criticised by many black businessmen and entrepreneurs at both the business dinner and investor summit, Ramokgopa said currently the most important consideration was to raise as much money as possible to improve the lives of some of the city’s residents – living in some 180 000 shacks in 115 000 informal settlements.
“Right now and in this instance, we do not care about race. Whoever gives us the most money gets the land on auction to enable us to cross-subsidise homes for the poor,” Ramokgopa said.
For more community news, visit Rekord’s websites:
Also like our Facebook page and follow us on Twitter.
