THE City of uMhlathuze says the decision taken to review historic long-term leases is not an attempt to ‘chase’ lessees away.
The City’s Executive Committee resolved last week to revisit all social leases to rectify various ‘anomalies’ and ensure it is aligned with the current legislative framework.
This includes old lease agreements that were concluded by the erstwhile Empangeni Municipality with various sporting organisations, where according to the Council report, ‘unique circumstances’ prevailed.
The leases entailed once off up-front payment of rental, extremely long lease terms of up to 99 years and registration of such leases in the Deeds Office.
These comprise among others Empangeni Bowling Club (46 years), Errico Park (70 years), Empangeni Country Club (valid until 2056), Empangeni Rugby Club (valid until 2062) and Empangeni Sports Club (Addison Park valid until 2059).
Council’s current policy stipulates that leases to sport clubs, who render a recreation service with a non-profit motive, will not exceed nine years and 11 months at a nominal rate.
‘The municipality is not resorting to chasing people away,’ Deputy Municipal Manager: City Development, Lindani Khoza told the Zululand Observer.
‘Some of these leases date back before the implementation of this legislation. We are seeking to align the social leases with approved Council policy, the Municipal Finance Management Act and the Municipal Rates Act. The various long term lease agreements that have been concluded by the then Empangeni Municipality cannot be changed unilaterally without the other party’s consent,’ added Khoza.
Paul Gouge, Chairman of the Empangeni Sports Club, which has a current lease till 2059, said massive capital had been invested in the club to ensure its sustainability over the years.
‘The club is not a financial burden to the municipality and in past years has survived through sheer human spirit and generation of time, effort and machinery as well as the help of sponsors and local community clubs,’ said Gouge.
Involved with the club for the past 30 years, he said sport was one of the biggest growth points in a community.
‘The development of sport especially for children is crucial to ensure they are kept away from the harmful elements of society and learn team skills and life lessons from sport,’ added Gouge.
Due to the extensive past investments and the continued injection by numerous stakeholders, Gouge in his personal capacity, said he would not be keen in supporting the renewal of leases every 10 years.
