LESSONS LEARNT FROM KHAYELITHSA BUSINESS DISTRICT ...€¦ · Kunye, sakha isizwe esomeleleyo Saam...

Together, Building a stronger nation

URBAN RENEWAL DIRECTORATE

LESSONS LEARNT FROM KHAYELITHSA LESSONS LEARNT FROM KHAYELITHSA BUSINESS DISTRICT DEVELOPMENT BUSINESS DISTRICT DEVELOPMENT

28 JUNE 200628 JUNE 2006

NationalNational Government Government

Provincial Provincial GovernmentGovernment

Together, Building a stronger nationKunye, sakha isizwe esomeleleyo

Saam bou ons ‘n sterker nasie


The purpose of this presentation is to illustrate progress and lessons learnt in the implementation of the urban renewal in Khayelitsha and in Mitchell’s Plain.

Overview


URBAN RENEWAL NODES


Definition of Urban Renewal

Urban Renewal Programme is:An integrated process targeting the

regeneration of certain underdeveloped geographic areas to achieve sustainable

development by bringing a balance between the social, economic,

environmental and infrastructural aspects of city life.


Urban Renewal Logo

•The sun rising: Strength, hope and optimism

•Human Form: People working together

•Flower like shape: regeneration and growth

•Table Mountain:Unique to Cape Town

•South African Flag: as one nation of diverse culture & backgrounds


Khayelitsha Project Steering Committee/Implementation

Executive MayorMayoral Committee

URP Directorate

Mitchell’s Plain Project Steering Committee/Implementation

National, Provincial &

Local Political Champions

MultiStakeholder

Steering Committee

Khayelitsha Development ForumMitchell’s Plain Development Forum

City Manager’s Office

COMMUNITIES

Line Management

URP Institutional Framework


Vision

Khayelitsha and Mitchell’s Plain Vision:- “With our skills we shall improve our lives and

the lives of generations to come”“Met ons vaardighede sal ons ons lewens en die lewens van opvolgende generasies verbeter”"Ngezakhono Zethu Sinako Ukuphucula Ubomi Bethu Nesizukulwana esizayo".

Province:- iKapa Elihlumayo & URP Outcomes Province:- iKapa Elihlumayo & URP Outcomes FrameworkFramework

City:- Integrated Development Plan City:- Integrated Development Plan Which informsWhich informs

Which informsWhich informs


Promoting local economic development to relieve poverty and unemployment.

Providing a safe and secure environment by fighting crime.

Supporting education, training and skills development.

Creating a quality urban environment where people can live with dignity and pride.

Developing efficient, integrated and user-friendly transport systems.

Implementing EPWP. Delivering well-managed safety nets.

STRATEGIC OBJECTIVES


Strategic Initiatives A Medium Term Expenditure Framework is currently being

formulated and is being informed by the following Strategic Initiatives: Profiling of the Urban Renewal Nodes

Reliable baseline statistics as an update to the 2001 Census and identifying the basic service delivery requirements

URP Spatial Development Framework (SDF) Spatial Framework operationalising of the URP Business Plan and

informing the IDP process of the City Environmental Management Framework (EMF)

Promoting sustainable development and fast tracking EIA processes

Formulation of a Monitoring and Evaluation Mechanism Progress, outcomes, performance, challenges and trends

A comprehensive Housing Programme Public Investment Plan


RATIONALE FOR ANCHOR PROJECTS

Projects that have multiplier effect and enable Private Sector Investment.

Benefit a significant number of people and are a focus of URP Investments.

Break new ground and is based on “triple bottom line” approach, (social, economic & environmental).


Anchor Projects: Khayelitsha CBD

Swimming Pool

Social Welfare Offices Magistrates Court

Cricket Oval


Anchor Projects Khayelitsha CBD

INTRODUCTION:

Initiated in 1998 Aim -to establish a vibrant, sustainable mix-use business district. Limited commercial, industrial, entertainment, public facilities and

services. Khayelitsha - one of the poorest suburbs in South Africa 67% of the residents living in informal dwellings Average household income - less than R 1500 pm Families spending almost 10% of income on transport Employed base in Khayelithsa very small Security – Khayelitsha often branded as the most dangerous place

in South Africa



Khayelitsha CBD site Central location Next to station 73 ha Accessible - rail and road


Khayelitsha CBD site


PRINICIPLES

Initiation of a comprehensive community participation process

Various community, social structures and organisations were consulted on the outcomes of development.

Stakeholders’ Agreement stated that development should create real benefits to thecommunity in terms of equity, employment and decision-making.

A set of principles were determined namely:

9. Development must be market-driven, integrated and sustainable10. Development must be community focused (local by-in, empowerment and

upliftment11. Development based on collective responsibility (share responsibility and

partnerships between public and private sector and the community).12. Development must be acceptable (cultural and social) and promote

tourism


REALISING THE VISION

The City and Community vision proved to be challenge

Private Sector had no confidence in the area

Private Sector perceived community involvement as a burden

Rand Merchant Bank Special Projects Division

Entered into Cooperation and Collaboration Agreement to deliver: i) Development Planii) Financial plan

iii) Institutional Framework to deliver the KBD development.

Financial plan: Total R 405 million (65% private sector)


KBD development plan

Provides for a mix use development- retail- public offices- private offices- sport facilities- transport facilities- residential, etc.- open spaces


KBD Financial Plan

Private sector: R 265m Public sector: R 90mEquity: R 55mTotal R 415m

Bare dominium of certain buildings reside with community

Syndication to other investors Consolidated funding package


INSTITUTIONAL FRAMEWORK

Main objectives of the institutional framework were to establish entities that:

Represent the community in the developments Ensure a financial stake for the community in the development Secure the land for the development Has the ability to deliver the developments May legally take up loan funding May legally contract with third parties in delivering the developments Sufficiently control by the City and the financiers could be exercised for

effective delivery Tri-party arrangement between the City, private sector (RMB) and

Community


KHAYELITHSA COMMUNITY TRUST (KCT)

The Khayelitsha Community Trust - established by the City - Dec 2003 Main objective to uplift the community of Khayelitsha.

In terms of the Deed of Trust, the trust would:

Acquire and procure the KBD land Establish an entity to develop the land Procure public and community facilities Promote and facilitate the development Secure the management of the KBD area Introduce and empowerment strategy Raise funds to achieve development Distribute surplus income to other development projects.


KBD Institutional Framework

City of Cape Town

Khayelitsha CommunityTrust(KCT)

Operational Team City/RMB

RMB

Khayelitsha ManagementCompany (Pty) Ltd

(KMANCO)

K RetailK

OfficeK Service

station

Housing

Community of

Khayelitsha

Surplus

Support

Land Avail. Agreement

Loan funding



Projects completed 2003 – 2005:

− Road and Service infrastructure (60%)− Magistrates Court− Swimming Pool− Cricket oval − Offices of Dept. of Social Services− Offices for Dept. of Home Affairs− Taxi Rank Phase 1− Khayelitsha Retail Centre (19 500m²)



Magistrate office, Departments of Home Affairs & of Social Services, cricket oval and swimming pool



Projects to be implemented and continued in 2006/7– Additional 2000 m² of retail centre – R 9m – Multi-purpose Centre – R3m– Remembrance Square – R3m– Bus and taxi terminus – R8m– 500 Residential units – Pedestrian walkways and public squares – R2.3m– Informal trading spaces – R 0,9m– Cricket Oval Phase 2 – R4m– Additional infrastructure and services – R11.9m– District Hospital – R112 million


Anchor Projects: Khayelitsha CBD – Retail Centre


CHALLENGES

To align local initiatives with National and Provincial Priorities

To streamline procurement process turn around time in order to fast track implementation

Project management skills Integrated budget and implementation plan for the

nodes. Inadequate resourcing to enable efficient

implementation within the Nodes


Thank you Thank you Ivan AnthonyIvan Anthony

City of Cape TownCity of Cape Town

NationalNational Government Government

Provincial Provincial GovernmentGovernment

Together, Building a stronger nationKunye, sakha isizwe esomeleleyo

Saam bou ons ‘n sterker nasie

LESSONS LEARNT FROM KHAYELITHSA BUSINESS DISTRICT ...€¦ · Kunye, sakha isizwe esomeleleyo Saam...

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