POLOKWANE MUNICIPALITY

Transcription

1 POLOKWANE MUNICIPALITY URBAN RENEWAL & INNER CITY REGENERATION: TAX INCENTIVES PROGRAMME : POLOKWANE MUNICIPALITY PRESENTER; MABOTJA M.S

2 Contents PART A 1. Purpose 2. Polokwane in Context 3. Why the Tax Incentive 3.1 Demarcated Area 4. Conclusion PART B 5. Progress Implementation 6. Institutional arrangements 7.CBD plans (Framework) 8.Pictures of CBD buildings under construction 9. Challenges

3 Purpose To provide opportunity for extension on proposed demarcation of an area within the city as an Urban Development Zone as introduced in the city.

4 Polokwane in Context Jurisdiction Area: ha(3% of the provincial area) with 170 settlements. Population: , which constitutes 9.4% of the provincial Population

5 Regional and Provincial Context Economic Hub of Limpopo Province Sporting Hub and venue for major conferences and events in the Province Shopping, trade and industrial centre Educational and health node

6 Regional and Provincial Context Trans-Africa corridor Of the four Provincial Spatial Development Initiatives(development corridors); three converge in Polokwane

7 Polokwane in Context Significance within the provincial context Significance within the national context: Classified as a high capacity municipality Participation in the UDZ tax incentive programme.

8 Main Drivers of the local economy Sector Government and professional services Trade and catering Finance & real estate Manufacturing Transport Percentage 30,3% 18% 14% 12,4% 9,2%

9 4. Why the tax incentive extension? Decay setting in as a result of poor planning that separated residences and places of work. Since it was introduced significant buildings have undergone renovations or totally new buildings were erected Encourage investment within the areas that contribute significantly to the local economy.

10 Why the tax incentive..cont d Encourage investments and thereby leading to : Job Creation Economic growth Increased revenue for the municipality

11 3.1. DEMARCATED UDZ FOR POLOKWANE Polokwane CBD; Identified in SDF as Primary Activity Node (P1); Highest order activity node in Regional & municipal context. Proposed UDZ (Option 1). Whole CBD - Covers 186ha (including roads); Proposed UDZ [Fig 10]. Proposed UDZ (Option 2). Requirements of Nat. Treasury = 150ha Proposed UDZ of 150ha [Fig 11];

12 # OPTION? FIGURE 11

13 CBD SPATIAL STRUCTURE AND DEVELOPMENT ZONES GROBLER STREET GROBLER STREET THABO MBEKI STREET THABO MBEKI STREET 6

14 Economic growth & role of CBD Government & proff. services: >30%.(Office accommodation) Trade & commercial: >18%. The largest remuneration to labour force in this sector. (Shops accommodation) Financial & real estate: 14%. Also large contributions to labour remuneration. (Office accommodation) (NB: R1,00 increase in trading activities in Polokwane R1,40 increase in output in total provincial economy).

15 CBD Precinct Areas Zone Other TOT: Precincts within CBD Low density office zone Institutional zone Trading zone Eastern office/retail zone Motor town/accommodation zone Western office/trading zone Transitional zone Infill zone Roads, open space Area 8,6680ha 27,4690ha 58,2923ha 15,3980ha 7,7653ha 10,2780ha 10,2780ha 12,2394ha 35,4638ha 185,8518ha

16 Leasable floor area in CBD Offices only Trading only (Retail, service indust., wholesale) Offices & trading Other TOTAL: 31% 44% 15% 10% 100% m² m² m² m² m²

17 POLOKWANE CBD BUILDING FLOOR AREA BY FUNCTIONAL ZONE Retail Offices / Services / Medical Motor Industry Storage Dwelling Flats Hotel / Overnight Accommodation Other

18 ZONING

19 % SOLD AND R/m² (BUILDINGS) Precinct % land sold R870/m 2 (buildings) Precinct % land sold R1,222/m 2 (buildings) Precinct % land sold R1,349/m 2 (buildings) Precinct % land sold R1,412/m 2 (buildings) 5 Precinct % land sold R1,159/m 2 (buildings) Precinct % land sold R1,806/m 2 (buildings) 2 Precinct % land sold R1,239/m 2 (buildings) 34

20 Development potential on vacant land & econ.opportunities in CBD * Precinct within CBD Area (m²) Increase in local econ. production 1 Low density office zone m² R25mil. 2 Institutional zone m² R10,2mil. 3 Trading zone 8 566m² R47,5mil. 4 Eastern office/retail zone m² Part of 1. 5 Motor town zone m² Part of 3. 6 Western office/trading zone m² Part of 1;2;3 7 Transitional zone m² - 8 Infill zone m² - TOTAL: m²

21 VACANT ERVEN 15

22 Trends to consider Decay in certain parts of CBD already setting in Urban renewal, investor confidence & development is critical to maintain viability of CBD & municipal tax base; Urban renewal within other parts of the CBD well underway Municipality strict on uncontrolled decentralisationattempts to prevent urban sprawl and promote compact city/clusters; Polokwane/Mankweng Complex as medical training/academic hospital (Medunsa & UNIN);

23 Demarcated Area cont d Polokwane Municipality s initiatives: Provision of infrastructure- widening of major streets within the CBD to ease traffic flow, Provision of secure parking space within the CBD, Hawker Management: African Market and Limpopo Mall Projects to provide location and infrastructure for hawkers within the CBD. Second Electricity supply line at a cost of R25 million to ensure reliable electricity supply

24 Other projects which will impact on the CBD Itsoseng Entrepreneurial/Bus Terminus Complex Adjacent to the CBD on the western part Forms a great link between the CBD, industrial area and residential area More than R5 million committed

25 Projects..cont African Market and Limpopo Hawkers Mall Land identified within the CBD for the provision of infrastructure as part of hawker management and support programme; R5, 8 million committed during 2004/05

26 Projects..cont for development R set aside for review of CBD Development Plan (2004/05 budget), which will inter alia address additional dditional measures to re- vitalize inner city and determine incentives.

27 Other projects which will impact on CBD Development of an Industrial Development Zone (IDZ); 2010 Soccer World Cup. Development of an integrated transport hub(an international coach centre) Development of an International Convention Centre

28 Subsection (6) (cont.) (e): Fiscal measures in support of regeneration, namely: Funds committed for infrastructure development and maintenance

29 Fiscal measures: Infrastructure Development Budget 2004/ / /07 R146 million R188 million R208 million Electricity 9.47% 7.29% 0.57% Roads 1.02% 1.06% 0.96 Water and Sanitation 6.82% 6.94% 16.55%

30 CAPITAL PROJECTS 2007/8 ELECTRICITY CBD Developments = R Upgrading of Voortrekker park = R Buite Street feeder cable = R Replacement of 2 circuit breakers = R % Second Eskom supply = R % kv line Eskom 2 nd supply R

31 CAPITAL PROJECTS 2007/8 ROADS AND STORMWATER Council Chamber paving = R Bus terminus (Retarring, paving and repairs of driveways)= Public Transport Infrastructure System (Widening of Dorp Street) = R Multi Storey parking (Design)

32 Legisl. Compliance (cont.) Subsection (7): (a)(i): Hectare limitation: Census 2001 Population people; Limitation i.t.o. population = 150ha; Current CBD covers 186ha (incl. roads); CBD excluding some areas/zones= 150ha; TOT. AREA PROPOSED UDZ = 150ha (Incl. roads)

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34 4. Conclusion Polokwane is the economic hub of the Limpopo Province. Identified as a provincial growth point. Major investments will therefore benefit the entire Province. Main drivers of the local economy located within the CBD South Eastern parts of the CBD developing The Western and North Western Part decaying

35 PROGRESS IMPLEMENTATION Total number of enquiries- 46 Total number of applications- 20 Total number of completed projects- 5 Total value of development (i.e. value of approved applications)future projects on the pipeline (nature and value)challenges/constraints R

36 Institutional arrangement Marketing through media done by LED SBU investment promotion section Application for rezoning is handled by Spatial planning SBU Building plans approved by Building section Building section provides statistical information to SARS & LED for evaluation Reports are submitted to Council on a quarterly basis

37 Challenges/Constraints Funding for marketing Process needs a lot of administration Exclusion of other areas within the CBD

38 Conclusion A need to encourage both renewal and new investments is imminent. Polokwane Municipality has started with implementation of various projects to counteract decay and encourage investments. Review of the CBD Plan during 2004/05 will look at other initiatives necessary to encourage growth within the CBD.