GEORGE NEWS - The availability of affordable housing in town is to get a boost following a George Council decision on Thursday 26 March to approve a recommendation for the development of the Crocodile Farm land in York Street, Erf 30400.
According to a report submitted to Council, this land is not required for municipal use and the proposed development of social housing will address the pressing demand in George.
The development recommendation is for a social housing component (site A) and a commercial component (site B). Site A comprises four erven (30401, 30402, 30403 and 30406), which will be leased through a reversionary long-term lease of at least 60 years for social housing. It must be developed by an accredited social housing institution (SHI) or a qualified private developer or joint venture with substantial experience in the sector (who has developed at least 1 000 social housing units).
Site B includes commercial erven 30404 and 30405 and will be sold on a freehold basis. These two commercial sites may be sold below market value if necessary to offset development charges, especially where the developer is unable to secure grant funding. The developers for this component must have a minimum of 10 years’ experience in commercial or mixed-use property development.
It will be a ‘hybrid’ development model, with which the municipality will retain ownership of the land and improvements in the social housing component, and will also have oversight through the long-term leasehold.
The commercial component will be done on a conditional freehold basis to ensure compliance by the developer. If strict contractual conditions are not met, the land will revert to the municipality. Conditions will include development timelines and a phased land transfer.
The report states that the combination of the two options can allow for the cross-subsidisation on bulk infrastructure between the two components of the project.
According to the comment in the report from Jannie Koegelenberg, the civil engineering services director, the Gwaiing Wastewater Treatment Works (WWTW) does not have the capacity to accommodate this development until an upgrade has been completed and commissioned.
An interim sewer solution, for the developer’s cost, may be possible, but may not be able to accommodate all the phases of the development. “A permanent bulk connection to drain to the Outeniqua WWTW is possible, however, the developer will be responsible for all costs and for obtaining the necessary statutory approvals.”
According to the report, the environmental authorisation has been obtained, zoning rights are in place and the erven have been surveyed. The consolidation diagram and general plan are also finalised.
“Some bulk and link engineering services are available, which were incorporated into the design of the network when the upgrades were done for the One-on-York/Mediclinic and Kingswood developments.”
Council has also authorised the relevant municipal directorates to develop tender terms of reference and invite proposals for both the components, with support from the Social Housing Regulatory Authority (SHRA) and the National Association of Social Housing Organisations (Nasho).
The municipal manager, Godfrey Louw, supported the recommendation “as a way forward to allow the development of critical housing opportunities that a growing George needs”.
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