POLOKWANE MUNICIPALITY
• URBAN RENEWAL & INNER CITY REGENERATION: TAX INCENTIVES PROGRAMME : POLOKWANE MUNICIPALITY • PRESENTER; MABOTJA M.S
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
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.
Polokwane in Context
• Jurisdiction Area: 377 529 ha(3% of the
provincial area) with 170 settlements.
• Population: 508 277 , which constitutes
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
Regional and Provincial
Context
• Trans-Africa corridor
• Of the four Provincial Spatial
Development Initiatives(development
corridors); three converge in Polokwane
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
Main Drivers of the local
economy
9,2% Transport 12,4% Manufacturing 14% Finance & real estate18% Trade and catering
30,3% Government and
professional services
Percentage Sector
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.
Why the tax incentive..
cont’dEncourage investments and thereby
leading to :
• Job Creation
• Economic growth
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
THABO MBEKI S TREET THABO MB EKI STREET GROBLER STR EET GROBLER S TREET CBD SPATIAL CBD SPATIAL CBD SPATIAL CBD SPATIAL STRUCTURE STRUCTURE STRUCTURE STRUCTURE AND AND AND AND DEVELOPMENT DEVELOPMENT DEVELOPMENT DEVELOPMENT ZONES ZONES ZONES ZONES
6
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
CBD Precinct Areas
185,8518ha TOT:
35,4638ha Roads, open space
Other 12,2394ha Infill zone 8 10,2780ha Transitional zone 7 10,2780ha Western office/trading zone
6 7,7653ha Motor town/Accommodation zone 5 15,3980ha Eastern office/retail zone
4 58,2923ha Trading zone 3 27,4690ha Institutional zone 2 8,6680ha Low density office zone
1
Area Precincts within CBD
Leasable floor area in CBD
721 324m² 100% TOTAL: 69 983m² 10% Other 111 111m² 15%Offices & trading
315 971m² 44%
Trading only
(Retail, service indust., wholesale)
224 257m² 31%
POLOKWANE CBD – BUILDING FLOOR AREA BY FUNCTIONAL ZONE 0 0 50000 50000 100000 100000 150000 150000 200000 200000 250000 250000 300000 300000 1 1 22 33 44 55 66 77 88 Retail
14
ZONING ZONINGZONING ZONING 2005 20052005 200534
Precinct 1 Precinct 1 34.56% land sold 34.56% land sold R1,239/m R1,239/m22 (buildings) (buildings) Precinct 2 Precinct 2 14.98% land sold 14.98% land sold R1,806/m R1,806/m22 (buildings) (buildings) Precinct 3 Precinct 3 38.15% land sold 38.15% land sold R1,159/m R1,159/m22 (buildings) (buildings) Precinct 5 Precinct 5 36.92% land sold 36.92% land sold R1,412/m R1,412/m22 (buildings) (buildings) Precinct 6 Precinct 6 19.42% land sold 19.42% land sold R1,349/m R1,349/m22 (buildings) (buildings) Precinct 7 Precinct 7 18.70% land sold 18.70% land sold R870/m R870/m22(buildings)(buildings) Precinct 4 Precinct 4 18.33% land sold 18.33% land sold R1,222/m R1,222/m22 (buildings) (buildings) 5 5 3 3 1 1 2 2 6 6 8 8 7 7 44 % SOLD % SOLD% SOLD % SOLD AND R/m² AND R/m²AND R/m² AND R/m² (BUILDINGS) (BUILDINGS)(BUILDINGS) (BUILDINGS) 2003 2003 2003 2003 ---- 2004200420042004Development potential on vacant
land & econ.opportunities in CBD
273 444m² TOTAL: -33 465m² Infill zone 8 -112 470m² Transitional zone 7 Part of 1;2;3 49 134m² Western office/trading zone
6
Part of 3.
19 417m² Motor town zone
5
Part of 1.
20 413m² Eastern office/retail zone
4 R47,5mil. 8 566m² Trading zone 3 R10,2mil. 19 835m² Institutional zone 2 R25mil. 10 144m² Low density office zone
1 Increase in local econ. production Area (m²) Precinct within CBD *
15
VACANT VACANT VACANT VACANT ERVEN ERVEN ERVEN ERVENTrends 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 decentralisation-attempts to prevent urban sprawl and promote
compact city/clusters;
• Polokwane/Mankweng Complex as medical
Demarcated Area…
cont’dPolokwane 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
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
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;
Projects..cont
•
•
for development R500 000 set aside for
for development
review of CBD Development Plan
(2004/05 budget), which will
inter alia
address a
dditional measures to
dditional measures to
re
re
-
-vitalize
vitalize
inner city and
inner city and
determine
determine
incentives
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
Subsection (6) (cont.)
(e): Fiscal measures in support of regeneration, namely:
Funds committed for infrastructure development and maintenance
Fiscal measures:
Infrastructure Development
2006/07 R208 million 2005/06 R188 million 2004/05 R146 million Budget 16.55% 6.94% 6.82% Water and Sanitation 0.96 1.06% 1.02% Roads 0.57% 7.29% 9.47% ElectricityCAPITAL PROJECTS 2007/8
ELECTRICITY
• CBD Developments = R500 00
• Upgrading of Voortrekker park = R500 000
• Buite Street feeder cable = R500 000
• Replacement of 2 circuit breakers = R500
000
• 40% Second Eskom supply = R17 000 000
CAPITAL PROJECTS 2007/8
ROADS AND STORMWATER
• Council Chamber paving = R200 000
• Bus terminus (Retarring, paving and repairs
of driveways)= 500 000
• Public Transport Infrastructure System
(Widening of Dorp Street) = R10 500 000
• Multi Storey parking (Design)
Legisl. Compliance (cont.)
Subsection (7):(a)(i): Hectare limitation:
Census 2001 Population 508 277 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)
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
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
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
Challenges/Constraints
• Funding for marketing
• Process needs a lot of administration
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
