IOL - NEWS / 23 JANUARY 2019 - 11:56 / MARVIN CHARLES
Cape Town - A tender dispute between the City of Cape Town and a property development consortium has held up the development of the Bellville velodrome almost 10 years after it was awarded.
“The city is legally bound in terms of current contractual arrangements for the future development of this facility and adjacent areas. The facility is subject to a 30-year lease agreement, together with an associated sale agreement for the land adjacent to the facility.
A tender dispute between the City of Cape Town and a property development consortium has held up the development of the Bellville velodrome almost 10 years after it was awarded. Photo: Tracey Adams/African News Agency
“The development to include the upgrade and future management of the Velodrome and the stadium, albeit that the facility will remain a city asset,” said Zahid Badroodien, mayoral committee member for community services and health.
At a full council meeting in October 2010, approval was given that the city award a R3 billion tender to establish retail, business, residential, hotel and conference facilities in the Bellville velodrome precinct.
The 11.5-hectare property is located on a portion of Erf 21750, Bellville, in Tyger Valley. It includes the velodrome, athletic stadium and the adjacent public parking area. The decision to award the tender was taken after a two-stage public tender process which started in September 2007.
The tender was won by Devmet Property Developments, a consortium of Devmark Property Group (Pty) Limited and Mettle Property Group (Pty) Limited, through a competitive bidding process that lasted more than two years. Mettle Property Group is 49% owned by Metropolitan Capital, an associated company of the Metropolitan Group, and is a level eight contributor in terms of B-BBEE.
“This agreement has been in effect for the past six years but delayed by a litigation process as a result of additional conditions imposed by the city,” Badroodien said.
A tender dispute between the City of Cape Town and a property development consortium has held up the development of the Bellville velodrome almost 10 years after it was awarded. Picture: Armand Hough/African News Agency (ANA)
The development was supposed to be completed by the end of 2014.
According to the city’s tourism development framework: 2013 to 2017: “The Bellville velodrome Precinct Development that was awarded by public tender in 2010 will create additional tourism opportunity in the area.
“This development sees a revitalisation of the existing velodrome facility to host more events, surrounded by a mixed-use shopping, office and hotel complex.”
According to reports, the historic velodrome is run down and badly maintained.
Mayor Dan Plato said: “It’s a very complex matter at this stage. My understanding from the senior officials is that there are redevelopments supposed to take place surrounding the premises.”
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER