The establishment of a municipal entity was the proposed preferred management model for the stadium. The proposed entity would operate as a state-owned company with an independent board. The city would be the sole shareholder, he said.
The entity would be tasked with appointing a specialised service provider whose primary function would be the commercialisation of the stadium to increase its use and financial viability. This would ultimately reduce financial dependence on the city’s fiscus.
In terms of the Municipal Finance Management Act, an assessment of the financial implications that this would hold for the city had to be completed before a final decision to establish a municipal entity could be taken.
The assessment considered the impact that the creation of a municipal entity would have on city staff employed at the stadium and on the assets and liabilities of the stadium.
The information statement and assessment were now available for public comment and input during a month-long public participation period. These documents could be accessed on the City of Cape Town website: www.capetown.gov.za/haveyoursay or at the city’s libraries and subcouncil offices.
Residents and interested and affected parties could submit their comments and recommendations from Saturday to December 12, using one of the following platforms:
– Via e-mail to Richard.Wootton@capetown.gov.za;
– Via fax to 086-202-8751; or
– Via a written submission posted to the Office of the Chief Financial Officer, for attention: Richard Wootton, City of Cape Town, Private Bag X9181, Cape Town, 8000
“Our goal is to minimise the financial losses currently being experienced by the Cape Town Stadium and to maximise the potential income streams. We are committed to enhancing the financial sustainability of this key strategic asset, which will in turn reduce the cost burden on the city’s rates book, while maximising the benefit of the stadium to the city community and economy.
“Members of the public are urged to make use of this public comment period to submit their recommendations and input on the establishment of a municipal entity as the preferred management model for the Cape Town Stadium,” Neilson said.