In response to questions submitted by the City Times on Wednesday, February 3, metro spokesman Themba Gadebe confirmed that a public participation process report has been submitted to the decision-making bodies of council and it is anticipated that council will soon consider the proposal.

CLICK HERE for the original story (Development threatens Benoni Country Club’s existence)

When asked to clarify the conditions and contents of the current and original lease agreement between the metro and BCC he answered: “The agreement of lease is in respect of the Remainder of Portion 27 of the farm Vlakfontein 69-IR, which is let for the purposes of running a country club and social club, in accordance with the constitution of Benoni Country Club.

“The agreement of lease came into effect on January 1, 1952, for a period one year and continued thereafter from year to year, subject thereto that it may be terminated by the giving or receiving by either party of 12 months’ notice in writing, to commence from the first day of January in the calendar year next succeeding the date on which such notice was given.”

He added that the rental amount is £1.00 (one Pound) per annum, payable annually in advance to the municipality.

“It is the responsibility of the club to maintain the premises and all other assets at the sole cost of the club,’said Gadebe.

“The municipality bears the cost in respect of assessment rates payable in respect of the property and the Benoni Country Club is responsible for all other municipal services charged.”

Asked if any public participation process has taken place the response was: “No public participation has been initiated to date and no notices were placed in the local press.

“A report on the matter must first be submitted to council for consideration, whereafter the city manager, or his nominee, will conduct the required public participation process and report back to council on the outcome thereof.

“The afore-mentioned public participation process must be in accordance with Section 21A of the Municipal Systems Act, 2000, which requires the placement of a notice in the local newspaper or the area and those determined by council as a newspaper of record.

“Copies of the newspaper notices will be displayed at the Benoni CCA offices.

“The notices will invite the local community to submit written comments or representations on the matter.

“The relevant ward councillor and ward committee will also be informed accordingly.

“Furthermore, comments from both the national and provincial treasury departments will be solicited.”

The City Times requested clarity on the strategic land parcels mentioned in the notice.

“The metro resolved to make optimal use of its assets and intends to derive the maximumenvironmental, social and/or economic returns from the said land parcel in terms of its approved Strategic Land Parcel Strategy,” said Gadebe.

“A report has been submitted to the decision-making processors to request council to conduct the required public participation process.

“The public participation process will clarify the community’s sentiments and provide the metro with better insight.

“This input will be used to advise council in order to make an informed long-term decision regarding the proposed developments.

“The council will give approval to proceed with the calling for development proposals or it may come to a different conclusion based on the outcome of the public participation process.”

On the potential loss of employment for some 160 BCC staff members, Gadebe said: “This will be duly noted and taken into consideration by council when the report is being dealt with, to derive the maximum environmental, social and/or economic returns from the said land parcel in terms of its approved Strategic Land Parcel Strategy.

When asked what kind of development is being considered on this land and what the environmental implications will be for the wildlife and bird life that live at BCC, the spokesman commented: “A possible investigation will also be considered by council regarding environmental implications, with specific reference to wildlife and bird life.

“Residential development, hotel development, development that associates with the current use and which retains the clubhouse and elements of the current use will also be considered.

“The level of the current services and the cost of upgrading bulk infrastructure will all influence the development proposals.”

It was further added that the metro is currently in the process of revisiting and reviewing all the agreements of lease entered into between the municipality and sports clubs, pursuant to new legislation that came into effect, whereby the metro is obliged to ensure that market-related rentals are charged, relative to such agreements of lease.

“For this reason, the municipality will terminate agreements and possibly enter new agreements of lease with new terms and conditions,” Gadebe explained.

“Where long-term agreements are entered into and the value of the asset value of the property being leased is more than R10-million, a public participation process must be followed by the municipality.”

Gadebe added that, if there is an intention to alienate (sale or lease) a high value property or portion of such property, the metro is obliged to conduct a public participation process.

“It is not the intention of the metro to sell off its assets,” he said.

“The municipality would rather enter into long-term development leases.

“The existing agreement of lease entered into between the municipality and BCC is currently not complying with the requirements of the Municipal Assets Transfer Regulations and the metro is under obligation to comply.

“BCC was identified as one of the properties that has not been developed to its fullest potential and was, therefore, included as one of the Strategic Land Parcels which the Transactional Advisor (TA) appointed by the metro had to investigate, to determine whether said property could be further developed to meet the strategic goals of EMM.”

BCC responds to the metro

In its response to the metro’s comments, the Benoni Country Club, on Tuesday, February 23, stated that the lease agreement entered in 1951 was a 12-month lease that automatically renews for 12 months and is common to most recreational facilities.

“To our knowledge none of the other golf clubs or sports and recreational facilities in Ekurhuleni have long-term leases or leases that attract monthly rentals other than nominal amounts,” the response reads.

“The lease, in our opinion, is market-related, and the nominal rental of one Pound per annum is not the rental the club pays.

“The rental the club pays is, in fact, the cost of maintaining, managing and securing a world class recreational facility for the community of Benoni – this currently amounts to approximately R640 000 per month.

“Furthermore, the metro has never invested any capital into the improvements of the club, a non-profit organisation.

“All surplus funds the club has generated or raised from its members over the years have been invested into the club’s facilities.

“The club donated all its legal rights to any compensation for these continuous improvements made on the property (clubhouse, golf course, equipment, etc.) to council on the same day that the lease was entered into in 1951 (Notarial Deed of Gift agreement), which states ‘in order that council may promote and foster the running of a country club on the said ground and certain neighbouring portions of ground’.

“These improvements and subsequent improvements run into many millions of Rand.

“We are of the opinion that council, by terminating the club’s lease, has not honoured the spirit and intention of the Deed of Gift agreement of 1951.

“It is, therefore, clear that the rental the club pays way exceeds the one Pound per annum nominal rental recorded in the lease agreement of 1951.”

On Tuesday, metro spokesman Themba Gadebe commented: “We note the response. Our comment on the matter remains. However, the country club is free to engage with the relevant department responsible for leasing than to deal with the matter through the media.”

CLICK HERE for a history of the Benoni Country Club.