Businesses at Moses Mabhida get R6 million bailout from city

BUSINESSES at Moses Mabhida Stadium are set to receive a R6 million bailout from the eThekwini Municipality to alleviate the financial burden resulting from the national lockdown.

The Durban Executive Council adopted a resolution that would offer rates rebate and rental waivers to retail shops and corporate suite tenants in the stadium.

Since the declaration of the national lockdown on 26 March, Moses Mabhida Stadium had to cancel all their events, sports and otherwise, resulting in millions of lost revenue.

The underground parking at the stadium has also been used as one of the City’s temporary homeless shelters.

In a bid to protect the brand equity and reputation of the stadium, the city engaged with businesses on the stadium to explore mutually workable solutions to enable business continuity.

Exco agreed to grant authority to the Head of Stadia and Facilities to approve a rental relief package in the amount of R6 794 816.29 to the Moses Mabhida Stadium retail shops and corporate suite tenants, subject to limited conditions.

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Retail shop and corporate suite-holders tenants are to receive a 100 per cent waiver of monthly rental including interest accrued on the months where lockdown was imposed but limited to a maximum period of six (06) months from April to September 2020.

Corporate Suite-Holders Tenant – A 100 per cent waiver of monthly rental and interest charge on months where lockdown has been imposed subject to the following conditions:

“Tenants that would have made an advance annual rental payment prior to the lockdown shall be entitled to a ‘rental holiday’ limited to the same period of six (06) months in the subsequent months of their lease terms,” says the exco report. The rental relief package will exclude any money owed to the stadium prior to the COVID-19 lockdown period.

The report also states that further relief will be looked into should the lockdown continue for a prolonged period.

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At the time of going to press, the contents of this feature mirrored South Africa’s lockdown regulations

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