UPDATE: Salt Rock centre dispute turns ugly
Questions were raised as to why all of the shops - notably Woolworths - have not opened.
Disagreements between KDM and the developer of the new Salt Rock shopping centre have turned ugly, with the developer referring to KDM as a “mafia” while the municipality in turn called him “a habitual liar”.
Sheffield and Salt Rock residents were excited to see the opening of the new centre recently, but questions were raised as to why all of the shops – notably Woolworths – have not opened.
Finding common ground between the two parties is no simple matter, with the developer (New Salt Rock City) claiming they have been to court against KDM five times, while the municipality says it has only been three times.
The Courier has not yet been able to verify with the registrar of the court who is correct in this instance.
What both sides agree on is that each time the case was settled out of court. However, KDM says the developer backed down each time upon realising they were in the wrong, while the developer says the same about KDM.
Also read: Legal tangles stall Mt Richmore shopping centre
In a nutshell, the reason certain shops have not yet opened is because KDM has not issued occupation certificates to some of the tenants.
“If the municipality behaved with the public interest at heart, this centre could have been open a year ago already,” said developer Frikkie Lutski.
“We have spent approximately R250 million to get this centre up and running, creating about 300 jobs in the process.”
Lutski told the Courier they have had difficulties obtaining approval for plans, getting occupancy certificates and more out of KDM, alleging that the reason they would not approve these things was because they had not bribed the correct officials.
KDM on the other hand, claims they did not receive applications for certain occupancy certificates, and that correct procedures were not followed when applying for approval for building and site plans.
“It would be irresponsible for any municipality to grant an occupation certificate when it did not receive any application. It is common cause that the developer did not apply for an occupation certificate but instead went to court lying that it had applied,” said KDM media liaison Sipho Mkhize.
“One of the key issue of dispute related to the occupation certificate, is that the developer has built more than what was approved by council.”
Mkhize was referring to the fact that KDM had originally approved a development of 5803 square metres, while the finished centre is 9200 sq m. Lutski said they had informed the municipality in the change of size.
The tussle between the two parties has been ongoing for more than a decade, stemming from the early days of the Mt Richmore development and infrastructure development.
Also read: WATCH: Mt Richmore shopping centre open for business
Lutski compared KDM to a mafia, saying they hold developers to ransom by using them to pay for infrastructure that should be the municipality’s responsibility.
“In 2005 already we spent R400 million to upgrade KDM sewage, roads, water and electricity infrastructure when we started the Mt Richmore development. We even broadened the Salt Rock road at our own cost.”
When exactly all the shops will open remains unclear, as the two parties still have not found middle ground.
Mkhize told the Courier that all shops trading in meals, including frozen foods and liquor, are trading without business licenses as required by the Business Act of 1991, schedule 1 to 3.
“Only Checkers Group and a few have submitted their internal layout plans which are critical for the municipality to consider issuing of individual occupation certificates.
“All other outlets have not submitted these applications and, therefore, are in contravention of National Building Regulations and Building Standards Act.
“Therefore, the municipality will not issue any occupation certificates until they comply.”
With the opening of Checkers Mount Richmore Village alone, a company spokesman said 65 new jobs were created bringing the full staff complement to 160 staff members – of which 142 are youth (between the ages of 18 and 35) and 112 are women.
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