KDM may expropriate land for new taxi rank

KwaDukuza municipality executive committee (Exco) has recommended to council that the much contested 5 000 square metre property earmarked for Ballito’s new taxi rank, be expropriated.

A source close to council said the two year long tug-of-war over the land behind the Shell garage may soon reach a conclusion if the municipal council decides to go ahead with the recommended expropriation process.

An application would then be brought in the High Court to annex the land with a reasonable remuneration.

The current Ballito taxi rank is bursting at the seams and negotiations between KDM, Shell SA and property developer, I AM Rent Collector, to secure and acquire a piece of land for the construction of a new rank have reached a stalemate having dragged on for two years.

In response, on August 12 Exco recommended expropriation as a last resort as a matter of public interest.

Adjacent to the proposed land for the taxi rank, Shell SA wanted to expand the garage and add additional fast food outlets while I AM Rent Collector was planning to build a commercial development known as N2 City.

Sharing common local road access, it was agreed that the three parties would each contribute proportionately towards upgrading the road infrastructure to handle the increased traffic load that would result from the developments.

The road infrastructure upgrade would include Greenfields Road, the construction of a traffic circle and a new link road directly to the taxi rank.

I AM Rent Collector initially offered to purchase the piece of land from Shell SA and donate it to the municipality for the new taxi rank.

Shell SA agreed to the development and the accompanying land appropriation, but I AM Rent Collector (also the owner of the Ballito Lifestyle Centre), then introduced an outstanding town planning matter between him and the municipality that he wants affirmatively resolved before concluding the land availability agreement.

It appears that parties came to an agreement in principle at a meeting held on April 23 in which KDM would give up its rights to the land affected by the outstanding town planning matter in exchange for the piece of private land.

Two weeks later, on May 5, Shell said they would contribute to the road infrastructure upgrade on condition that it be done as part of the sales agreement.

Shell and I AM Rent Collector were to pay R6.8 million towards the infrastructure upgrade plus another R9 million towards the upgrade of the P445 road, totalling R15.8 million, which KDM would ringfence for road infrastructure upgrades in the Ballito CBD.

Shell and I AM Rent Collector initially committed to paying R11.5 million (the said value of the land behind Shell) but it was then mooted that they should rather give the taxi rank land to Council as a direct exchange in lieu of their contribution due to Council.

The two parties went on to argue that no further payments would be made as it would render their planned developments financially impractical.

Subsequent to the meetings, I AM Rent Collector’s legal adviser backtracked in a letter to council on the agreement reached on May 5, which led to Exco recommending the expropriation route.

The landowners involved have declined to comment.