Proposed redevelopment on the cards for Virginia
R6.1-billion development which includes hotel, and upmarket residential houses, set to replace 55-year-old airport.
VIRGINIA Airport will be replaced by a R6.1-billion development which will comprise of a hotel, upmarket residential houses as well as leisure and related developments. In December operators were told they would be given a three year lease after which they will move to Scottburgh on the South Coast before the 55-year-old airport would officially close its doors.
Commercial flight operators will be relocated to King Shaka International Airport with the flight school operators relocating to Scottburgh.
The eThekwini Municipality confirmed in a statement today that it had received an unsolicited proposal from Seaworld Investment Holdings (Pty) Ltd recommending the redevelopment of the Virginia Airport site into a mixed-use development.
eThekwini Municipality’s communications spokesman, Tozi Mthethwa added the Municipality is not required to fund the development and will only offer its services and expertise in the implementation of bulk infrastructure and services.
“The proposal states that SeaWorld Investment Holdings (Pty) Ltd would source funding and develop a brand new airport, five times the size of Virginia Airport in Scottburgh. The Virginia Airport site is currently leased to operators for both business and recreational aviation. When the lease expired in October 2011 the city resolved to undertake a feasibility study to investigate alternative and optimal use of the site to advance the economic development aspirations of the City and grow the rates base.
“The Council resolution among other things included “to consider the extension of the lease by a period not exceeding 10 years”. Considering an extension is not similar to a commitment to extend. Therefore, no commitment was made and the city is not reneging on any agreement. While considering an extension the city also decided to embark on a feasibility study to ascertain options for optimal use of the Virginia Airport site,” Mthethwa said.
The study concluded that the site was no longer suitable to be utilised as an airport for a variety of reasons including that the City was no longer benefitting financial returns from that use.
“At present the Virginia Airport site does not generate rates income for the City. Therefore, the relocation of the airport activities to either King Shaka Airport and/or Scottsburgh site will clear a way for the redevelopment of the site into a facility that can generate an annual rate income for the City. The site is currently generating revenue from landing fees,” she said.
