GREENSIDE – After months of lease renewal negotiations between Johannesburg Propety Company and Pirates Sports Club ended in a deadlock, ward councillor Amanda Forsythe was called in to lend a helping hand.
Forsythe said it became apparent that the city council may cancel the lease and put the popular club out to tender.
“Pirates is a well-loved club, and has been in our area for decades. I didn’t see why the council would want to cancel their lease, and was sure I could broker a deal,” she said.
Forsythe said the lease impasse was a result of “substantial differences” between the proposed new lease and the original lease between Pirates and the council, signed in 1955, which included advantages like a nominal rent, a 50-year lease, an automatic renewal clause, and an undertaking by the council to compensate the club for any building or improvements made on the property, upon cancellation of the lease.
“Legislation changed significantly since the original lease was signed and since it was renewed once for nine years and 11 months. The council no longer signs long-term leases, and now charges higher rentals to generate some revenue from its properties,” she said.
Forsythe added that the Municipal Financial Management Act and capital assets management regulations no longer allowed for automatic renewals or compensation for improvements.
“It became clear in my discussions with both parties that the deadlock was caused by the two approaching the lease from different perspectives,” she said.
“The club conceded that compensation was no longer possible, but a compromise was reached in terms of renewal, where the club can approach the council for a lease extension a year before the expiry date.”
According to Forsythe, the council approved a 20-year lease for the club.
“This was exceptional, and was a form of compensation for terms that had to be removed from the new lease,” she said.
Club management committee member Lloyde Hanson said the lease debacle came as a shock to the committee, members, sports federations and residents’ associations.
“In a nutshell, we’re not happy about it. The club is very much a part of the community here, and caters to national sports federations, residents, as well as many previously disadvantaged children from further afield. I think the council, which I understand has not had an MMC for sport and recreation for more than eight years, is missing the point about sport and recreation facilities,” said Hanson.
The property company’s Fanis Sardianos said the company wanted to bring the lease in line with current legislation.
“I think it was amicably resolved, and that the club is doing good work. The council knows the property is in good hands, and I’m sure it will go from strength to strength. It’s a real community facility, and serves a purpose the council wants.”
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