Keetmans fast tracks land delivery
Keetmanshoop is set to develop two new extensions, the first being Extension 5, with serviced plots, in a bid to boost investment.
The Keetmanshoop municipality has responded to the president's call to innovate in terms of land delivery.
The Keetmanshoop Town Council has agreed to sell 764 square metres of land to fast track land delivery in the town.
Council minutes of a 31 October meeting show that approval was given to Harmonic Town Planning as the lead developer on the project.
The sale, however, is still subject to approval by urban and rural development minister Sophia Shaningwa.
Harmonic Town Planning applied to council on 8 September to be considered for a technical partnership to fast track the development of the subdivision on erf 1723 Keetmanshoop, Noordhoek Extension, which is now referred to as Extension 5.
The partnership aims to deliver land and sufficient erven in different areas to facilitate investment in Keetmanshoop.
“Land delivery is a long, bureaucratic and tedious process that takes a minimum of six years to deliver serviced plots from inception. Projects that start now will only deliver land in six years' time. A lack of serviced plots today is as a result of poor decisions made six years ago,” the proposal said.
In contrast to the traditional private-public-partnership, the technical partnership does not take an equity stake in the project.
“Council remains the sole owner of the land and all profits accrue to council. The technical partners are paid their normal fees in terms of government regulations and approved fees.”
According to the minutes, the number of erven in Extension 5 has increased to 367 and therefore it has become necessary to proclaim two extensions as only 350 erven per extension is permitted by the Deeds Office.
The proposal stated that the development of Extension 5 will be much quicker than the new extension as the need and desirability for the establishment of the township was already received.
It said that the projected income from the project is N$66.2 million while the projected cost is about N$56.9 million. This leaves a profit of about 9.3 million.
However, concern was raised about the risk involving a partnership and the fact that the profit margin would only be N$9 million, which has to be divided between the council, the developer and the interest be paid to the financer.
The council agreed, after weighing all the risks, that it would better to sell the plot to the developer.
The council thus resolved to allocate Extension 5 to the developer's team to do the necessary investigations, re-design layout and services in consultation with council, management of the project, site supervision, contract administration and the sale of the erven to the beneficiaries.
It also resolved that council provides un-serviced vacant land at N$40 per square metre to the developer and that the public open spaces still remain in the ownership of council.
ELLANIE SMIT
The Keetmanshoop Town Council has agreed to sell 764 square metres of land to fast track land delivery in the town.
Council minutes of a 31 October meeting show that approval was given to Harmonic Town Planning as the lead developer on the project.
The sale, however, is still subject to approval by urban and rural development minister Sophia Shaningwa.
Harmonic Town Planning applied to council on 8 September to be considered for a technical partnership to fast track the development of the subdivision on erf 1723 Keetmanshoop, Noordhoek Extension, which is now referred to as Extension 5.
The partnership aims to deliver land and sufficient erven in different areas to facilitate investment in Keetmanshoop.
“Land delivery is a long, bureaucratic and tedious process that takes a minimum of six years to deliver serviced plots from inception. Projects that start now will only deliver land in six years' time. A lack of serviced plots today is as a result of poor decisions made six years ago,” the proposal said.
In contrast to the traditional private-public-partnership, the technical partnership does not take an equity stake in the project.
“Council remains the sole owner of the land and all profits accrue to council. The technical partners are paid their normal fees in terms of government regulations and approved fees.”
According to the minutes, the number of erven in Extension 5 has increased to 367 and therefore it has become necessary to proclaim two extensions as only 350 erven per extension is permitted by the Deeds Office.
The proposal stated that the development of Extension 5 will be much quicker than the new extension as the need and desirability for the establishment of the township was already received.
It said that the projected income from the project is N$66.2 million while the projected cost is about N$56.9 million. This leaves a profit of about 9.3 million.
However, concern was raised about the risk involving a partnership and the fact that the profit margin would only be N$9 million, which has to be divided between the council, the developer and the interest be paid to the financer.
The council agreed, after weighing all the risks, that it would better to sell the plot to the developer.
The council thus resolved to allocate Extension 5 to the developer's team to do the necessary investigations, re-design layout and services in consultation with council, management of the project, site supervision, contract administration and the sale of the erven to the beneficiaries.
It also resolved that council provides un-serviced vacant land at N$40 per square metre to the developer and that the public open spaces still remain in the ownership of council.
ELLANIE SMIT
Comments
Namibian Sun
No comments have been left on this article