City to lease parking space at stadium

The City of Cape Town is seeking consent from full council for the use of office and parking space at the Cape Town Stadium in Green Point.

This is the latest move to ease some of the reported R40 million a year debt the stadium has picked up since its construction for the FIFA 2010 World Cup.

One of the ways the City has proposed to ease the burden of debt is to lease parking spaces.

Public participation for this could take place as early as next month.

The City’s acting Mayco member for Finance, Johan van der Merwe, said it was proposed that public input be gathered regarding the 10-year lease of internal office space, approximately 5 006m ² in size and with approximately
1 000 internal parking bays at the Cape Town Stadium.

Such a lease, which would be issued by public tender, would apply to a portion of Erf 1056, Fritz Sonnenberg Road, Green Point. This portion is zoned General Business Subzone 7 (GB7).

“This proposal follows the recent granting of business rights for the Cape Town Stadium and forms part of a basket of efforts by the City of Cape Town to commercialise the stadium and its surrounds so that it becomes a more viable asset for the residents of Cape Town and the generations to come

“The stadium is strategically located with good public transport access and it must be noted that the area lends itself to a range of urban opportunities, which must be explored,” said Mr Van Der Merwe.

He added that it is foreseen that the City would potentially receive lease income from the use of the property by the holder(s) of the rights.

The City’s conservative valuation of the internal rentable spaces, which is based on square metres and excludes VAT, municipal services and parking, includes: retail space: approximately R60 per m² per month, office space: approximately R40 per m² per month. storage space: R20 per m² per month.

The parking space has been valued by the City at an estimated R1 000 per bay per month for basement parking and R500 per bay for designated retail parking.

The proposal to lease internal space in the stadium also follows a recent issuing of the tender for the long-term lease of the City’s Granger Bay Boulevard site, which is located next to the stadium in Green Point.

The construction value alone could be about R600 million and the City will retain ownership of this property.

Such a development would also support the overall commercialisation of the stadium precinct to the benefit of further investment and job creation for the people of Cape Town.

The City also wishes to enhance public use of the space.

Luke Stevens, vice chairperson of the Green Point Residents’ and Ratepayers’ Association (GPRRA), said they had never objected to the site being used for business purposes.

“Since construction of the stadium, the GPRRA has never objected to commercial use of space contained within its footprint. We have suggested before that the podium roof be permanently open to the public: this is a large, unused space with excellent views. Giving ordinary people access would enhance the Common and go some way toward redressing the loss incurred when public open space was taken for stadium construction.

“However our previous approaches to open up this area have always been rebuffed on security grounds. We are therefore intrigued to see how the City intends to accommodate retail and office space in an area where they do not allow the public to go.”

If approved by Council, the public participation process for the lease of internal office and parking space in the stadium could start in November and will take place for three months.