The Freedom Front Plus (VF Plus) supports the principle of leasing unused council assets, such as land and buildings, to improve the Ekurhuleni Metro’s cash flow, provided it is done on a market-related and transparent basis.
In this regard, the Freedom Front Plus supports the proposed leasing of a large piece of land in Rynfield, Benoni, for the development of a skills training centre, educational facility and mosque. Such a development could offer significant social value to the community.
However, the current proposal of a minimum lease amount of R14 881 per month (VAT included) for a term of up to 30 years is problematic. The party has, therefore, requested the Council to base the lease amount on a recent independent valuation. It should also be reviewed annually and awarded by following an open, competitive process.
A fixed minimum lease amount, which is not adjusted, means the Metro runs the risk of losing revenue, while other lessees elsewhere in the Metro pay market-related amounts.
Rynfield residents should also be involved through a public participation process. Important practical issues such as traffic, access, parking and noise control should be thoroughly addressed in advance, especially because the proposed lease term could span decades.
The Freedom Front Plus’s benchmark is simple:
• A market-related lease amount, reviewed annually.
• Open and transparent tender process.
• The lessee bears all operational and renovation costs.
• The property must be returned in good condition at the end of the term.
The party will apply pressure to ensure that the lease agreement is structured to benefit the lessee, the Metro and the community.
