New St George’s lease thorny issue

Decision on proposal delayed pending more information

THE Nelson Mandela Bay Municipality wants to hand over the management of St George’s Park Stadium to Eastern Province Cricket to ensure that the facility is better run and there is more accountability. This follows years of uncertainty around the lease agreement dating back to 1986, and complaints by the city that some of the terms are not being met.

The stadium is leased to the EP Cricket Board and the Crusaders Rugby Football Club ground governing body for R5 a year.

The municipality wants to cancel the joint-tenants agreement and enter into a new agreement with EP Cricket to manage the stadium on behalf of the city and to take on the Crusaders sports club, T20 club and others as anchor tenants.

The metro hopes this will ensure more accountability and lead towards a stadium that is more financially viable.

But mayoral committee members on Wednesday raised concerns of a possible backlash if the leases were cancelled without proper engagement with the tenants.

Mayor Athol Trollip said a decision could not be taken as there was not enough information on issues of ownership and tenancy.

“We believe we need to re-look at the leases and we are happy for [them] to be cancelled and renegotiated, but we want the department of SRAC [sports, recreation, arts and culture] and the city manager to take note of the sensitivity around these issues,” Trollip said.

Referring to a letter written by the Port Elizabeth Crusader Sports Club in June last year, Trollip said the committee did not have enough information on ownership to take a decision.

The letter by Crusaders chairman Brent Keevil states that a resolution had been taken by the board to accept that a “commercial model B” be investigated subject to an acceptable lease agreement being entered into by both parties. It was unclear what the details of model B entail.

However, the city’s proposed management model presented to the committee, if approved, would see the EP Cricket Board assume a position of main tenant while the Warriors, Crusaders and the T20 investor would be anchor tenants signing lease agreements with EP Cricket.

Sports, recreation, arts and culture political head Siyasanga Sijadu said the report tabled on Wednesday sought to normalise the “potentially hazardous situation” of leases at the stadium.

“We are requesting that the committee mandate the city manager to cancel the current leases in place as they have been violated in some instances.

“We request that the city manager look at the proposed model we have drawn up with EP Cricket,” Sijadu said.

But economic development, tourism and agriculture political head Andrew Whitfield said cancelling leases before reaching terms of agreement would pose significant risks.

A decision will be taken on the matter after city manager Johann Mettler presents a more detailed report on ownership and the current tenancy.