Bid to stop film industry’s GHC lease

communities living in the city can no longer use the venue.

“More people are coming back into the city with the development of District Six and where must they go?” asked Williams.

Williams and Ehrenreich said there were many alternative sites for the film industry.

Last July, the city rented out the facility as a film studio for R200 000 on a temporary contract.

In a letter to the Cape Argus, mayco member for economic development Garreth Bloor said the Good Hope Centre required significant expenditure for maintenance and upgrades, to remain in use.

In the 2014/15 financial year, it earned only 42 percent of its budgeted revenue.

“The city will not make a loss, but will benefit financially in the form of a market-related rental, future rates and taxes and the upgrading of a key strategic asset,” Bloor said.

But Williams said it was “laughable” for the council to claim the rental would cover the losses currently incurred.

“It’s all about the money. They don’t care about the community. It’s not like the city is going to make millions.”

Although a city report said a lease of R250 000 a month for the more than 5 000m venue was “market-related”, this would amount to less than half the amount charged per square metre for leasing commercial properties in the city.

Ehrenreich alleged that the film industry also block-booked other community facilities in the city, prohibiting public access.

“The film industry is not a struggling industry. We have a huge problem with how they are manipulating leaders who are privatising facilities while denying our citizens access,” he said.

The rental would escalate at 8 percent a year and the lessee would have to pay rates and municipal charges.

The city would pay to connect the facility to its optic fibre network.

The city said 101 events were held at the centre during the past financial year, either at no cost or at a reduced tariff.

Leasing the centre to the film industry would yield the highest return in the shortest space of time, said Bloor.

“One has to bear in mind that the city has a limited public purse. To take away R16m for repairs to the Good Hope Centre will mean other pressing service delivery commitments will have to be put on hold,” Bloor said.

By leasing the centre, the city would be creating jobs and attract investment to the city, said a report considered by mayco.