Financial Mail

AMAZON KICKED INTO TOUCH

After years of legal ping-pong, the Western Cape High Court has halted further constructi­on of Cape Town’s R4.5bn River Club developmen­t. But the matter is unlikely to end there

- Steve Kretzmann

The constant rumble of trucks bringing concrete and scaffoldin­g to the River Club developmen­t in Observator­y, Cape Town, has ceased. Cranes stand motionless, and the industry of 750 constructi­on workers, who have built multiple frameworks reaching three storeys over the past nine months, has come to an abrupt halt.

On March 18, Western Cape deputy judge president Patricia Goliath ordered that work be halted on the R4.5bn mega-developmen­t, set to house the new regional headquarte­rs of global tech giant Amazon. Her ruling offers a stark warning to developers: they cannot bulldoze through public participat­ion processes and then attempt to build themselves into an unassailab­le position.

Goliath’s decision may mark the first time a developmen­t of this size in SA — on which considerab­le constructi­on has already taken place

— has been halted by a court pending a review of the environmen­tal authorisat­ion and municipal planning processes.

But advocate Sean Rosenberg, acting for landowner and developer Liesbeek Leisure Properties Trust (LLPT), argued in court that granting the interdict wouldn’t just pause constructi­on; it would also scupper the entire project. Anchor tenant Amazon wouldn’t countenanc­e a delay of up to two years, he said, making it “almost certain” the project itself wouldn’t go ahead.

As such, the LLPT has filed leave to appeal Goliath’s decision.

The City of Cape Town is also expected to appeal, says Cormac Cullinan, lawyer for the Observator­y Civic Associatio­n (OCA) and the Goringhaic­ona Khoi Khoin Indigenous Traditiona­l Council (GKKITC), which both oppose the developmen­t.

The city, along with two provincial government department­s, has consistent­ly backed the developmen­t.

In particular, it will benefit from the new bridge over the Black River that’s included in the project.

Work has already started on the bridge, which will connect the industrial area of Ndabeni with Salt River and the city centre. The bridge and the Berkley Road connection to Salt River are to be constructe­d by the River Club developers in return for developmen­t levies being waived, according to the LLPT’s final basic assessment report. That could amount to R73m — the figure mentioned in Goliath’s judgment.

At this stage, the future of the bridge remains unclear: questions to the city about contingenc­y plans for its completion received no response before the FM went to print.

It’s not as if the interdict could have taken the developers entirely by surprise. The OCA and GKKITC notified the LLPT of their intention to seek an interdict last year, and asked that constructi­on be postponed until the matter had been heard in court. Instead, the LLPT opted to push ahead with constructi­on on June 26. In the absence of an interdict, there would be a danger of LLPT building itself into an “impregnabl­e position”.

Goliath’s 80-page judgment found the LLPT hadn’t concluded “meaningful engagement and consultati­on with all affected First Nations people ”— in this case, a range of Khoi and San traditiona­l and civic structures. Such consultati­on is required, as the developmen­t is on the site of SA’s first colonial land dispossess­ion.

The 14.8ha site at the confluence of the Liesbeek and Black rivers is considered sacred for the Khoi and San peoples. It is there that the Dutch first forced the Khoi from their traditiona­l grazing lands, and it’s near the site of a battle between the Portuguese and the Khoi in 1510 in which Viceroy Francisco de Almeida was defeated and killed.

The site is also part of the Two Rivers Urban Park (TRUP), an area of about 240ha that spans the Black River and includes the SA Astronomic­al Observator­y, Valkenberg psychiatri­c hospital, Oude Molen eco-village, Maitland gardens and the Alexandra Institute with its historic mill — the oldest of its kind in SA.

TRUP Associatio­n chair Marc

Turok says the park was declared in 2003, following a five-year public participat­ion process that involved the numerous landowners and stakeholde­rs within the park boundaries. It was, he says, envisioned as a green lung — Cape Town’s version of New York’s Central Park — with developmen­t along the transport corridors surroundin­g it.

At around the time the LLPT filed its notice of intent to develop River Club in 2016, a year after buying the land from Transnet for R12m, Heritage Western Cape (HWC) was considerin­g

grading the park as a provincial heritage site. This followed a baseline study by the provincial department of transport & public works (DTPW).

In April 2018, as the LLPT was carrying out its preliminar­y consultati­on and assessment, HWC — apparently considerin­g the River Club portion of the park to be under threat of developmen­t — issued a two-year provisiona­l protection order, preventing any changes from being made to the site.

That order was appealed by the LLPT, backed by legal teams from the city, the DTPW and the provincial department of environmen­tal affairs & developmen­t planning.

The OCA, TRUP Associatio­n, GKKITC and other First Nations groups sided with HWC.

But at a tribunal hearing in November 2019, it became apparent that the First Nations organisati­ons were no longer united in opposing the developmen­t. A new grouping called the First Nations Collective, led by chief Zenzile Khoisan, came out in support of it, saying the LLPT was willing to alter its plans to include aspects of First Nations heritage: Khoi symbolism on buildings and gateways, an indigenous herb garden, an amphitheat­re for performanc­es and rituals, a heritage eco-trail, and a cultural and media house run by the First Nations Collective.

Less than a year later, in April 2020, the appeal was struck down by the province’s independen­t tribunal. In a scathing judgment, it accused the DTPW and the city of “political posturing” in supporting a private developer rather than working with HWC as a fellow state institutio­n.

The fact that the developmen­t has substantia­l economic, infrastruc­tural and public benefits can never override the fundamenta­l rights of First Nations Peoples

Patricia Goliath

Still, the ruling was largely academic: the provisiona­l protection order lapsed just days later without HWC having clarified the site’s heritage status.

That same month, LLPT consultant­s completed their final basic assessment report and submitted the environmen­tal impact assessment. Environmen­tal authorisat­ion was granted by the provincial director on August 20 2020.

As argued in papers before Goliath, and likely to form part of argument in review proceeding­s, the authorisat­ion was granted despite the heritage impact section of the environmen­tal assessment not having been accepted by the HWC.

Appeals by HWC, the City of Cape Town’s environmen­tal management department (on the grounds that, for example, the developmen­t would be situated on a floodplain), the OCA, GKKITC and others were unsuccessf­ul.

In any event, months before Western Cape environmen­t MEC Anton Bredell dismissed these appeals, the city’s municipal planning tribunal had already given the developmen­t the go-ahead.

Tribunal chair David Daniels, for one, was impressed that the LLPT had secured Amazon as an anchor tenant. “That’s a major, major breakthrou­gh for the economy of the Western Cape and for the brand of Cape Town,” he said at the time. “I think it’s a big deal.”

Appeals against this decision were later dismissed by the then mayor Dan Plato, and following the granting of a water-use licence by the national department of water & sanitation on June 26 2020, the LLPT proceeded with constructi­on — despite the request to postpone until the interdict applicatio­n had been heard.

LLPT trustee and spokespers­on James Tannenberg­er now argues that it is “in the interests of justice” that the developer be given leave to appeal Goliath’s ruling. If the developmen­t fails, he says, the concession­s made to the First Nations Collective — which the GKKITC has called a “divide and rule tactic ”— will come to nothing and the region’s Khoi people will be “deprived of the only feasible prospect of manifestin­g their intangible cultural heritage associated with the area”. And, Tannenberg­er says, 6,000 direct and 19,000 indirect jobs will be lost.

But that’s not entirely clear. An affidavit by DHK Architects founding partner Derick Henstra, which forms part of the OCA’s court papers, states that River Club isn’t listed on Amazon’s shortlist for its new regional headquarte­rs. So, should a review find against the developmen­t, or if Amazon were to pull out due to a constructi­on delay, the corporate giant could conceivabl­y simply shift its headquarte­rs to one of the other Cape Town sites on its list.

This could effectivel­y reinstate both the jobs and investment lost at the River Club developmen­t.

When asked how River Club came to be chosen by Amazon, given that the developmen­t didn’t seem to appear on the company’s shortlist following its 2018 request for proposals, the LLPT refers to Henstra’s affidavit as “sour grapes”, claiming the architect had been involved on a competing site that lost a bid.

It claims the affidavit amounts to “non-expert hearsay informatio­n” that has “no relevance” to the matter at hand. The LLPT says it had sought to have the document struck from the legal record. (Goliath dismissed that applicatio­n.)

But even with the possible loss of jobs and investment, Goliath believes it is “constituti­onally appropriat­e” to halt constructi­on, as “this matter ultimately concerns the rights of indigenous people”.

“The fact that the developmen­t has substantia­l economic, infrastruc­tural and public benefits can never override the fundamenta­l rights of First Nations Peoples.”

 ?? Steve Kretzmann / WCN ?? On hold: Phase 1 of the River Club developmen­t, including a new bridge over the Black River, had progressed significan­tly prior to a high court interdict halting work
Steve Kretzmann / WCN On hold: Phase 1 of the River Club developmen­t, including a new bridge over the Black River, had progressed significan­tly prior to a high court interdict halting work
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 ?? Kretzmann / WCN Steve ?? Up in arms: There has been sustained opposition to the River Club developmen­t by civil society
Kretzmann / WCN Steve Up in arms: There has been sustained opposition to the River Club developmen­t by civil society

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