Fix CBD or we won’t pay rates, says asset management company
AN ASSET management company has threatened to stop paying about R1 million in annual rates if the eThekwini Municipality does not clean up Anton Lembede (Smith) Street.
Ashraf Ally, the director of Carlton Asset Management, which oversees the management of buildings and their occupants, said the prolonged construction in the area was hazardous and had impacted businesses.
They manage three buildings on the street that are occupied by tenants. These include offices and retail stores.
“The workers began digging about a year ago. At the time, we thought the work would take a week or two. But they dug the road and left the rubble behind. It’s an eyesore and a hazard. We were not given prior notice as to what was happening, why, or how long the construction would take.
“Recently, the management at a store in one of the buildings said their turnover had dropped by about 50%. They attributed this to the ongoing construction.
“Tenants have have also told us that it is difficult for them and their clients access the buildings due to the traffic congestion stemming from the construction. Just a single lane is operational for cars, taxis and buses. Our shareholders and tenants are unhappy and we fear they will relocate if this continues. We have contacted several stakeholders in the municipality, but we don’t get answers.
“Our rates were recently increased by 20%. We pay close to R1 million a year for rates. If this situation continues, we will form an association in the CBD and instead of paying rates, we will put the money in a trust account until we get the service delivery we need.”
Yusuf Osman, an associate of Carlton Asset Management, said for about three months, piles of rubble were not removed from the pavements on Salmon Grove, a side street. This, he said, was despite complaints lodged to the municipality.
He said their cleaning staff hosed down Salmon Grove and other side streets such as Fenton Lane, Hermitage Street and Parry Lane, every day as vagrants urinated and messed the roads.
“We even painted and put new bulbs in the lampposts on these side streets as a safety precaution.
“Everything is done at our costs. We feel as if we are being failed by the municipality.”
Msawakhe Mayisela, the spokesperson for the municipality, said the construction was part of the city readying itself for the R35 billion Point Waterfront development that would include mixeduse development projects.
He said these included upmarket residential and commercial developments, a retail mall, a hotel, and leisure facilities.
“In order to enhance the Point development and plan for increased development in this area, the city has committed to upgrade the bulk infrastructure water main as well as public realm upgrades.
“The project involves the construction of a DN800 steel water pipe along Anton Lembede Street and Mahatma Gandhi Road as part of a response to the inner-city regeneration strategy based on the inner-city local area plan. It is also a response to the dilapidating infrastructure that requires upgrading for future growth of the area.”
Mayisela said public realm upgrades were included in the projects. This, he said, was intended to improve pedestrian connectivity and the urban environment.
He said the city had been aiming for the public realm upgrade to be completed in March or this month.
“The city is aware of the traffic congestion that has been noted during rush hour traffic.
“We call on motorists and commuters to be extra careful when in the vicinity of the construction and apologise for any inconvenience caused during the construction.
“We have our metro police posted across the city and they will intervene when needed. The route is not closed. Pedestrians and motorists can still use the route. The route is short of a single lane.”
Meanwhile, according to eThekwini’s draft budget tabled last week, water and electricity tarrifs will increase in the coming financial year.
The draft budget for the 2022/23 financial year is estimated to be R54 billion.
The budget proposed tariff increases on water (5.9% for residential use and 9% for business use), electricity (8.61%), sanitation (5.9% for residential and 9% for business use), and refuse removal (4.5% more for domestic use and 7.9% for business use).