Ricochet News

Mayor recommends sale of Wells Estate property valued at R2.2-million

Nov 7, 2014
Mayor recommends sale of Wells Estate property valued at R2.2-million

Nelson Mandela Bay Mayor Ben Fihla has recommended that Council should approve the sale of industrial land in Ranger Street, Wells Estate at an upset price of R2.2 million.

The land is zoned for industrial purposes and is currently undeveloped.

In his report to Council, which meets on Thursday, the Mayor recommends that the property should be sold by public tender in order to comply with the provision of the Municipal Finance Management Act.

The sale of the Ranger Street property is one of a number of land matters approved by the Human Settlements on July 31 that will now be tabled in Council.

The Mayor has, however, recommended that an Application by Aberdare Cables for the purchase/ lease of road reserves in Korsten for a manufacturing project and expansion programme should be refused as the land is required for “basic municipal services”.

The land was primarily used by Transnet for the transport of goods by rail, according to a report on the proposal and “and has not been used for some 25-30 years”.

In its motivation for the purchase/ lease of the land, the company notes that it has been in operation for 66 years and employs 470 people.

Further, it contributes approximately R12 million a year to the metro in the form of rates and water and electricity service charges.

It adds that its expansion plans would “result in the employment of an additional approximately 40 persons”. - MetroMinutes.


Photo Caption: Nelson Mandela Bay Mayor, Benson Fihla.