CaseCase Study Study 1 - National Treasury Sep... · KwaMashu Station & Taxi Ranks (2006)KwaMashuK...

Case Study 1Case Study

Case Study of Township Centre Establishment

5 September 2008

Introduction to the ProjectIntroduction to the ProjectContent of Presentation

• Prevailing Situation at e a g S tuat o atcommencement of Project

• Approach & Methodology

• Access for Local Business & Buy-in

• Key Success factorsKey Success factors

• Results achieved & Benefits

Prevailing Situation . . . 1Prevailing Situation . . . 1

The former “township” of KwaMashu

The ‘status quo’ at project inception ….in 1999

• 25 km north of the CBD • Established in last 1950’s• State owned land – devolved to MunicipalityState owned land devolved to Municipality• Residents relocated from Cato Manor• Present population of 180 000, • I d Nt K M h (INK) l ti t 600 000• Inanda Ntuzuma KwaMashu (INK) area population at 600,000

KwaMashu characterised by…• Homogeneity of housing typology township houses & informalHomogeneity of housing typology – township houses & informal• Poor transport infrastructure linkage to City• Lack of investment – both public and private-sector• Shops destroyed in the 1980’s violence• Economic leakage – cross-boarder trading issues

• Emergence of informal trading and activitiesg g


Institutional context…

At the start of the project… 1999

• R 293 townships incorporated into the City• Township Administration collapses• ANC d i t W d il• ANC dominate area – Ward councilors

Planning context…• City policy or strategic planning does not cover townshipsCity policy or strategic planning does not cover townships

• IDP (Integrated Development Plan) – only guidance

• Poor information on population, property and trends

Social context…• High unemployment, low skills base

• C i d it j i• Crime and security seen as major issues• Civic organisation – strong and mainly through political structures• Absence of business representative organisations

1957 plan for the Town Centre1957 plan for the Town Centre1957 plan for the Town Centre1957 plan for the Town Centre

KwaMashu Town Centre in 1999KwaMashu Town Centre in 1999


• Existing interceptory location

Pre-planning assessment – some key factors• Existing interceptory location

- busy transportation hub : train, bus & taxi- volumes of daily commuters from broad catchment- spontaneous trading activities – some formal

K M h St ti & T i R k (2006)KwaMashu Station & Taxi Ranks (2006)KwaMashu Station & Taxi Ranks (2006)KwaMashu Station & Taxi Ranks (2006)


• Existing interceptory location

Pre-planning assessment – some key factors• Existing interceptory location

- busy transportation hub : train, bus & taxi- volumes of daily commuter from broad catchment- spontaneous trading activities – some formal

• Availability of well located & developable vacant landpotential for further economic development- potential for further economic development

- private-sector investment interest (boom period up to 2008)- not threatened by land invasions

• Resilience of community- relatively higher income levels around the town centre

many home based businesses professional services to- many home-based businesses - professional services to back-yard trades …… apart from informal street trading

Prevailing SituationPrevailing SituationPrevailing Situation

Approach & MethodologyApproach & Methodology

Access for local business & buy-in

Key Success Factorsy

Results achieved & benefitsResults achieved & benefits

Approach & Methodology . . . 1Approach & Methodology . . . 1

Appointment of a multi disciplinary consultant teamProject Packaging

• Scan of the KwaMashu area– identify economic and development opportunities, and linkages

• Research– best practice models– intervention strategies – regional spread vs. concentrated at nodeintervention strategies regional spread vs. concentrated at node

• Consultation– political structures & community forums – trader associations– local business persons and outside investors

• Package of plans 3 areas of intervention• Package of plans – 3 areas of intervention

• Implementation mechanics – agency vs. municipal


• Open-ended approach

Some underplaying principlesOpen ended approach

Question: What will have the greatest economic impact in this region?

• Planning from ‘first principles’Planning from first principles - taking the broadest possible view to contextualise the project and

guide the local planning

• Flexibility & adaptability- Layout - easily be charged to suite new demands- Zoning - permits multiple land-uses

• Facilitative Role- taking into account resident concerns & investor interests


• Economic regeneration

Project objectives• Economic regeneration

- create environment conducive to business growth

• Security & Social infrastructureSecurity & Social infrastructure- ensuring a safety and security environment for residents to live, work and play

• Nodal focus- clustering of activities around the point of

highest accessibility to achieve ‘Mass & Momentum’


• Create an enabling environment for local businesses to grow and

an Urban VisionCreate an enabling environment for local businesses to grow, and

for the resident community to prosper

• T f K M h i t th i i b t ith it• Transform KwaMashu into a thriving urban centre with its own economic drive and social vitality

• Offer residents a quality urban living, working and recreational environment

• Link the urban centre back to the city


1 Infrastructure Upgrade

The 3 Areas of intervention . . . 1. Infrastructure Upgrade

- create an enabling physical environment

2 Safety Security & Social infrastructure2. Safety, Security & Social infrastructure- ensuring safety, security and better access to range

of social facilities and services

3. Business Growth & Development Programme- supporting the growth of existing businesses

& fostering the establishment of new business


• Planning

Infrastructure Upgrade

- Town planning Zoning & Regulations – DFA application- Upgrading old land tenure to Freehold- New subdivisions – many smaller sites

O t hi i t S ll d T f l d hi- Open township register – Sell and Transfer land ownership- Development Guidelines & Precinct Plans

4 Precinct Plans4 Precinct Plans4 Precinct Plans

Sport Recreation & Leisure

Sport Recreation & Leisure& Leisure & Leisure

Mixed-useMixed-use Commercial &Commercial &li ht i d t i lMixed use

residentialresidential light industriallight industrial

Mixed-use BusinessMixed-use BusinessMixed use Business

4 Precinct Plans4 Precinct Plans4 Precinct Plans

Sport Recreation & Leisure

Sport Recreation & Leisure& Leisure & Leisure

Mixed-useMixed-use Commercial &Commercial &li ht i d t i lMixed use

residentialresidential light industriallight industrial

Mixed-use BusinessMixed-use BusinessMixed use Business


• Planning

Infrastructure Upgrade

- Town planning Zoning & Regulations – DFA application- Upgrading old land tenure to Freehold- New subdivisions – many smaller sites- Open township register Sell and Transfer land ownership- Open township register – Sell and Transfer land ownership- Development Guidelines & Precinct Plans

• Improving accessImproving access- Malandela Road upgrade – main access road- Bhejane Road – 2 km link road to Bridge City- Undlondlo Road – access to Princess Magogo Stadiumg g- Provision of internal service roads- Pedestrian walkways

KwaMashu Town Centre Development PlanKwaMashu Town Centre Development PlanKwaMashu Town Centre Development Plan


• Serviced land for development

Infrastructure Upgrade continued ……

- Water borne sewer reticulation - Water supply & electricity- Road access

• Sport, Recreation & Leisure - Upgrading or the Princess Magogo Stadium as one of

three 2010 training venues in the Citythree 2010 training venues in the City- Precinct plan for further development of active recreation area- Opportunities for private sector sport related businesses- Passive open space – Park and leisure facilitiesp p


• Safety & Security

Security & Social infrastructure

- Establishing police presence - new Metro Police Station - Community Policing Forum - Lot Owners Association- Introduce “security by design” principles

• Social services- KZN Dept. of Health - new Community Health Center- KZN Dept of Social Welfare new Regional Office & Pension

>> facilitate the development of ….

KZN Dept. of Social Welfare - new Regional Office & Pension pay-out point

- Nat. Dept. of Home Affairs - considering new offices- Nat. Dept of Labour - considering new offices p g

The new KwaMashu Metro Police StationThe new KwaMashu Metro Police Station


Approach & Methodology

Access for local business & buy-inAccess for local business & buy-in


Results achieved & benefitsResults achieved & benefits

Access for local business & buy-in . . . 1Access for local business & buy-in . . . 1

• Providing municipal facilities at the “small” end ….>>> Address opportunities across the ‘small-to-big’ continuum

- Upgrading of the Station Traders Market – range of accommodation- Redevelopment of the old Mahawini SME Hive – retail incubator facility- Regulated street trading facilitiesRegulated street trading facilities

Upgrading of the Station Traders MarketUpgrading of the Station Traders MarketProposed Accommodation Options

Basic Trading Site (2m2)EXISTING R 68.40 / month

Shared Water

Shared Storage (additional cost)

EXISTING

Trading Pods (6m2)

Shared Shelter

R 130 / month / Trader4X Sharing Water

Electricity x 2 sharing

PROPOSED

y g

Storage x 2 sharing

Roof x 8 sharing

2Kiosk (25m2)

R 188.10 / monthWater

PROPOSEDWater

Electricity

Storage

Roof

Existing Mahawini Small Business HiveExisting Mahawini Small Business HiveExisting Mahawini Small Business Hiveg

Proposed Mahawini Business CentreProposed Mahawini Business Centre• Incubator retail & personal service space on ground floors with support service

• Business Support Centre (SEDA model) and service providers on 1st floorpp ( ) p

Preliminary Design and Layout SketchesPreliminary Design and Layout Sketches


• Providing municipal facilities at the “small” end ….

>>> Address opportunities across the ‘small-to-big’ continuum

- Upgrading of the Station Traders Market – range of accommodation- Redevelopment of the old Mahawini SME Hive – retail incubator facility- Regulated street trading facilitiesRegulated street trading facilities

• Guiding private sector to respond to the mid range- Rent / lease business space of varying size and standard- Rent / lease business space of varying size and standard- Purchase of sectional titles business premises- Purchase of complete buildings - Share equity options

RFP for Private-sector development of Mixed use ZonesRFP for Private-sector development of Mixed use Zones

Access for local business & buy-in . . . 1Access for local business & buy-in . . . 1‘Mixed use’ development – business & housing

• 6 Ha for private sector development• 6 Ha for private-sector development

• Zoning - Mixed Use Business (6 floors) / Mixed Use Residential (4 floors)– Ground floor for business / officeGround floor for business / office

– Upper floors residential units

– Various combinations

• Coverage permitted - 50%

• Zero building lineZero building line

• Promote urban streetscape


• Private sector development at the “big” end …Business Growth & Development Programme

Case of the new KwaMashu Shopping Centre

• Early private-sector initiative – investment of R 75 m>> Why we facilitated this development prior to finalising Project plans

Early private sector initiative investment of R 75 m• High-quality shopping environment – major Brands and Banks• Catalytic development –

Shift local and outsiders’ perception of the area- Shift local and outsiders’ perception of the area- Attracts more people to the town centre – better market for

local small business, traders, taxis……- Stimulate investment interest- Create business & job opportunities

KwaMashu Town Centre – Malandela RoadKwaMashu Town Centre – Malandela Road


• Promotion of small scale manufacturing

Business Growth & Development Programme

Entrepreneurial Support Centre – Mini factory complex with sector focus• Over-reliance on retail and services growth in limited market• Lack of land or premises for manufacturing and skills development• Post-incubator facility linked with business support – >>

- Priority on furniture and allied manufacturing trades (wood & steel)y g ( )

- Specific sector support programmes and linkages

- Linkage to broader economy – supply or manufactured goods

Specialised kills and business development- Specialised kills and business development

- Clustering benefits

Sit f E t i l S t C tSit f E t i l S t C tSite for Entrepreneurial Support CentreSite for Entrepreneurial Support Centre

EntertainmentEntertainment Franchising business opportunityFranchising business opportunity

MiniMini--factory cluster and support centrefactory cluster and support centre

Entertainment Entertainment Franchising business opportunityFranchising business opportunity


>>Opportunities offered to Local Business across the continuumBusiness Growth & Development ProgrammeSummary :

• Range of subsidised municipal facilities at the “small” end of the business continuum

• Privately development providing business premises in the mixed-use zones for rent, part-own, fully own, or hold share-equityp , y , q y

• Facilitate the establishment of larger commercial development

• Municipal mini-factory complex to foster small-scale manufacturing p y p g

• Labour and sub-contracting during the construction phases – municipal contracts allocate 20% of value to local resources


>>Talk to the people and hear what they say, their concerns and aspirations !

Political and Community Buy-in

• Project Steering Committee – chaired by senior local councilors

• Public meetings, workshops and briefing sessions – “Vision building”Public meetings, workshops and briefing sessions Vision building

• Providing information, explanations and options – problem solving approach

• Clarity on the roles, responsibilities and process y , p p

• Delivery demonstrates commitment – “action” makes the project real

• Going the “extra mile”, even beyond your core businessg y y




Key Success FactorsKey Success FactorsKey Success Factorsy

Results achieved & benefits

ey Success ac o sy

Results achieved & benefits

Key Success Factors . . .Key Success Factors . . . An all embracing approach – “the package of plans”

“Get on the ground” and start some infrastructural work

Resolving land issues as early as possible

Political and community alignment

Responsiveness to private sector interestsResponsiveness to private-sector interests

Flexibility & adaptability





Results achieved & benefitsResults achieved & benefitsResults achieved & benefitsResults achieved & benefitsResults achieved & benefitsResults achieved & benefits

Results achieved & benefits . . .Results achieved & benefits . . .

1999199919991999


2007200720072007


On the Positive side:

• Infrastructure and engineering services upgraded R 58m• Infrastructure and engineering services upgraded … R 58m• Planning framework, zoning and regulatory framework in effect• 6 Ha of prime land ready to sell and be developed• M t P li St ti b ilt d ti l R 13 5• Metro Police Station built and operational … R 13,5m• Major “mega-clinic” under construction … R 80m • Shopping Centre built and trading successfully … R 75m, and

catalytic effects are becoming evidentcatalytic effects are becoming evident• 3 municipal lead SMME projects planned and underway• Major sport & recreation facilities planned and underway• R 62 N i l T (NDPG) f di ll d• R 62m National Treasury (NDPG) funding allocated


On the Uncertain side:

• Mixed use development model still untested in local market• Mixed-use development model still untested in local market

• Long-term sustainability of municipal facilities may be questionable

• Few local ‘traders’ are on an upward entrepreneurial trajectoryp p j y

• Management, enforcement and maintenance problematic

• Development processes open to political manipulation

Thank youThank you

L BL BLen BaarsLen BaarsSenior Project MangerSenior Project Manger

Economic Development UnitEconomic Development UnitEconomic Development UnitEconomic Development UnitTel 031 311 4227Tel 031 311 4227

[email protected]@durban.gov.za

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