The municipality is considering offers from Rhodes University and local property developer Pierre Ranchhod for a 6.48-hectare area of land located between a small kaolin quarry near the 1820 Settlers Monument and the Gavin Relly Post-Graduate Village.
The municipality is considering offers from Rhodes University and local property developer Pierre Ranchhod for a 6.48-hectare area of land located between a small kaolin quarry near the 1820 Settlers Monument and the Gavin Relly Post-Graduate Village.
Rhodes University put in a formal request to buy the land in March last year. According to a source close to the council, the reason for the council’s delay in deciding on the matter is because it is also considering an offer from Ranchhod. Ranchhod confirmed his interest in the land but said the property should be advertised so that all interested parties can tender for it.
“We put in an offer some years ago which was put on hold, but we believe the sale must be opened to the public,” he explained. “Otherwise, how does Broad-based Black Economic Empowerment (B-BBEE) manifest itself if [black]companies can’t benefit from such opportunities?”
He added that the university was not interested in buying the land in the year 2000 when the council was selling it for only R1. “This is a great opportunity for Rhodes University to enter in a joint venture with a BEE company to stimulate economic growth in Grahamstown,” he added.
According to Makana Municipal Manager Ntombi Baart, one evaluator determined the value of the land to be R10 because of the high cost of its rehabilitation.
“On the other hand, the second valuer [evaluator]determined a market value of R700 000 [which is]considered to be market-related and realistically achievable in the present market,” said Baart.
The university’s estates director Les Reynolds said they want the land between the quarry and the university to build student residences and that they are willing to rehabilitate the quarry in return.
The university has more than 6 000 registered students this year and the need for student accommodation is on the increase. Makana municipal spokesperson Thandy Matebese said the matter will be considered “on its own merits”.
However, he did not explain what these may be and denied any knowledge of a local property developer interested in buying the land nor would he say how the council would decide on who to sell to, should it receive more than one offer.
“The mayoral committee, at its meeting held on 6 March 2006, did not approve to alienate the properties in question to Rhodes,” Matebese explained.
“Rhodes has pursued the matter in a letter dated 13 March 2009 resuscitating its request, hence the matter is now under consideration.”
Makana Town Planner Renier van der Merwe has recommended to the council that, because the quarry has been mined out, it has to be closed and rehabilitated. “Rehabilitation costs were estimated some fours years ago at R4-million,” he added.
He told the council that the university wants to build an “underground office” block and that Rhodes will pay for the rehabilitation costs. However, Reynolds dismissed this, saying that they do not want to build underground offices on the land.
Instead he hinted that the quarry might be turned into an indoor sports centre. “This asset is basically useless to the municipality unless it is being rehabilitated.
It makes sense to alienate it to Rhodes University on condition that Rhodes undertake the necessary rezoning at its own cost,” said Van der Merwe.
He also said the land between the quarry and the university residence is zoned for agriculture and that the Spatial Development Framework does not earmark it for any future use.
He recommends that the council deals with the university’s request for the two portions of land separately.
He said the land between the quarry and the university should be sold to the university on two conditions, namely the appointment of a third evaluator and the determination of a fair market value.
Reynolds said: “The Vice Chancellor [Saleem Badat] is aware of the negotiations and the problems related to it.” He say the discussion around this portion of land was started in 1994 between the university and the council.
