Friday, February 23, 2001

JDA Citichat 23 February 2001

CITICHAT 7/2001 - 23 February 2001.


Establishment of the JDA

Two of the features of US urban 'redevelopment' are Development Agencies/ Corporations and the financial mechanisms that they often employ known as TIFs (Tax Increment Financing). More about the latter next week. Towards the end of last year a small group of persons (2 from Johannesburg and one each from Cape Town and Pretoria) were funded by USAID to attend the International Downtown Association (IDA) Annual Conference in Los Angeles. Following the conference, the Johannesburg Inner City Manager, Graeme Reid and I went on a whistestop visit to three of these agencies in California, at Long Beach, San Diego and San Jose.

We found that all three operated on similar principles and that all three had made significant impacts on their cities. Basically, the Agencies/Corporations are non-profit companies usually established by the local City Council (in terms of State legislation) with Boards drawn from both private and public sectors. The Boards set policy, hire their own staff and establish strategic plans for the areas they are focusing on and are responsible for the strategic planning, urban design, negotiations with developers, acquisition of properties, public improvements, financing and relocation of affected residents and businesses. Generally this will all be done within the parameters of a City Redevelopment Plan so that the agency really becomes a public/private delivery vehicle for the Council bringing a business focus that Local Authorities can seldom provide.

The San Diego Centre City Development Corporation suggests the following steps in redefining the centre city:

1. Start with an outstanding redevelopment agency

2. Add strong, committed leadership to achieve successful public/private partnerships

3. Create neighbourhoods that change the face of downtown

4. Strike a balance with business, residential, entertainment and cultural projects

5. Make a positive financial impact on the economy, and

6. Be visionary and look 10, 20 or more years down the road.

The San Diego Development Corporation basically controlled the redevelopment of 325 acres of what they described to us as 'blight' spread over four precincts. In the process they attracted almost $2 billion from the private sector leveraged from $200 million from the public sector. Not a bad ratio! And what they have achieved over the past twenty years to date is quite spectacular. The Centre City Redevelopment project calls for the public and private sectors to continue to work together through this vehicle over 'the next several decades' to develop a further 1,4 million square metres of Class A office space, 150 000 square metres of new service, entertainment and retail space, 5,600 new hotel rooms, 300 000 square metres of rehabilitated space and 22, 250 new residential units.

The Redevelopment Agency of the City of Long Beach has an equally impressive track record and vision for the future. They have set the following goals for their downtown;

1. Make downtown a distinct and unique place

2. Capitalise on the locational strength of Downtown Long Beach, primarily regarding its maritime and coastal character.

3. Encourage diversity and choice

4. Make downtown a vital place during daytime, evenings and weekends

5. Promote development downtown which provides economic benefits to the entire community

6. Reinforce the economic position of downtown Long Beach within the Los Angeles region

7. Create a flexible approach to downtown development which will be responsive to changing market conditions

8. Promote opportunities for cultural events and facilities within downtown

9. Expand and integrate the residential presence within downtown and

10. Improve transportation and signage systems to create a sense of orientation and ease of access to and from downtown.

What is encouraging about the approaches, goals and visions of the development agencies of all of the three cities visited (San Jose is very similar to the other two not only in approach but in results achieved) is that they are so close to the outcome of the work we had been doing with the City here particularly over the past two years.

So the GOOD NEWS is that our new Metropolitan Council has recently approved the establishment of a similar development corporation to be known as the Johannesburg Development Agency or JDA, modeled on much of what we saw and experienced. The purpose of the JDA is to:

• Promote economic development for the City (in the form of jobs and wealth creation) as its prime objective

• Use City assets as inputs (especially under-utilised assets, land, property)

• Use City leverage as inputs (especially powers and finance)

• Create a formal link to the private sector to facilitate the establishment of Public-Private partnerships

• Respond to private sector preferences that necessitate the creation of a separate entity for sustained and/or increased partnership and involvement

The JDA will be a Proprietary Limited Company (Pty Ltd). The shareholder structure allows for participation from government, the private sector and other organisations. The founding shareholders are the Metropolitan Council and the Johannesburg Inner City Business Coalition (JICBC). Key performance indicators are being developed to ensure accountability to the Founding Shareholders and the Metro Council in particular.

The JDA's project development role will include:

• Project packaging, facilitation, management and leadership, including formation of public and/or private partnerships for large scale projects

• Establishing Special Purpose Vehicles (SPVs) and/or associated companies to carry out specific projects, limit risk and meet project financiers requirements

• Acting as developer on catalyst projects, to be either sold on or held within the JDA's portfolio to provide income streams

• Marketing, promotion and communication for projects, sectors and locales

• Co-ordination of public, private and civil society elements

• Provision of venture capital and development finance, and taking return on investment commensurate with risk

• Acting as Agency on behalf of the Metro Council and other stakeholders to provide transactional and asset management services.

The initial focus of the JDA will be a number of the major projects that we reviewed at the end of last year including the Constitutional Hill Precinct, the Greater Newtown Precinct including the Metro Mall project now under construction, the Mary Fitzgerald Square redevelopment (design proposals currently being assessed) and a variety of regeneration projects.

As with the American cities, we must have the correct institutional vehicles in place if we are to reach our macro objective of turning the city into the premier African city and the JDA will play a major role in achieving this.

Friday, February 9, 2001

CJP Film Citichat 9 February 2001

CITICHAT 5/2001 - 9 February 2001


CJP Film on the “Struggle for the City”

Something about a city project with a difference this week.

An exciting project the CJP has been working on over the past year and which is now nearing fruition, has been the production of a short documentary on the history and growth of the City Centre. It is part of a far larger tourism initiative we are involved in and which will be made public fairly shortly.

Another record of the rise and fall of the city? Yawn!

No ways! This is to be a film with a difference, a big difference. A great deal of background and history of the city is available but, almost without exception, it has been produced from a "white" perspective. This is obviously because the white sector has historically been entrepreneur, developer, financier, businessman, mining magnate, politician, newspaper editor, councillor, mayor, etc. etc. Thus, traditional documentation all the way from the discovery of gold, the growth of the boisterous mining camp into a Victorian mining town to the Edwardian industrial city, the colonial city, the apartheid city, the whole explosive growth right through to the seventies and eighties and even the urban blight and decline, has, generally, been through one worldview, a decidedly pale one at that! Much of this is probably also still taught in schools and universities and is easily accessible from a wide source of literature.

But what about the perspective of millions of ordinary people whose "blood sweat and tears" actually made it all possible? What about the people who physically created and supported the city through their endeavours. The miner and the messenger, the labourer on the building sites, the 'houseboy' and the 'nannies', the washermen and the shebeen owner, the pennywhistler and the jazz musicians, the artists and the tsotsis? What about the stories of those that lived in the city in the sky during the apartheid regime? What about the conflict, the pass laws, the experiences of common people - experiences both inhuman and humourous, the richness of the urban tapestry yet the starkness that made the city what it is? Who was really responsible for all the energy both above and below ground? Johannesburg's history is a cultural kaleidoscope filled with a pot-pourrie of fascinating people.

We have long felt that without documenting these issues and the people themselves, a great deal of the cultural attraction of the city and its cultural diversity, will be lost. Indeed, Much has been lost already.

Hence, "Johannesburg, The Untold Story", (actually the name has not yet been finalised!) a 24 minute documentary which provides real people's stories against the background of the growth and development of the 'City of Gold'.

The documentary is being produced for us by Jane and Beata Lipman.

Jane returned from exile in 1997 after nine years with the Canadian Broadcasting Corporation as a respected news and current affairs producer and writer. Her award winning films on Bosnia and South Africa won Director’s Awards at Monte Carlo’s Golden Nymph News and Current Affairs Awards and the Columbus Ohio Video and TV Awards. Since her return to South Africa she has directed the 48 minute drama documentary “The Great Escape” for SABC 1 which is currently being rewritten as a two hour feature film and has made films about Angola, Wouter Basson and his Canadian connections and Corruption in South Africa. In 1999 she made two half hour films for the SABC in the run up to the election.

Beata Lipman also returned to South Africa after a number of years working with the BBC in Britain and has made a number of notable documentaries including ‘Mandela the Man’ and ‘Walter Sisulu, Father of the Nation.’

But it was really their one-hour documentary “Sol Plaatje: A Man for our Times” which caught my eye as having been produced with the sensitivity and uncompromising honesty that is so necessary for films of this genre. Launched by Minister of Education Kader Asmal. It focuses on an early hero of the liberation struggle and an important writer. Sol Plaatje is now being commemorated in high schools throughout the country with VHS tapes of the film and is currently in great demand on the international film festival circuit.

Some international funding provided the initial impetus and much smaller local financial support will enable completion in two to three months by which time we will release how we intend to use the film in the larger tourism initiative.

Other news for noting is the City Centre Investor's Briefing to be held on Wednesday March 28 - details will follow in the next few weeks, in the meantime diarise the date, will probably be breakfast to about 11h00.

Friday, February 2, 2001

SAPOA Vacancies, CCTV, Planning Citichat 2 February 2001

CITICHAT 4/2001 - 2 February 2001


SAPOA Vacancies, CCTV and Planning

Some good news about the city. Again! (We're on a roll, yeah!)

The latest available SAPOA "Vacancy" report indicates a further improvement in take up of A and B grade space. Vacancies have dropped from 6 months previously, 23.2% to 20.4% in December 2000. According to my calculations that is a whopping 48.300 square metre improvement! Braamfontein shows a slight increase in vacancies, as does Midrand, Milpark, Parktown, Randburg, Rosebank, Sandton and Woodmead/Sunninghill.

The CBD of Cape Town reflects an increase in vacancies (10% in the previous quarter up to 12.8% in December as does the Durban CBD (21.3% to 23.7%) whilst the Pretoria CBD reflects a massive improvement of 18.9% down to 8.9%.

Whilst the Jo'burg figures confirm informal reports I have been getting from a variety of sources (about trends rather than actual figures), I must say that the overall set of figures 'feels' a bit suspect and it will be interesting to see the next report which I believe comes out in April in respect of the first quarter of the year. Amongst the reports on Jo'burg I referred to, are that one of the office buildings on Gandhi Square, practically vacant for many years, is now 80% let, and the old Boland Bank building on the corner of Loveday and Market has been purchased by a computer company which is now occupying the building.

The other bit of good news is the progress being made on the CBD CCTV project. I attended a presentation earlier this week to new Executive Mayor, Amos Masondo and two of his Mayoral Committee councillors, Sol Cowan (Inner City) and Strike Ralegoma (Public Safety) by Business against Crime's CCTV Surveillance Unit MD, John Penberthy. The first phase of expanding the original pilot project of some 15 cameras to 70 is well under way. Tenders for the equipment closed earlier in the week and they are hopeful of getting the extended area covered by latest June. By the end of the year this will be extended to 120 cameras and by June 2002 the full complement of between 320 and 360 cameras will cover the area from Newtown to Ellis Park and Braamfontein Ridge to the M2.

The effectiveness of the cameras was demonstrated again in the last two weeks when a murder was recorded resulting in the two perpetrators being quickly apprehended and arrested. John believes that, so far, the system has led to a reduction in incidents in the surveillance area by about 40%.

Still on the issue of safety, the Executive Mayor, addressing the first council meeting of the year on Tuesday, stated that the Municipal Police Department (MPD) of the Council will be launched in March with a thousand officers initially. This is of course for the entire Metro area and not just the CBD but we can anticipate the city getting a fair share. The inner city received sufficient comment in his address to indicate a commitment to addressing the many issues in need of attention. One comment however that was of concern was this; "Firstly, and critically important, is to put in place a clear strategic plan of action for the city." Now of course the use of the word "city" actually refers to the entire Metropolitan area which has been officially named "The City of Johannesburg." But my understanding is that two major strategic plans are in their final stages being the Igoli 2010 plan and the Local Integrated Development Plan (LIDP) which has been produced for all 11 regions which constitute the Metro area. To the best of my knowledge the latter Plan has still to be consolidated for the Metro area and then it has to be again consolidated with the Igoli 2010 plan. I trust that this is what is being referred to because to start another planning process at this stage would be disastrous in terms of time and additional costs. What we need quickly and visibly is action, action, action. At the moment that is not apparent and there should be a major focus on getting council working effectively on the ground.

In so far as the CBD is concerned, our planning is already well advanced as two major planning exercises that have been part funded by the Johannesburg Inner City Business Coalition together with the Inner City Office have already been approved by Council being the Spatial and Economic Framework for the Inner City and the City Centre Development Framework. In this the CBD is ahead of the game and one trusts that all of this work will be capitalised on in whatever strategic planning the Executive Mayor has in mind.