Peoples Post Atlantic-Seaboard Edition 12-04-2011

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Tuesday 12 April 2011

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Thumbs up for zone relaxation VERNA VAN DIEMEN

A

T LEAST two residents’ associations around the Cape Town Stadium say they will support a review of some of the restrictions preventing commercial activity in the area when there are no events at the venue. The stadium is built on grounds declared a public open space, which restricts any commercialisation. The conditions are stipulated in the Record of Decision (ROD) issued in 2006 by then MEC for Environmental Affairs, Tasneem Essop. It is projected that ratepayers will have to cough up R44,6 million of the R56 million operating costs needed to run the stadium this year. But members of the Sea Point, Fresnaye and Bantry Bay Residents’ and Ratepayers’ Association (SFBRRA) and the Green Point Residents’ and Ratepayers’ Association (GPRRA) say they would support any efforts by the City to unlock the stadium’s economic possibilities, including lifting some of the restrictions. Brett Herron, the Mayoral Committee member for Community Services, says he welcomes the positive feedback from the two associations. “The site has always been controversial, but we were hoping for the support of the community,” he says. David Lazarus, of SFBRRA says: “Making the stadium financially viable must come first. The ratepayers are paying for it at the moment. We are not saying do a blanket lift of restrictions but look at each restriction on its merit.” Jocelin Kagan from GPRRA says: “The short-sightedness of those who were responsible for drafting this document (ROD) costs the City

Taking it all

and ratepayers an extraordinary amount of money every month to keep the stadium going. “The City has the power to reformulate the ROD and as such, could speed its income-generating capabilities if they would move to focus on this document and process.” The Mouille Point Ratepayers’ Association (MPRPA), however, did not want to voice its support or disapproval for the zoning restrictions, opting instead to raise its concerns about the impact stadium events have on residents. Marco van Embden, the MPRPA chairperson, says: “The workings of the City and its endeavours to run the stadium at a break-even are not part of our discussions with them at this stage. “Our concerns are limited to the impact the various events would have on our owners and residents who live in Mouille Point, between Three Anchor Bay and The Water Club. “The shortage of parking in and around Mouille Point is an issue, especially now that the magnificent Urban Park is fully operational. We are in contact with the City in this regard as the lack of parking and excessive traffic in the area at peak visitor times does cause inconvenience to residents.” The City put out a tender last week for a service provider to look at all potential business models for managing the stadium. This process could look beyond the ROD as well. The business analyst would best be able to advise the City on which zoning restrictions could be lifted, adds Herron. “The idea is not to build a mall or a casino, but we would like to see a tea room, a restaurant and to sell souvenirs from the visitors’ centre,

The SA Surf Life Saving Nipper Championships were held in perfect weather conditions at Strand beach on Saturday. The Fish Hoek Surf Lifesaving Club walked off with the championship title, while Durban Surf and Kings Beach (PE) placed second and third respectively. Photo: Denzil Maregele

which already attracts people.” Lesley de Reuck, director of the Cape Town Stadium and Green Point Park, says the concerts held so far and those lined up for the stadium are not sufficient to cover the costs of running the stadium. “It is well-known throughout world that events and concerts alone do not nearly cover operational costs of stadia. “The most important thing is an anchor tenant and other potential tenants, for example coffee shops and a sports shop so that all the revenue-generating opportunities can be optimised to create income,” says De Reuck. Residents’ associations are eager to have the taxpayers’ burden lifted. Lazarus says they encourage any efforts by the City to make the “lossmaking venture run by the council with ratepayers’ money” sustainable, “provided that the conditions of use continue to meet the terms laid

down by the Stadium Compliance Management System so that neighbouring residents are not adversely affected”. “If anchor tenants or even branding the stadium provide a means of achieving that goal, then we would encourage such moves ...” Kagan says it was “extraordinary to think that they did not initiate this process immediately the 2010 World Cup finished. Almost a year down the line they are still wriggling around trying to find ways to make the stadium pay when it can, but they have not moved to remove the greatest stumbling block.” De Reuck says: “We need to consider the best option. It might mean that we will have one or many anchor tenants.” Despite having more than seven concerts and big events scheduled for this year, the revenue will not be enough to break even, says De Reuck. The city made R2,5m from host-

EASTER A TIME FOR SAVING AT

ing the U2 concert, with R868 000 profit after expenses. Yesterday’s Neil Diamond concert brought in around R100 000. “It is impossible to run the stadium on just the revenue from concerts and events.” De Reuck says the City has already made a saving of R2 million by renegotiating two tenders – for cleaning and safety and security. Thirteen new tenders to deliver services at the stadium have just been advertised. It is envisaged that further savings could possibly be realised from the process, says De Reuck. The City has been managing the stadium since January after Sail Stadefrance backed out just weeks before their lease agreement was to have come into effect in November. At the time Sail Stadefrance said that the strict zoning conditions stipulated in the ROD made it almost impossible to generate income.

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