The City of Johannesburg is offering special rebates to property developers, for new building developments in earmarked areas across the City.
The new 2017/18 Property Rates Policy aims to encourage new business opportunities and target developers who can take advantage of areas in the approved Strategic Area Frameworks. Kgamanyane Maphologela from the COJ says “In an effort to encourage developers to build new developments at the identified strategic areas, the City has created a special category of incentive to give developers a rebate holiday for at least three years period.”
The City intends to be pro-business and will be fast-tracking its plans to attract and assist businesses to aggressively invest in new building developments initiatives. The property owner will pay 25% of the rate as per the category of land for a period not exceeding two years during the construction phase.
Post construction, the following rebate will apply:
The property owner will pay half the rate on the first year of operation as per the category of land and only pay full rates from the second year of operation.
Maphologela says the city is targeting Transit Oriented Developments nodes (TOD) linking Soweto, through the inner city, to Sandton (along the Empire, Perth and Louis Botha Avenues) and linking Turffontein into the inner city. This will also include a focus on transit-oriented development nodes, including Gautrain, Rea Vaya (BRT)
- The detailed qualifying criteria will be provided by the Department of Development Planning in line with the approved policy
- The development must be in line with the development requirements set out by the City
- The proposed development must follow all planning by-laws
- The developer must apply to the Department of Development Planning for the approval of the project
- Once the project is approved by the Department of Development Planning, Property Unit will process the rebate.
Rebate application process
- The applicant must obtain the ‘Rebate Application Form’ from the Council (e.g Walk-in Centres at Regional Offices, Land Use Management (LUM) office on the 8th Floor A Block in Metro Centre Braamfotein
- Submit to LUM REGISTRATION situated on the 8th Floor, A-Block, Metro Centre, Braamfotein
- The LUM REGISTRATION: will conclude the application check list, register complete application, provide the applicant with the registration number and an acknowledgement letter, circulate the application to the relevant department
- City Transformation: will evaluate the application based on the relevant criteria and policy, then submits written comment to the Land Use Management
- Land Use Management: evaluate the rebate application, take into consideration the comments from City Transformation and Building Control. It will report with recommendation and conditions if applicable. The application will then be forwarded to the LUM REGISTRATION
- Building Control: will confirm issuing of “Occupation Certificate,” and provide written comment and a copy of the Occupation Certificate to Land Use Management if applicable
- LUM REGITRATION: will forward the combined comment from (Land Use Management/City Transformation/ Building Control with recommendation to the Rates Department
- Rates Department: after receiving the Land Use Management comments and recommendation, will further evaluate the application taking into consideration the combined Land Use Management comments. After this, the department will take a decision on whether the application is approved or declined