Another lifeline for Durban's Point development
Amanda Khoza, News24
Durban - The eThekwini Municipality has taken a decision to defer rates repayments for the Point Development Company for five years.
EThekwini municipality spokesperson, Tozi Mthethwa, said in a statement the full rates were payable, but were being deferred to allow the company "to focus on developing the area while also addressing its cash flow problem".
The decision was taken during a full council meeting on Wednesday.
She said the decision was due to the strategic importance of the Point Waterfront Development to the city.
"A condition of the deferment was that when transfer of any land parcel takes place to any other party, rates will become payable," said Mthethwa.
"Any rates accrued up to the point of sale on the remaining properties will remain deferred until the expiration of the deferment period.
The entire accumulated amount will become due and payable thereafter.
Mthethwa said the city had a 50% stake in the development.
“The intention of the development, which includes the expansion of the beachfront promenade, is to transform the rundown precinct into a world-class environment," she said.
Deputy Mayor Nomvuzo Shabalala said the agreement was not that rates would not be paid at all, but that instead they would be paid in full at a later stage. The company had a previous rates deferment for 10 years, which expired in June.
She said the outstanding rates have been paid in full.