Ekurhuleni Metropolitan Municipality Germiston Urban Renewal

Ekurhuleni Metropolitan Municipality

Germiston Urban Renewal

National Forum:

Maximizing Value of Public

Real Estate and Catalyzing

Urban Regeneration

03 – 05 November 2014


Germiston Urban Renewal 2

Introduction

The urban network emerging from the urban renewal

studies recently completed for EMM townships and

for Germiston supports the following;

• The dual city core consisting of two primary

nodes that complement and support each other,

that is;

- Kempton park as a cultural and economic

hub encored by the Aerotropolis

- Germiston as an Administrative

headquarters of EMM

• Further to this, the programme advocated the

introduction of high intensity mixed use

developments, higher order facilities and

development of high quality environments in

townships in order to curtail the mono-functional

land uses that are prevailing currently

• To complete the picture, the long term vision of

the programme is to redevelop all EMM towns

into Central Living Districts (CLD’s), where

there is an intensification of residential land

uses to complement the economic uses that

prevail currently.



Key drivers of change/economic trends of city and region

Ekurhuleni Gauteng National Total Ekurhuleni as % of province

Ekurhuleni as % of national

Agriculture 0.8 4.4 72.7 17.2% 1.0% Mining 2.6 32.5 262.7 8.1% 1.0% Manufacturing 39.9 143.1 351.1 27.9% 11.4% Electricity 5.7 26.6 79.1 21.4% 7.2% Construction 9.6 50.6 112.6 19.1% 8.6% Trade 26.6 163.4 452.7 16.3% 5.9% Transport 19.6 90.8 257.7 21.6% 7.6% Finance 40.6 257.1 608.5 15.8% 6.7% Community services 33.1 231.7 637.9 14.3% 5.2%

Total Industries 178.4 1,000.2 2,835.1 17.8% 6.3%

• Manufacturing, trade, and business support services

are important contributors to economic growth.

• Community services, finance, construction and

trade are expected to drive economic growth in

Ekurhuleni over the medium term.

• Lagging behind are Mining and Agriculture.

• GVA of total industries is expected to average 3.72%

between 2012 and 2017.

Agriculture 0%

Mining 2%

Manufacturing 22%

Electricity 3%

Construction 5%

Trade 15% Transport

11%

Finance 23%

Community services

19%

Gross Value Added (GVA) by broad economic sectors, Ekurhuleni, 2012

Gross Value Added (GVA) by broad economic sector - Ekurhuleni Metropolitan Municipality, 2012, R billions, current prices

Source: KPMG 2014. EMM ECONOMIC OUTLOOK



West Rand 7% Sedibeng

7%

City of Tshwane 24%

City of Johannesburg 36%

Ekurhuleni 26%

Population by region in Gauteng, 2012

Ekurhuleni Gauteng National

Total

Average

Annual growth

(2002-2012)

2.40% 2.64% 1.28%

Average

Annual growth

(2012-2017)

2.12% 2.26% 1.26%

Trends in population growth, Ekurhuleni, Gauteng and National Total

Population trends in Ekurhuleni

As a proportion of South Africa’s total

population, Ekurhuleni’s population is

experiencing growth, rising from

5.5% in 2002 to 6.1% in 2012.

This potentially indicates a migration

into Gauteng and Ekurhuleni.

Forecasts indicate that this trend is

set to continue. Ekurhuleni’s share of

the province’s population is expected

to fall marginally from 25.8% in 2012

to 25.6% in 2017.

Conversely, Ekurhuleni’s share in

total national population is expected

to rise from 6.1% in 2012 to 6.4% in

2017.

Population trends in EMM




EMM growth rate closely trends in the

national economy, as well as trends in

Gauteng’s growth

Ekurhuleni’s economic development has

significant implications for Gauteng’s

economy.

Gross Domestic Product (GDP) Gauteng, 2012

0%

West Rand 5%

Sedibeng 3%

City of Tshwane 28%

City of Johannesburg

46%

Ekurhuleni 18%

Gross Domestic Product (GDP) Gauteng, 2012

-3,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Gro

wth

ra

te, co

nsta

nt 2

00

5 p

rice

s

Average annual GDP growth in Ekurhleni and South Africa, constant 2005 prices

Ekurhuleni annual growth rate South Africa annual growth rate

This is both because EMM contributes

nearly a fifth to provincial GDP and because

of substantial interdependencies.

Substantial potential for synergies exists

among different areas within Gauteng.

EMM economic growth rate




Variable Market Characteristics

Size of the sub-regional economy

(2010) Germiston Local Economy contributes 9.4% towards the Ekurhuleni

Metropolitan Economy

Economic Growth Performance – Time

Period 1996 - 2010

Germiston Local Economy

Growth in the local economy has averaged 4.0% per annum since

1996

Since 2005, the local economy recorded an average growth of 3.1%

per annum

Ekurhuleni Metropolitan Economy

Growth in the district economy has averaged 3.6% per annum since

1996

Since 2005, growth in the district economy recorded an average

growth rate of 2.8% per annum

Trade Sector Growth Performance

Time Period 1996 - 2010

The long run average annual growth rate of the Local Economy

Wholesale and Retail Sector averaged at 4.1% between 1996 and

2010 and the Catering and Accommodation for the same period

averaged -1.7%.

Finance and Business Sector Growth

Performance

Time Period 1996 - 2010

The long run average annual growth rate of the Local Economy

Finance Sector averaged at 8.1% between 1996 and 2010 and the

Services sector for the same period 5.1%.

Dominant Economic Contributions

(2010)

Finance, insurance, real estate and business services - 24.1%

Manufacturing – 23.3%

Wholesale and retail trade – 15.0%

General government – 13.9%

Transport and Communication services – 9.5%

Germiston local economic profile

Source: DEMACON 2013. GERMISTON HOUSING STRATEGY



Variable Germiston CBD

Market Characteristics

Dukathole

Market Characteristics

Population size (2012) 4 948 people

1 964 households

23 393 people

9 643 households

Household Size 2.5 people/ household 2.4 people/ household

Highest level of education

4.4% - No schooling

6.3% - Some primary

2.8% - Complete primary

28.3% - Some secondary

40.6% - Std 10 / Grd 12

17.6% - Higher education

9.82% - No schooling

17.4% - Some primary

9.4% - Complete primary

42.0% - Some secondary

18.8% - Std 10 / Grd 12

2.6% - Higher education

Level of employment 76.8% Economically active of which 18.2%

is unemployed and 81.8% is employed

84.6% Economically active of which 51.4%

is unemployed and 48.6% is employed

Occupation profile

22.8% - Clerks

18.8% - Service workers; shop and market

sales workers

12.2% - Elementary occupations

35.8% - Elementary occupations

22.0% - Craft and related trades workers

19.4% - Plant and machine operators and

assemblers

Average household income

(2011)

All LSM’s:

R192 596 per annum (2012 values)

R16 050 per month (2012 values)

LSM 4 – 10+ households:



All LSM’s:



LSM 4 – 10+ households:



LSM Profile 21.2% LSM 1-3

78.8% LSM 4 to 10+

61.4% LSM 1-3

38.6% LSM 4 to 10+

Germiston Key statistics

Source: DEMACON 2013. GERMISTON HOUSING STRATEGY



Germiston Competitive edge

Source: URBAN DYNAMICS 2010. GERMISTON 2030 VISION



Development Zones ZONE 1: FURTHER EDUC. & TRAINING

Education and Green Industry

Precinct

ZONE 2: MOTOR CITY

Manufacturing Precinct

ZONE 3: LIBRARY SQUARE

High Street Precinct - North

ZONE 4: CULTURAL SQUARE

High Street Precinct - North

ZONE 5: JACK STREET NORTH

High Street Precinct and

Manufacturing Precinct

ZONE 6: CIVIC SOUTH

Civic Precinct

ZONE 7: CENTRAL PARK

High Street Precinct, Central and

Commercial Precinct

ZONE 8: GOLDEN WALK

Commercial Precinct

ZONE 9: PIROWVILLE

Transport and Market Precinct

ZONE 10: QUEEN STREET

Residential Precinct

ZONE 11: FIRE STATION SQUARE

High Street Precinct - South

ZONE 12: GOLDEN WALK SOUTH

Commercial Precinct

ZONE 13: DUKATHOLE

ZONE 14: SHAFT CITI

13

14

10

11

12

9 8

6

3

4 5

7

1

2

Germiston UR: Project Area



OSTEND

PRECINCT

ROBERT

STRACHAN

PRECINCT

GOOD

HOPE

PRECINCT

Phase 1 focus areas



Development vision objectives and guidelines

Housing:

Principle 1: Promoting higher density housing

Principle 2: Providing a mixture of housing typologies & size

Principle 3: Promoting rental housing

Principle 4: Hostel upgrading/redevelopment & informal

settlement upgrading

Principle 5: Using residential height to create a nodal

landmark

Project Integration:

Principle 1: Project Integration

Leveraging private sector investment:

Principle 1: Land development suitability identification

(dolomitic investigations)

Principle 2: Project gearing

Principle 3: Improved management of the urban environment

to establish investor confiidence

Principle 4: Land release to private developers

Principle 5: Land swops

Urban Form:

Guideline 1: Defining public & private space

Guideline 2: Building heights

Guideline 3: Range of housing typologies

Guideline 4: Defining edges & districts

Guideline 5: Active edges

Guideline 6: Public spaces & public buildings

Guideline 7: Community /supportive facilities

Guideline 8: Reduce design dominance for vehicles &

promote public transport

Movement:

Principle 1: Structuring Urban Form

Principle 2: Completing the Urban Form

Principle 3: Creating a Hierarchy of access & movement

Principle 4: Reinforcing public transport routes focussed on

TOD’s

Principle 5: promoting pedestrian movement & walkability

Principle 6: Provide for pedestrain & public transport

connection points at a range of nodes

Nodes:

Principle 1: Identifying anchors & landmarks

Principle 2: Defining the character/function of the node

Principle 3: Promotion of formal business/commercial activity

Principle 4: informal trading incorporation

Public Space:

Principle 1: Focussing on activity to public spaces

Principle 2: Providing a network of good quality public spaces-

pedestrian links

Principle 3: Promoting Streets as public spaces

Principle 4: Promoting higher density at public spaces

Land Use:

Principle 1: Providing for a mix of land use

Principle 2: advocating vertical land use mix

Principle 3: Promoting the principle of shared facilities

Principle 4: Nodes as zones of intensity

Land Use Allocation:

Land use Allocation

Market related development proposals



Residential 1,510,827.53 62.31%

Commercial/ Offices 523,387.41 21.59%

Retail 171,208.26 7.06%

Public Amenities 18,400.00 0.76%

Educational 123,600.00 5.10%

Semi Industrial/ Manufacturing 77,101.03 3.18%

Total Bulk (m²) 2,424,524.24

Bonded & Credit-Linked take-up (2010-30) at 585 units per annum: 11,700

Bonded & Credit-Linked units proposed: 12,130

Low- level affordable & top-up units proposed: 17,987

Total bonded and ll afdbl housing units proposed (30- to 80m² units) 30,118

Primary School 14

Secondary School 9

Tertiary Education 1

Clinic 6

Hospital 0

Library 4

Post Office 4

Police Station 2

State of Bulk infrastructure

Water: Spare capacity up to development of 20,552 units

Sewer: Spare and pipe capacity available

Electricity/ Energy:> 125MVA expansion required

Land use estimate – Total Project

GEAR 2030 Development Plan

Ekurhuleni Metropolitan Municipality: Germiston Urban Renewal 13

CIVIC PRECINCT Business Plans Cost

This total estimated cost is comprised of the following components:

Project 1 (Catalytic Project): Mixed Residential Development & Multi- level Parking Garage: R 119,705,237*

Project 2: City Library: R 122,450,347*

Project 3: Germiston CCC (SAAME Building Upgrade): R 10,659,785*

Project 4: Mixed Use Development: R 159,659,015*

Project 5: Hotel: R 409,655,394*

Project 6: Public Space Upgrade: R 40,279,000*

Project 7: New Magistrates Court & Square: R 239,898,978*

Project 8: August Simmer Building Redevelopment & Extension: R 149,308,890*

Project 9: Civic Tower: R 332,964,070*

*Excluding VAT and Pre Contact Escalations (R 230,714,960 & R 63,383,240 respectively)

Total Estimated Project Costing R 1,878,678,960

(R 1,584,581,000 + R 63,383,240 + R 230,714,960)

PROGRESS TO DATE

Upgrading of council

buildings and parking

areas commenced in

2012/13 F/Y

Detailed Designs for

Civic Tower scheduled

to commence in 2015/16

Ekurhuleni Metropolitan Municipality: Germiston Urban Renewal

14

CULTURAL PRECINCT Business Plans Cost

This total estimated cost is comprised of the following components:

Project 1 (Catalytic Project): Theatre (Carnegie Hall): R 0.00. This project has already

been budgeted for by the EMM SRAC (Sport, Recreation, Arts, Culture & Heritage)

Department and contractor appointed.

Project 2 (Catalytic Project): Mixed Use Parking Garage: R 48,543,689*

Project 3: Museum Heritage Building: R 8,205,340*

Project 4: Mixed Use Development (Old Post Office): R 18,763,804*

Project 5: Clinic: R 48,623,519*

Project 6: Public Space Upgrade: R 24,823,000*

Project 7: Residential Development (Social Housing): R 91,292,473*

Project 8: Old Magistrates Court Housing: R 29,124,698*

(Subject to development reconsideration and scale of development)

*Excluding VAT and Pre Contact Escalations (R 29,221,280 & R 10,775,080 respectively)

Total Estimated Project Costing R 319,373,280

(R 269,377,000 + R 29,221,280 + R 10,755,080)

Note should be taken that the purchasing of land is also included in the above

calculations.

PROGRESS TO DATE

Contractor appointed and

Construction of the theatre

commences in 14/15 F/Y

Ekurhuleni Metropolitan Municipality: Germiston Urban Renewal

15

GERMISTON STATION TRANSPORT PRECINCT Business Plans

Project Packaging

Quality & Design Specifications

Land Assembly

Precinct/ Project Package

Project 1 (Catalytic Project): Multi Modal Transport Facility.

Project 2: Mixed Use Building 1.

Project 3: Hotel (Short Stay).

Project 4: Exiting Retail & Wholesale.

Project 5: Mixed Use Building 2 (Public Facilities).

Project 6: Public Space Upgrade.

PROGRESS TO DATE

• Project implemented through a

partnership between EMM and PRASA

• Conceptual designs for Germiston multi

modal facility were completed in

2013/14

• Detailed design and implementation

delayed – to commence soon after

implementation disagreements between

PRASA –EMM are resolved



Inner City housing focus areas

PROGRESS TO DATE

• A total of 12 063 housing opportunities are to be realized in the next 5 years. These include;

- 5000 rental units (New builds and brownfields)

- 778 BNG walk up units in Goodhope

- 6285 IRDP in Balmoral, Dukathole and Kutalo /R.Strachan

• Construction of 350 social housing units in erf 808 (fire station site) and units in Delville to

commence in July 2015



PROJECT GOVERNANCE



Institutional Arrangements

Institutional arrangements:

• The project is structured in a manner that departments budget and manage

projects identified that are in their portfolio

• A project steering committee which is chaired by human settlements as the

lead department is in place and it meets on a monthly basis

• Departments that are currently implementing projects in priority nodes are; • Transport Dept: Germiston station

• Disaster management: Fire station

• Sports and recreation: Theatre

• Social Housing : Human settlements

• Civic precinct: Real Estates

• City planning and economic development – coordination of land use and economic

development activities

Identification of key catalytic next steps

• Formalization of partnership agreement with key stakeholders and partners

• Marketing and release of development packages to leverage private sector

investments

• A more centralized approach- where planning, budgeting and implementation

all resides with one agency (either a dedicated unit within EMM or a

Development Agency)

Documents

Ekurhuleni Metropolitan Municipality Germiston Urban Renewal