EMNAMBITHI/LADYSMITH MUNICIPALITY

Transcription

1 EMNAMBITHI/LADYSMITH MUNICIPALITY POLICY DISPOSAL OF IMMOVABLE PROPERTY

2 DISPOSAL OF IMMOVABLE PROPERTY POLICY In applying this policy the Municipality will adhere to: Municipal Finance Management Act (Act no. 56 of 2003). The Constitution of the Republic of South Africa Act no 108 of Municipal Systems Act no 32 of 2000 as amended. Municipal Structures Act no 117 of Municipal Property Rates Act 2004 Other relevant legislation PURPOSE To have a framework that will direct, guide and inform all activities relating to the disposal of immovable property of the Municipality. DEFINITIONS 1. RESIDENTIAL LAND means a property included in a valuation roll in terms of section 48 (2)(b) of the Municipal Property Rates Act 2004, as residential. 2. INDUSTRIAL LAND means a property included in a valuation roll in terms of section 48 (2)(b) of the Municipal Property Rates Act 2004, as industrial - includes land for purposes for establishing a factory, warehouse, and storage facility and transport depot. 3. COMMERCIAL LAND means a property included in a valuation roll in terms of section 48 (2)(b) of the Municipal Property Rates Act 2004, as commercial - includes land sold for business purposes. 4. INSTITUTIONAL LAND means a property included in a valuation roll in terms of section 48 (2)(b) of the Municipal Property Rates Act 2004, as institutional includes land for worship and crèche purposes excluding educational purposes 5. LEASE AGREEMENT means land made available by agreement for a specific purpose and definite period. 6. LAND AVAILABILITY AGREEMENT means land made available for development purposes. 7. DONATIONS means land granted to non-profit organisations free of charge. 8. OWNER\S- means a person\s or companies who own the land. POLICY STATEMENT It is the policy of this Municipality to dispose of its immovable property within a statutory framework and enhance certainty, uniformity and simplicity across its community. Immovable Assets Policy 21/01/11 2

3 POLICY OBJECTIVES The objective of this policy is to provide procedures in which the Municipality may dispose of its immovable property. When implementing this policy the MFMA and the Supply Chain Management Policy will be the driving force of the policy by the Municipality. This policy intends to promote local, social and economical development in line with the Municipalities development strategies. PRINCIPLES, ADOPTION AND CONTENTS OF THE DISPOSAL OF PROPERTY POLICY The Municipality hereby adopts this policy consistent with the MFMA and Supply Chain Management Policy. This policy takes effect from 1 January LAND ALIENATION POLICY Immovable property of the Municipality will be disposed of in the following manner: By private treaty By public auction By public tender By donation By lease By land availability agreement RESIDENTIAL LAND 1. Land capable of development in its own right will be sold by public competition (either by public auction or tender as might be the preference of the Municipality from time to time) will be sold at not less than market value (the market value to be determined by the Valuer). 2. Land incapable of development in its own right will be sold by private treaty to the respective adjoining owner will be sold at market value the purchaser will be responsible for any and all cost associated with the provision of services and other related costs. COMMERCIAL AND MULTI-USE LAND 1. Land incapable of development in its own right will be sold by private treaty to the respective adjoining owner\s Immovable Assets Policy 21/01/11 3

4 will be sold at market value the purchaser will be responsible for any and all cost associated with the provision of services and other related costs. 2. Land capable of development in its own right INDUSTRIAL will be sold by public competition (either by public auction or tender as might be the preference of the Municipality from time to time) will be sold at not less than market value (the market value to be determined by the Valuer). 1. Land incapable of development in its own right will be sold by private treaty to the respective adjoining owner will be sold at market value the purchaser will be responsible for any and all cost associated with the provision of services and other related costs. 2. Land capable of development in its own right will be sold by public competition (either by public auction or tender as might be the preference of the Municipality from time to time) will be sold at not less than market value (the market value to be determined by the Valuer). INSTITUTIONAL LAND Will be sold by private treaty to institutional organisations at 20% of the market value as determined by a Valuer. Will be donated as determined by the Municipality to registered non-profit organisations. PUBLIC OPEN SPACES Provided the zoning is not required to be changed in terms of the town planning scheme land may be leased by agreement to public benefit organisations, co-operatives, youth organisations, amateur sporting bodies (it being noted that the Municipality may cancel the lease agreement should the land be required for its own purposes) at market related rental (or a nominal value as determined by Council). May be leased to adjoining property owners within a residential suburb at market related rental. LAND AVAILABILITY AGREEMENT Land made available for a period of two years to a prospective developer or to individual entrepreneurs or companies with a view to promoting economic Immovable Assets Policy 21/01/11 4

5 development. The agreement must indicate the conditions for development and demonstrate the potential for economic development. SALE OF LAND TO EMPLOYEES IN THE SERVICE OF THE STATE Immovable property may be alienated to persons in the employment of the State. METHOD OF DISPOSAL 1. PRIVATE TREATY An application for the purchase of land by private treaty will be considered by the Council. On approval thereof, in principle, the intention to sell for cash at the upset price (market value), will be duly advertised in the local press wherein the following shall be specified: -the period for any objections which shall be not less than 14 days -the property description -physical address -selling price -purchaser -terms and conditions applicable to the sale which will be available for inspection at the municipal offices Should no objections be received the Municipal Manager will proceed with the sale however should objections be received the Council will consider such objections and give reasons for its decisions to proceed with the sale or otherwise. 2. PUBLIC COMPETITION An application for the disposal of land will be considered by the Council. On approval thereof the intention to sell will be duly advertised in the local press wherein the following shall be specified: -the property description -physical address -upset price -terms and conditions applicable to the sale, which will be available for inspection at the municipal offices -date, place and time of auction or closing date and time for submission of tenders. Tenders will be considered and awarded by the adjudication committee in terms of the Supply Chain Management Policy. The successful bidder at an auction shall be required to pay a deposit of 20% of the sale price on the day of the auction. The sale shall be subject to the approval of the adjudication committee. Upon approval the balance will be payable. A nonrefundable deposit of R100 will be payable for tender documents issued. Immovable Assets Policy 21/01/11 5

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