Nelson Mandela Bay is an industrial metro and yet a developer aiming to build a new factory or warehouse here must accept and factor in the risk of the unknown presented by the uncertain time frames for municipal decisions on land use applications.
Every land use or development application making its way through the municipal processes represents a number of new professional, construction and operational jobs, additional rates and utilities income for the metro, and all the other economic benefits of new investment. And yet, in Nelson Mandela Bay, with our high rate of unemployment, land use applications are plagued by uncertainty due to the lack of predictable turnaround times for decisions from the local municipality.
Industrial development projects are generally tenantdriven and these tenants are usually under pressure to deliver to their own clients’ time-bound requirements, such as export orders. Consequently, developers of industrial facilities are expected to meet the strict deadlines imposed by the tenant or face severe penalties.
In a business environment where time frames for municipal approvals are vague, appetite for property investment and development is low.
Many industrial property developers, property professionals and construction companies from Nelson Mandela Bay are being driven to seek work outside the Bay where greater certainty in planning processes and time frames supports investment and development.
The introduction of the Spatial Planning and Land Use Management Act of 2013 (SPLUMA) placed the local municipality in the pivotal role of all spatial planning and decision-making related to land use management in its area.
SPLUMA sought to stimulate investment in land development and gave local municipalities the opportunity to develop land use bylaws unique to each local context. In Nelson Mandela Bay, contrary to the intention of SPLUMA, delays in land use approvals discourage investment in land development. One reason for delays in obtaining approvals from our municipality is a lack of capacity in the administration. There are skilled and competent people doing their best in difficult circumstances, but there are just not enough of them due to attrition over a number of years and unfilled vacancies, and they often lack the basic tools to do their jobs, such as functioning printers, paper supply and internet access.
The other is the long-running instability in the metro’s political and administrative leadership, with required meetings not being held, resulting in inaction and a lack of decision-making.
In an environment of political instability and leadership uncertainty, non-decision-making becomes the safe option when an official runs the risk that his/her decision could be viewed as right one day and wrong the next. Application processes lacking in transparency and time frames that are open-ended not only deter investment and the jobs that new developments bring but foster an attitude of “it is easier to ask for forgiveness than apply for permission”.
The results can be seen across the metro, where various kinds of illegally operating businesses impact negatively on the natural and communal environment, on surrounding businesses and their trade, or on neighbouring residents, and cause traffic problems and damage to infrastructure. Those who follow the rules and commit to doing things right are punished with delays in getting approvals, with financial costs to business and reputation cost to the metro as an investment destination. There is a real threat of more investors moving their business plans to another city, because here they cannot be assured that land use applications and site development plans will be processed in time to proceed with construction and meet their business plans and commitments. Others simply don’t consider embarking on new developments in our metro, or they scale back a potentially larger and more impactful development in the hope of less red tape, tighter time frames and fewer hurdles and unknowns. It is understandable that land use applications involve multiple layers of consideration and consultation, and that these can be complex and take time.
It is in all of our interests that officials ensure that a development is desirable, beneficial and compatible with a spatial development framework that guides management of the metro’s future growth and development.
While it is acceptable for time to be taken to follow due process, it is not acceptable that this time is unpredictable because the municipality lacks the policy and human capacity to do what it is statutorily required to do.
Our appeal to the Bay’s political and administrative leadership is to ensure that bylaws are in place and officials are empowered with skills and resources to make timely decisions that support existing investment and encourage further growth and development in the Bay and not to allow further lost investment, development and job creation.
Paola Cicognini-Horak is a director of Grindstone Property Management and a Board member of the Nelson Mandela Bay Business Chamber.
