Urban Renewal In Cape Town: The Way Forward

2. Urban Renewal In Cape Town: The Way Forward Presentation to the Executive Committee. Shahid SolomonProgram DeveloperAugust 2002

3. A National Government Programme • The focus is on the specific national government urban renewal programme for Khayelitsha and Mitchell’s Plain. • Other urban renewal initiatives are important but not part of the national programme eg. Cape Renewal Strategy, Wesbank, Kew Town.

4. Objectives Of The Urban Renewal Programme • To mobilise people so that they can become active participants in upliftment. • To co-ordinate and focus the three spheres of government. • To secure private sector co-operation and participation. • To reprioritise and re-align the budgets and expenditures of the three spheres of government. • To pilot approaches to ensure cluster and inter-cluster as well as cross-sphere approaches to planning, budgeting and implementation.

5. What Is Urban Renewal? • A 5 to 10 year process. • Of developing inter-governmental, business, community and donor partnerships. • In order for… • The City to better meet community needs through: • Infrastructure upgrading. • Improved service delivery. • Simultaneously with: • Communities being better empowered to access city opportunities through development programmes.

6. What Is Urban Renewal? City that bettermeets communityneeds Communities betterequiped to accesscity opportunities UrbanRenewal Process Development partnerships Development programmes Infrastructure upgrading and improved service delivery

7. What Is Urban Renewal? Examples: City that better meets community needs: • (A) Infrastructure upgrading. • Urban integration: • Corridor development (Wetton-Landsdowne and North/South corridors). • Major nodal development (KBD, MPCBD). • Local nodes/dignified places. • Public transport facilities:

8. What Is Urban Renewal? Examples: Infrastructure Upgrading • Economic infrastructure: • Tourism routes/facilities. • Urban farms and produce markets. • Telecentres and business support centres. • Trading markets. • Crime prevention: • Street lighting. • Police stations. • Safe houses.

9. What Is Urban Renewal? Examples: Infrastructure Upgrading • Settlement upgrading: • Conventional housing. • Informal settlement upgrade/relocation. • Managed land settlement. • Higher density/social housing. • Social facilities (orphanages, clinics, libraries).

10. What Is Urban Renewal? Examples: Infrastructure Upgrading • Environmental upgrading: • Recreation nodes and facilities. • Coastal/wetland management. • Dump sites.

11. What Is Urban Renewal? Examples: City that better meets community needs. • (B) Improved service delivery. • Waste management. • Postal services. • Social and welfare services. • Health services. • Safety, security and emergency services.

12. What Is Urban Renewal? Examples: Communities better empowered to access city opportunities. • Development programmes: • Skills development and literacy. • People’s housing processes. • Business development. • Community-based service delivery. • Digital divide: ICT skills development. • Youth/women empowerment. • Community safety and violence prevention. • Civil society capacity building.

13. Funding OpportunitiesOver The Next 5 Years

14. An Urgent Call To Action • National government has assigned top-echelon cabinet ministers and WCPG has assigned the Premier as political champions. • If Cape Town does not move fast, our communities may miss the boat on major funding opportunities.

15. Key Success Factors for an Urban Renewal Management Framework • Effective Political Leadership: • Bring political representatives from all three spheres of government together – to avoid red tape, delays and misalignment. • Inter-departmental buy-in: • Active involvement and buy-in of relevant officials and line departments in the City, the Province and at national level. • Donor Support: • Effectively lobby donors for grant finance, and form partnerships with NGOs Continued…

16. Key Success Factors for an Urban Renewal Management Framework • Business Involvement: • Credibility with the business sector to attract significant private investment. • Community Empowerment: • Empower and involve local communities and Sub-Councils in decision making. • Implementation Capacity: • Capacity to effectively budget for and integrate and drive 200-500 projects and account for results and performance. • Alignment with City priorities and systems: • Integration with IDP. …Continued

17. Risks To Be Managed • Perception of managers and district staff that urban renewal lies ‘outside’ their sphere of responsibilities with resultant low co-operation and/or duplication. • Line departments shift budget and resource priorities to other areas. • Tensions may develop between the urban renewal management framework and established political structures. • Urban renewal framework may become an ‘end in itself’.

18. The Need for a Dedicated Support Framework • Urban Renewal of Khayelitsha and Mitchell’sPlain is a vast task. • Transparent ringfencing of the financial contributions of Council, national and provincial government and donors. • A ‘board’ of key political leaders in an efficient decision making structure. • Can be established quickly to capture opportunities. • Flexibility and responsiveness essential.

19. Functions Of Management Framework • Effectively deliver a 5-10 year urban renewal programme for Khayelitsha and Mitchell’s Plain. • Manage inter-governmental co-ordination. • Develop partnerships with donors and the business sector. • Develop and manage a delivery programme andfinancial mechanisms. • Effectively manage projects. Continued…

20. Functions Of Management Framework • Secure community involvement and ownership. • Develop the capacity of community institutions in Khayelitsha and Mitchell’s Plain to be able to play an effective longer term role in development. • Develop the medium term capacity of the municipal administration to achieve urban renewal throughout the city. • Ad-hoc advice for other urban renewal areas. …Continued

21. Components Of Management Framework • Local Vision • Local Strategy • Local Partnerships • Overall Vision • Strategic Integration • Financial Support • Technical Support • Capacity Building • Local Vision • Local Strategy • Local Partnerships KhayelitshaSteeringCommittee Mitchell’s PlainSteeringCommittee Enabling Entity • Sub-Council reps • Civil society • NGO’s • Local Business • Sub-Council reps • Civil society • NGO’s • Local Business KhayelitshaProjectManagement Team Mitchell’s PlainProjectManagement Team Ad-hoc support to other Urban Renewal Projects Project Managers Contractors Service Providers Imlementation:200-500 Projects Project Managers Contractors Service Providers

22. Components Of Enabling Entity Executive Councillors Provincial MECs National Ministers/DGs Local Steering Commttee Representation Business Sector Representation MOU Board National Section 21 or Public Corporation or in-house department Contract Support Core Provincial Inter-governmental Coordination Forum City • Province • City Official secondees Project Managers Service Level Agreements Donors

23. Proposed Components Of Business Plan Metropolitan SpatialDevelopment FrameworkPrinciples and Objectives Stratey/Policy from 3 spheres of government BUSINESS PLAN Vision and Strategy ContextualFramework KhayelitshaDevelopmentFramework Mitchell’s PlainDevelopmentFramework 5 yearMTIEF Programme Management System Packageof Plans DistrictPlans DistrictPlans Monitoring andEvaluation Project Agreements 3 year Rolling Programme of Projects PrecinctPlans PrecinctPlans ProjectPlans ProjectPlans Integration intoNational, Provincial,City and Donorprogrammes,budgets and IDP

24. Process Plan Trigger Report Sep 2002 Core PartnerNegotiations City Task Team Sep 2002 Lead Projects2002/2003 Interim Board and Management Framework KFWFeasibilityStudy Oct 2002 ProcessAgreement Mar 2003 DraftBusiness Plan MOU Final ManagingEntity and Framework Feb 2003 Stakeholder and publicinput 2002/2003 IDP:Plan and process links Apr 2003 FinalBusiness Plan May 2003 Review of BusinessPlan with 2004/2005 IDP Mar/June 2004 2002/2003Programme/Rollout July 2003

25. Staff Implications • The City does not currently have the staff to drive or support the urban renewal programme. A Project Leader and contract based core staff component for the Enabling Entity will be needed.

26. Financial Implications • Urban Renewal is core business and a constitutional obligation. • Business Plan will quantify operating costs of management framework. • Urban renewal to be linked to the City’s IDP, MTIEF and budget processes through the business plan to ensure financial sustainability.

27. Costs – Short Term • Business Plan to cost from R2,5 million to R3,0 million: urgent funding needed. • Annual operating cost of the Management Framework and Enabling Entity may be in the range of R4 million to R6 million per annum.

28. Costs – Medium/Long Term • The future operating costs of new facilities and infrastructure to be funded by Council must be factored in. • Pressure will be put on Council to match government and donor capital contributions with its own capital.

29. Benefits – Short Term • At least R77 million of capital grant funding is available from government for 2002/2003 and 2003/2004, together with at least R25 million of donor finance. • Utilisation of local labour and skills training schemes linked to capital projects will help relieve unemployment and all of the downstream costs this imposes on Council. • Major credibility boost for IDP if short term results can be delivered.

30. Benefits – Medium/Long Term • Could attract unprecedented levels of national government and donor funding over 5-7 years. • Climate conducive to private sector investment, to strengthen the City’s tax base and avoid further degeneration. • Culture of payment for services. • Immense costs of poverty (social impacts of crime, policing measures and under utilisation of economic skills base) reduced. • Infrastructure is optimally matched to needs and community takes care of new facilities. • Learning experiences for renewing other parts of the City. • Improve the image of the City and its attractiveness to tourists and investors.

31. Recommendations • Exco to appoint an Urban Renewal Sub-Committee supported by EMB Task Group (Development, Finance, Community Services, Strategy) • Urban Renewal Sub-Committee to be mandated to finalise: • Negotiation of a final Process Plan with core government partners (national and provincial). • The design, development and funding of a Business Plan. • The nature and form of an enabling entity and framework (with any interim arrangements). • A Memorandum of Understanding with core partners and key stakeholders. • Integration of the Urban Renewal Programme in the City’s IDP.

32. Recommendations • Dedicated internal Urban Renewal Project Leader and Technical Support Team to be appointed. • Advertisement and selection process for consultants to develop Business Plan to be initiated immediately. • Temporary operating budget of R200 000 and consultants fees budget of R400 000 to be identified immediately, further requirements for the balance of 2002/2003 to be accurately quantified, and funds allocated thereto. • Funding (R2.26 million) from national and provincial government and donors to complete the Business Plan to be sought, but in any case to be identified and reserved as a contingency fund in the 2002/2003 operating budget.

33. Thank You