City Hall CAPE TOWN
CONCEPT DOCUMENT & BUSINESS PLAN
REDEVELOP PERFORMANCE assemble innovate c re ate
community PARTNERSHIPS
history
spatial
MUSIC
CULTURE
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CONTENTS 1.
Executive summary
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2.
Project context
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3.
Cape Town cultural hub
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4.
Research & vision
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5.
The proposition
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6.
Business plan
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7.
Timeline
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CAPE TOWN
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CITY HALL
executive summary
Restoration, development and management
VISION1
1 Concept document and business plan
The proposal is for the City Hall to become a centre for performance, participation, experience, developing and learning of traditional, indigenous, contemporary and classical music. USE A sustainable cultural centre for the City of Cape Town with an emphasis on the promotion of acoustic music, including performance venues, rehearsal space, retail opportunities related to music, and supporting activities such as restaurants and bars. The City Hall will provide the focus of relevant tourism and heritage attractions, introducing tourists to the rich and diverse heritage of the city and serving as a starting point for the bus tours of the city. The centre will be an important cultural tourism asset for the city. It will form the flagship of a proposed positioning of the East City as the first phase of a cultural hub in the Central City. The centre will form an essential part in a ‘town to township connection’, ensuring marginalised communities (of all kinds) have a base in the city for the dignified performance of indigenous music practices and for those that have developed out of our history in slavery and colonialism. The basis for the vision, its potential usage by future visitors, and the buy-in by the Cape Town community for this project is confirmed by an extensive study conducted by Ochre Communications and Urban Skywalkers. Please refer to pages 10 – 12 for more details. BACKGROUND The City Hall is one of the most significant public facilities and a major heritage asset in the city centre and for the city as a whole. Despite active use and a R40 million renovation to its façade in 1998, it is: - significantly under-utilised; - poorly maintained; - requires substantial refurbishment.
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As developed and agreed by the City Hall Steering Committee/ Creative Cape Town Reference Group
However, with significant pressures on the City coffers to provide opportunities throughout the Peninsula, there are insufficient public resources to fully develop this important resource. This concept document and business plan offers the rationale for the project, as well as the proposed business plan for the full development of the City Hall as a centre for music.
partnerships
THE CAPE TOWN CITY HALL
CAPE TOWN
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CITY HALL
executive summary
Restoration, development and management
THE BUSINESS PLAN It is therefore agreed that the City Hall must be a self-supporting, financially sustainable entity not dependent upon the City of Cape Town for continuous subsidisation. It is proposed that the resource be offered on a 50 – 90 year lease to a non-profit section 21 company in the interest of social benefit, thereby allowing a set of creative opportunities to develop the venue as a centre of music.
Concept document and business plan
THE DEVELOPMENT OF THE BUILDING The City Hall is a proposed development that maintains its significant heritage value while ensuring it is a sought out venue for visitors and tenants, thereby ensuring its ongoing sustainability. Major restoration work will be required to the interior of the building, but a full investigation of the building may reveal possible work required to the exterior. Once the lease of the City Hall has been secured, the professional consultant team, led by Rennie Scurr Adendorff Architects, will be in a position to provide accurate cost estimates, based upon the scope of work required for the building. An informal estimate at this stage is in the region of R40 million. As the City Hall is a declared provincial heritage site, there are a range of heritage and conservation management issues which we have factored into this business plan (please refer to page 15 for more details). The Cape Town Heritage Trust is one of the partners with extensive experience of these issues. FINANCIAL MODELS AND COSTING The following information covers the broad approach to the financing of the project (more detail on pages 17 and 18). The feasibility studies are based upon the assumption that the building will be zero rated for rates and that a nominal rental (R150.00) will be paid on an annual basis. CAPITAL COSTS The project will require a major once-off capital investment, suggested approach directed to major financial institutions but must include a commitment from the City in the form of a committed lease at nominal rental and with a rate rebate. It is suggested that the budgets allocated for the remainder of this financial year and the following (given that such funds have already been allocated) are held for the purpose of the project and that of the new leaseholder. The major banking institutions have been approached in this regard and all have mechanisms by which funding for projects of this nature are available. Financing is based upon the proposed net rental stream assumed for the building. (This exercise is in the process of being undertaken.) The rental stream amount is escalated over a period of 12 years (using current escalation values of, say, 8%). This calculation defines the total capital value of the net rental stream, which in turn informs the value of the financing from the banking institution.
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DEVELOPMENT
THE CAPE TOWN CITY HALL
CAPE TOWN
CITY HALL
THE CAPE TOWN CITY HALL Restoration, development and management Concept document and business plan
executive summary OPERATING AND START UP COSTS
COMPANY DETAILS
There will be operating costs and start up costs for the company including maintenance, security, management, programming and development. More details are included in the proposal (page 18 and 19). A range of income streams are proposed, including rental, performance income, grants and sponsorships amongst others.
City Hall Redevelopment and Management Company
MANAGEMENT STRUCTURE
INTERIM PROJECT MANAGERS: For the Cape Town Heritage Trust: Laura Robinson (021) 421 0287 / 083 463 4765 For the Cape Town Partnership: Zayd Minty (021) 419 1881 / 083 530 1912
It is proposed that the City Hall be leased to and managed by a dedicated Section 21 company (not for profit)1. The board of directors will include members from civil society; both representatives of organisations and/or private individuals with expertise/interest in the fields of culture and music. The company would be the long-term leaseholder of the property. A company has been registered with founding members drawn from two partners: the Cape Town Partnership and Cape Town Heritage Trust. These are significant non-profit entities that have substantial experience of development, facilitation and management in the city and the central city in particular. See pages 6 and 17 for more information. INTERIM BOARD OF DIRECTORS In order to facilitate the project an interim board of directors (two persons) and an equal number of founding members from both the partners have been appointed. Once the project is on track further directors will be appointed, drawing skills and expertise from sectors such as private business interests, music and tourism. 1 Documentation relating to the Section 21 Company is attached as annexure 1. 2 This is a body set up in 2005/6 to advise the Cape Town Partnership, who was driving the process of reimagining the City Hall, and comprised of a number of stakeholders and potential stakeholders from the music, heritage and tourism sectors, as well as government.
ADVISORY COMMITTEE The board will be served by an advisory committee comprised of members of the City Hall Steering Committee2 and additional persons who have expertise and standing or who represent a recognised musical community. The City of Cape Town will also be represented on the Advisory Committee.
Registration No. of Company: 2008/000887/08
Address: c/o Cape Town Partnership, 10th Floor, The Terraces, 34 Bree Street, Cape Town, 8001 Telephone: (021) 419 1881 • Fax: (021) 419 0894
MANAGEMENT PRINCIPLES Once the lease has been signed the interim Board will appoint a project manager on a two-year contract. This person will be responsible for initiating the project requirements and will report to the board. THE MANAGEMENT MODEL HAS BEEN PREMISED UPON THE FOLLOWING ASSUMPTIONS: There will be two income generating models. •
Fixed income model – tenants, retail/restaurant/bar, offices.
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Variable income model – events/venue users (orchestras, choirs, jazz musicians, etc.).
It is envisaged that aspects of the management will be outsourced under the direction of the project manager. Property management – appointment of a property management company to manage the day-to-day running of the building, including security, cleaning, and maintenance. Also collection of rentals from the fixed income tenants, insurance, etc. In the long term a full-time director and support staff (minimal number) will be appointed by the board. Where appropriate an events management company may be appointed to ensure programming is managed and a marketing company appointed to ensure the centre has high visibility.
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Concept document and business plan
PROJECT PROCESS The timeline attached (page 20) indicates the best-case scenario and is largely informed by the removal of the Central Library to the Drill Hall. As the library is the major tenant in the building, its removal will leave large areas in the City Hall empty. It is essential for the safety of the building and the contents that when such areas are vacated they are secured in order to prevent vandalism and theft (both of which have already taken place with the results clearly visible at this time).
community
Restoration, development and management
executive summary
create innovate
THE CAPE TOWN CITY HALL
REQUIREMENTS FROM THE CITY OF CAPE TOWN
CULTURE
• The advertisement of the intention by the City Council to offer the City Hall to the City Hall Redevelopment and Management Company (the Company). • To finalise a lease with the Company. • Find alternative accommodation for the municipal courts and civic amenities department currently in the building and to offer (by 1 July 2008) a vacant building to the Company. • To hand over the booking system to the Company as soon as possible and ensure that no additional bookings for venues are made without the Company’s involvement. • To ensure the current maintenance budget (with related staff ) are passed to the Company. • To pass any renovations or refurbishment budgets currently in the City of Cape Town budgets, as well as any other committed City Hall related budgets, to the Company. • An OPTIONAL proposed two year start-up grant is requested of R2.5 million per annum (R5 million) to ensure that the Company is able to optimally establish itself.
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project CONTEXT
The Cape Town Partnership has a mandate, from the public and private sector, to facilitate the development of the central city on behalf of local government, property owners and civil society. Since 1999 it has played an integral role in developing creative partnerships that enable the development of “an inclusive, productive and diverse city centre that retains its historic character and reflects a common identity for all the people of Cape Town”.
Over the years the Cape Town Partnership has proved its success in ensuring a safe and clean city centre, has successfully marketed and brought people back into the city (through events and public relations drives) and has attracted over R24 billion of investment in the last few years alone. The Cape Town Partnership now has a successful social development programme and has begun research and programmes in energy efficiency, NMT transport and social housing amongst others.
BUSINESS PLAN
THE CAPE TOWN PARTNERSHIP
business plan CREATIVE CAPE TOWN Creative Cape Town is one of the Cape Town Partnership’s key new programme areas arising out of an extensive research and consultation process from 2004 – including an ongoing engagement from a reference group of creative industry leaders1. The redevelopment of the City Hall as a premier music centre falls under the Cape Town Partnership’s Creative Cape Town programme which: recognises culture’s intrinsic role in society, and is a social, economic and spatial strategy that promotes an active, vibrant and diverse city centre.
FOUR ASPECTS OF THIS PROGRAMME – BENCHMARKED AGAINST INTERNATIONAL BEST PRACTICE 1. Local distinctiveness. This refers to the importance of the special cultural characteristics of Cape Town as its unique selling point in respect to cultural tourism and creative industries. In addition, it is within our locally specific markers that we can begin to acknowledge and respect our rich cultural diversity. This area finds expression in two Cape Town Partnership projects : Goemarati and Goematronics. 2. Promoting creative industries. This focuses on the growth of creative industries in Cape Town (with over 800 in the central city alone) and the growing importance of it as an economic sector internationally (refer to the PGWC MEDS strategy 2006). This finds expression in the Cape Town Partnership’s networking and connecting initiative: The Cape Town Creative Cluster Network. 3. Promoting cultural tourism. This recognises the importance of an authentic cultural fare for visitors to the city 2. It finds expression in the Cape Town Partnership’s plans to provide a more supportive environment for both major and small events in the city and for marketing the city as a destination for cultural tourism. 4. Connecting space. This is guided by the fact that visitors need clear way-finding elements within pedestrian-friendly, safe and secure, and clean spaces that host quality venues and infrastructure for the consumption of culture. This programme finds expression in the Cape Town Partnership’s plans to promote the city as a cultural hub through developing visitor-friendly, cultural precincts and venues in the central city. More especially the East City/Grand Parade Precinct, the Company Gardens, and the Foreshore (around Artscape/Founders Garden). The City Hall Project falls in the latter programme area. It is considered to be the flagship project in the East City/Grand Parade Precinct and is positioned as an iconic institution that would use the musical heritage of the Cape to promote the city for its unique and diverse histories. 1 The Creative Cape Town reference group has included amongst others Ravi Naidoo (Design Indaba), Rashid Lombard (Cape Town International Jazz Festival)
Erica Elk (Cape Craft and Design Institute), Delecia Forbes (Creative Industries Unit PGWC), Mark Fleishman (UCT), Mokena Makeka (Makeka Designs), The District Six Museum and others. 2 Recent studies show that 40% of international tourists go to cultural attractions and the majority indicate that the cultural tourism fare in Cape Town is “inauthentic”.
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cape town C U LT U R A L H U B THE CITY HALL IN RELATION TO THE EAST CITY/GRAND PARADE CULTURAL PRECINCT
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1. It boasts a number of publicly owned buildings and facilities, many of which (City Hall, Castle, Drill Hall, Good Hope Centre, The Granary) are already used or earmarked for cultural use. 2. The Grand Parade redevelopment (R20 million), the Cape Town Station upgrade (R322 million for 2010) and the Drill Hall conversion into the Central Library are major public sector investments in the area, making it more attractive for business and for tourism.
International precedent has shown that from the 1960’s onward, but more especially since the mid 1980’s, culture has been used extensively in developing significant cultural tourism infrastructure in spatially-defined megaprojects – often in central cities as a way of positioning cities for global competitiveness. This includes initiatives such as Bankside (London, UK), Newcastle-Gateshead (UK), The Esplanade (Singapore), Vancouver (Canada), Bilbao (Spain), The Raval (Barcelona, Spain) Pelourinho (Salvador-Bahia, Brazil). There are also local South Africa precedents in Johannesburg, where roughly R2 billion has been spent since 2000 on cultural tourism megaprojects, including the Newtown Cultural Precinct, Constitutional Hill (Braamfontein/Hillbrow), Freedom Square (Kliptown), and Maropeng (The Cradle of Humankind) amongst others. In almost all cases each of these developments has been anchored by important institutions of cultural display drawing the key footfall to the area, some of which have iconic architectural value – including The Tate Modern, Guggenheim Bilbao, Sage Gateshead Music Centre, and the Centre for Contemporary Culture, Barcelona.
3. The relatively cheaper and more industrial nature of the area means a number of creative industries have clustered there, and there are significant cultural facilities such as the District Six Museum (and its R14 million extension in the Sacks Futeran building), The Assembly (live music venue), the Cape Crafts and Design Institute, the Fab Lab, The Book Lounge and The Distrix Café among others. 4. It is close to a number of important educational institutions, including Cape Peninsula University of Technology and Cape College, and relatively close to UCT Hiddingh Campus (visual and performing arts), and draws significant numbers of young people into the area. 5. It is the site of the major transport interchange in the city (buses, taxis, trains) through which a high volume of diverse peoples travel and is a central meeting point for many. 6. Historically the area is significant – the City Hall and the Grand Parade have been the site for significant political civic activity for decades, the Castle is the oldest colonial structure in the country, and the history of District Six played out on the border of the area.
The City Hall is planned as the key anchor for cultural tourism in the city centre and as the flagship of the cultural hub in the centre of the city. While the Cape Town Partnership plans to focus on the whole city centre as a cultural hub rather than emphasising one area for its cultural potential, it plans to begin the development with the East City. Cape Town Partnership recognises that there are a number of distinctive and linked “precincts” within the city centre including the East City/Grand Parade, the Company Gardens, the Central City, District Six, Bo-Kaap and Greenpoint, where creative industries and heritage sites or sites of cultural consumption are clustered. 1 The Cape Town Partnership has focused on the East City/Grand Parade area for its first area of development for the following reasons:
7. The area hosts the oldest flea market in the country and has a significant number of retail outlets for middle to low-income earners, including the highly successful Golden Acre shopping centre. 8. The District Six Museum is an important gateway to economic development in marginalised areas because of its existing role as the first leg of township tours and has been recognised as such through The Provincial Government of Western Cape’s Cape Flats Tourism Development strategy (2004). Building on the already high footfall in the area (transport and retail), including three successful cultural spaces (120 000 visitors per year to the Castle and 80 000 visitors to the District Six Museum), the development of the East City as a tourism attraction in the area would drastically increase the area’s economic development potential.
1 Based on a 2004 mapping study by the
Cape Town Partnership on the locations of creative industries: ie “those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” – see www.creativeclusters.com.
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cultural hub TIMEFRAMES AND FRAMING POLICIES The 2010 World Cup and the potential usage of the Grand Parade (and its current development) as an official fan park forms a significant deadline for the development of the East City/Grand Parade Precinct and the City Hall. It is an opportunity to reposition the area as a site for increased visitation into the future with new forms of tourism infrastructure.
C R E AT I V E
PERFORMANCE
The Cape Town Partnership is the key driver behind the Central City Development Strategy, which aims to provide a robust guiding framework for re-imagining the futures of the Central City area. It is to provide a basis for collaboration and management between all stakeholders in the local economy, to produce an implementation action plan and an agreed basis on which the public and private sector can make decisions around agreed-on futures. The Cultural Hub and the East City would be significant aspects of such a plan.
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research &
VISION
THE VISION FOR THE CITY HALL Background
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research & vision BUSINESS PLAN DEVELOPMENT A significant study by Ochre Communications and Urban Skywalkers was commissioned as part of the development of a business plan. Ochre won the limited tender based on its past experience with the establishment of a museum at the Constitutional Hill Development (part of the R460 million heritage site development comprising an integrated and sustainable multipurpose and multidimensional space) and its work on the Kliptown Museum (part of the R375 million Freedom Square development). Ochre’s team included the previous CEO of the Johannesburg Development Agency (JDA), Graeme Reid.
The City Hall is one of the most significant public facilities and a major heritage asset in the City Centre and for the city as a whole. Built in 1907 and initially used as the seat of local government, it is known in the contemporary public eye as a place of culture. It is recognised as an important venue for musical performance and hosts regular concerts, especially symphonic and choral music, and for decades has housed the well stocked and frequented Central City Library. The City Hall further fulfils various civic functions. It is remembered additionally as the venue from which Nelson Mandela first addressed Cape Town and South Africa after 27 years of imprisonment and as a backdrop for various events at the Grand Parade.
The business case covers a situational analysis (a detailed analysis of the context), a comparative analysis, a proposition (the proposed vision, programme and institutional arrangements) as well as proposed financing models. The situational analysis covered the following areas (briefly summarised below):
Despite active use and a R40 million renovation to its facade in the early 1990’s, it is:
– market and demand analysis
- significantly under-utilised
– stakeholder analysis
- poorly maintained
– the cultural landscape
- requires substantial refurbishment
– Cape Town Central City
In 2005, the Cape Town Partnership began discussion around the City Hall, drawing together significant role players from the music industry, heritage sector, government and tourism. A reference group was established to advise the Cape Town Partnership on possible visions 1. In 2007 the Cape Town Partnership was mandated by The City of Cape Town to determine the feasibility of the redevelopment of the City Hall based on the vision for it as a:
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Premier cultural centre with a focus on musical performance, heritage and tourism. 1 The City Hall Reference Group included such role players as representatives of the Malay Choir Board, the African Massed Choir Board, the Cape Town Philharmonic Orchestra, The Minstrels Carnival Boards, UCT (Kirby musical instrument collection curators), and various significant members of the music industry in the city including Rashid Lombard (ESP Africa) and Neo Mayangu.
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research &
VISION
MARKET AND DEMAND ANALYSIS In assessing potential market demand for a redeveloped City Hall the following two key market factors were considered: TOURIST MARKET •
Numbers of international tourists visiting the Western Cape and Cape Town.
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Numbers of domestic tourists visiting the Western Cape and Cape Town.
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Market profile of international tourists.
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Market profile of domestic tourists.
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Consumption patterns of domestic and international tourists.
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Product preferences of domestic and international tourists.
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RESIDENT MARKET •
Population size.
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Demographics.
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Socio-economic profile.
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Consumption behaviour as reflected by Living Standard Measure (LSM).
The potential pool of visitors has been gauged to be 4 million people (see attached graph) out of which the 10% conservative estimate of 400 000 persons annually visiting the venue correlates favourably with the Robben Island Museum’s visitor numbers for 2006. The market demand analysis recognised that •
Both international and domestic tourism trips to the Western Cape and Cape Town have grown consistently in recent years.
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The market profiles (source markets, key market segments, product preferences and purpose of travel) of both domestic and international tourists to the Western Cape and Cape Town favour increased use of cultural experiences and heritage products.
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The Western Cape’s nightlife (theatre, restaurants and nightclubs) appeal to both domestic and international visitors, with stronger interest from international tourists.
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International tourists are increasingly interested in participatory and insightful tourism products that capture and portray the spirit of the destination and its people. South Africa’s current cultural tourism product is still relatively weak in this regard.
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Although the levels of consumption of heritage and cultural experiences are comparatively low, market interest in and use of these products are increasing.
The analysis of tourism market profiles and trends indicates that a redeveloped City Hall offering cultural and heritage experiences typical to the Cape is likely to appeal to both international and domestic tourists.
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CITY HALL
research &
VISION
COMPARATIVE ANALYSIS The study considered the City Hall in relation to potential competitors in the city providing a music and performance fare – these included venues such as Artscape, The Baxter and Good Hope Centre. The study concluded by proposing possible ticket pricing and a positioning (encapsulated in the vision) that suggests a product offering tht is COMPLEMENTING rather than COMPETING.
HERITAGE
STAKEHOLDER ANALYSIS Interviews were held with individuals in the following areas: Type
Interviews Details
Tertiary institutions
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UCT Drama and Magnet Productions
Key individuals/ organisations in the cultural sector
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Boyambu Productions, Seratonin Productions, Swiss Council – Pro Helvetia, Creative Cape Town, Brendon Bussy, Julian Jonker, Zayd Minty
Music organisations
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Cape Malay Choir Board, The Christmas Choir Board, Zolani Centre in Nyanga, Cape Town Jazz Festival, Edu-Jazz. The Cape Philharmonic Orchestra, Heal the Hood (Hip Hop), Athlone Music School, Arts Vibrations 2 (youth organisation in Ocean View), Ubuhlanti Cultural Centre (Masiphumalele), Leyola Cultural Centre and Ikwezi Cultural Centre (Guguletu), Sosebenza Centre (Kommetjie), Konnek (music for youth in Ottery), Boyambu Productions
Tourist agencies
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Cape Town Tourism, Coffee Beans Route
Museum and heritage agencies
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The Castle/Iziko Museums, UCT Heritage and Curatorial Studies, Goodman Gallery, District 6 Museum
SUMMARY FINDINGS: STAKEHOLDER ANALYSIS • The City Hall and precinct vision received with enthusiasm. • The mix of music venue with tourism, retail, heritage, cafés and arts and craft venue and performance supported. • The Baxter, Artscape and Good Hope Centre not seen as competitors but co-operative relationship possible. • The choral community has a long history of association with the City Hall and has songs that mention it, as well as memorabilia of previous shows – they felt it would be like a homecoming. • Cape Town tourism felt that developing the City Hall would add a major attraction to the existing tourism assets of the city. Furthermore its attraction to residents and tourists would assist in managing the challenges of non-peak months. • Strong support for flexible venues i.e. different capacity from 100 to 1 000 seaters.
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VISION
CULTURAL LANDSCAPE •
Cape Town has been a culturally diverse city since the 17th century. • The region was initially inhabited by various first nations people such as the Khoi and San. • Through the Dutch East India Company, Europeans eventually settled and colonised the region, establishing the City of Cape Town. • The importation of slaves from Africa, India and Indonesia contributed to the creolisation of the city.
THE CULTURAL LANDSCAPE – CONCLUSIONS •
The positioning of Cape Town as the Cultural Capital warrants the development of a centre focusing on music.
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Regular programming around symphonic, choral, carnival, and jazz music could make this a destination and provide a unique resource for locals and tourists.
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• British occupation and the discovery of gold and diamonds in the interior brought many more nationalities to the city. • Migration of Africans over the past 150 years, together with more recent migration from Europe and Africa, has contributed to the diversity. •
Diverse cultural manifestations in various areas such as cuisine, dance, music, language, dress and traditional practices and religion.
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Cape Town is increasingly a festival city, with a significant number of large and smaller scale cultural events and celebrations throughout the year.
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Cape Town therefore offers unique cultural diversity and complexity, and an opportunity to explore and celebrate this through a proposition based on the notion of diverse music forms valued equally.
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Creative Cape Town provides a strong drive to position Cape Town as the cultural capital with cultural and creative industries operating in a supportive policy environment. There is a strong clustering of creative industries in the central city.
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The current cultural offer indicates a gap in respect of a centre focusing on music and music development. For example, there is a lack of choral music venues in the city. A heritage component of the Cape Town experience would contribute to a sustained day-time offer attracting educational tours, tourists and residents. The telling of the history of the city through music and carnival could provide a unique offering in Cape Town.
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The policy environment is supportive of such an initiative.
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The building offers excellent facilities for acoustic music forms, providing one of the best such facilities in the country.
CAPE TOWN CENTRAL CITY Trends in Cape Town 2007 •
Cape Town Central City is now regarded as one of the safest, cleanest and most successful central business districts (CBDs) in the country.
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Private investment in the Central City is continuing unabated, with many new projects in the pipeline.
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Shift from residential conversions to office space development (although a large number of residential and mixed-use developments continue and over 2 000 residents are now living in the city centre).
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Re-emergence of the Foreshore as a major financial, media, convention and business-related services centre.
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Emergence of vibrant creative and cultural industries sectors, particularly in the East City.
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Growth in cultural tourism and night-time economy.
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Ground-floor retail revolution underway.
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Significant public space upgrading taking place.
New initiatives, linked in differing ways to 2010 deadlines include: improved transport access, Cape Town Station upgrade, connections to Cape Town Airport, Fan Mile and Fan Park development, upgraded pedestrian network, improved cultural and heritage sites, hotels and tourism services, retail and night-time economy, Cape Town branding and marketing. The City Hall is therefore well located to benefit from the range of infrastructural projects planned for Cape Town Central City.
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The proposition
VISION
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THE ARGUMENT Market demand analysis suggests that a demand exists from • Local residents. • Domestic tourists if properly marketed. • International tourists. The opportunity for a Centre for Music is supported by: • Comparative analysis . • Cape Town’s positioning as a creative city. • Diverse, unusual and established music base. • Exceptional, intangible heritage in respect of the music of first nations people. • Utilisation rates of current venues reinforce the need to develop strong learning and participation base . • Strong support for the initiative from stakeholders (arts & culture, tourism, community development). A significant and important opportunity exists to use any proposed initiative in music to safeguard the history and importance of the music and language of first nations people and descendants of slaves – important and special aspects of South Africa’s heritage often neglected or under threat for a variety of reasons. This is supported by The Convention for the Safeguarding of Intangible Cultural Heritage (adopted by UNESCO in 2003), which identifies intangible cultural heritage – or living heritage (manifested in oral traditions and performing arts amongst others) as the mainspring of our cultural diversity and its maintenance a guarantee for continuing creativity. Cape Town, given its history, is uniquely positioned to capture this opportunity and to develop such an initiative, giving weight to the musical traditions of its region through a significant tourism attraction.
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VISION STATEMENT
• The City Hall and its excellent acoustics make it ideal as a venue for musical exploration. Its location at the nexus of transport provides an important opportunity.
The City Hall should become a centre for performance, participation, experience, developing and learning of traditional, indigenous, contemporary and classical music.
MUSIC
THE ARGUMENT FOR A CENTRE FOR MUSIC
• The opportunity exists also in the diversity of Cape Town and the Cape Peninsula and its musical manifestations.
• Promote cultural discovery, convergence and cross-over.
music
• The proposition is for the establishment of a Centre for Music Performance to operate from, in and beyond the confines of the City Hall, running programmes to explore and develop musical heritage and innovation in diverse communities and so doing:
• Ensure an important cultural tourism venue to position Cape Town as a unique and important city in the global cultural circuit.
• Form the flagship of the cultural hub that is the central city.
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The centre would be sustainable, with refurbishment and management from a long-term tenanting strategy, coupled with well marketed, commercially viable and high use programming, and with development funded through relevant arts related grants.
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There must be an emphasis on the promotion of acoustic music, building on the venue’s strengths as well as a strong traditional fare available in the city (choral music, symphonic and jazz amongst others), but including a host of music styles and forms – contemporary, popular and experimental – and providing space for showcasing related performance traditions, including social dance (ballroom, langarm and salsa), as well as the carnival tradition of the Cape.
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The venue’s space usage would ensure a minimum of two performance venues of varying sizes (including the current main space), rehearsal space(s), educational spaces, offices for relevant music related bodies, retail opportunities related to music and supporting activities such as restaurants, bars and tourism-related retail.
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The City Hall would have a heritage-tourism component with the possibility of either a museum on the musical (and related performance) traditions of the Cape and/or a ‘Cape Town Experience’, both of which would introduce tourists to the rich and diverse heritage of the city.
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The City Hall would serve as a starting point for the bus and walking tours of the city centre and to marginalised areas (adding to the proposed Cape Flats Tourism Strategy of 2004) so that the benefits of the centre can help contribute to the economic development of the entire city.
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Provide an important space for previously marginalised communities to showcase their traditional musical forms in a dignified, professional, well marketed and internationally recognised venue of excellence.
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Be accessible to all income groups through a pricing strategy and education/development programme that includes, in particular, opportunities for training and access for youth.
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Through the preceding three points becoming a vital connection between town and township and ensuring that the central city provides opportunities for strengthening both economic and community development in previously marginalised communities.
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Continue to serve as an important site for civic functions and as a venue for ‘boutique’ conferencing.
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Be a significant venue during the 2010 World Cup as a backdrop for a Fan Park (official or otherwise) at the Grand Parade and a facility of which the city will be proud, as well as a flagship for the central city cultural hub into the future.
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An upgraded public asset that would ensure a quality public space for social benefit.
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BUSINESS PLAN DEVELOPING THE CITY HALL
The City Hall is proposed to be developed in a way which maintains its heritage value but ensures it is a sought out venue for visitors and tenants, thereby ensuring its ongoing sustainability. Its beauty and grandeur should be enhanced by tasteful and appropriate restoration. A full architectural and restoration plan is to be developed.
H E R I TA G E
Major restoration work will be required to the interior of the building, but a full investigation of the building may reveal possible work required to the exterior. Recent restoration of the exterior commenced in 1998. Once the lease of the City Hall has been secured, the professional consultant team, led by Rennie Scurr Adendorff Architects, will be in a position to provide accurate cost estimates, based upon the scope of work required for the building. An informal estimate at this stage is in the region of R40 million. Timeline: please see attached proposed timeline of this development. HERITAGE CONSERVATION AND MANAGEMENT The City Hall is a declared provincial heritage site and as such enjoys specific protection in terms of the National Heritage Resources Act of 1999. All work done to the building will require a permit from Heritage Western Cape, as well as the approval of the Heritage Resources Section (HRS) of the City of Cape Town. The Cape Town Heritage Trust is working closely with the HRS of the City and has agreed that one of the first priorities will be the development of a Conservation Management Plan for the City Hall. This plan forms an important part of the future management tool for the City Hall and contains the Statement of Significance of the building, identifies areas of sensitivity and areas where interventions may take place (an important informant in terms of positioning activities within the building), and sets out a repairs and maintenance schedule which will guide the formation of future maintenance budgets.
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BUSINESS PLAN INSTITUTIONAL MODEL The proposed institutional model for the redevelopment and management of the City Hall is a non-profit section 21 company which leases the City Hall on a long term lease (no less than 50 years but ideally up to 99 years). The City would retain full ownership of the City Hall. In order to comply with requirements of the MMFA the centre would need to work for the benefit of the community and the city must advertise its intentions to enter into a lease agreement with the company. The City would not, as per legal requirements, be represented in the Company. The non-profit would thus work at arms length from government. The Company would have a minimum of six directors – this diverse board (gender, race, ability, etc.) would be appointed by a set of members and would be responsible for maintaining the mission of the centre and its financial accountability. Directors would reflect the sorts of skills necessary for the smooth functioning of the centre but should have no financial interests in the company. Directors would have financial, legal, marketing, venue and/or event management, music, educational, heritage and tourism knowledge and experience, and be of high standing in the community. Members would be chosen by an advisory committee made up of key stakeholders or relevant interested parties who would benefit from the centre and its operations. These would include music groups and key individuals from the music industry (such as the Malay Choir Board, the African Massed Choir Board, the Cape Philharmonic Orchestra, etc.); tourism bodies (Cape Town Tourism, representatives of tour companies, etc.); heritage agencies and individuals (Iziko Museums, District Six Museum and key heritage specialists), as well as others. The non-profit would initially employ a project manager for a 2 year period to oversee the re-development of the City Hall and thereafter a CEO/Director would be employed to run the Centre.
CURRENT STATUS OF THE COMPANY As per commitments by the two partners on this venture, the Cape Town Partnership and the Cape Town Heritage Trust, a Section 21 company has been formed, which will be known as:
City Hall Redevelopment and Management Company Registration No. of Company: 2008/000887/08 The company has applied for and is awaiting its non-profit status. Legal Firm:
Webber Wentzel (incorporating Mallinicks) Cape Town
Lawyer Responsible: Michael Evans Physical address: Third Floor, Granger Bay Court, Beach Road, V&A Waterfront, Cape Town, 8000 Postal address: Telephone: Fax:
PO Box 3667, Cape Town, 8000 +(27) (21) 410 2200 +(27) (21) 410 9000
CURRENT DIRECTORS Andrew Boraine: CEO, Cape Town Partnership (CTP) Laura Robinson: CEO, Cape Town Heritage Trust (CTHT) FOUNDING MEMBERS Andrew Boraine: CEO, Cape Town Partnership Laura Robinson: CEO, Cape Town Heritage Trust Bulelwa Makalima-Ngewana: Deputy CEO, Cape Town Partnership Theodore Yach: Board member, CTHT Owen Kinahan: Board member, CTHT Norman Osbourne: Board Member, CTHT Nazeer Rawoot: Finance Manager, CTP Zayd Minty: Creative Cape Town Co-ordinator, CTP THE COMPANY’S NEXT STEPS At a meeting on 27 May 2008 the founding members and directors will sign the requisite founding documents and pass all necessary resolutions including choosing accountants, setting in place the establishment of an advisory committee and any other business. Following the establishment of the advisory committee, new members and directors will be appointed, and founding members will, where necessary, be removed.
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THE ROLE OF THE COMPANY • Sign a lease with the City of Cape Town. • Business plan refinement to ensure a sustainable entity, run along sound business lines, that fulfills its mission as a Centre for Music with a non-profit, social function. • Ensure ongoing public participation in the project through the establishment of a representative advisory group meeting regularly. • Appoint relevant high level staff – initially a project manager for the development of the City Hall (two year contract), and eventually a CEO to direct and oversee the centre. • Raise finances through bank loans for refurbishment, via grants and sponsorships for development/education, specialised programming and other relevant funding mechanisms to ensure broad access. • Oversee the development of the building and establish a strong tenanting mix to ensure the development is sustainable. • Oversee the development of a strong marketing strategy that enables a high revenue stream from a performance programme, tourism opportunities and other relevant sources. • Oversee the development of relevant heritage, tourism and cultural development programmes and activities. MANAGEMENT PRINCIPLES AND MODEL The management model has been premised upon the following assumptions: THERE WILL BE TWO INCOME GENERATING MODELS: • Fixed income model – tenants, retail/restaurant/bar, offices. • Variable income model – events/venue users (orchestras, choirs, jazz musicians, etc.) It is envisaged that the following aspects of the management will be outsourced under the direction of the project manager. Property management – appointment of a property management company to manage the day-to-day running of the building, including security, cleansing, and maintenance. Also collection of rentals from the fixed income tenants, insurance, etc.
In the long term a full-time CEO/Director and support staff (minimal number) will be appointed by the board, and where appropriate an events management company may be appointed to manage programming and a marketing company appointed to ensure the centre has high visibility. PARTNERS AND CONSULTANTS The two partners in the company are The Cape Town Partnership (see page 6) and the Cape Town Heritage Trust. CAPE TOWN HERITAGE TRUST The Trust was established in 1987 jointly by the City of Cape Town, the Province and members of the private sector as a special purpose vehicle to restore and manage heritage properties owned by the City of Cape Town. To date the Trust has a number of significant heritage projects in its portfolio, including the restoration and rehabilitation of Heritage Square. The board of trustees includes representatives from the City (at both political and administrative level), as well as nominated representatives of the heritage NGOs in the City. There is also a number of board members who serve in their own individual capacity, due to their experience and expertise in the field of heritage and cultural conservation. Members also have considerable skills and experience in property development and financial management and have legal expertise in environmental and property matters. In undertaking a project of this nature, one which has the potential to unlock the development of the East City, it is important to have established networks with a number of institutions and organisations that play a major role in the revitalisation of the city. The Trust, its board members and director have direct links with projects such as the redevelopment of the City Hall and Grand Parade, the Creative Cape Town program, the Drill Hall and the proposals for the Good Hope Centre. Together these dynamic initiatives will ensure the revitalisation of the East City.
partnership
BUSINESS PLAN
CITY
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BUSINESS PLAN CONSULTANTS A range of consultants will be employed in the development of the project. These will include architects and an expanded professional team of engineers, quantity surveyors, etc. who have experience in working on this specialist building type. In addition heritage, tourism, music and events specialists will be employed.
stream amount is escalated over a period of 12 years (using current escalation values of, say, 8%). This calculation defines the total capital value of the net rental stream, which in turn informs the value of the financing from the banking institution.
Current consultants working at risk are: Rennie Scurr Adendorff Architects. These were consultants previously commissioned to undertake the restoration of the exterior of the City Hall. It is suggested that their acknowledged expertise in working on this type and period of building, as well as their previous extensive experience with the City Hall, make them the most appropriate consultants for the commission.
• Municipal service charges (water, electricity, refuse and
CAPITAL COSTS The City Hall will require substantial internal refurbishment estimated at roughly R40 million. The project will require a major once-off capital investment, suggested approach would be to major financial institutions, but must include a commitment from the City. It is suggested that the current budget allocated for the remainder of this financial year and the following (given that such funds have already been allocated) are held for the purpose of the project and for the new leaseholder. The major banking institutions have been approached in this regard and all have mechanisms by which funding for projects of this nature are available. Financing is based upon the proposed net rental stream assumed for the building. (This exercise is in the process of being undertaken.) The rental
• Property management company fee (monthly/per annum). sewerage), insurance, maintenance (as informed by the conservation management plan). • Security 1. In addition, the music centre aspects require financial inputs for: • Specialised programming, education and development. • Marketing . START UP COSTS There would be a start up period of two years, which has been estimated at R2.5 million per annum. While this figure could be included in the once off capital investment by banks, the opportunity provided by a public sector investment would enable the company to ensure •
Project manager salary.
•
Consultants fees (building related; development of the programming; heritage and education; legal; financial).
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Marketing and fundraising fees.
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Admin and office expenses.
It should be noted that security will become the responsibility of the lessee as soon as vacant occupation is taken. This proposal is informed by the assumption that the future lessee cannot take occupation of a partially occupied City Hall, or be responsible for the service or security costs of existing tenants. 1
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FINANCIAL MODEL AND COSTINGS The City Hall must be a self-supporting, financially sustainable entity not dependent upon the City of Cape Town for continuous subsidisation. The feasibility studies are based upon the assumption that the building will be zero rated for rates and that a nominal rental will be paid on an annual basis. (R150.00.)
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OPERATIONAL COSTS
CAPE TOWN
CITY HALL
BUSINESS PLAN PROPOSED INCOME STREAMS •
City of Cape Town – proposed two year maintenance budget (together with the relevant existing staffing component as committed by the relevant city department), a two year start up grant for the company as well as support towards specialised programming where possible and appropriate.
•
Rental / tenanting
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Performance income: rental costs and/or percentage costs of all.
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Entrance fees for any specialised heritage-tourism attractions.
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Public sector support: Provincial and National Government support.
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Grants: National Lottery, National Arts Council, Arts and Culture Trust, Cultural Commission (Western Cape), etc.
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Sponsorships and partnerships: corporate sponsorship (banks, cell phone companies, insurance companies, etc.), international cultural agencies (The British Council, The Swiss Arts Council in South Africa, the French Institute, etc.).
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Other relevant fundraising as necessary, including a potential “Friends of the City Hall” amongst others.
PROPOSED REQUIREMENTS FROM THE CITY OF CAPE TOWN 1. The advertisement (as per the MMFA) of the intention by the City Council to offer the City Hall to the City Hall Redevelopment and Management Company (the Company). 2. To finalise a lease with the Company. 3. Understanding that the City Library will by the end of July have moved in total or substantially into the newly renovated Drill Hall, there is an immediate necessity to find alternative accommodation for the municipal courts and civic amenities department currently in the building and to offer (ideally by 1 July 2008) a vacant building to the Company. 4. To hand over the booking system to the Company as soon as possible and no later than when the lease is concluded. It is essential that no additional bookings for venues are made without the Company’s involvement. 5. To ensure the current maintenance budget and related staffing is passed to the Company to ensure the Company maintains the space in its current state. 6. To pass any renovations or refurbishment budgets currently in the City of Cape Town budgets, as well as any other committed city hall related budgets to the Company to lessen its burden. This will enable the Company to provide more substantial elements of access for marginalised communities and ensure there is less reliance on interest bearing loans for the development. 7. An OPTIONAL proposed two year start-up grant is requested of R2.5 million per annum (R5 million) to ensure that the Company is able to optimally establish itself.
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Contractor on site – building work commences Jan 2009 – May 2010
PHASE THREE – PROJECT IMPLEMENTATION
Handover of vacant building CCT
Appointment of property management company Interim board/project manager
Award tender Interim board/Consultant team
Tendering Detail documentation and layouts Consultant team
Documentation for tendering Consultant team
Submission to CCT and HWC for approval Consultant team
Preparation of building plans and documentation
Development of Conservation Management Plan1 CTHT/Consultant team
Cataloguing of artwork and collections/artefacts in the building CCT
Survey and assessment of building, finalisation of brief CTHT/Consultant team
Appointment of consultant team Interim board
Call for expressions of interest – (possible tenants) Interim board
Appointment of project manager – two year contract Interim board
PHASE TWO - PROJECT PREPARATION
Identification and appointment of interim board of directors CTHT/CTP
Formation of Section 21 company (not for profit) CTHT/CTP
Adoption of proposal for the City Hall – Mayco recommendation to council CCT/Council
Completion of final report CTHT/CTP
Public participation process – vision and governance structure CCT
Press release on proposal for City Hall Mayor/CCT/CTHT/CTP
Notification to existing tenants to vacate (Fairest Cape, Municipal Traffic courts) CCT
Final meeting of City Hall Steering Committee, conversion to City Hall Advisory Committee CTHT/CTP
Preparation and submission of proposal and process plan to Mayor CTHT/CTP
PHASE ONE - PROJECT PREPARATION AND APPROVAL
IMPLEMENTATION TIMELINE
20
JAN
FEB MAR
APR
MAY
JUN
JUL
2008
PROCESS PLAN FOR CAPITAL WORKS EXPENDITURE
City Hall Restoration and Revitalisation Project
AUG
SEP
OCT
NOV
DEC
7 timeline