CIDS liven up city’s economic nodes

Brümilda Swartbooi

City Improvement Districts (CIDs) have played a pivotal role in revitalising some of Joburg’s business nodes, contributing to the monetary value of their neighbourhoods by increasing economic activity to generate additional revenue.

A global model for rejuvenating commercial areas in declining central business districts (CBDs), CIDs have had to be established in several areas across Johannesburg. They have become active collaborators with the City in urban design, planning and management.

CIDs benefit both the community and the municipality, including management of inner-city neighbourhoods, which create social responsibility and environmental awareness.

Services provided by CIDs are more focused on security, cleanliness, marketing and business development. They are intended to change negative perceptions about decaying areas and reverse business and urban deterioration.

Acting head for Special Projects Unit (SPU) in the office of the City Manager, Krishni Gounden says CIDs play a significant role in providing additional top-ups to municipal services to enhance public safety and supplement cleaning services.

“They are also important in fostering relations with the City through public-private partnerships. They assist in combating urban decay and degeneration by improving the urban environment, attracting and retaining investment,” says Gounden.

CIDs have had several outcomes, including attraction of capital investments, marketing and promotion of their nodes, and an increase in property value. All property owners contribute to the budget and have control over the money to be spent in the CID.

CIDs create job opportunities and stimulate the local economy, which has resulted in positive spinoffs for the municipality, including enhanced service delivery and improved community relations. The protection of the rate base prevents CBDs and other areas from urban degeneration.

“CIDs provide positive identity from which to launch coordinated effort to maintain and improve the asset base and quality of life, attracting investment and development,” Gounden adds.

CIDs define how urban space is regulated. They have extensive sociocultural and socio-spatial outcomes, combining local economic development, urban management and security to reshape neighbourhoods and improve quality of life.

Services rendered by each CID are supplementary to those offered by the municipality and operate within the boundaries of each neighbourhood.

“There is always an opportunity for communities to establish CIDs in Johannesburg,” Gounden says.

Gounden notes that the municipality continues to work closely with the Gauteng Precinct Management Association (GPMA) to provide a platform to strengthen the collective voice of CIDs in the province.

“The municipality is thankful to its CID partners for their continued work and the role they play,” Gounden says.

The inner-city has about 14 voluntary CIDs, including Bank City, Newtown, Braamfontein and the ABSA precinct on the eastern periphery, which demonstrate how the model contributes to revitalisation of the CBD. Vibrant CIDs outside the inner-city include Parktown, Rosebank, Randburg and Sandton.

The first CID was established in the Johannesburg city centre in the early nineties to facilitate collaboration between business and the community.

Later known as the Central Johannesburg Partnership (CJP), the alliance has worked for the benefit of all stakeholders in the neighbourhood.

In September 2015, the Supreme Court of Appeal (SCA) ruled on the validity of levies imposed under the Gauteng City Improvement Districts Act (CID Act), which governs the imposition of levies on rateable, immovable properties located in a CID. The decision prompted stakeholders to demand a review of the legislative and regulatory framework for Legislated Management Districts.

Due to the SCA’s decision, all co-managed areas in Gauteng now function as voluntary CIDs. Since voluntary establishments lack legal authority and legislative support, their ability to operate depends on the loyalty of the property owners who make up their constituency.

“The municipality is currently in the process of implementing a Special Rating Areas Policy and bylaw that will allow a legislated and sustainable process of establishing CIDs,” says Gounden.

CIDs in the Johannesburg innercity are Bank City, Retail Improvement District, Newton Improvement District, Yeoville Improvement District, Braamfontein Improvement District, Greater Hillbrow Improvement District, Legae La Rona Improvement District, South-West Improvement District, Central Improvement District, Main Marshall Improvement District, Fashion Improvement District, Greater Maboneng Improvement District, Makers Valley Partnership and Benmore Improvement District.