PRECINCT MANAGEMENT
The Power of
Community Cooperation
Success stories of urban renewal
Most of human existence has been associated with a rural lifestyle . Within the first 1800 years , less than 4 % of the world lived in cities - by the 1900s this grew to almost 15 %. 2009 was the first time in history that more people lived in cities than in rural areas . If current urbanisation rates prevail , 2050 will see 70 % of the world ’ s inhabitants urbanised . This global phenomenon spells trouble for most cities around the world , as most were never designed to cater for these volumes of inhabitants .
The way forward City / Business Improvement Districts ( CID ) are now commonplace worldwide , with more than 1,000 in the United States alone . Former New York City mayor Rudy Giuliani was a great supporter of improvement districts , so much so that he based his urban regeneration strategy for Manhattan firmly on this concept . Currently , there are in 74 improvement districts in New York with a total budget exceeding $ 134m .
In South Africa , depending on where you are located , these initiatives are known as CIDs ( Gauteng ), Urban Improvement Precincts or UIPs ( KwaZulu-Natal ) and Special Ratings Areas or SRAs ( Cape Town ). During 2016 , CID ’ s in Johannesburg collected more than R130m in levies . Almost 85 % of these funds were spent on security and cleaning initiatives . These precincts have attracted private sector investment exceeding R42bn .
The Excellerate Precinct Management team , a division of Cushman & Wakefield Excellerate , has been at the forefront of creating and managing almost all of the 18 legislated CIDs within Johannesburg . Excellerate has a demonstrated track record of taking a holistic approach to urban regeneration and place marketing ; managing some of Johannesburg ’ s premium destinations including Sandton Central , Rosebank , Braamfontein and The Retail Improvement District ( adjacent to Bank City ).
The key to success Every node has its own story and a unique identity . Excellerate Precinct Management ’ s MD , Ryan Mathew , suggests a collaborative approach is key . “ We partner with our stakeholders to create a vision for the area . Once this is captured in a business plan , a detailed operations programme is created to address service delivery requirements . Besides addressing the basics of ‘ crime and grime ‘, particular emphasis is allocated to place-making interventions aimed at extracting the essence of what makes that area special .”
There are numerous success stories across Johannesburg where the city has partnered with the CID ’ s to improve infrastructure by co-funding projects . Main Street Mall , Gandhi Square and the Braamfontein Alleyway Upgrade are all initiatives that have been facilitated through their respective improvement districts . During 2015 , the City of Johannesburg together with the Sandton Central Management District ( SCMD ) hosted the global Ecomobility Festival . With pedestrians and public transport given priority in Sandton Central , and much of it off-limits to private motorised transport for an entire month , the success of this festival hinged on the SCMD ’ s ability to facilitate and coordinate activities with the city .
City improvement districts offer a real-world mechanism to deal with widespread urban challenges that impair private property values . There is empirical evidence that shows these areas are significantly better placed to deal with the coming challenges of global urbanisation . Finally , private property owners have an effective means to halt and , in most instances , roll back the effects of urban degeneration .
Excellerate manages and services City Improvement Districts across South Africa with precincts in KwaZulu-Natal , Cape Town and Gauteng .
38 AUGUST 2017 SA Real Estate Investor www . reimag . co . za