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INNER CITY REGENERATION

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      INNER CITY
      REGENERATION



      URBAN MANAGEMENT                  ICONIC PROJECTS                     INVESTMENT


      Intensive management of           Huge investments made in            Urban Development Zone (UDZ)
      challenges like crime, informal   Constitution Hill, Nelson Mandela   tax incentive beginning to attract
      trading and taxi ranking on       Bridge, Newtown and others          private sector investments
      the streets




190
      INNER CITY REGENERATION

      CONTEXT                                                                      This phenomenal growth in the Inner City population has put
                                                                                   enormous pressure on its infrastructure. The growing population has
      The ‘Inner City’ is the historical core of Johannesburg. When seen from
                                                                                   resulted in competition for space. In 1992, 25 000 dwelling units
      the perspective of the overall spatial economy, it has been the single
                                                                                   accommodated the Inner City’s 60 000 residents. By 2002, the number
      most significant contributor to growth and development in the city, the      of dwelling units available in the Inner City had increased to around
      region now covered by the Gauteng province, and perhaps even the             42 000, but for a population of now well over 200 000.
      country, for over 100 years. It retains this status today.
                                                                                   Rapid demographic change has led to a range of negative
      However, the Johannesburg Inner City is only now emerging from an            consequences. This includes the decay of residential buildings because
      extended period of decline. There are numerous issues that need to be        of lack of re-investment and maintenance, overcrowding, and illegal
      addressed to ensure that its future developmental potential continues        occupation of buildings. Social problems, such as high levels of crime
      to be fully realised. For this reason the Inner City was elevated to a       and poverty have also increased.

      Mayoral Priority for the current term of office. This chapter details
                                                                                   However, the Inner City is also a place of extremes. People moving into
      some of the City’s recent efforts to halt its deterioration and
                                                                                   the Inner City are not all the poorest of the poor. A significant
      re-stimulate its development.
                                                                                   proportion are younger and relatively more educated than residents of
                                                                                   informal settlements and some older townships and suburbs.
      DEMOGRAPHIC AND SOCIAL TRENDS
      The Inner City incorporates business districts such as the Central
                                                                                   ECONOMIC TRENDS
      Business District (CBD) and Braamfontein (an office satellite) and high      Over the past twenty years, the most visible trend in the Inner City has
      density residential areas such as Berea and Hillbrow. It is surrounded by    been the relocation of businesses from the Inner City to the northern
      predominantly residential suburbs to the east (Yeoville, Bertrams,           parts of the city. Many businesses, particularly the commercial head-
      Troyeville and Jeppestown); and north west (Fordsburg, Pageview and          offices of large companies, moved out of the Inner City in the 1990s
      Vrededorp to the west) as well as an arc of light-industry to the south      to occupy more modern office blocks in the northern part of
                       105
      and south west.        This area falls within Johannesburg’s Region 8, and   Johannesburg.
      comprises the majority of the geographic area covered by Region 8.
                                                                                   Business’s preference for office space in the northern suburbs is

      The population of the Inner City has grown rapidly since the late 1980s,     reflected in office vacancy rates. Office vacancy rates in Sandton and
                                                                                   Midrand average around 8%, compared to a 23% vacancy rate in the
      and evidence suggests it continues to grow today. A comparison of two
                                                                                   Inner City.
      studies, one conducted in 1992 and the other in 1996, indicates that the
      population of the Inner City may have doubled in the first half of
                                                                                   However, this is only part of the story. While some businesses have
      the 1990s. The first estimated a population of approximately 60 000.106
                                                                                   chosen to move out of the Inner City, others have decided to stay, and
      The second estimated that the population had grown to between
                                                                                   still others are moving in.
      120 000 to 128 000.107 Census data shows that this growth continued
      between 1996 and 2001. The City of Johannesburg has disaggregated            The formal business sector in the Inner City remains significant. A 2002
      the census data for each of its 11 administrative Regions. A comparison      study found that over 8 700 formal businesses were located in the
      of 1996 and 2001 census figures for Region 8 shows an increase in            Inner City. A conservative estimate of the income of these businesses
      population from 203 765 to 257 180 during this period.                       during 2001 puts their collective turnover at around R 87 billion.
192
There are approximately 7 million m2 of floor space available in the          STRATEGIC CHALLENGE
Inner City, of which around 3 million    m2   is formal office space. This    Current social and economic trends have resulted in a particular
represents some 57% of the combined total office space of South               challenge to the growth of the Inner City. While the Inner City still
Africa’s next three largest cities, Durban, Cape Town and Pretoria.
                                                                              represents the single most important economic node in the city, the
                                                                              decentralisation of business to suburban nodes and subsequent Inner
According to the South African Property Owner’s Association (SAPOA), the
                                                                              City decline has left a range of problems in its wake. The Inner City has
Inner City still boasts approximately 2,15 million m2 of prime grade office
space, next to a current 1,06 million m2 in Sandton, the other major site     become important as a home to many poorer residents and immigrants
of office space concentration in Johannesburg. Office buildings in the        who want to be close to economic opportunities. But the Inner City
Inner City represent a R 19 billion investment. The area provides for some    does not have enough accommodation to house the influx. The result
23% of the rateable property value across the metropolitan area.              is that the Inner City has become overcrowded and run down. The
                                                                              strategic challenge facing the City is how to address this gradual
In addition to retaining a significant formal business sector, the Inner
                                                                              ‘slummification’ by simultaneously increasing economic opportunity
City has attracted new occupants, including small businesses which
                                                                              and providing affordable accommodation.
find the cost of renting offices more affordable in the Inner City than
in satellite office nodes. Some businesses have chosen to move to the
Inner City for the advantages offered by its central location. For            The remainder of this chapter illustrates how the City of Johannesburg
example, businesses in the wholesale and retail sector are attracted by       has tried to meet this challenge over the last five years.
the sheer number of potential customers. Around 800 000 people
travel into the Inner City every day to work, trade, and conduct              STRUCTURES DRIVING INNER CITY REGENERATION
government business.
                                                                              Inner city regeneration is a complex and mutli-disciplinary task,
Informal traders have been quick to exploit this potential. Anywhere          requiring a range of skills and a high level of coordination across
between 7 000 and 10 000 informal traders work in the Inner City,             functional departments. The City of Johannesburg has established a
many trading directly off the streets. Although the presence of informal      core capacity to manage this complex process. This capacity comprises
traders is often seen as a sign of urban blight, informal trade is a
                                                                              a dedicated Member of the Mayoral Committee, two dedicated Inner
significant economic sector with an estimated annual turnover of
                                                                              City committees, the Johannesburg Development Agency (JDA), and a
around R 4,2 billion.
                                                                              Region 8 Task Team. These are briefly described below.
Migrant traders are attracted by the Inner City’s transport infrastructure.
This allows them to purchase goods in the Inner City and transport them       INNER CITY COMMITTEES
to other parts of sub-Saharan Africa for resale at competitive prices.        Inner City Committee (section 80)
Approximately 400 000 to 500 000 tourist traders and shoppers from            A section 80 committee, which deals specifically with the Inner City,
across the sub-continent make their way to the Inner City each year.
                                                                              has been established. The Inner City Committee aims to promote the
                                                                              realisation of the vision for the Inner City; develop, and monitor the
Clearly, the kind of business conducted in the Inner City is changing.
However, the Inner City remains a significant business location, and its      implementation of, appropriate policies, strategies, programmes and

importance to the economic growth and development of                          projects for the economic and social development of the Inner City;
Johannesburg as a whole therefore cannot be overstated.                       and promote and market the Inner City.

                                                                                                                                                          193
      INNER CITY REGENERATION
      Inner City Advisory Committee (section 79)                                  REGION 8 INNER CITY TASK TEAM
      To ensure that important stakeholders in the inner city have a say in the   The Region 8 administration is responsible for the delivery of a range
      policies and programmes developed by the city, an Inner City Advisory       of municipal services in the Inner City, including Inner City libraries,
      Committee has been established. The Inner City Advisory Committee,          health services, housing services, social services and sports and
      which is a section 79 committee, makes recommendations directly to the      recreation. It also provides a critical point of coordination for the
      Inner City Committee.                                                       various other services provided in the area. To ensure proper
                                                                                  coordination and enable a multidisciplinary approach, Region 8 has
                                                                                  established an Inner City Regeneration Task Force.
      The Inner City Advisory Committee has the same objectives as the
      Inner City Committee. However, it has a wider membership, which
                                                                                  INNER CITY REGENERATION BUSINESS PLAN
      allows for a range of opinions and perspectives to be heard. The
                                                                                  The Inner City Regeneration Business Plan locates the responsibilities
      committee includes the Member of the Mayoral Committee
                                                                                  and synchronises the efforts of all actors and stakeholders who are
      responsible for the inner city; relevant Ward Councillors and PR            actively working for the regeneration of the Inner City. These actors
      Councillors; the Johannesburg Inner City Business Coalition; the            and stakeholders include the City of Johannesburg, provincial and
      Johannesburg Inner City Community Forum; representatives from the           national government, the private sector, and NGOs and other less
      Council’s utilities and agencies, the Metropolitan Trading Company          organised structures of civil society.
      (Pty) Ltd and the Johannesburg Development Agency (Pty) Ltd;
      representatives from the Association of Social Housing Organisations        The Business Plan captured all the major Inner City development
      and other relevant NGOs; representatives of Provincial Government;          initiatives and programmes in a single document. This enables
      and representatives of the Provincial Legislature.                          improved coordination of efforts and mobilisation of resources, better
                                                                                  institutional management and identification of areas for attention.
      The Inner City Advisory Committee has powers to advise on issues and
      make recommendations to the Inner City Committee for consideration.
                                                                                  KEY PROJECTS AND ACHIEVEMENTS OVER THE
                                                                                  MAYORAL TERM
      JOHANNESBURG DEVELOPMENT AGENCY                                             RIPPLE-POND INVESTMENTS
      As discussed in Chapter 1, the Johannesburg Development Agency              Constitution Hill
      (JDA) was established to stimulate and support area-based economic          The Constitution Hill project is located in Braamfontein, just north of
      development initiatives throughout the City.                                the Johannesburg city centre at the site of the Old Fort and the
                                                                                  Women’s Prison. The project aims to bring this major heritage site into
                                                                                  viable and sustainable economic use. It will also contribute to
      The agency works on projects in specific locations in the inner city,
                                                                                  increasing the city’s rates base and promote economic growth through
      aiming to capitalise on the unique advantages and opportunities of
                                                                                  the development of visitor attractions.
      each area. It coordinates and manages capital investment programmes
      involving both public and private sector stakeholders. Each of the
                                                                                  The Constitution Hill development comprises 95 000 m2 of publicly
      projects managed by the JDA involves a wide range of stakeholders
                                                                                  owned land. The development houses the new Constitutional Court,
      and requires the skills and resources of various organisations. The         and will also be home to statutory bodies such as the Commission on
      Johannesburg Development Agency acts as a coordinator and                   Gender Equality. It will include a visitor’s information and exhibition
      development manager, ensuring that the capacities of appropriate            centre, 200 housing units, and community facilities and recreation
      organisations, government departments, specialist agencies, and other       space. 1 860 basement parking bays will be constructed, and bus and
      appropriate players are mobilised for each project.                         taxi holding and drop off facilities will be built.
194
INNER CITY REGENERATION STRATEGY                                             3. Support economic sectors
The City of Johannesburg has, in consultation with a range of                The City aims to support those manufacturing and service sectors that
stakeholders, developed a vision for the Inner City. The key elements        have the potential to thrive in the Inner City, and to catalyse the growth
of the vision are the establishment of a: “Dynamic city that works; is       of new sectors. These actions are most usually a facilitated combination
liveable, safe, well-managed and welcoming; is people-centred,               of public and private initiatives.
accessible and celebrates cultural diversity; is vibrant and operates
24-hours a day; a city for residents, workers, tourists, entrepreneurs and   4. Address sinkholes
learners; a city focused on the 21st Century and is truly global; a city     Sinkholes are properties, and whole precincts of property, that are
which respects its heritage; and a city which is a trading hub of Africa,    abandoned, overcrowded, or poorly maintained. They have the effect
thriving through participation, partnerships and the spirit of Ubuntu.”      of pulling down surrounding areas in an accelerating self-reinforcing
                                                                             cycle of decay by creating disincentives to private investment and
To achieve this vision, the Inner City Regeneration Strategy has             blocking sales.
identified five key ‘pillars’ of intervention.
                                                                             5. Promote ripple-pond investments
1. Undertake intensive urban management                                      Ripple-effect investments are the opposite of sinkholes. They lift the
Intensive urban management involves efforts to ensure effective by-          adjacent areas by providing an incentive to private investment. A
law enforcement, management of informal trading, improved delivery           crucial requirement to make a ripple-pond investment effective is the
of services and utilities, and maintenance of the public realm.              support by the City and its partners to ensure that the environment
                                                                             immediately surrounding the investment is especially well managed.
2. Maintain and upgrade infrastructure
Good infrastructure creates an environment that is attractive to             Collectively, the five pillars lay the foundation for a well managed,
businesses, and improves the quality of life of residents. Looking after     growing Inner City.
the Inner City’s infrastructure also protects the substantial investment
that generations of city governments have made in the Inner City.




The Johannesburg Development Agency is also working on retail,               The R 460 million public sector spend on this development will
hospitality, commercial and residential developments in the area. There      leverage an estimated similar private sector investment amount to
has been substantial interest from developers in building a hotel in the     complete the initiative.
area, and good responses have been received to the call for proposals
to locate coffee shops and a restaurant on the site. Various public art      Newtown
projects have already being run on the site, and others are being            Located in the western sector of the Johannesburg city centre, Newtown
planned. A noteworthy development is the Hillbrow Health Precinct,           is home to a range of cultural attractions, including museums, theatres
immediately adjacent to Constitutional Hill. This is discussed in more       and music and dance centres. The goal of the Newtown Cultural Precinct
detail in Chapter 14. Its urban upgrade will complement the                  project is to increase the range of cultural attractions that the area offers,
improvements on Constitutional Hill in a way that mutually reinforces        to support cultural industries operating in the area, and to leverage
the outcomes from each.                                                      investment into the area.

                                                                                                                                                              195
      INNER CITY REGENERATION
                                                                                                               Second, access to the area has been improved through the iconic
                                                                                                               Nelson Mandela Bridge, linking Braamfontein to Newtown, as well as
                                                                                                               M1/Carr Street Interchange highway on- and off-ramps.
                                   Raise & sustain private investment
                                   leading to rise in property values
                                                                                                               Braamfontein
                                                                                                               Braamfontein is the fourth-largest node for office space in the City of
               Address sinkholes




                                                        Maintain/upgrade
                                                            infrastructure


                                                                             Ripple pond
                                                                              investment
                                            Intensive
                                   urban management




                                                                                           Support economic
                                                                                                     sectors
                                                                                                               Johannesburg. It is home to four South African-based multinationals as
                                                                                                               well as South Africa’s premier educational institution, the University of
                                                                                                               the Witwatersrand.


                                                                                                               In partnership, the Johannesburg Development Agency, the City of
                                                                                                               Johannesburg, major property owners and the University of the
                                                                                                               Witwatersrand have jointly invested in a number of projects over the
                                                                                                               Mayoral term. These range from the refurbishment of company
                                                                                                               headquarters to the building of parking garages, the development of
      Figure 11.2: A diagrammatic representation of the Inner City Development
                                                                                                               a public piazza and park, and a corporate precinct and public
      ‘Five-pillar’ Strategy, 2003.
                                                                                                               environment upgrade. The City has contributed R 25 million to the
                                                                                                               project, with private sector involvement at R 10 million.
      The project has secured R 600 million funding, drawn from Blue IQ, an
      economic development initiative of the Gauteng Provincial Government;
                                                                                                               The project has already yielded positive results. The Braamfontein node
      National, Provincial, Local Government; and private sector investment.                                   vacancy rate went down from 12,6% to 10,9% in the third quarter in
                                                                                                               2003, and has stayed static since then. Business confidence has
      There are several components to the Newtown development:                                                 increased. And there is evidence of new investment in the area from
                                                                                                               the private sector, both commercial and residential.
      First the precinct has seen the establishment of a City Improvement
      District, which in turn has facilitated the installation of closed-circuit                               Main Street
      TV. Major revamping of key historical buildings in the area, together                                    Main Street provides the link between the Anglo American upgrade
      with a public lighting programme, is also helping to turn the district                                   and the Gandhi Square project. A large number of offices are located
                                                                                                               in the area surrounding Main Street. To ensure that the space is a
      into a safe, secure and attractive environment.
                                                                                                               convenient and pleasant environment for the businesses located there,
                                                                                                               the area has recently been upgraded.
      Second, there has been a major programme of defining and upgrading
      public open space. Launched by President Thabo Mbeki in December
                                                                                                               The eight blocks of Main Street have been repaved and improved with
      2001, Mary Fitzgerald Square in particular has become a sought after
                                                                                                               extended pavements, interesting bollards, water features, raised
      venue for public performances and gatherings. It has the capacity to                                     flowerbeds and additional trees. The private sector has invested
      hold over 50 000 people and provides an outdoor space for a wide array                                   R 13 million in Main Street, and the City has contributed R 2 million.
      of activities. This includes outdoor film festivals, concerts, markets,                                  The private sector also pays for the street guards in the area, and
      carnivals and exhibitions. The square also boasts the biggest outdoor                                    has formed a Section 21 company to oversee the maintenance of
      LED screen on the continent, measuring 55 m2.                                                            the street.
196
ADDRESSING SINKHOLES                                                        Drill Hall
Better buildings                                                            The historic Drill Hall was built in 1904 and was used by the military
Some residential buildings in the Inner City are currently poorly           until 1992. The complex served as a courtroom for the 1956 treason
maintained, but have the potential to be upgraded. In many cases the        trial in which 156 activists, including Nelson Mandela, were charged
owners of these buildings are in debt to the city for rates and service     with conspiracy to overthrow the apartheid government. In the early
charge arrears. The Better Buildings Programme identifies these             1990s, the army moved out of the Drill Hall and homeless people
buildings, then implements a comprehensive process through which any        occupied the vacant building. The poor living conditions in the building
unlawful occupants are removed and the building is secured.
                                                                            resulted in a tragic fire in April 2002. Parts of the building were totally
                                                                            destroyed by the fire; other sections were rendered unsafe and
The Programme encourages property owners to upgrade their
                                                                            potentially dangerous and had to be demolished. During this term the
buildings. As an incentive, the city has agreed to write off a portion of
                                                                            City allocated R 10 million for the reconstruction and renovation of the
debt owed to the city. If the owner of the building is absent, or is
                                                                            building and site. Today it stands as a proud symbol of past struggles
unwilling to contribute to the upgrading, the building is sold to a new
                                                                            and what can be accomplished through focused regeneration efforts.
owner on the condition that it is renovated, well maintained and
property tenanted. After hand-over to the new owners a series of
follow-up visits ensures that the building is not allowed to revert to      Information gathering and mapping
its old state.                                                              The City of Johannesburg has initiated various projects aimed at
                                                                            collecting and consolidating an information base to enable the
Greater Joubert Park Precinct                                               development of the Inner City.
Joubert Park is one of Johannesburg’s few Inner City parks, situated
adjacent to the Johannesburg Art Gallery. The Greater Joubert Park          One such project is an ongoing survey of Inner City building stock on a
Precinct project is a multi-faceted initiative focusing on the long-term    block-by-block basis, to identify by-law and building code infringements,
development and management of the area.                                     illegal activities etc. The Inner City Task Force is responsible for this
                                                                            project, and hope to limit the negative impact of sinkholes through the
The area was designed primarily as a residential one, but has, over         early identification of problems in Inner City buildings.
time, become one of the largest passenger transport hubs in the
country. This has resulted in some immediate problems. In response,         Second, as described in Chapter 10, the City’s Economic Development
the EDU, JDA, Metropolitan Trading Company (MTC), Region 8 and
                                                                            Unit (EDU) and the South African Property Owners Association (SAPOA)
other service providers in the area have committed themselves to a
                                                                            have agreed to jointly set up a database of buildings and business nodes
short-to-medium term ‘clean-up’ of the area, addressing mainly taxi
                                                                            over the next three years. Called the Economic Activity Areas Database
and trader management and general cleanliness.
                                                                            (EAA DB), the R 4 million project merges and extends two existing
                                                                            databases. One of these is the nodal database, which provides
The EDU is also developing a longer-term plan for the area. An
                                                                            information on 25 economic nodes across the city. This was described in
economic activity audit of both formal and informal sectors and a
commuter survey have been conducted. This information was then              Chapter 10. The other is the Inner City database, which provides detailed
translated into a long-term development plan including catalytic            information on buildings in parts of the Inner City.
interventions, supporting urban management efforts that will bring
the area back into the market. The first step in implementing this plan     A third information gathering project aims to create a baseline map of
has been the roll-out of informal trader stands. During late 2004 and       Inner City sinkholes against which progress of sinkhole eradication can
early 2005 a large number of temporary stands have been delivered           be measured, and new areas to be targeted for action identified. This
in the vicinity.                                                            mapping will also assist in identifying new development opportunities,
                                                                                                                                                          197
      INNER CITY REGENERATION
      such as buildings appropriate for demolition, conversion and                 of formal retail space. The Mall houses a wide range of business
      refurbishment. The project is being managed by the Johannesburg              outlets such as fast-foods restaurants, ATM machines, butcheries, a
      Housing Company, which anticipates that it will cost around R 800 000.       hair salon, clothing stores and hawkers.


      INTENSIVE URBAN MANAGEMENT                                                   INFRASTRUCTURE UPGRADES
      CCTV                                                                         To ensure proper coordination and enable a multidisciplinary approach,
      The Closed Circuit Television (CCTV) Surveillance Project is one of the      Region 8 has established an Inner City Regeneration Task Force. The
      City’s most exciting anti-crime projects. In an initial pilot project,       Task Team consists of four units.
      15 crime surveillance cameras were set up in the area surrounding the
      Carlton Centre, where the security office is located. Even in this limited
                                                                                   The first is an Infrastructure Unit, which deals with road infrastructure;
      pilot project, the cameras have had a significant impact. Evidence
                                                                                   storm-water drains and sidewalks; traffic lights and road signs; power
      suggests that crime in the area fell 40% within a short period of the
                                                                                   supply and public lighting; and water and wastewater.
      cameras being installed. Over the last few years the system has been
      gradually expanded. It will eventually cover the entire CBD from
                                                                                   Second, a Law Enforcement Unit concentrates on enforcing by-laws and
      Braamfontein in the north to Ellis Park in the east, the M2 freeway in
      the south, and Newtown in the west.                                          taking strong action against slum lords and owners of buildings who
                                                                                   contravene the health, fire, town planning, and building control laws.
      Cameras are hidden in buildings overlooking strategic spots on the           This Unit is headed by the Johannesburg Metropolitan Police Department,
      pavements of the CBD. The video cameras are monitored from a                 with the South African Police Service providing vital support.
      Carlton Centre office, and any incidents are reported to the police by
      radio message, who in turn reach the trouble spot in an average of           Third, a Building Control/Land Use Unit enforces building control
      60 seconds. The aim is to eventually cut down the reaction time to as        regulations, and deals with infringements of land-use and public
      little as 10 seconds. The system conforms to international best              health management regulations from illegal occupations of buildings.
      practices and has the potential to be sold abroad.                           Working with the Law Enforcement Unit, the Building Control/Land
                                                                                   Use Unit has taken decisive action to address problem buildings in the
      The CCTV system had an immediate impact when it was introduced in            Inner City.
      April 2001, when just 15 pilot project cameras were installed. By
      December 2001, 136 arrests had been made from 285 reported cases
                                                                                   Last, the Environmental Clean-up Unit focuses on matters such as
      and from those 99 prosecution dockets were opened. From this
                                                                                   illegal dumping and littering, waste management, the cleaning of
      auspicious start the cameras have continued to have a significant
                                                                                   parks, and the maintenance of public conveniences. With the support
      dampening effect on crime in the Inner City.
                                                                                   of ward councillors, NGOs and community-based organisations, the
                                                                                   Unit has staged a number of environmental clean-up operations in
      Metro Mall and other markets
      Opened in January 2003, Metro Mall was built at a cost of                    the Inner City.

      R 100 million and is managed by the Metropolitan Trading Company.
      It has three levels, an integrated transport facility for approximately      The establishment of an Inner City Regeneration Task team allows
      3 000 vehicles, a trader’s market and formal retail shops along Bree         for co-ordination across the different services provided by the City,
      Street. An estimated 150 000 taxi and bus commuters go through               thereby enhancing the impact that the daily work of the municipality
      Metro Mall daily, and are served by 600 informal traders and 3 000    m2     has on living conditions within the Inner City.
198
      INNER CITY REGENERATION
      ECONOMIC SECTOR SUPPORT                                                       Any taxpaying, property owning, individual or entity may claim the tax
      Fashion District                                                              benefits of the UDZ incentive. The incentive takes the form of a tax
      The Fashion District is in a part of Johannesburg that has been specially     allowance covering an accelerated depreciation of investment made in
      earmarked for the development of the fashion industry (see box).              either refurbishment of existing property or the creation of new
                                                                                    developments within the Inner City, over a period of five, or seventeen
      By formalising the area’s designation as the Fashion District, the City       years, respectively. If the owner of a building in the Inner City wanted
      hopes that it will become the hub of South Africa’s fashion industry          to refurbish a building, they would be eligible to apply for the tax
      where clothing will be designed, manufactured and displayed. The              incentive. For tax purposes, the costs of refurbishment would be treated
      area is already home to approximately 1 000 enterprises in the                as an accelerated straight-line depreciation allowance of 20% per year
      garment industry. The development should stimulate trading and                of the cost of improvements, over five years. The refurbishment must
      facilitate cross-border trade and investment. The District provides           preserve a substantial part of the structure or exterior framework
      services, directly and indirectly, to associated fashion industry operators   and any extensions or additions must be of incidental nature to
      such as suppliers and service providers, manufacturers, designers,            improvement. In the case of a new building, a write-off period over
      distributors and merchandisers.                                               17 years is permitted with an initial 20% in the first year and an annual
                                                                                    5% for the next 16.
      The main objectives behind the Fashion District are: to create a safe,
      secure, attractive and functional district; to afford access to social and    The Urban Development Zone tax incentive was formally launched by
      economic activities; and to maximise economic growth. Development             the Executive Mayor on 18 August 2005. A three day investor’s
      of fashion industry network clusters and associations and the provision       conference marked the launch. The Mayor, Member’s of the Mayoral
      of enterprise support to existing and potential garment fashion               Committee, as well as experts from National Treasury described the
      industry enterprises are also important considerations.                       UDZ initiative to some 300 delegates. They also spoke to broader
                                                                                    developments in the Inner City and highlighted key investment
      Inner-city investors liaison                                                  opportunities.
      The EDU has initiated a series of regular meetings between the City
      and the major investors in the City’s economy. The aim is to enable the       IMPROVEMENT INDICATORS
      City to better understand investors’ concerns in future development of
                                                                                    A set of performance indicators were developed in 2001 to enable the
      the area, and to raise the profile of the Inner City as a preferred
                                                                                    City and its partners to continually monitor the progress being made
      investment location. The first session focused predominantly on
                                                                                    towards achieving Inner City regeneration.
      residential investors and financiers and was well subscribed. The
      second session focused on more general investment, with invitations
      extended to business, education and financial sectors. This liaison is        There are six sets of indicators. The first four, a ‘24 Hour City’, property
      supported by initiatives to improve Inner City governance, as reflected       market, rentals and business activity, reflect change in key economic
      by the JDA’s Inner City improvement indicators.                               statistics. The final two, confidence in the Inner City and awareness of
                                                                                    and satisfaction with the JDA, reflect change in perceptions by people
      Urban Development Zone (UDZ) tax incentive                                    who use the Inner City.
      The Urban Development Zone tax incentive is a new tax incentive
      scheme aimed at encouraging Inner City renewal across South Africa.           According to the JDA’s 2004 Inner City report, there was a 23%
      The first two UDZs, including Johannesburg’s, were demarcated in              increase in attendance at various inner-city entertainment venues over
      October 2004. The City’s UDZ covers all of the Inner City, and has been       the previous three years. Against an original target of 5% per annum,
      promulgated as the only UDZ for Johannesburg.                                 this reflects positively on the Inner City becoming a ‘24 Hour City’.
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FASHION DISTRICT                                                               the core of the Fashion District concept, there are a range of associated
The Johannesburg garment industry is currently characterised by a large        aspects of fashion that can add a wider mix of compatible uses and
number of survivalist enterprises struggling to compete successfully in a      activities to create a more exciting, vibey and productive area. Through
context of rapid global restructuring of textile industries. The Fashion       an agreement with the JDA and JPC, the Fashion District Institute will
District, a JDA project, is intended to create a distinctive locality in the   acquire a head lease on a new Fashion Square, a central plaza due for
Inner City where the growth of small, medium and micro-enterprises in          completion in September 2006.
the garment industry, especially those focused on value-added
manufacturing, can be assisted through targeted support.                       International experience with fashion districts highlights the
                                                                               importance of fashion shows that bring greater exposure to the area,
The Fashion District is situated in the eastern part of the Inner City, in     and the work being undertaken within it. Similarly in Johannesburg,
an area that has been associated with the garment industry for over            JDA supported fashion shows have helped raise the profile of the
half a century. It is made up of eight streets including End, Market, von      district, allowing young designers to showcase their work. At present,
Wielligh and Kerk streets. The northern section of the district has            the district holds four fashion shows per year.
several Art Deco residential blocks, but it is otherwise largely an
industrial area with textile factories and clothing shops, where tailors       The Fashion District initiative has facilitated training opportunities for
and seamstresses have historically plied their trade. For various reasons      small firms and new entrants operating in the area, through
industry in this area began to contract in the late 1980s and early            institutions linked to the Department of Labour. The SewAfrica
1990s. Reasons include the dumping of big runs of garments from                Training Centre has played an important role here. Lectures are given
Asia, and the relatively higher cost of labour and manufacturing               by 10 final-year Fashion Design and Clothing Management students
compared to operations in Durban and Cape Town.                                from the University of Johannesburg, while final-year CIDA students
                                                                               offer basic business management skills.
To arrest the ongoing decline of industry in the area, the JDA first
established a City Improvement District (CID). Its aim is to facilitate the    A parallel initiative will see intense marketing programmes help
upgrading of the public environment and promote ongoing good                   position the Fashion District at the cutting-edge of African trends,
urban management. The CID is currently facilitating the refurbishment          along with a programme to link new and upcoming practitioners with
of infrastructure in the area, especially roads, pavements and                 established local designers.
telecommunications, as well as the restoration of old buildings.
                                                                               These exercises are being complemented by the provision of access to
Aesthetically, the area covered by the CID has been visibly demarcated         social services, as well as the development of affordable housing
by 11-metre high ‘gateways’ made up of colourful fabric threaded               options so that people working in the area can live nearby. In addition,
through street poles. The gateways are lit up at night. These are              parks are to be established and shopping and entertainment amenities
complemented with signage consisting of 48 large steel garment                 provided. The intention of these overlapping projects is to support
patterns erected on street poles. Pavements have been re-laid with             social integration.
three different stitch patterns cut into the paving tiles and filed with
mosaic tiles. The pavements will be further transformed with benches           Over the last few years, the Fashion District has begun to see clear
with inlaid mosaic stitch patterns, and trees in a part of town that has       evidence of a turn-around. Factories have opened up again as smaller,
traditionally been bare of greenery.                                           more efficient operations, focused on more secure, niche markets such
                                                                               as ethnic African designs and small garment runs for burial societies,
The JDA’s urban redevelopment work in the area has been                        choirs or school uniforms. There are now some 500 tailors and
complemented by the establishment of a Fashion District Institute              seamstresses operating from this part of town, either as individual
(FDI). This is an industry led institution with a broad set of                 operators or as small factories.
responsibilities. Although clothing design, production and sales form
      INNER CITY REGENERATION

      JOHANNESBURG PROPERTY COMPANY                                              range of policies and procedures, including policies on the strategic
      The Johannesburg Property Company (JPC), as the property                   release of City-owned land, outdoor advertising and public places
      management and development arm of the City and its UACs, is a              of worship.
      unique, market-focused municipal structure.
                                                                                 A portion of JPC funding is derived from a fee for services provided to
      Incorporated in 2000 as a company, the JPC was broadly tasked with         the City, to support cash flow budgeting and management. Budgets
      managing and developing the immovable property portfolios of the
                                                                                 relating to the City’s twin projects of managing better buildings and
      City and its UACs. The Company has since managed to develop its own
                                                                                 establishing a register of assets are covered separately from the JPC
      individual corporate identity, and now occupies a unique position in the
                                                                                 service fee. The JPC has embarked on two other projects; namely, the
      blooming Johannesburg property market.
                                                                                 implementation of the Activity Based Costing System and the

      According to its mission statement, the JPC provides a comprehensive       Installation of Property Information Systems.
      and innovative range of services to manage and develop the property
      portfolios of the City and its UACs in a socially responsible manner,      The JPC now offers an encompassing range of services, including
      whilst maximising returns and supporting socio-economic                    acquisitions/expropriations; land identification, designation and
      transformation.                                                            conveyancing, land sales and long-term lease arrangements; short-
                                                                                 and medium-term leases, including outdoor advertising and servitude
      Alongside clarifying its strategic focus, its role in relation to fellow   encroachments; financial and accounting services; strategic and
      UACs and that of the City, the JPC has developed and implemented a         business planning, as well as ad hoc services.



      Indicators have also shown an improvement in the property market.          CONCLUSION
      As measured value of building plans passed, building activity increased
                                                                                 The City has made remarkable progress in its efforts to attract
      500% between 2001 and 2004. Vacancy rates in A- and B-grade
                                                                                 investment and regenerate the Inner City. The progress is clearly
      offices in the CBD declined from a peak of 25,8% in late 1999 to
                                                                                 demonstrated in indicators that the Johannesburg Development
      about 15% in early 2004. Against the target of achieving stabilised
                                                                                 Agency has collected on an annual basis since 2001. The hard data is
      rentals by December 2003, median rentals in A-grade offices rose from
                                                                                 indicative of the solid institutional framework and pragmatic policies
      R 25,25 per square metre in December 2001 to R 27 per m2 and again
                                                                                 that the city has adopted. However, Inner City regeneration is an
      to R 28,25 per m2 by the end of 2003.
                                                                                 ongoing process, and, although much has already been achieved,
                                                                                 many challenges remain. The City is committed to continue working
      Business activity in the Inner City, as measured by RSC levies, saw a
                                                                                 with all stakeholders to take the process forward as quickly and
      17% increase in turnover and a 34% increase in salaries between
                                                                                 decisively as possible.
      2002 and 2004. Confidence in the Inner City rose 32% between 2002
      and 2004.


      From these and other indicators it is clear that the Inner City is
      improving on many fronts, with the swing to positive results and
      perceptions being most pronounced over the past two to three years.


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