City of Joburg Property Company 2014/15 Business Plan Contents

Transcription

1 CITY OF JOHANNESBURG CITY OF JOHANNESBURG Department of Economic Development City of Joburg Property Company 2014/15 Business Plan Contents 1

2 TABLE OF THE CONTENTS 1. Introduction 2. Goals of the Economic Growth Cluster 3. City of Joburg Property Company Corporate profile 4. Description of Core Business 5. JPC Values 6. Strategic Objectives 7. High Impact Programmes Risk Matrix 8. Client Charter Service Stards 9. PESTL Analysis: 10. SWOT Analysis: 11. Implementation Performance Overview of the 2014/15 City of Johannesburg Property Company/ /15 Departmental SDBIP Community Based Planning 13. Day-to-day Operations 14. Intergovernmental Relations 15. Purpose of the MEC/MMC IGR forum 16. Financial Impact 17. Management Organisational structure 18. Monitoring Evaluation 2

3 1. INTRODUCTION The City of Johannesburg Property Company SOC Ltd (JPC) business plan has taken an inter-cluster approach aligned its projects programmes in line with the Department of Economic Development (DED) business plan, including identifying areas of cooperation between the DED its other ME s, Joburg Market in order to deliver on its mate. It has also taken into account the priority implementation plans of the other clusters into consideration. The following background, therefore, outlines the consensus reached during several inter- cluster strategic sessions to focus on SMME entrepreneurial development as a driver of economic growth development. The Department of Economic Development in the City Of Johannesburg defines its mate as being responsible for directing coordinating economic development as well as actively intervening to shape conditions for accelerated economic growth within the city. The Department of Economic Development is also responsible for the championship of economic support to all groups in the city to ensure their effective participation in the economic spectrum. In repositioning itself the Department indeed the cluster, has come up with a clear vision that sets out the intended contribution in facilitating growth of the economy in the City ensuring all citizens especially those who find themselves in the margins of the economy society are afforded equal opportunities to participate benefit from the mainstream economy. To unpack this vision without losing focus on the City s priorities, going forward the City s Department of Economic Development will focus its energy resources towards building an SMME centric economy, by facilitating an environment that supports SMME entrepreneurship development to address the triple challenges of poverty, unemployment, inequality. It has been agreed that SMME planning must be outcomes based with focus on economic opportunities, job creation, youth employment, whose plans must be integrated across departments Municipal Entities. 3

4 There are various ways in which the Department will fulfil its mate: this encompasses the identification, development usage of soft instruments to create an environment conducive for economic activities to thrive. 2. GOALS OF THE ECONOMIC GROWTH CLUSTER Given the very succinct snapshot economic overview contained herein, it is pretty obvious that economic development interventions must be geared towards addressing the following economic imperatives (objectives): Addressing poverty, inequality unemployment is the government City s economic priority; The development of an inclusive economy building global competitiveness are the key to the City s economic future; A predictable economic development policy is crucial for strengthening the City s capacity to give leadership to economic development driving an economic development agenda cross the City; Addressing unequal imbalanced economic development across regions (A, D, F & G) is indispensable for building an inclusive economy; Leveraging on fast growing sectors; supporting the declining ones building the traction for the dormant ones must form a critical thrust of the work of the City; Joburg s 4.4 million people means that additional pressure on available economic resources will continue so facilitating the dynamism of the City s economy will be critical; Addressing micro-economic structural fundamentals for SMMEs/ Cooperatives BEE Enterprises - through finance/ funding access, market access penetration, export support, business linkages, capacity building procurement support - are crucial interventions that the City must prioritise, Cross cutting constraints such as poor business confidence, investment support economic infrastructure require the City priority. 4

5 3. CITY OF JOBURG PROPERTY COMPANY CORPORATE PROFILE Background JPC was established in 2000 as a private company was wholly owned by the City of Johannesburg. JPC was converted into a state owned company following the implementation of the Companies Act of South Africa, 2008 (Act No. 71 0f 2008). JPC has recently been reconstituted into a completely new organisation by absorbing the former Facilities Management Maintenance Unit (FMMU) the former Metropolitan Trading Company (MTC). JPC is mated by its sole shareholder, the (CoJ), to carry out: Property Development; Property Management; Informal trading Public Transport; Facilities Management; Asset Management; All ancillary services related to the above.. The company was established to support the Council s economic social objectives as outlined in the Growth Development Strategy, as well as Mayoral strategic priorities aimed at making Johannesburg a World-class African City. The company ensures that economic growth job creation occur to address socio-economic disparities legacies of discrimination inequality, as well as: Realising value (social economic) for the CoJ through the management development of Council-owned properties; Implement retail equity scheme utilizing council owned shops, agricultural l for food security with the focus on SMME Co-Ops Maximising the social economic development of the Council-owned properties mobilising private public capital to increase their value long-term returns; Supporting economic development aligning the CoJ property portfolio with CoJ priorities; 5

6 Increasing the effectiveness of economically viable municipal social use of properties; Managing risk return with respect to the property portfolio property transactions for the CoJ; Establishing maintaining a property Asset Register relating to the Council-owned properties; Ensuring that the Company has developed the systems, infrastructure, personal skills to achieve its objectives; Transformation Social Programme- JPC transferring or leasing to SMME s, Co- Ops NGO Community organization; Resuscitation of declining nodes by transfer or lease under the L Regularization Programme; Commercialization of Facilities Management with the focus on SMME development; Space optimization programme which incorporates workplace accommodation to ensure better staff mobility. 4. DESCRIPTION OF CORE BUSINESS JPC provides an all-encompassing range of property services required for the management development of the property portfolios of the CoJ the MOE s. Our core business, as a result of the implementation of the institutional review, has exped to include facilities management to provide an overall property service. These services are commissioned on a sole-agency basis to administer the acquisition, disposal conveyance of all l required for rendering municipal services. JPC manages approximately R7.1 billion of the City s immovable property portfolio. The CoJ Property portfolio is diverse with approximately properties under management, covering hectares that spans across 7 municipal regions. In terms of the institutional review the company is divided into the following core business functions: 6

7 Property asset management This entails the strategic management of the City s property portfolio, to ensure maximisation of portfolio returns in line with JPC s social economic mate Asset management plans (maintenance of the l asset register the reconciliation of the asset register). Facilities Management Facilities management is an interdisciplinary field coordinating best use of space, building services infrastructure, people provision of a range of supplies services for the City of Johannesburg its entities. Property management There are two functions to property management namely commercial social. The social returns are minimal the commercial aspect subsidizes the social aspect. This function involves obtaining maintaining value from the property portfolio by effectively administering leasing, acquiring selling lastly ensuring maintenance of the property. JPC is an organization focused on the management of Council owned properties to maximize social economic opportunities generate significant financial returns. The impact on the future operations budget is under review should result in optimal management of the COJ property portfolio. JPC has embraced the resolution of the COJ will use this opportunity to review improve all processes to ensure optimal staff growth development as well as transformation. 7

8 5. JPC VALUES Company values have become an ethical foundation for all organizations are therefore fundamental to the JPC s success. Such values are not just important but crucial to the overall ascendancy of JPC. The following values were identified adopted by JPC: Professionalism; Accountability; Responsibility; Customer Service; Trust. 6. STRATEGIC OBJECTIVES The strategic objectives were reviewed aligned to the newly approved JPC 2040 Transformation through property strategy which fully supports the overall Joburg 2040 strategy. In order to ensure streamlined focused service delivery, JPC has identified the following seven (7) strategic objectives: Support economic development utilising the CoJ s property portfolio; Support community development utilising the CoJ s property portfolio; Support the Housing Master Plan delivery utilising the CoJ s property portfolio; Support environmental programmes initiatives in the management of the CoJ s property portfolio; Establish l strategy, l acquisition l stewardship in line with the CoJ s priorities; Ensure financial sustainability; Ensure good governance a professionally managed company. The company s strategic objectives are closely linked to the Mayoral priorities to the following clusters: Economic Growth Human Social Development Sustainable Services Good Governance 8

9 7. HIGH IMPACT PROGRAMMES City JPC Strategy JPC Identified Transformation Desired Impact Dependencies Impact Per Programme Programme Outcomes Region Sustainable L Transfer or Ownership of Restoration of Internal Region A Human Regularisation lease l to the l rights City Ivory Park Settlement cumulative previously Economic Departments Diepsloot 13,000 disadvantaged for Planning properties residential Emancipation of Legal Region B under the l business the previously Revenue Coronationville SMME regularization purposes disadvantage Power Newls Entrepreneurial programme. Water Newclare development Entrepreneurial Increase l JRA support development ownership Housing Region C Dobsonville Active Citizenry Allocation properties of to Empowerment of youth owned Supply Chain Region D support the social amenities programme companies Improved Council approval Soweto Eldorado Economic empowerment of well managed City facilities External Deeds Office Region E Greater Alexra (Alex, 9

10 the beneficiaries Eastbank, Far that received Surveyor East Bank, titles or leasehold General Office Malboro) Job creation Region G Greater Orange Farm ( Ennerdale, Lenasia Poortjie, Driziek, Lawley) Agriculture Release of Moral upliftment Investment that Internal All regions Food Security l to of communities benefits the Community SMME s, Co- community Development SMME Ops Increase social Entrepreneurial Entrepreneurs cohesion Improved City development under the community Procurement support transformation Community based services *, social empowerment Human Green Economy economic*** Empowerment Social Resource social** Economic of youth owned Development 10

11 resilience programme Development companies Revenue Sustainable Improved Human well managed Planning Settlement City facilities Department Department of Economic Development City Parks Office the Speaker External Department Trade Industry of Financial Institutions Public 11

12 Consultation Deeds Office Gauteng Department Agriculture of Sustainable Strategy 5 - Densification Accommodate Reduction in Internal Region E Human Industry enterprise low income travel costs Planning Settlement Transformation development earning families time JRA Region F programme closer to place of Transport SMME densification work Increase rates City Power Region D Entrepreneurial Programme Identify, base Water development rezone City restructuring CoJ Housing support release 3 Creating a hectares of To accommodate vibrant City Investment l along the 1000 residential Attraction, Corridors of units Improved quality Retention Freedom of life Expansion TOD s for l To accelerate the External densification housing Creating jobs 12

13 Green Economy residential development Private Sector Resource densification along the City Skills GDACE resilience as a pilot Corridors development Gauteng project. Housing Safer Cities The promotion of Establishment small of partnerships medium sized with the private black owned sector property companies. Empowerment of youth owned Transformation companies development of the property Improved industry well managed particularly the City facilities low end income earning groups. Safer Cities Create a Informal traders Inner City Internal Region F structured City empowerment regeneration DED SMME Market in the Planning Region A- Swazi Entrepreneurial inner city as a Job creation Destination Transport Inn 13

14 development pilot project market CRUM support which is SMME vibrant development Cleaner Investment tourist empowerment better managed Attraction, attraction facilities Retention Well managed Expansion trading space Empowerment External of youth owned Informal Traders Green Economy companies Associations Resource resilience Improved Informal Traders well managed City facilities Taxi Operators Safer Cities Strategy 2 Office Space Efficient use of Economic Internal Region F FMMU Optimisation municipal space growth Planning SMME (Phase 1- JHB Legislature Entrepreneurial CBD) Job creation Effective use of development space along the City Finance support Catalyst for Corridors of economic Freedom Office of the City Investment development TOD s Manager 14

15 Attraction, CRUM Retention SMME Improved Corporate Expansion development densification Services Green Economy Green economy Environmental All City Resource resource sustainability Departments resilience resilient Accessibility to Labour Sustainable Skills the community Human development Settlement Transformation External Smart technology of the property Private Sector sector The promotion of Community small Empowerment Consultations medium sized of youth owned black owned companies Funding property Institutions companies. Establishment SAPOA Transformation of partnerships development with the private of the property sector 15

16 industry particularly the low end income earning groups. Improved well managed City facilities *Transformation programmes: Youth, Women, People with disability other targeted beneficiaries ** Social: Regularise or transfer 200 places of worship, 100 ECDs, NGOs, Community facilities, 350 Co-Ops SMME s through food security lease 100 other social facilities. ***Social Economic Programmes: Development of Parks in collaboration with City Parks (Golden Harvest, Zoo Farm in Parys Rietvle. Socio-Economic Impact Summary Programme Financial/ Economic, Procurement Spend Other Transfer or lease Number of properties cumulative 13,000 transferred =13, 000 properties under the l regularization programme. Number of title holders eligible to access to Job Creation Women Youth Skills Development N/A Number of women N/A youth headed household eligible for title deeds 16

17 funding = 13,000 Value of properties released to citizens = R0.25 billion Number of residents impacted = 78,000 Release of l to Targeted Beneficiaries/ ECD s = 500 In allocation, at least 30% The following training will SMME s, Co-Ops (Number of residents will be allocated to women be provided: Entrepreneurs under the impacted) Co-ops SMME s youth In all aspects of transformation*, social Places of worships through food security= 350 farming, packaging economic*** social** = 200 (30,000) selling. programme. ECD s= 100 (3,000) Other social facilities= people to be Co-ops trained in all SMME s through aspects of farming food security = 350 (350) Other social facilities = 100 (500) Value of l made 17

18 accessible to citizens for food security = R27m Partnership with Johannesburg market to create a distribution for product Densification 1000 units will be built At least 1500 jobs to be 70% of labour to be used 300 Youth to be trained on enterprise development along the TOD s to house created. for construction will be the following: programme 3,000 residents. local labour from where the Plumbing project is undertaken Electrical Identify, rezone release 3 hectares of l along the Corridors of Freedom TOD s for l densification residential densification as R100 million to be spent on construction on both infrastructure top structure. 50 % of labour will be from women, youth people with disabilities At least 30% of Brick laying Paving Glazing Carpentry Welding 18

19 a pilot project. procurement to be allocated to women, youth people with disabilities. Steel works Wet works Create a structured City Define the precinct 7 SMME s to be appointed At least 30% of 91 people will be trained Market in the inner city as with 21 jobs created procurement to be on the following: a pilot project which is Prepare a detailed allocated to women, youth Plumbing vibrant tourist attraction. business plan Acquire properties 17 contractors to be appointed with 70 jobs created people with disabilities. Electrical Brick laying Paving Glazing Carpentry Welding Steel works Wet works Office Space Optimisation R120 million to be spent on At least 2000 jobs to be 70% of labour to be used People will be trained on (Phase 1- JHB CBD). construction on both created. for construction will be the following: infrastructure top local labour from where the Plumbing structure. project is undertaken Electrical Brick laying 19

20 50 % of labour will be from women, youth people with disabilities At least 30% of procurement to be allocated to women, youth people with disabilities. Paving Glazing Carpentry Welding Steel works Wet works RISK MATRIX ON THE HIGH IMPACT PROGRAMMES Programme Number JPC Identified Programme Risks Identified Risk Mitigating Actions Programme 1 Transfer or lease cumulative 13,000 properties under the Time delays in township establishment Releasing l on leasehold whilst the township is being established l programme. regularization Lack of infrastructure Releasing l on leasehold whilst the infrastructure is addressed Engage with City Departments to fast track delivery of infrastructure Application of section 118(4) of the Systems Act 20

21 Inability by beneficiaries to pay the purchase price, transfer costs rates as amended for rates. Engage with City to approve the transfer of the properties at no cost. Approach Province to access their funding for conveyancing Approach Legal Aid Board to assist with the transfer of the properties to beneficiaries. Lack of capacity (human resources) to deliver the programme Set up a PMO composing of internal personnel external resources. Use interns for skills transfer development( legal town planning interns from institutions of higher learning private sector) Encroachments, Dolomite L L swop l subdivision Insufficient budget to roll out the l regularisation programme Apply for revised budget budget reallocation Community interference Intensify public participation with the community through ward councillors. Programme 2 Release of l to SMME s, Insufficient start-up costs for Co- Create a multi-disciplinary task team with other City departments Approach DTI for grant funding Co-Ops Entrepreneurs Ops under the transformation*, Sign an SLA with the DTI for prioritisation of the 21

22 social economic*** social** programme. Delays in terms of registering Co- Ops (e.g. opening of bank accounts) Company s project Approach Financial Institutions to prioritise opening co-operative bank accounts marketing of the same Insufficient funds to lease available properties Less than market related rentals offered on lease because of public interest Legal delays in terms of City approvals Special dispensation to obtain Council approval (fast tracking committees) Recommend Delegation of powers to City Official for purposes of obtaining timeous approvals Submit suggestions to the City Manager on how to fast track the approval process inclusive of a high level process flow which demonstrates the actual time savings. E.g. perception index on ease of doing business in SA as contained in 22

23 WEF Intensify public participation with the community Community interference through ward councillors. Programme 3 Densification enterprise Public objection to densification Properties along TODs therefore in line with development programme RSDF Identify, rezone release Time delays in l use Set up task team with City Departments 3 hectares of l along the applications approvals Corridors of Freedom TOD s for l densification Insufficient infrastructure for new Properties along TODs, engage the City to residential densification developments prioritise this project as part of their CAPEX as a pilot project. planning/budget Access to funding by the emerging developers Partnering with GPF,PIC,IDC, BRICS Development Bank, IHFC,HDA DBSA Programme 4 Create a structured City Market in the inner city as a pilot project which is vibrant tourist attraction. Delays in acquisition of properties Accelerate the acquisition of the property through the Informal traders task team led by the City COO. 23

24 Lack of funding Partnering with GPF,PIC,IDC, BRICS Development Bank, IHFC,HDA DBSA Public objections Intensive education on best practice. Programme 5 Office Space Optimisation Insufficient funding from the City Partnership with private sector (Phase 1- JHB CBD). Detailed funding options Service delivery disruptions due to Extensive public consultation loss of productivity Proper relocation plans staff engagements Inadequate relocation plan or poor Extensive public consultation execution of the plan Proper relocation plans staff engagements Resistance from staff to move offices Delays in town planning Political reputational risk Extensive staff labour consultation Set up task team with City Departments Extensive public consultation marketing. Extensive public consultation marketing. 24

25 Negative public perception Delays of the project due to SCM challenges Planned supply chain management processes Dem management plans 25

26 8. CLIENT CHARTER AND SERVICE STANDARDS See Annexure A for client service charter. System that have been implemented to measure improve service stards turnaround times Queue management system that measures the waiting time the volume of transactions PIMS system which provides the following: Query resolution time Age analysis of outsting applications Volume of transactions Categorisations of transaction per regions types Automated notification to clients Escalation process on open queries Management exception reports Independent auditors to verify the selected transactions 9. PEST ANALYSIS: The property environment within which JPC operates is affected by the macro-environment factors such as political ( legal) forces, economic forces, socio-cultural forces technological forces as follows: Political (incl. Legal) factors Economic factors Regulations The Municipal Asset Transfer Regulations, 2008 which regulates the transfer permanent disposal of nonexempted capital assets by municipalities municipal entities in order to facilitate the enforcement administration of section 14(2) of the Municipal Finance Management Act 56 of 2003, which is to attain a council resolution before the alienation (lease Long approval processes increase holding costs of property such as security, cleaning maintenance, which also increase the risk of illegal occupation valism; Economic growth investor confidence affects the property market; Delays in economic development job creation; At the moment the bank rates have been firm stable for the last three (3) years 26

27 or sale) of any council owned with a downward trend which may impact properties. These regulations hinder the future years. process of the City in the alienation of l due to lengthy compliance requirements; Environmental regulations protection - National Environmental Management Act, 1998; The introduction of the National Credit Act the global economic meltdown significantly impacting on the growth dem for residential, commercial industrial properties; Formalities in respect of Leases Act, Socio-cultural factors Technological factors The skewed disposal income in different regions will adversely impact the property Innovative construction methods should be investigated to ensure cost reduction. transactions in areas where the levels are low. 10. SWOT ANALYSIS: Below are the SWOT elements that would have an impact on the effective implementation of the corporate strategy. Internal Strengths Weakness Good reliable top management; A shareholder that supports social transformation( being part of the JPC mate); Extensive experience in property management, development, asset management facilities; Solid understing of legislation ability/commitment to work within it; Isl of excellence in property Mismatch of skills (middle management lower levels) within the organization; Inadequate funding; Cumbersome l processes; Lack of proper contracting with clients (SLAs); Slow acquisition of property through lack of budget; Legislative mismatch- MFMA vs 27

28 management; JPC is the sole agent of the CoJ with a mate to manage Council owned properties on behalf of the City in terms of the SDA with the City; Captive CoJ market- All CoJ entities can be encouraged to make use of FMM services. Committed leadership Increased mate allowing for some level of risk Capacity to up-skill employees organisation Solid institutional relationships including ability to work in close conjunction with Planning Department DED Large repository of expert property knowledge A shareholder that supports social transformation (being part of the JPC mate). Access to capex operating budgets Alignment access to CoJ which is a regulator policymaker Captive CoJ market - all CoJ entities can be encouraged to make use of FMM services Strong CoJ balance sheet which can be leveraged Financial sustainability for as long as FMM revenue collection accrues to JPC The ability of the finance department to Transformation charter ; Overlaps with City Departments/MOEs; Dependency on City departments /MOEs resulting in delays in implementation of property strategies. Uncertainty caused by the merging of the three entities Confused vision, lack of integration of culture, work ethic, processes systems Skills mismatch lack of specific skills Lack of capacity, skills financial operational resources Lack of proper contracting with clients (SLAs) Incomplete asset register Decreased financial assistance from COJ - requirement to be financially independent sustainable contribute to the total city revenue Lack of a sustainable revenue model until JPC is managing sufficient FM contracts developing sufficient properties Gap between earnings salary bill No clear role definition between JPC & other CoJ departments SDA SLAs needs to be developed for centralised facilities management 28

29 integrate the finances of all three entities in a short timeframe with minimal disruption Legislative mismatch MFMA vs. transformation charter Slow acquisition of property through lack of budget External Opportunities Maximization of revenue through the outdoor advertising portfolio creation of a property fund; International investment: investigating alternative sources of revenue which can be generated from the property asset; CoJ office space optimisation; Comprehensive database of properties which can be used for strategy formulation; Assist emerging black facility management companies property development. New way of doing business CoJ office space optimisation Sole provider of property in the city to become a national player eventually To create a JPC which is an employer of choice Transformation of the property market Assist emerging black facility management companies property development Creation of jobs for the unskilled labour market Integrated centralised approach to Threats Valism to property portfolio; L invasions & illegal occupation of l parcels; Fraudulent l sales; Lack of property ownership in high value areas; Cumbersome CoJ s l approval processes for l transactions. Risky transition/integration JPC long term strategy vs. political term of office Resistance towards turnaround strategies Budget constraints Loss of specialised skills Mature property market which is risk-prone Lack of property ownership in high value areas Lack of diversification in property investment Impact of the economy on property development Existing council process not beneficial to decision making negative impact No formalization of relationship 29

30 facilities management at market prices stards (to include nonspecialised services/assets) to MEs other City buildings Leverage off the Centre of knowledge Optimise on economic opportunities taxi facilities Build on market trends densification Comprehensive database of properties which can be used for strategy formulation Improve intergovernmental relationships Integrated centralised approach to facilities management at market prices stards (to include nonspecialised services/assets) to MEs other City buildings Engage clients through contracts, decline requests from clients not contracted to JPC with taxi associations informal traders with transportation departments economic development Valism of structures/facilities Competing with external service providers providing service at market related prices Private property developers abuse/constrain JPC s expansion into property development value chain Certain governance procedures such as the early adoption of GRAP 105 will have to be implemented in a short period of time. Non-compliance within the timeframe will result in audit queries The culture of the organisation has not been determined, integration is not complete the benefit disadvantages cannot be measured yet 30

31 Table: Desired Outcomes: City priorities/ flagships IDP programmes Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years Sustainable Human IDP Sub Programmes Transfer or lease Programme ends at year Settlements focusing Targeting deprived spaces cumulative one on communities properties under the Facilitation of the area based l regularization economic initiatives programme. L Management Acquisition of properties Acquisition of properties Acquisition of properties acquisition programme along the Transit along the Transit Oriented along the Transit Oriented Oriented Development Development support Development support Transit Oriented development support the housing the housing master plan the housing master (TOD) Programmes master plan(priority (Priority Areas(corridors plan(priority Areas Areas(corridors nodes) (corridors nodes) From informal settlement to nodes) sustainable human settlement programme 31

32 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years Financial sustainability IDP Sub programmes R100m of rental income R100m of rental income R100m of rental income Economic Growth from leases from leases servitudes from leases Financial sustainability servitudes sales, sales, servitudes servitudes sales, Leveraging of City Owned servitudes acquisition servitudes acquisition Assets acquisition Revenue maximization Revenue from Outdoor Implementation of the Improved revenue from Advertising outdoor advertising strategy Outdoor Advertising. 32

33 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years SMME Develop a dynamic Implementation of the Implementation of the Implementation of the entrepreneurship entrepreneurial spirit, Incubator Programme Incubator Programme for Incubator Programme for development competitiveness, innovation for emerging property emerging property emerging property increased investment entrepreneurs entrepreneurs entrepreneurs Agriculture food through support to SMME security Implementation of Implementation of Property Property Skills Skills Programme Programme Allocation of properties Allocation of properties for Allocation of properties for agricultural food agricultural food security for agriculture, food security with the focus with the focus on SMME, security with the focus on on SMME, Co-ops Co-ops Informal Traders SMME Co-ops Informal Traders Informal Traders Allocation of property to Allocation of properties to Allocation of properties to Youth development Youth Development Youth Development 33

34 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years programs to address programs to address youth programs to address youth unemployment unemployment to youth unemployment to encourage youth encourage youth to enter to encourage youth to to enter into the property into the property space enter into the property space space Transformation Transformation Social Transformation Social Programme- JPC Programme- JPC transfers Social Programme- JPC transfers or lease 4000 or lease cumulative 8000 to transfers or lease SMME Co-Ops SMME Co-Ops NGO, cumulative to NGO, Community Community organisation. SMME Co-ops NGO, organisation Community organisation. Commercialization of Commercialization of Commercialization of Facilities Management facilities management with facilities management with the focus on SMME the focus on SMME with the focus on SMME 34

35 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years development Development Development Investment Attraction, Leveraging of City owned Office Space Office Space Optimisation Office Space Optimisation Retention Expansion facilities Optimisation (Phase 1- (Phase 2- JHB CBD roll out of the other JHB CBD Construction other critical areas as phases as outlined in the Sustainable Human Revenue maximization of the Council Chamber identified in the project plan) project plan) Settlement Wing) SMME Entrepreneurial Develop a dynamic development support entrepreneurial spirit, Space optimization Space optimization Space optimization competitiveness, innovation programme which programme which programme which Green Economy increased investment incorporates workplace incorporates workplace incorporates workplace Resource resilience through support to SMME accommodation to accommodation to ensure accommodation to ensure ensure better staff better staff mobility better staff mobility Safer Cities mobility 35

36 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years Sustainable Human Densification Development Continue with the Settlement enterprise construction of the densification development densification enterprise enterprise development SMME Entrepreneurial programme programme along the programme development support Corridors of freedom Identify, rezone TOD s for l densification. Investment Attraction, release 3 hectares of Retention Expansion l along the Corridors of Freedom TOD s Green Economy for l densification Resource resilience residential densification as a pilot Safer Cities project. To accommodate 220 residential units To accommodate 500 residential units To accommodate 1000 residential units The promotion of small 36

37 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years medium sized black owned property companies. The promotion of small medium sized black owned property companies. The promotion of small medium sized black owned property companies. Transformation development of the property industry particularly the low end Transformation development of the property industry particularly the low end income earning groups. Transformation development of the property industry particularly the low end income earning groups. income earning groups. Safer Cities Create a structured City Create a structured City Create a structured City Market in the inner city Market throughout the other Market throughout the SMME Entrepreneurial as a pilot project which regions ( Region A: Swazi other regions development support is vibrant tourist Inn, Diepsloot) attraction Investment Attraction, Retention Expansion Identification Destination marketing Destination marketing 37

38 Key Flagship IDP Sub Programmes / Desired outcome: Desired outcome: Medium- Desired outcome: Programmes Strategic Intervention Short-term 1 year term 2-4 years Long-term 4+ years establishment of the Green Economy market Resource resilience Allocation of spaces to the informal traders Destination marketing SMME development SMME development SMME development empowerment empowerment empowerment Well managed trading Well managed trading space Well managed trading space space 38

39 11. IMPLEMENTATION AND PERFORMANCE OVERVIEW OF THE 2014/15 CITY OF JOHANNESBURG PROPERTY COMPANY The Department has to play a leadership role in economic development, which in broad terms: Builds a clear economic agenda in a transversal manner with other departments/moes which influences economic outcomes; Builds vertical alignment with National Provincial government around the economic agenda of the City of Johannesburg; Builds horizontal alignment with business, institutions, other stakeholders around a common agenda for economic development; Develops implements measures that complement other interventions to improve the business climate, by implementing both hard soft infrastructure. Departmental Contribution to the nine Priorities Aligned Projects City Priority SMME Entrepreneurial Development JPC Contribution Creating an environment that supports SMMEs entrepreneurship development; Addressing the mismatch of skills in the City s economy; Using the City s procurement spend as a lever for SMME BBBEE development; Focusing on providing l to cooperatives as one of the key vehicles for entrepreneurial development job creation; Implementing the Economic Property Transformation Strategy in line with DED directives; Implementing a Youth Development Strategy; Accelerating the Informal Economy Development; Facilitating economic growth development, the spatial (geographic) spread of economic SMME/ BBBEE economic opportunities across the City. 39

40 JPC Projects Aligned to Emerging Property Developers Incubator; Priority Property Academy; Upgrading of informal traders facilities; Roll-out of informal trader facilities; Allocation of l for SMME; Implementation of SMME empowerment Zone. City Priority Food Security JPC Contribution Exping commercial urban agriculture Disposal or release of L for Agricultural purposes Allocation of l for to Co-ops the informal sector. JPC Projects Aligned to SMME Co-ops Informal Economy Support; Priority Disposal of l for urban agriculture Agro Processing through JPC; Implementing the township economic development plans focusing on agro processing hubs, food empowerment zones. City Priority Investment attraction, Retention Expansion JPC Contribution By proactively promoting inward investment into the City of Johannesburg; Through facilitating inward investments through various marketing strategies; Inner City Rejuvenation-promote the inner city as a viable location with future value returns; Facilitating strategic partnerships that bridge the divide between the first second economy. JPC Projects Aligned to Priority Business to Business Match Making Conferences (Buy sell invest Visit Joburg) Remodelling of the Inner City Property Scheme to attract investors into the Inner City; Property Summit. City Priority Green Economy JPC Contribution Comprehensive Facilities Management Plan. JPC Projects Aligned to Retrofitting of council Buildings in line with the 40

41 Priority City Priority Facilities Management Plan. Human Settlements Development TOD JPC Contribution Marganilised Areas Programme; JPC Projects Aligned to Priority City Priority Acquisition of l in line with the TOD initiatives; Mixed Use developments on Council owned Property along the TOD nodes in line with the economic development township regional plans; By highlighting key characteristics of the space economy thereby building competitiveness reducing persistent gaps in growth rates between regions. L Regularisation Programme; L Acquisition; Leases for Council Facilities; L Sales in Marginalised areas to empower SMME ownership of l. Financial Sustainability resilience JPC Contribution Expenditure Management- prudent expenditure management through cost saving; Reduction in the use of consultants; Build strengthen internal capacity; Adopting a culture of internal controls thereby contribution to clean audit; Strategic Procurement- based on well-defined dem management plans; Financial Management internal controls. JPC Projects Aligned to Verification of Asset Register desk top Priority physical verification of the asset register. City Priorities Active Citizenry JPC Contribution SMME outreach Programmes; Internal stakeholder engagements; External stakeholder management; 41

42 JPC Projects Aligned to Priority City Priority B&B match making conferenced; Township economic development plans stakeholder engagements. Informal Economy Development Summit; Property Summit. Safer City JPC Contribution Street ambassadors in the Inner City to manage informal traders adherence to by-laws; Safety strategy for all council facilities. JPC Projects Aligned to Informal Economy Strategy implementation; Priority Informal Trading Forum. 42

43 /15 DEPARTMENTAL SDBIP AND COMMUNITY BASED PLANNING The table below illustrates how the Key Priority programmes other IDP programmes the Department will be undertaking in the financial year. The Departmental indicators CBP are provided for each of the project identified as well as the baselines quarterly performance targets in order to measure performance post the approval of the plan. Table: Key / Priority Programmes/ Key Projects Key Project CBP Measurem Measurem Baseline 2014/15Pe Cumulative performance targets priority Performance Project ent unit ent rformanc (Tangible, measurable targets that fulfil programme Indicators Yes/No Source e requirements of being SMART) s Target Quarter 1 Quarter Quarter3 Quarter4 2 Sustainable Marginalized Transfer or Yes Number of Asset New 13,000 Identificati 2,000 4,000 7,000 human areas lease properties Register Indicator properties on of propertie properties properties settlements programmes cumulative transferred or leased or properties s leased leased or leased or 13,000 leased under transferred to be or transferred transferre properties under the L Reg leases or transferr d the l model transferred ed regularization programme. 43

44 Key priority programmes SMME entrepreneuri al support Projects Key Project CBP Measureme Measureme Performance Project nt unit nt Source Indicators Yes/No Creating a sustainable SMME sector in the COJ Enterprise Development: 4000 SMME's supported Job creation Baseline 2014/145P erformanc e Cumulative performance targets (Tangible, measurable targets that fulfil requirements of being SMART) Target Quarter1 Quarter2 Quarter3 Quarter4 Creation of the SMME's, NGO's, Co-Ops Community Organisation programme Yes Number of SMME s, NGO s, Co- Ops Community Organisation s supported. Register of SMME s, NGO s, Co- Ops Community Organisatio ns supported SMME s 4000 SMME's, NGO, Co- Orps Community Organisatio n supported 1000 SMME's, NGO's,Co- Orps Communit y Organisati on 1000 SMME's, NGO's,C o-orps Commun ity Organisa tion 1000 SMME's, NGO's,Co -Orps Communit y Organisati on 1000 SMME's, NGO's,Co -Orps Communit y Organisati on Number of jobs Yes Number of Record of 2800 jobs 8000 jobs 2000 jobs jobs 2000 jobs created jobs created jobs created created created created jobs created created created Reduced poverty Release of l Yes Number of Register of Issue a Identificati Establish Obtain Issue a 44

45 Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/145P Cumulative performance targets programmes Performance Project nt unit nt Source erformanc (Tangible, measurable targets that fulfil Indicators Yes/No e requirements of being SMART) Target Quarter1 Quarter2 Quarter3 Quarter4 dependency to SMME s, properties properties request for on of l a Section request Co-Ops identified or l proposal to for database 14(2) for Entrepreneurs allocated for identified Co-Ops agricultural for Co- approval proposal under the agricultural purposes Ops to Co-Ops transformation* purposes allocated for, social agricultural economic*** purposes. social** programme *Transformation programmes: Youth, Women, People with disability other targeted beneficiaries ** Social: Regularise or transfer 200 places of worship, 100 ECDs, NGOs, Community facilities, 350 Co-Ops SMME s through food security lease 250 other social facilities. ***Social Economic Programmes: Development of Parks in collaboration with City Parks (Golden Harvest, Zoo Farm in Parys Rietvlei). 45

46 Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/15 Cumulative performance targets programmes Performance Project nt unit nt Source Performan (Tangible, measurable targets that fulfil Indicators Yes/No ce requirements of being SMART) Target Quarter1 Quarter2 Quarter3 Quarter4 Financial Financially R100m of Yes Rental Statement R90 million R100 R15m R15m R30 m R40m sustainability administratively rental income income of raised million income income income income sustainable from leases raised Comprehen raised raised raised raised raised resilience resilient city servitudes sive Income sales, servitudes acquisition Key priority Projects Key Project CBP Measureme Measureme Baseline 2013/14 Cumulative performance targets programmes Performance Project nt unit nt Source Performan (Tangible, measurable targets that fulfil Indicators Yes/No ce requirements of being SMART) Target Quarter1 Quarter2 Quarter3 Quarter4 46

47 Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/15 Cumulative performance targets programmes Performance Project nt unit nt Source Performan (Tangible, measurable targets that fulfil Indicators Yes/No ce requirements of being SMART) Target Quarter1 Quarter2 Quarter3 Quarter4 Construction of Yes % completion Progress New Site Finalisatio Issue a Obtain Site the Council of report on Indicator hover n of the construct town hover chamber as per construction construction for Council detailed ion planning to the the Office Chamber architectur tender approval constructo Space constructio al designs for the r Optimisation n of the consolidat programme Council ion chamber site with developm detailed ent plan costing. Submit the town planning application. 47

48 Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/15Per Cumulative performance targets programme Performance Project nt unit nt Source formance (Tangible, measurable targets that fulfil s Indicators Yes/No Target requirements of being SMART) Quarter1 Quarter2 Quarter3 Quarter4 Transit Acquisition of Acquisition of Yes Number of Asset 3 Acquisition Identify Make an Finalise Lodge Oriented properties along 20 properties properties Register properties of 20 properties offer to negotiatio transfer Development the Transit along the acquired acquired properties submit purchase n or document - Priority Oriented Transit in the TOD a report to commenc s with areas Development Oriented 6 Council e Deeds (corridors / support the Development properties expropriat Office. nodes) housing master support the in line with ion plan(priority housing master the housing Areas(corridors plan by master plan nodes) acquiring 6 properties (Priority Areas(corridors nodes) Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/15Per Cumulative performance targets programme Performance Project nt unit nt Source formance (Tangible, measurable targets that fulfil s Indicators Yes/No Target requirements of being SMART) Quarter1 Quarter2 Quarter3 Quarter4 Investment Create a Yes Value of Asset New Appoint a Site Stakehol Council Advertise attraction, structured City investment to Register Indicator successful identificati der Approval RFP for retention Market in the upgrade bidder on engegem developm 48

49 Key priority Projects Key Project CBP Measureme Measureme Baseline 2014/15Per Cumulative performance targets programme Performance Project nt unit nt Source formance (Tangible, measurable targets that fulfil s Indicators Yes/No Target requirements of being SMART) Quarter1 Quarter2 Quarter3 Quarter4 expansion inner city as a Informal concept ent ent pilot project Trading plan which is vibrant Facilities tourist Taxi Ranks attraction Third party Yes R350 Asset R300 m R350 m R 100 m R 100 m R 75 m R 75 m investment on investment in Register investment investment investme investmen investmen COJ property construction by private by private nt by t by t by transaction sector sector private private private sector sector sector Third party Yes R1bn Asset Nil R1bn Nil Nil R500 m R500 m investment on investment Register investment COJ property leverage on leverage on transaction property property transaction transaction 49