1. SH MIXED DEVELOPMENT WORKSHOP –DAY 1 SUMMARY
Mixed Dev. Workshop April 2018

2. GROUP ACTIVITIES SESSION -1
2 Groups mixed metros
Identify the crucial issues that need more work to assist the use of mixed market developments
Detail the challenges
Propose interventions:
Local
National
External support

3. GROUP ACTIVITIES SESSION -1
Institutional Preparation
Vision
Precinct Identification
Cross Department Co-operation
Partnerships
Project detailed Planning
Process
Ingredients and issues

4. GROUP ACTIVITIES SESSION -1
Group 2: Land Preparation and Release
Identifying and setting up Precinct Land Strategy
Procurement process and mechanisms
RFPs
Contents
Assessments
Time/Awards

5. GROUP ACTIVITIES SESSION - 2
Divide into separate metro groups
Identify the key activities you will undertake over next 6 months to forward mixed market projects in precincts
Identify challenges in doing this
What external support do you require to do this

6. LENS AND FOCUS Lens Urban Regeneration Precinct Approach Focus
SH as catalyst
Develop and protect space in long term for low and moderate income households
Precinct land strategy – govt owned land
Best use for socio economic intent
Release to whom and when
Use – SH, Transitional Housing, Affordable rental
Single use or mixed market model
Focus
Mixed market site development
Use SH, Transitional Housing, affordable rental, higher end rental, market sectional title, commercial, retail, office
Cross subsidisation and integrated inclusive developmnets

7. LENS AND FOCUS Lens Urban Regeneration Precinct Approach Focus
SH as catalyst
Develop and protect space in long term for low and moderate income households
Precinct land strategy – govt owned land
Best use for socio economic intent
Release to whom and when
Use – SH, Transitional Housing, Affordable rental
Single use or mixed market model
Focus
Mixed market site development
Use SH, Transitional Housing, affordable rental, higher end rental, market sectional title, commercial, retail, office
Cross subsidisation and integrated inclusive developmnets

8. Mixed Market Continuum
Low Cross Subsidy Potential
Moderate Cross Subsidy Potential
High Cross Subsidy Potential
Lower land values
Low moderate market potential
Large greenfield
Moderate land values
Moderate market potential
Large greenfield + some larger infill
High land values
High market potential
Small well located sites or combination of sites SH
Market rental
High end sectional title
Offices
Higher end retail commercial SH
BNG
Gap ownership
Affordable rental SH
Gap ownership
Small scale commercial
Affordable rental

9. eThekwini PROGRESS JHB Overall strategy and vison - ICHIP
1st precinct identified
Detailed land scoping
SHI partnership establishment in progress
As yet no land/buildings available - disconnect
eThekwini

10. INSTITUTIONAL PREPAREDNESS
Structured cross department co-operation
Shared vision
Approved instruments and institutional capacity
Procurement approach, partnerships
Incentives packaging
Project
Programme
Precinct identification linked to spatial strategy and govt. land availability
City vision/intent for precinct and each site
Informs release of land
Guides the RFP
Needs political buy-in and cross department commitment
City involvement in site planning – only as much as required for RFP let developers detail

11. PRECINCT BASED LAND RELEASE
Precinct based Land/building strategy
Planned and backed by budget
Guided by metro socio economic development intent
RFP Crucial framer of form of proposals for procurement assessment
Guide responses and not prescribe
Vision of of Metro for precinct and site development including socio economic basic must haves
Realisable transformation objectives
Incentives programme and project(site) based
Timing

12. PRECINCT BASED LAND RELEASE
Knowledge of land market
RFP Crucial framer of form of proposals for procurement assessment
Guide responses and not prescribe
Vision of of Metro for precinct and site development including socio economic basic must haves
Realisable transformation objectives
Incentives programme and project(site) based
Timing
Cost of bidding
Quality of RFP
2 stage bidding?

13. PRECINCT BASED LAND RELEASE
Cross departmental co-operation
Developing understanding of different focus and targeting of SH and Pvt for profit developers
Level of muni involvement in detailing best use of site but not prescribing deveoper response
Metro capacity to assess proposals against socio – economic intent
Municipal understanding of the market and risk profile in achieving socio economic objectives

14. PRECINCT BASED LAND RELEASE
Metro understsanding of:
land markets
Land release for socio economic development (MFMA)
Structuring the sharing of risk to ensure that SHI and Pvt developers come to the party.
Engagement with key delivery partners e.g. SHIs
Incentives
Necessary to share risk to achieve socio economic objectives
Ensure that incentives are properly targeted
Programme and project incentives

15. DETAILED SITE DESIGN AND PLANNING
Detailing - interactive process developer and metro
Base proposal chosen through procurement process
Right mixture of SH and best for profit element(s) to maximise cross subsidisation of socio economic elements
Linkage to the spatial design intent of precinct
Ensuring that included incentives are properly targeted

16. DETAILED SITE DESIGN AND PLANNING
Design for neighbourhood inclusivity and functionality
Tenure blind design
Inclusive semiprivate and public spaces
Providing for extra costs of densification
Though cross subsidization or extra subsidies
SH increase in necessary equity

17. URBAN MANAGEMENT Urban management SRA Revisions
Level city, precinct, neighbourhood
Inclusivity important
SRA Revisions
Various models
CIDS emphasises owners right
Ekhaya – bottom up includes tenants
Tongaat – Development contribution to
Engagement of developers and precinct implementers in design and provision of urban management

18. URBAN INFRASTRUCTURE Urban infrastructure investment
Precinct plan needed
Linkage of urban infrastructure with socio economic intent
Urban infrastructure not sufficient incentive by Metro to achieve necessary socio economic investment

19. OTHER Medium and high rise requires more than SH subsidy
Cross subsidisation
Densification subsidy
Changes in the RCG