In Johannesburg, City Improvement Districts (CIDs) play a crucial role in urban development and management. These districts focus on collaboration. Property owners and tenants work together to tackle critical urban challenges. As a result, they enhance the quality of business environments.
As a stakeholder in South Africa’s property sector and a key player in several CIDs, I have observed first-hand the significant impact of these initiatives on our urban landscape.
Understanding CIDs
A CID is a defined area where property owners collaborate to enhance municipal services. These services go beyond what local municipalities typically offer. In areas where municipal services fail to meet urban demands, CIDs step in to improve the urban experience.
CIDs provide several additional services, including enhanced security, cleaning and urban management initiatives. These initiatives include traffic management, landscaping, pothole repairs and traffic light maintenance, which enhance the business environment. Property owners fund these services by paying levies to support CID operations.
We actively participate in the governance and strategic direction of CIDs where our properties are located. This collaborative approach among property owners makes CIDs effective tools for urban revitalisation. Consequently, CIDs actively maintain and improve shared urban spaces. They significantly boost the attractiveness and competitiveness of key business areas in Johannesburg.
The economic impact of CIDs
Why should this matter to you as a business owner, property investor, or city enthusiast? The answer is simple. Urban redevelopment creates a ripple effect that benefits everyone.
A well-managed CID improves more than just an area’s aesthetic appeal. It acts as a catalyst for economic growth within and beyond its boundaries.
Businesses thrive in environments where customers feel safe and comfortable. Property values stabilise and increase in areas with successful CIDs. New investments lead to multiplying employment opportunities in these revitalised areas.
In essence, CIDs do more than maintain streets. They nurture the ecosystem that drives urban economic growth.
Sandton central: a success story
Consider Sandton Central, Johannesburg’s financial hub, which has upheld its world-class status largely due to its CIDs since 2003.
Driven by commercial property owners, the Sandton Central Management District was established to enhance experiences in this key urban node. It serves employees, visitors, tourists, shoppers, property owners and residents, focusing on meeting their diverse needs effectively.
Public safety ambassadors, dedicated JMPD cars with paramedics and cleaning staff work tirelessly to maintain Sandton’s excellence. Their efforts ensure Sandton remains a shining example of urban management and innovation.
As a major property owner in Sandton, we have actively supported the CID’s preservation and transformation. Recently, alongside other property owners and tenants, we partnered with the City of Johannesburg’s road agency, Eskom and the Sandton CID. This partnership enabled us to power traffic lights at key intersections using building generators during load shedding.
Today, only four intersections remain without private power during outages or faults. This collaborative, hands-on approach showcases innovative solutions to urban challenges. Ultimately, it reinforces Sandton’s success as a premier business district.
Legal challenges and the need for reform
However, the road to urban revitalisation is not without its obstacles. In 2015, a Supreme Court of Appeal judgement in the Randburg Management District case sent shockwaves through the CID community.
By questioning the legality of CID levies under the Gauteng City Improvement Districts Act, this ruling made funding voluntary. This decision has significant practical implications for the operations and planning of CIDs. Without a secure legal basis, CIDs face uncertainty in maintaining consistent, high-quality services.
This legal uncertainty also complicates the creation of new CIDs and the sustainability of existing ones. However, I believe this challenge presents an opportunity for meaningful reform.
As industry leaders, we must advocate for a robust legal framework at the provincial or municipal level. This framework is essential for ensuring the long-term sustainability of CIDs.
Why does this matter? It is not just about protecting investments but also about safeguarding the future of our cities.
The CID imperative
CIDs have proven their worth in transforming urban spaces and driving economic growth, as evidenced by success stories like Sandton Central. However, their future hinges on establishing a recognised legal framework at the municipal level in Gauteng and potentially nationwide.
We are actively working to strengthen and expand the CID model. We’re advocating for clear legislation, engaging with stakeholders, and investing in innovative urban management solutions. Our commitment stems from our belief in CIDs’ potential to drive urban revitalisation.
We invite all stakeholders – other property owners, our tenants, and city officials – to join us in recognising the value of well-managed CIDs and strengthening this crucial tool for urban development. Your active participation, from governance to advocacy, is essential.
Scott Thorburn | Manager | National asset – Office | Redefine Properties Ltd | mail me |
Related FAQs: Urban development with CIDs
Q: What is a City Improvement District (CID) in the context of urban development?
A: A City Improvement District (CID) is a designated geographical area where property owners pay additional levies to fund improvements and services that enhance the local economic development and revitalise public space.
Q: How do CIDs contribute to economic development?
A: CIDs play a crucial role in economic development by providing supplementary services and amenities that attract businesses and investment, thereby fostering a new and positive identity for the area, particularly in the central business district and inner city.
Q: Can you explain the transformative potential of city improvement districts?
A: The transformative potential of city improvement districts lies in their ability to improve the quality of life within the community, enhance public spaces and create a safe and vibrant environment that encourages investment and development.
Q: What types of improvements can be expected from a CID?
A: Improvements from a CID can include enhanced security, better maintenance of public spaces, street beautification and infrastructure upgrades, all aimed at revitalising the area and promoting local economic development.
Q: How are levies for CIDs determined?
A: Levies imposed determined based on the property values within the CID, and they are collected from property owners to fund the supplementary services and projects identified in the integrated development plan.
Q: What role does the local authority play in the management of CIDs?
A: The local authority provides support and oversight for CIDs, ensuring that the services funded by levies are effectively delivered and that the CID aligns with broader city policies and goals for urban development.
Q: How do CIDs help in developing a new identity for urban areas?
A: CIDs help develop a new identity for urban areas by implementing projects that enhance the aesthetic appeal, functionality and safety of public spaces, which fosters community pride and attracts visitors and investors.
Q: What is the significance of precinct management in urban development?
A: Precinct management is significant as it involves coordinated efforts among property owners, local businesses and the local authority to address issues and opportunities within the geographical area, ensuring sustainable urban development and improved quality of life.
