By Scott Thorburn, National asset manager – Office at Redefine Properties.
City Improvement Districts (CIDs) in Johannesburg are playing a crucial role in urban development and management. These districts, driven by collaboration between property owners and tenants, are addressing critical urban challenges and enhancing the quality of our business environments.
As a stakeholder in SA’s property sector and a key player in several CIDs, I’ve 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 provide supplementary services beyond those offered by local municipalities. In areas where municipal services struggle to meet the growing demands of our dynamic cities, CIDs step in to elevate the urban experience. CIDs provide a range of crucial additional services, including enhanced security measures, cleaning operations, and various urban management initiatives such as traffic management, landscaping, pothole and traffic light repairs that improve the overall business environment.
The funding model for CIDs involves property owners paying levies to support additional services. At Redefine Properties, we’ve been at the forefront of this urban evolution, taking an active role in shaping the governance and strategic direction of CIDs where our properties are located. In most instances where Redefine participates in CIDs, a member of our team is assigned as an active director on the CIDs’ board to ensure that the funds collected are well spent and that the necessary governance checks and balances are in place. Redefine ensures that we have clean audits on all CIDs that we participate in each year.
This collaborative approach between property owners allows CIDs to become powerful tools for this level of revitalisation. They not only maintain but actively improve the quality of our shared urban spaces, contributing significantly to the attractiveness and competitiveness of key business areas in Johannesburg.
The economic impact of CIDs
But why should this matter to you, whether you’re a Redefine tenant, business owner, property investor, or simply someone who cares about the future of our cities? The answer lies in the ripple effect of urban redevelopment. A well-managed CID doesn’t just improve the aesthetic appeal of an area; it becomes a catalyst for economic growth within and around the demarcated CID area.
Businesses thrive in environments where customers feel safe and comfortable. Property values stabilise and increase where there are successful CIDs in place. Employment opportunities multiply as the area attracts new investments. In essence, CIDs are not just about maintaining streets; they’re about nurturing the very ecosystem that allows our urban economies to grow.
Sandton Central: A success story
Take, for instance, Sandton Central, Johannesburg’s financial capital, which has maintained its status as a world-class urban centre thanks in large part to the tireless efforts of its CIDs which have been in place since 2003.
Driven by the commercial property owners, including Redefine, the Sandton Central Management District was founded to ensure the creation of an exceptional experience in this key node of Johannesburg. It was established for the employee, visitor, tourist, shopper, property owner and resident of Sandton Central and thus focuses on how this area can better serve these stakeholders. Their team of public safety ambassadors, dedicated JPMD cars with paramedic staff, and on the ground cleaning staff work around the clock, ensuring that Sandton remains a beacon of urban excellence.
As a significant property owner in Sandton, Redefine has played a key role in this CIDs preservation and further transformation. Recently, Redefine as well as other property owners and tenants within the precinct partnered with the City of Johannesburg’s road agency, Eskom and the Sandton Central Management District to power traffic lights at major intersections using generators from its buildings during loadshedding. This initiative has led to all but four intersections being powered by private owners in the event of load shedding or an electrical fault. This hands-on approach has allowed us to pioneer innovative solutions to urban challenges, contributing to Sandton’s success story.
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 effectively rendered CID funding voluntary. This decision has significant practical implications: without a secure legal basis, CIDs face uncertainty in their operations and long-term planning, potentially undermining their ability to provide consistent, high-quality services.
This legal uncertainty has increased the difficulty of starting new CIDs and the ongoing sustainability of existing CIDs, but I believe it also presents an opportunity for meaningful reform. As industry leaders, we have a responsibility to advocate for a robust provincial and/or municipality legal framework that will secure the long-term sustainability of CIDs. Why? Because this isn’t just about protecting our investments; it’s 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.
At Redefine, we’re 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.
