SpropertyRevitalising
SpropertyRevitalising Johannesburg: thetransformative potential of CityImprovement DistrictsIn Johannesburg, City Improvement Districts are playing a crucial role in urban development and management. Thesedistricts, driven by collaboration between property owners and tenants, are addressing critical urban challenges andenhancing the quality of our business environments.By Scott Thorburn, Redefine PropertiesAs a stakeholder in South Africa’s property sector and a key player inseveral City Improvement Districts (CIDs), I’ve observed first-handthe significant impact of these initiatives on our urban landscape.Understanding CIDsA CID is a defined area where property owners collaborate toprovide supplementary services beyond those offered by localmunicipalities. In areas where municipal services struggle tomeet the growing demands of our dynamic cities, CIDs step into elevate the urban experience. CIDs provide a range of crucialadditional services, including enhanced security measures, cleaningoperations and various urban management initiatives such as trafficmanagement, landscaping, pothole and traffic light repairs thatimprove the overall business environment.The collaborative approach between property owners allowsCIDs to become powerful tools for this level of revitalisation. Theynot only maintain but actively improve the quality of our sharedurban spaces, contributing significantly to the attractiveness andcompetitiveness of key business areas in Johannesburg.The economic impact of CIDsBut why should this matter to you, whether you’re a business owner,property investor or simply someone who cares about the future ofour cities? The answer lies in the ripple effect of urban redevelopment.A well-managed CID doesn’t just improve the aesthetic appeal of anarea; it becomes a catalyst for economic growth within and around thedemarcated CID area.Businesses thrive in environments where customers feel safe andcomfortable. Property values stabilise and increase where there aresuccessful CIDs in place. Employment opportunities multiply as thearea attracts new investments. In essence, CIDs are not just aboutmaintaining streets; they’re about nurturing the very ecosystem thatallows our urban economies to grow.SANDTON CENTRAL: A SUCCESS STORYTake, for instance, Sandton Central, Johannesburg’s financial capital,which has maintained its status as a world-class urban centre thanksin large part to the tireless efforts of its CIDs which have been in placesince 2003.Driven by the commercial property owners, including Redefine,the Sandton Central Management District was founded to ensurethe creation of an exceptional experience in this key node ofJohannesburg. It was established for the employee, visitor, tourist,shopper, property owner and resident of Sandton Central and thusfocuses on how this area can better serve these stakeholders. Theirteam of public safety ambassadors, dedicated JPMD cars withparamedic staff and on-the-ground cleaning staff work around theclock, ensuring that Sandton remains a beacon of urban excellence.Recently, Redefine as well as other property owners and tenantswithin the precinct partnered with the City of Johannesburg’s roadagency, Eskom and the Sandton Central Management District topower traffic lights at major intersections using generators fromits buildings during loadshedding. This initiative has led to all butfour intersections being powered by private owners in the event ofloadshedding or an electrical fault. This hands-on approach hasallowed us to pioneer innovative solutions to urban challenges,contributing to Sandton’s success story.26 | Service magazine
SEmployment opportunitiesmultiply as the area attracts newinvestments.Legal challenges and the need for reformHowever, the road to urban revitalisation is not without itsobstacles. In 2015, a Supreme Court of Appeal judgement in theRandburg Management District case sent shockwaves through theCID community. By questioning the legality of CID levies underthe Gauteng City Improvement Districts Act, this ruling effectivelyrendered CID funding voluntary. This decision has significantpractical implications: without a secure legal basis, CIDs faceuncertainty in their operations and long-term planning, potentiallyundermining their ability to provide consistent, high-quality services.This legal uncertainty has increased the difficulty of starting newCIDs and the ongoing sustainability of existing CIDs, but I believeit also presents an opportunity for meaningful reform. As industryleaders, we have a responsibility to advocate for a robust provincialand/or municipality legal framework that will secure the long-termsustainability of CIDs. Why? Because this isn’t just about protectingour investments; it’s about safeguarding the future of our cities.The CID imperativeCIDs have proven their worth in transforming urban spaces anddriving economic growth, as evidenced by success stories likeSandton Central. However, their future hinges on establishing arecognised legal framework at the municipal level in Gauteng andpotentially nationwide.We invite all stakeholders – other property owners, our tenantsand city officials – to join us in recognising the value of well-managedCIDs and strengthening this crucial tool for urban development.Your active participation, from governance to advocacy, is essential. SScott Thorburn, National Asset Manager – Office,Redefine Properties.Service magazine | 27
