The City of Johannesburg could use the recently promulgated Expropriation Act to wrestle control of two privately owned properties surrounding the Usindiso Building and build good quality, affordable rental housing units.

The Usindiso Building was gutted by fire in August 2023, and 76 people died in the blaze.

At the council meeting on Wednesday, plans by the municipality’s entity, Johannesburg Property Company (JPC), to redevelop the building were tabled.

According to the City of Joburg, JPC will acquire seven Erven in support of the regeneration of the Usindiso Block, which is bounded by Albert, Delvers, Melrose, and Polly streets in Marshalltown, in the Johannesburg central business district.

The city has identified the recently burnt structure it owns and another invaded residential building with shops on the ground floor that the municipality also owns.

The two privately owned properties include a vacant warehouse-type structure and a dilapidated structure used as a panel beating facility. In total, the area is about 6 590 square metres, and the city owns 61.3%, while the remaining 38.7% is privately owned.

"The city wishes to acquire the 38% privately-owned properties made up of Erven 339 to 341, 344-347 city and suburban to form part of the Usindiso block regeneration. The Usindiso block (is) to be developed as a medium to high-density mixed-use node, with good quality affordable rental housing units of different typologies as the main driver," the JPC explained.

According to the company, the redevelopment of the block into one development will also support densification that can accommodate more than four times the population that was housed at the Usindiso Building, create economies of scale, a cleaner, and safer city as well as jobs and small, micro and medium enterprises empowerment during construction.

The city has indicated that the properties will be acquired at not more than their market value, to be determined by an independent valuer before the negotiation stage ensues and that there is a budget of R6 million, excluding value-added tax, available for the acquisition of the subject properties.

Additionally, notice to the owners will be given in terms of the Promotion of Administrative Justice Act and the Expropriation Act should the municipality fail to acquire the properties on a willing buyer-willing seller basis.

If the JPC fails to acquire the properties on a willing buyer-willing seller basis at the market-related value determined by a professional valuer(s), the company will be authorised to acquire the properties using expropriation in terms of the Expropriation Act as the city may expropriate property if such is required for municipal purposes.

The Expropriation Act allows an expropriating authority intending to expropriate property to serve a notice of intention to expropriate on the owner, mortgagee, and holder of a right known to it at the time and publish the notice of intention to expropriate.

The notice of intention to expropriate must include a statement of the intention to expropriate the property, a full description of the property, and a short description of the purpose for which the property is required, among other requirements.

Earlier this month, President Cyril Ramaphosa said the City of Joburg must expropriate abandoned buildings where the owners have run away even without compensation and turn them into living accommodations.

"And it falls very wonderfully in the interpretation of our Constitution and the law itself. And it would be for the useful purpose for our people," he added.

Meanwhile, Lawrence Sithembiso Mdlalose, 30, is facing 76 counts of murder relating to the Usindiso Building fire and will return to the Gauteng High Court, Johannesburg, next month to stand trial.

loyiso.sidimba@inl.co.za

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Joburg plans to expropriate private property for Usindiso Building redevelopment after deadly fire