Cape Town - The long-running legal dispute between the City and a developer which left the future of the iconic Bellville Velodrome and Athletic Stadium in limbo has finally ended after both parties came to an agreement in arbitration proceedings.
In 2019 the council approved a lease on the Velodrome and Athletic Stadium in which the facility would be leased to and managed by the developer, Devmet Property Developments Ltd (Devmet), for an initial period of 30 years with two renewal options for an additional 15 years each.
However, at the time the lease agreement was approved, Devmet, which acquired the lease, got into a dispute with the City over a requirement to pay R25 million to the City 18 months prior to the start of trading.
It is this dispute that has held up progress on the project.
On Wednesday, Mayco member for economic growth, James Vos said: “The City and the developer submitted to arbitration proceedings in respect of the Sale Agreement concluded in terms of Tender No 22Q-2008-09, which proceedings concluded that the Sale Agreement was void.
“The Velodrome remains a City facility. Required repairs and maintenance to bring the facility back to required standards will commence during the new financial year.”
The tender submitted by Devmet back in 2019 contained two elements: the lease, upgrade and management of the facility, and the purchase and development of vacant land surrounding the facility for retail, office, hotel, conference and residential development.
During the public participation process ahead of the deal with Devmet, the overwhelming response was that the Velodrome and stadium should be retained as community sporting venues.
The “Cape Argus” reported at the time that once the upgrade of the facilities was completed, all sports clubs, schools and community groups that currently used the Bellville Velodrome and athletics stadium were guaranteed “continued reasonable and affordable access”.
In April this year the City’s Recreation and Parks Department was allocated just under R58 million for sports facilities across the metro, including the upgrade of the Bellville Velodrome stadium.
At the time Mayco member for Community Services and Health, Patricia van der Ross, said, “This proposed capital expenditure is an indication of the City’s commitment to service delivery and quality community facilities”.