Online Reporter
Vusumuzi Dube Deputy Radar Editor
THE City of Bulawayo is set to open up the former Ascot Race Course site to competing investors after council resolved to abandon plans for exclusive negotiations with CBZ Bank over the development of the prime piece of land.
The decision follows the completion of a Local Subject Plan (LSP) for the 59,8-hectare site, which council says creates a framework for orderly and sustainable development of one of the city’s most valuable land assets.
According to a report by the Town Clerk (Mr Christopher Dube) submitted to council, the completion of the LSP constituted a material change in circumstances from those prevailing when the local authority resolved to negotiate directly with CBZ Bank.
“The Local Subject Plan for the former Ascot Race Course site had now been completed. The Plan provided a comprehensive framework to guide future development and investment within the area and established planning parameters necessary to ensure that development of the site contributed meaningfully to the City’s growth and Smart City aspirations,” reads the report.
Council had previously resolved that negotiations be undertaken with CBZ Bank for the development of the site.
However, the latest report recommended that the resolution be rescinded and that council instead advertise and invite Expressions of Interest (EOIs) from suitably qualified investors and developers.
The former race course, measuring approximately 59,8 hectares, is strategically located near established suburbs including Khumalo, Woodlands and Suburbs and has attracted interest from financial institutions, pension funds, property developers and other investors.
Council said opening the project to competition would enable it to secure the best possible development proposal while ensuring maximum value from the public asset.
“Given that the Ascot Race Course site was prime land and one of the City’s most strategic development assets, it was important that council adopted a process that ensured maximum value was derived from the land,” reads the report.
“Limiting consideration to a single investor might deny council the opportunity to evaluate alternative proposals that could potentially offer superior financial, technical and developmental benefits.”
The report said an open and competitive process would also promote transparency, accountability and fairness in the management of public assets.
Among the advantages cited by Council are attracting a wider pool of investors, maximising potential revenue and economic returns, comparing multiple development proposals and reducing the risk of undervaluing the land.
The process is also expected to enhance investor confidence in Council’s investment promotion and land disposal processes while supporting sustainable urban development.
Council said the development of the site could stimulate economic growth, create employment and facilitate infrastructure development in the city.
The EOI process is expected to be largely self-financing, with prospective investors required to pay a non-refundable application fee and purchase bidding documents.
“Revenue generated from these fees would offset the costs associated with advertising, administration, and evaluation of submissions, thereby making the process largely self-financing,” the report said.
The local authority also said competitive marketing of the site was expected to maximise its value and create opportunities for future revenue generation through investment and development.
Council subsequently resolved to recommend that its previous resolution authorising Management to negotiate with CBZ Bank Limited be rescinded and that the relevant department be allowed to advertise and call for Expressions of Interest for the development of the former Ascot Race Course site.
