Presentation by: Mr Msawakhe Mfusi and Charmaine Keet HEFMA - - PowerPoint PPT Presentation

UKZN INSPIRING GREATNESS

The effects and practical implications of dated development planning practices on the University of KwaZulu Natal Presentation by: Mr Msawakhe Mfusi and Charmaine Keet HEFMA Conference 2018 – Namibia 20 – 24 October 2018

Presentation Outline

• Background
• Challenges
• Resultant Risks
• Project Implementation and Methodology
• Road Map
• LARP Phase 1 – Investigation
• LARP Phase 2 – Implementation
• Implementation Challenges – Risks & Lessons Learnt
• Concluding Remarks
• Questions

Locality Plan: UKZN Westville Campus

Background To The Project

• The initial revaluation of Westville Campus buildings for insurance

and financial reporting purposes prompted the identification of this project and the need for the project.

• This project highlights the effects and practical implications of the

past dated development planning practices on the management and administration of physical infrastructure at the University of Kwazulu Natal (UKZN)

Challenges

• Outdated and inefficient cadastral layout
• Buildings straddling boundaries due to inefficient layout
• Development planning delays or rejected plans due to non-

compliance

• Due to the inefficient cadastral layout the fixed property asset register

(FAR) and valuation roll for rates not reconcilable for audit and for proper financial reporting

• Property under the control of UKZN identified as not being formally

transferred to UKZN due to historical ownership by the State

Resultant Risks

• Ongoing difficulties in the overall effective management of UKZN

property portfolio

• Audit performance non-compliance
• Ownership claims and delays in negotiations and acquisition to

regularize ownership

• Inability to act as the official legal owner or in turn acting unofficially

as the legal owner

Methodology of the Project

A formal two phased investigation and study was conducted which investigated the option of consolidating and subdividing the existing cadastral into more efficient layout.

• Phase one of the focussed on preparation planning of the

methodology and solution for the study and

• Phase two is the full project implementation plan of the methodology

determined in phase one and its activities

UKZN INSPIRING GREATNESS

Project Concept and Planned Solution

Perform a scoping exercise based on the challenges and risks to formulate a plan

• Conducted a land legal and land use audit
• Deeds office ownership verification
• Surveyor General plans
• Obtain Title deeds
• GIS representation as support
• Rates impact assessment
• Conduct a review and analysis of the rates policy of the municipality
• Determine an estimate of rates payable and impacts “as is” versus “options” for

rating

• Reporting on the findings, with proposed solution, estimate costs and

recommendations for Committee approvals

• Final project purpose and identification

# Approximately 150 subdivisions # All rated as business including residences

# Approximately 150 subdivisions # All rated as business including residences

# Environmental impacts (DMOSS)

Worship Site Buildings over boundaries – Development restrictions and compliance risks Rates reconciliation - split business from residential Rates reconciliation – split actual use business from residential ito MPRA

# Building Straddling Boundaries

University of Johannesburg: Doornfontein Campus

University of Johannesburg: Doornfontein Campus Consolidation of 234 individual properties

University of Johannesburg: Doornfontein Campus

University of Johannesburg: Bunting Road Campus

University of Johannesburg: Bunting Road Campus

University of Johannesburg: Bunting Road Campus

2019

2016

2015

LARP Finish

LARP Project created & approved

2014

2013

Challenges and recommendations to Committee FAR Revalue 150 subs

2017

2018

Challenges identified from Revaluation

• a. Building Straddling Boundaries
• b. Inefficient cadastral layout
• c. Difficult to manage property portfolio
• d. Roll / Rates reconciliation to FAR

Project resources Valuer Land Surveyor Town Planner Legal conveyancer Environmentalist GIS Technician Project Manager SPLUMA application submitted Municipal / stakeholder engagement SPLUMA application approved

LARP Start

Survey and SG Diagrams To 13 Subs Legal conveyancing title deeds transfers Roll / Rates updating. LARP integration Stakeholders Town Planning Dept Environmental Dept Real Estate Dept Rates Dept Road Dept SG Office Deeds Office

• Gov. Dept (owners)

Adjoining Owners FAR Revalue 13 Subs Prepare SPLUMA

• App. Create new

layout plan for SPLUMA

Road Map Land Assembly (LARP) Project

Land Audit Rates Impact Study Rates Impact

Project Implementation and Methodology

• Project resources
• Project Stakeholders
• Phased approach – Phase 1 investigation and Phase 2 implementation

Project Resources / Stakeholders

# Stakeholders / Resources Roles and activities 1 Property Owner

Project owner and sponsor.

2 Project Manager

To project manage and coordinate the LARP project plan implementation. This includes planning and reporting on the project implementation progress, risks, issues and delays for intervention strategies. Coordinate all stakeholder, professional and resource engagement on LARP activities and progress. To report on project budgets and costs for the project sponsor and finance committee.

3 Professional Valuer

To support the review of municipal rates policy for property rates impacts. Engage with the municipal officials on rates and valuations for supplementary updating of the valuation roll based on new registered property in terms of layout plans. Facilitate and ensure supplementary valuation roll updated and implemented in terms of the municipal property rates act and valuation practices and standards.

4 SPLUMA Specialist (Legal)

Coordinates and prepares the SPLUMA application which includes stakeholder engagement with municipal officials such as town planners, environmental, roads, electricity etc impacting on the SPLUMA application. Follow SPLUMA legislation and municipal bylaws.

5 Land surveyor / planner / GIS Support / SG

Coordinate and manage all survey related activities including designing, developing and preparation of spatial layout plans in consultation with owner, professional valuer and municipal officials on SPLUMA. Conduct physical survey of new property and prepare SG Diagrams based on approved layout plan. Coordinate the approval of new SG diagrams by the Surveyor General.

6 Municipal Officials / Stakeholders

Provides the SPLUMA application approval and legislative support mechanisms by the Municipality. Communication with owners and stakeholders affected by the application and prepare approval letters and conditions of establishment.

7 SPLUMA Committee (JAC)

A joint advisory committee (JAC) established in terms of the Spatial Planning and Land Use Management Act (SPLUMA) to consider applications by a property owner for approvals. Includes consolidations, subdivision, rectification and other types of land development proposals.

8 Legal Conveyancer / Deeds Office

Provide the legal inputs in the SPLUMA application to ensure compliance, to review all current and proposed conditions of title and endorsements and assess and regularise in terms of new layout plans and ownership details. Provide conveyancing support and prepare title deeds for all new property and arrange for transfer in the deeds office.

Project Resources / Stakeholders

# Stakeholders / Resources Roles and activities 1 Property Owner

Project owner and sponsor.

2 Project Manager

To project manage and coordinate the LARP project plan implementation. This includes planning and reporting on the project implementation progress, risks, issues and delays for intervention strategies. Coordinate all stakeholder, professional and resource engagement on LARP activities and progress. To report on project budgets and costs for the project sponsor and finance committee.

3 Professional Valuer

To support the review of municipal rates policy for property rates impacts. Engage with the municipal officials on rates and valuations for supplementary updating of the valuation roll based on new registered property in terms of layout plans. Facilitate and ensure supplementary valuation roll updated and implemented in terms of the municipal property rates act and valuation practices and standards.

4 SPLUMA Specialist (Legal)

Coordinates and prepares the SPLUMA application which includes stakeholder engagement with municipal officials such as town planners, environmental, roads, electricity etc impacting on the SPLUMA application. Follow SPLUMA legislation and municipal bylaws.

5 Land surveyor / planner / GIS Support / SG

Coordinate and manage all survey related activities including designing, developing and preparation of spatial layout plans in consultation with owner, professional valuer and municipal officials on SPLUMA. Conduct physical survey of new property and prepare SG Diagrams based on approved layout plan. Coordinate the approval of new SG diagrams by the Surveyor General.

6 Municipal Officials / Stakeholders

Provides the SPLUMA application approval and legislative support mechanisms by the Municipality. Communication with owners and stakeholders affected by the application and prepare approval letters and conditions of establishment.

7 SPLUMA Committee (JAC)

A joint advisory committee (JAC) established in terms of the Spatial Planning and Land Use Management Act (SPLUMA) to consider applications by a property owner for approvals. Includes consolidations, subdivision, rectification and other types of land development proposals.

8 Legal Conveyancer / Deeds Office

Provide the legal inputs in the SPLUMA application to ensure compliance, to review all current and proposed conditions of title and endorsements and assess and regularise in terms of new layout plans and ownership details. Provide conveyancing support and prepare title deeds for all new property and arrange for transfer in the deeds office.

Project resources Valuer Land Surveyor Town Planner Legal conveyancer Environmentalist GIS Technician Project Manager Stakeholders Town Planning Dept Environmental Dept Real Estate Dept Rates Dept Road Dept SG Office Deeds Office

• Gov. Dept (owners)

Adjoining Owners

Phase 1 Investigation Phase

• Activities
• Stakeholder engagements
• SPLUMA implementation (rectification)
• Preparing layout plan – must be legal, feasible and aligned to rating / land use
• Prepare methodology for implementation and identify any major challenges

with bill of quantities (BOQ)

• Review rates impact

Phase 2 Implementation

• Activities (Road Map)
• SPLUMA layout plan final
• Land audit review – confirm ownership, source missing title deeds, identify

endorsement, notarial ties, and TD restrictions for regularising and removals

• SPLUMA application – document preparation, motivations, project area and

properties, conditions of consolidation and subdivision, etc

• Rating alignment
• Stakeholder engagement

Phase 2 Implementation Cont….

• SPMULA approvals - Municipality
• Survey – consolidation and subdivisions – component accuracy important
• SG Diagram approvals – SG Office
• Legal conveyancing – Deeds office, title deeds, transfers and registrations
• Valuation roll and rates updates implementing new layout and registered

property

• Reconciliation of the LARP/ Roll to the Fixed asset register and revaluing the

FAR for financial reporting. Supplementary valuation roll and rates account adjustment from date of transfer for municipal property rates

Progress with phase two implementation

0 hrs 100 hrs 200 hrs 300 hrs 400 hrs 500 hrs 600 hrs 700 hrs WORK (HRS) Actual Work Remaining Work

LARP Project Plan: Activities / Time

0 hrs 100 hrs 200 hrs 300 hrs 400 hrs 500 hrs 600 hrs Professional Valuer Legal Conveyancer Professional Team Land surveyor / planner GIS Technician Property Owner Municipal Official Project Manager SPLUMA Specialist Not required JAC Actual Work Remaining Work

LARP Project Plan: Resources / Time

R 0.00 R 50,000.00 R 100,000.00 R 150,000.00 R 200,000.00 R 250,000.00 R 300,000.00 R 350,000.00 Actual Cost Remaining Cost

LARP Project Plan: Activities / Costs

# Land Assembly layout reduced to 13 subdivisions # Rating aligned to categories of property / land use

# Property and Building placement

# Final Land Assembly Project Area

Implementation Challenges, Risks & Lessons Learnt

• Delays to be managed when required to acquire a property from a State Department

for a SPLUMA application as is the case – typically you must engage with State Attorney’s office, the Department responsible for the property, follow State vesting

• r transfer procedures, need to draw up donation or sale agreement for legal

transfer.

• Unable to determine accurate time frames for SPLUMA approvals as subject to

municipal, and governmental procedures and processes. Delays need to be managed in consultation with owner’s delivery expectations. Owner stakeholder engagement with the State and Departments can assist in this process

• Missing title deeds sometimes need to be requested or reproduced
• Identification and impacts of notarial deed in restraint of free alienation depicted on

the title deed. This is where two or more properties are notarial tied and cannot be sold or transacted without the other. These need to be assessed for removal or amending the title deeds

Implementation Challenges, Risks & Lessons Learnt Continued……

• Resurvey required in cases where survey diagrams predate 1921.

Cost implications All components of the survey diagrams need to be reconciled and accounted for to enable consolidation and subsequent re-subdivision

• Confirmation of town planning zonings – zonings of property within the

defined project area should be the same to ensure smooth application

• approvals. A rezoning will add time to the SPLUMA application approvals
• Capacity of municipalities in processing the required valuation roll / rates

adjustments in a timely manner. Early Stakeholder engagement is necessary to avoid delays. This project has embarked on a preliminary supplementary valuation between the owner’s valuer and the valuer of the municipality to determine the values in preparation for the official supplementary valuation. Categories of property will also be aligned and adjusted in terms of actual use.

Conclusion

• The Project was identified and initiated to support the proper

management of UKZN property in the areas of compliance, facilities management, and development planning and rating of property.

• The output of the Project was to create an efficient layout of the land

cadastral subdivisions for Westville Campus, to regularise any inconsistencies in land legal issues and at the same time achieve an alignment of land use to the various actual uses over the campus to promote equitable rating of property.

• The Project clearly shows the practical implications and effects of the

dated planning approaches of the past and a solution to change this to create efficiencies was delivered by this project.

Ngiyabonga, Thank you – Questions?

We are strength but with humility!