Settlement reached for mall expansion

2010-06-04 00:00

THE Msunduzi Municipality has finally managed to reach a settlement regarding the court case that was threatening to jeopardise the third phase expansion of the Liberty Midlands Mall.

The agreement has ensured a R1 billion investment for the city over the next four years.

The dispute arose after the Msunduzi Housing Association (MHA) took the municipality to court a few months ago for failing to consult it over the relocation of residents in Sanctuary Road.

The Witness reported then that the MHA instituted court action after the municipality failed to consult the association when it proceeded to negotiate with the residents.

At the time, the MHA argued that the properties belonged to it because the municipality had handed the association the properties by deed of donation in 2002.

Msunduzi administrator Johann Mettler said the municipality has reached an agreement with the MHA under which it will withdraw the court case on condition that a memorandum of agreement is signed.

Once this happens, the municipality will transfer 14 hectares of Westgate land, 50 housing units at the Garden Scheme and three hectares of land next to the Signal Hill Complex to the MHA in compensation for the municipality signing over the Sanctuary Road properties to the Liberty group.

The Westgate land is valued at R1,6 million, the 50 housing units are valued at R15 million and the land near the Signal Hill Complex is estimated to be worth R200 000.

Previous negotiations between the MHA and the municipality resulted in a strained relationship after promises that were made were not carried through.


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