North End set to become ‘new economic node‘

Sipho Masondo BUSINESS CORRESPONDENT masondos@avusa.co.za

THANKS to the R1,5-billion 2010 stadium, a new economic node is emerging in North End which could transform the area into a vibrant residential and business hub.

The Nelson Mandela Bay municipality hopes the stadium and the nearby North End Lake, as well as the millions being spent to upgrade the city‘s road networks, will all stimulate private-sector development in the area.

In an exclusive interview, municipal manager Graham Richards said: “I foresee a time when the North End area will completely change its face. I foresee a great potential for smart commercial and residential developments. As it is, motor dealers are already moving out of the area.”

The Bay‘s role as a sphere of government was to provide finance for capital projects and infrastructural development, which in turn stimulated the private sector to initiate developments, he said.

“For an example, look at the infrastructural expenditure in the central business district and Parliament Street – they have stimulated property guys to refurbish their buildings and even introduce a new hotel in Central.”

Likewise, he said, the pieces of land inside and outside the stadium could be used for “hotels, restaurants and other multi-use facilities”.

“Inside the stadium premises there is an old aged home, and that may not be an ideal place for such a home. Outside the stadium there are small houses owned by low-income families – all these could be acquired for development. The stadium itself has retail, conference and office facilities,” he said.

Sports science and kinetics businesses would do well to set up shop around the area, Richards said.

“We have to adopt a precinct approach. Our contract will bind the stadium operator to facilitate development and increase activities in the area. They must get high- profile matches, rock concerts, car events, inside the stadium. All the people attending these functions will support the related businesses around the area.

“The idea is simple, the more the area is used, the more potential for development it has,” Richards said.

Last year The Herald reported that properties in the area were already in high demand as business people were seeking to set up restaurants, guest houses and small factories.

“Already there is a very busy Portuguese restaurant in the area. You have to book weeks in advance to eat there. Recently, a Chinese restaurant also opened up there.

“These are just examples of business opportunities that arise as a result of the stadium,” he said.

As part of the Bus Rapid Transit system, Richards said the municipality was pumping millions into upgrading Darling Street, which would easily link the stadium and the M4 freeway.

“The street is also the gateway to the North End Beach, which we are planning to redo completely. A process is under way for a formal agreement for a joint planning process between ourselves and Transnet.

“Once we pump sand into the area and have a beach, you can imagine interest that developers will have in the area – all these fit in nicely with the stadium precinct idea.”

Business