PROJECT SUMMARY CORNUBIA MIXED HOUSING DEVELOPMENT PROJECT 17TH SEPTEMBER 2010 Project summary: Cornubia mixed housing development project 1. BACKGROUND The Cornubia Integrated Sustainable Mixed Housing Project was conceptualised during 2004/2005, when Tongaat Hulett identified the potential to release a vast portion of sugar cane land for urban development. The eThekwini Metropolitan Municipality identified the project as a key flagship project to accommodate a significant portion of the housing backlog within its boundaries. eThekwini and Tongaat Hulett signed a Cooperation and Alignment Agreement in 2008 which has led to a unique arrangement in the release of private land for public purposes. A further strategic partnership was entered into by the Metro with public stakeholders; the Housing Development Agency and the KwaZulu Natal Provincial Department of Housing, by way an Implementation Protocol. The strategic institutional arrangements for the project are a combination of both intergovernmental and public private collaboration. The vision for the project is to establish an integrated and sustainable settlement in line with the ‘breaking new ground’ policy namely; to promote the achievement of non-racial, integrated society through the development of sustainable human settlement and quality housing; and the eThekwini’s vision of being Africa’s most liveable city. The Project’s specific objectives are: Accelerating the delivery of housing as a key strategy for poverty alleviation; Utilizing the provision of housing as a major job creation strategy; ensuring property can be accessed by all as an asset for wealth creation and empowerment; Leveraging growth in the economy and providing social amenities such as schools, police stations, clinics and other social and recreational facilities. Combating crime, promoting social cohesion and improving quality of life for the poor and others who fall within the lower to middle income and more affordable housing schemes and who wish to rent as opposed to purchase, Utilizing housing as an instrument for the development of sustainable human settlements, in support of spatial restructuring. Providing poverty alleviation to areas where people can qualify for either individual or institutional subsidies. 2. PROJECT DESCRIPTION Location: The Project is situated between Phoenix /Ottawa and Umhlanga, bordered by the N2 Freeway and the M41 Arterial, 7km south of the new La Mercy King Shaka International Airport, 35km north of Durban. Land Size: Total site are 1200 hectares; Total developable land approx 750 hectares 2 Project summary: Cornubia mixed housing development project Development Type: Cornubia is a mixed use, mixed income development incorporating industrial, commercial, residential, and open space use. The project will yield a mix of sustainable housing and tenure options for a range of income groups. A range of housing typologies including: Double-story semi-detached, row, duplex, 3-4 storey walk-ups and multi storey apartments in a village type environment. Development Yield: The project has the potential to accommodate more than 50 000 dwellings and house 200 000 people. 19 313 subsidised housing units by the anticipated date of 2017 Transport infrastructure development with two BRT routes planned to link Umhlanga to Phoenix and to the Dube Trade Port in the North. Over 100 000 new sustainable jobs will be created with more than 96 000 short term construction jobs. Creates a new rates based source of income over time for the Metro Estimate Project Value: R5 billion inclusive of all infrastructure, housing, social and educational amenities. Project Anticipated Timeframe: The Project will require seven years to complete implying a completion date in line with the 2016/2017 budget cycle. 3. THE ROLE OF THE HOUSING DEVELOPMENT AGENCY (HDA) Intergovernmental Implementation Protocol The HDA is signatory to the Implementation Protocol between the KZN Provincial Department of Human Settlements and the eThekwini Metropolitan Municipality for the Cornubia project. The HDA plays a key role in supporting the project management function of the Metro and an advisory role on land acquisition for the project. The HDA has entered into a Project Management Funding Agreement with the Metro which will see the agency provide: R 3 million on an annual cycle for project management capacity to the Metro. Allocate human resource capacity to the project Participate in Steering Committee Monitor the implementation of the Funding Agreement 3 .