Developing Integrated Towns Key Findings Urban LandMark Felicity Kitchin and Wendy Ovens May, 2008 Developing Integrated towns: Felicity Kitchin and Wendy Ovens, for Urban LandMark, May 2008 TABLE OF CONTENTS 1. INTRODUCTION ................................................................................................................ 3 2. KEY CONCEPTS ................................................................................................................. 5 2.1 Overview of Land Use Management and Planning ..................................................... 5 2.2 Cities, towns and municipalities in South Africa ........................................................ 8 2.3 Communal Land Rights Act (CLaRA) .......................................................................... 9 3. KEY FINDINGS ................................................................................................................ 10 3.1 Broad Overview ........................................................................................................... 10 3.1.1 Rustenburg Local Municipality ............................................................................ 11 3.1.2 Metsimaholo Local Municipality (Sasolburg) ....................................................... 12 3.1.3 Emakhazeni Local Municipality (Dullstroom) ....................................................... 12 3.1.4 Msunduzi Local Municipality (Pietermaritzburg) ................................................. 13 3.1.5 Ulundi Local Municipality ...................................................................................... 13 3.1.6 Ingquza Hill Local Municipality (Lusikisiki/Flagstaff) .......................................... 14 3.2 Summary of findings ................................................................................................... 14 3.3 Emerging themes ........................................................................................................ 23 3.3.1 Poverty and the Economy: the socio-economic context in which municipalities operate ................................................................................................... 23 3.3.2 Playing catch-up: Lack of municipal control over land and performance of municipal functions ....................................................................................................... 25 3.3.3 How do they manage? Municipal capacity and strategic understanding......... 28 3.3.4 Changing housing needs: Middle-income and social housing ....................... 29 3.3.5 Financial suicide? Location of housing developments and sustainability of municipality .................................................................................................................... 31 3.3.6 Operation of the land market ............................................................................. 32 3.3.7 Making a plan: Residential property and income generation ......................... 34 3.3.8 Seizing the moment: Timing and innovation .................................................... 34 4. CONCLUSION AND RECOMMENDATIONS .................................................................. 36 2 Developing Integrated towns: Felicity Kitchin and Wendy Ovens, for Urban LandMark, May 2008 1. INTRODUCTION Recent research has shown that the current land use system in South Africa has not been fundamentally reformed since apartheid. This has led to an overburdened state, reduced capacity and inefficiencies in providing land to the poor. In general, land use opportunities for the poor within cities continue to be exclusionary, over burdensome or dysfunctional to pro-poor sustainable human settlement management (Parnell et al, 2007). Previous research has examined land use management and how it affects access of the poor to residential and economic opportunities in major cities. It is not clear whether the same issues would be faced by smaller towns. This project therefore aims to examine several towns and the municipalities in which they are located, in order to assess the extent to which their current land use policies and practices enable municipalities to provide the poor with access to well located land in a sustainable manner, in an effort to integrate them effectively into the daily workings of the town. This involves two broad components. First, the spatial logic (or lack of logic) of planning decisions and outcomes underlying urban land management and related decisions in smaller urban centres will be assessed through an examination of planning outcomes, to determine whether urban land management in its current forms is yielding efficient or inefficient spatial forms. Second, the ways in which the market works in smaller urban centres will be examined. The market may constitute a causative factor, whereby land values (along with other factors) might determine planning decisions and exclude the poor. As an effect of planning decisions, the poor may be effectively included or excluded from accessing local markets and trading in land and other commodities (e.g. through gentrification). As a contextual factor, it is important to understand how the urban economies work and how the town impacts on the region and vice versa (e.g. how do regional planning and funding priorities and regional economies impact on the viability of the town?). Using the earlier typology developed by Ovens and Kitchin for DPLG, 6 case studies were selected for this project1: Pietermaritzburg/Msunduzi, Rustenburg, Sasolburg/Metsimaholo, Lusikisiki/Ingquza Hill, Ulundi and Dullstroom/Emakhazeni. Pietermaritzburg/Msunduzi was selected since Pietermaritzburg has recently regained capital city status, and Rustenburg as it is experiencing rapid growth. Lusikisiki/Ingquza Hill is a rural, traditional authority area with poor service levels and high grant dependency. Ulundi was previously the capital of KwaZulu-Natal but has lost that status, and therefore provides an interesting contrast to 1 Details of the selection process are provided in the base report. 3 Developing Integrated towns: Felicity Kitchin and Wendy Ovens, for Urban LandMark, May 2008 Pietermaritzburg. Sasolburg has high service levels and a significant manufacturing component with the economy base linked to mining. As such it provides a useful comparison to Rustenburg. Dullstroom/Emakhazeni has generally high levels of service in many areas, contrasted with poor service in others. It relies on agriculture for employment. Most municipal income comes from grant income. In each case study, site visits were conducted to interview key respondents, take photographs etc. Two streams of information were required: one focusing on the municipality’s land use management policies and implementation of these, and the other on the operation of the land market, both “formal” and ”informal”. Satellite imagery and GIS data were used to determine different types of settlement e.g. RDP housing, informal settlements, traditional authority areas. The report consists of four sections. Section 2 sets the groundwork for the detailed case studies. It clarifies the concept of land use management and its importance to an efficient, equitable and sustainable municipality. Section 3 presents the key findings arising from these case studies, with comparisons being made to earlier case studies of land management in five large cities (Durban/eThekwini, East London/Buffalo City, Cape Town, Johannesburg and Mangaung) and of integration in three cities (East London, Durban and Johannesburg). Section 4 provides concluding comments and reflections. 4 Developing Integrated towns: Felicity Kitchin and Wendy Ovens, for Urban LandMark, May 2008 2. KEY CONCEPTS Terminology Land use management Land use management regulates the use of land and is “guided by information about the economic, socially rooted, and public interest determinants of land use. The economic determinants are expressed in the market for land. Socially rooted determinants reflect community values about the prestige or historical value of particular areas as well as customs, traditions, and beliefs about the rights to possession and use” (Heikoff, 1967). Tenure options “Land tenure is the social relationship defining the rights and obligations of individuals or groups towards a piece of land”. There are a number of pieces of legislation governing tenure options, and a range of formal tenure options (Urban Land Mark and Development Works, 2004). Market processes Urban property is bought and sold in the urban property market, key factors of which are the institutional environment (political, social, economic and legal institutions), the property market itself as an institution (i.e. the formal and informal rules, conventions and relationships through which property is used and traded, market and non-market, formal and informal, property rights, land use and development), and property market organisations and participants (ibid). 2.1 Overview of Land Use Management and Planning According to the White Paper on Spatial Planning, land use management relates to the “planning of human activity to ensure that land is put to the optimal use, taking into account the different effects that land-uses can have in relation to social, political, economic and environmental concerns” (White Paper on Spatial Planning, 2001). It is necessary to “create an enabling environment for sustainable development of land resources which meets people's needs and demands. It assesses the physical, socio-economic, institutional and legal potentials and constraints