The ManicaPost
Samuel Kadungure Senior Reporter —
CASH strapped Rusape Town Council could make a killing and bag a cool $4 million – without coughing a cent – if it allows Diagonal Investments (Pvt) Ltd to subdivide Zimati Kop Farm and implement a housing project.
RTC has over the years failed to wrestle the farm from Mr Norman Sachikonye and the Joshua Maligwa management, in a technical report tabled before a special full council early this month, made it abundantly clear council was losing an additional $2m per year in potential revenue by stalling the project.
Mr Maligwa confirmed to The Manica Post on Wednesday that council will lose nothing by allowing the project to go ahead.
“If council by chance gets that land, what it stands to benefit is almost the same as what it will get it allows Diagonal Investments (Pvt) Ltd to go ahead with the project.
“Council is losing an additional $2 million in potential tares per annum. For how long can we stall the development of the town on the basis of a past that we cannot change, and moreso, which has the full blessings of the ministry. Diagonal Investments (Pvt) Ltd is not able to sell the stands, and council is not getting any revenue because there is conflict, so both parties must come to the round table and chart the way forward in the interest of developing the town,” said Mr Maligwa.
The report, a copy which this paper has in possession, argues that benefits to council include endowments fees to be paid by the developer, land meant for public use, building approval and building inspection fees and rates charged to all properties.
“The Remainder of Zimati Kop measuring 1 115,578ha is registered in the name of Diagonal Investments (Pvt) Ltd and is held under Deed of Transfer No 3547/2010.
“Diagonal Investments (Pvt) Ltd hold appropriate tenure rights to subdivide Zimati Kop Farm and implement a housing project.
“(It) was issued with a subdivision permit (Permit No-Man04/2010 by the (then) Minister of Local Government, Rural and Urban Development (Dr Ignatius Chombo) on the 18th of October 2011,” reads part of the report.
Diagonal Investments (Pvt) Ltd intends to develop Zimati Kop into an affluent Ridgemont Park which will be larger than the current size of Rusape.
Ridgemont Park has provision for three primary schools, one secondary school, a hotel, chalets, a truck inn, a vocational training centre and heavy and light industries.
The farm initially belonged to the late Ms Elizabeth Helena Marshal, whose estate was transferred to Mr Kenneth Charles Ziehl on April 29, 1999.
Mr Sachikonye acquired it from Mr Ziehl for Z$200 million in 1999 and was given title deeds and supporting documents from the ministries of Lands and Local Government, whose authenticity RTC no longer doubts.
Mr Sachikonye said they were committed to the provision quality and serviced residential stands as enunciated in ZimAsset.
He was optimistic council and the people of Rusape will benefit immensely from the housing project.
“We have Magamba suburb, (dubbed the Epworth of Rusape) which has been there for more than six years without water and sewer, and we have brought both water and sewer next door and what is required is for council to connect those people from the infrastructure we have provided.
“We are providing serviced residential stands so that as we reduce the housing backlog of Rusape, people will enjoy provision of essential civic facilities.
“In the same vein, council will benefit financially as the new township entails increase in their revenue base, coming as it is, at no cost to them,” said Mr Sachikonye.
He said they were ready to meet council to find a mutually beneficial way forward.
“We have been engaging them, and through that engagement process, we got approval of a project in September 2014, for which a fee was chargeable, and we paid an approval fee of $42 000. We are ready to engage them,” said Mr Sachikonye.
The report said RTC will be entitled to 10 percent of the sale value stand for all residential stands, 13 percent of the sale value of the stand for all commercial stands, seven percent of stand value for all institutional stands as well sale of the stand for all residential agriculture stands and 13 percent of the sale value of the stand for all industrial stands, respectively, excluding the value of improvements.
“The local authority will charge two percent of the total project cost as cost of approval of engineering designs for water, sewer and roads. The estimate total project cost of providing infrastructure is $5 409 961.
Therefore approval fees payable at two percent would be $108 199.22. The grant total money to be received by council through endowments is $1 915 263.56.
“Considering the best next alternative forgone (opportunity cost), council will lose much by not allowing the implementation of the project.
“The ownership wrangle will stretch for years without any meaningful developments in Ridgemont and this will in turn affect the growth and development of the when in fact council is garnering towards attainment of a municipal status.
“Total amount of endowments is $1 915 263.56; total amount of cost associated with approval of designs is $108 199.22; building plan approval fees is $1 270 710 and inspection fees is $599 390 – which all add to $3 893 562.78, plus land in form of public utilities (31. 6414ha) and open spaces (104.5359ha),” reads the report.
“Council should allow the implementation of the Ridgemond Housing Project and appropriate endowments fees be paid to council by the developer, and subject to approval, council starts billing all the properties in Ridgemond Park, and council applies to Local Planning Authority for amendment of the subdivision permit on all clauses where the local authority was referred to as Makoni Rural District Council and replace it with Rusape Town Council,” concludes the report.
