Stadium lease up for grabs
The city has called for proposals for an operator of the 2010 World Cup Stadium and the urban park next to it.
In spite of legal action challenging the building of the stadium, advertisements were placed in local and national newspapers at the weekend for a 30-year lease on the stadium after 2010.
Tenderers have until May 10 to submit their proposals.
Bidders will have to support their proposal with a viable and achievable business plan as well as an operational model.
The mayoral committee member for finance, Ian Neilson, said yesterday that the city would not stipulate the type of business it would allow at the stadium and that proposals would be considered with a "completely open mind".
"People might have ideas we have not thought about. But we will have to be persuaded that it is a workable proposal and given strong assurances that it is financially viable in the medium to long term."
Investec has already guaranteed the city R185 billion for the operating lease in lieu of a shortfall in the budget to build the R2.85bn stadium, should the tender process not yield suitable alternatives.
Investec has put the value of the tender at a present-day value of R260m, once costs of managing the stadium and the urban park have been deducted.
Neilson said the city anticipated good proposals if informal approaches made to the city to date were anything to go by, but that they would have to be in line with the environmental Record of Decision of the provincial Department of Environment, Planning and Economic Development.
Over the past month the city has already been approached by several potential operators testing the waters for developments ranging from a casino to a hotel and shopping complex.
Neilson believes that the location of the new stadium, at a new entrance to the Waterfront via
"We want people to come up with ideas. We don't want to be too prescriptive. The urban park is a major responsibility and people have to demonstrate the skill to turn it into a success," he said.
Neilson ruled out the possibility of the city council running the stadium post-2010, saying the council preferred it to be run according to business principles, as this would give greater guarantees of success.
The top tier of seating at the stadium will be removed after the World Cup, creating more space for commercial use and reducing the stadium capacity from 68 000 to 55 000 seats.
Neilson said the zoning of the common for community use would have a bearing on the consideration council would give to the proposals.
If the successful proposal warranted another rezoning process, this would require public comment.
Proposals will follow the city's normal tender procedures, but Neilson said there would be some level of political decision-making involved in determining the type of development that would be allowed at Green Point Stadium.
The successful tenderer would also have to commit to running the urban park which, according to the city's call for proposals, will become "the newest icon and landmark in the City's array of unique assets".
The city says the stadium will be designed to accommodate football, rugby, concerts and events.
Neilson said the city wanted to appoint a post-2010 operator as soon as possible so that the stadium design could take their requirements into consideration.
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