The Masibambane Race Club which had big plans to develop 160ha of land in Berlin was dealt a huge blow when Buffalo City Metro council this week cancelled a 2014 council resolution to lease the land to them.
The cancellation was approved on Wednesday after the council demanded to see the initial 2014 resolution and a letter from the club confirming that they could not afford the R160,848 monthly rental which BCM had demanded in 2014.
This is the same land where the extravagant Berlin November horse-racing event takes place, however it is hosted by businessman Luthando Bara and not Masibambane.
The lease agreement, which was not signed, was left pending since 2014 after the club requested BCM to reduce the fee which excluded value added tax and would escalate at 12.5% per annum. The agreement was for a 40-year term.
In the letter sent to BCM in 2016 Masibambane’s chairperson Lumumba Makaula said the club could not afford to pay the amount as the project was not operational yet.
He said the only time the money would be available was when the business was up and running.
Masibambane wanted to build a racecourse, conference centre, jockey academy, boxing arena and shopping mall on the land as well as other facilities.
Instead of reducing the rent as requested, the council this week agreed to rather lease the land on a short-term basis to any event organisers.
When the Dispatch contacted Makaula on Thursday he said they were not aware that the agreement had been cancelled.
EFF caucus chief whip councillor Phindiwe Kaba demanded answers about what would be done about the residents who were removed from the land as they live “in a dumpsite now”.
Ward councillor in the area Thozamile Norexe said the removed residents would be built houses next year. “The place where they will be built houses next year was tested and the beneficiaries know that.”..