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Virginia Airport future uncertain

Virginia Airport future uncertain

Date: 2015-10-16
EThekwini Municipality has received an unsolicited proposal from Seaworld Investment Holdings (Pty) Ltd recommending the redevelopment of the Virginia Airport site into a mixed-use development.

The development will comprise commercial, hotel, upmarket residential, offices, leisure and related developments. Total capital outlay for the project is R6.1 billion. The Municipality is not required to fund the development and will only offer its services and expertise in the implementation of bulk infrastructure and services.

The proposal also states that SeaWorld Investment Holdings (Pty) Ltd would source funding and develop a brand new airport, five times the size of Virginia Airport in Scottburgh.

This proposal has been treated strictly in line with the provisions of legislations and policies governing Supply Chain Management (SCM) in this country.

Once the City receives input and comments, a decision whether or not to accept the unsolicited proposal will be made.

The Virginia Airport site is currently leased to operators for both business and recreational aviation. When the lease expired in October 2011 the City resolved to undertake a feasibility study to investigate alternative and optimal use of the site to advance the economic development aspirations of the City and grow the rates base.

The study concluded that the site was no longer suitable to be utilised as an airport for a variety of reasons including that the City was no longer benefitting financial returns from that use.

Plans have been made to relocate commercial flight operators to King Shaka International Airport with the flight school operators relocating to Scottburgh.

The City wishes to state that the City and operators have met three times since the Council resolution of 2014 was made. This is contrary to reports that have surfaced which indicate that no consultation has taken place. This is factually incorrect. As a matter of fact the City and operators have agreed on the mechanisms to ensure a continuous and regular engagement until the project is concluded. Seaworld's proposal was also communicated to the Virginia Airport operators.

At present the Virginia Airport site does not generate rates income for the City. Therefore, the relocation of the airport activities to either King Shaka Airport and/or Scottsburgh site will clear a way for the redevelopment of the site into a facility that can generate an annual rate income for the City. The site is currently generating revenue from landing fees.

The proposal from the study has been assessed by a technical task team as taken in the Full Council's resolution, which consists of officials from SCM, Development Planning and Environment and Management Unit and the Office of the Deputy City Manager for Economic Development and Planning.