THE City of Windhoek has blocked a proposal by a private company to sell a N$10 million plot it bought from the council in 2016 to set up a recreation centre and water park.
The city council sold the land, measuring 10 hectares (roughly 10 football fields), to Street House Entertainment for N$10 million to set up an amusement and recreation park at Rocky Crest Extension 8.
Instead of developing the land, Street House owner Roland Jacobs used the land as collateral to get loans from Bank Windhoek worth N$24 million.
Now, Jacobs wants to sell the land to the Road Fund Administration, which plans to set up a driver-testing and licensing centre that would be run by the Roads Authority.
However, he first needs permission from the city council .
Jacobs has since 2019 tried to convince the City of Windhoek to waive that clause, as he says his company is no longer able to develop the land due to many challenges, including poor economic conditions and hardships brought on by Covid-19.
But the City of Windhoek council blocked that proposal.
“That the request by Streethouse Entertainment (Pty) Ltd, through their lawyers Dr Weder, Kauta & Hoveka Inc, to waive the restrictive resale conditions, be noted but not supported,” the management committee said in a document.
The proposal was already turned down by the City of Windhoek executives, warning that it could set a dangerous precedent.
There has been speculation in the council that Independent Patriots for Change (IPC) councillors were lobbying to push through this deal.
The issue was debated this week at a council meeting.
“Based on what Street House Entertainment presented to us and other information, I approve as recommended,” Swapo councillor Sam Nujoma said.
“I second,” deputy mayor and Nudo councillor Joseph Uapingene said.
Earlier, Uapingene said it was not correct for the council to make a decision on whether to waive the sell-on clause or not when they were just presented with an external legal opinion on the matter hours before the meeting started.
The external legal opinion, which was requested by IPC councillor Jürgen Hecht, sought to advise the municipality council on the issue. However, some council members said they only received the legal opinion 30 minutes before the start of the meeting.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!