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Stellenbosch Technopark
Special Ratings Area (SRA)
Business Plan
Compiled by Pieter van Heyningen of Sustnet,
on behalf of the Technopark Owners Association.
June 2014
Principal Contacts: Michiel Prins (Chairman of Technopark Owners Association Trust)
Thea Jordaan (Administrating body JPS Trust)
Marius Wust (CFO, Municipality of Stellenbosch)
DISCLAIMER:
Sustnet, will not be held liable for views and opinions supplied by information given by the Technopark Owners Assocation Trustees. Furthermore content remains the property and the TPOA trust, and also, ©Copyright of Sustnet Cc. 2011/034351/23
Compiled by Pieter van Heyningen, on behalf of the Technopark Owners Assocation (TPOA) in terms of the special rating area by-law and policy of the Municipality of Stellenbosch 2014, and Provincial Gazette. [+27(0)79 2944390 / [email protected]]
Contents Principal Contacts: .................................................................................................................................................. 2
List of Terms & Abbreviations ................................................................................................................................. 4
Executive Summary ................................................................................................................................................ 4
1 Introduction..................................................................................................................................................... 5
1.1 Location & Boundary of Proposed SRA ................................................................................................. 5
1.2 Background & Current Situation ............................................................................................................ 6
1.3 Future Technopark, and the Stellenbosch Innovation District ............................................................... 7
1.4 Vision ..................................................................................................................................................... 8
1.5 Mission .................................................................................................................................................. 8
1.6 Goal ....................................................................................................................................................... 8
2 Motivation for a Technopark SRA................................................................................................................... 8
2.1 Problems in Technopark ........................................................................................................................ 9
2.2 What is a Special Ratings Area or SRA ............................................................................................... 11
2.3 The benefits of an SRA ....................................................................................................................... 11
2.4 Examples of other SRA’s ..................................................................................................................... 12
2.5 Motivation for a Technopark SRA ........................................................................................................ 12
2.6 Additional benefits to the town ............................................................................................................. 13
3 Organization and Management .................................................................................................................... 13
3.1 Institutional Arrangements ................................................................................................................... 14
4 Services & Service Providers ....................................................................................................................... 14
5 Proposed Goals for Implementation Plan ..................................................................................................... 15
5.1 Tasks and Milestones .......................................................................................................................... 16
5.1.1 Gardens and Public Spaces (GPS) ................................................................................................. 16
5.1.2 Future, Planning and Management (FPM) ...................................................................................... 16
5.1.3 Safety and Security (S&S) ............................................................................................................... 17
6 Budget Plan & Financial Impact ................................................................................................................... 17
7 Conclusion.................................................................................................................................................... 17
List of Terms & Abbreviations CID – City Improvement District
NPC – Not for profit company
SID – Stellenbosch Innovation District
SRA – Special Ratings Area
TPOA – Technopark Owners Association
Executive Summary Technopark, situated in Stellenbosch is regarded as an economic asset in the region. It has many naturally
attractive features, which include the surroundings and the aesthetics of the park. However, the current image of
technopark, within the business communities is being tarnished, by a lack of services, and other problems facing
the park. It is resulting in an image ‘crisis’ which needs immediate intervention. This image problem, is affecting
the sale, and lease of the current properties in Technopark to preferred tenants. This is due to a variety of
reasons, including mediocre service delivery by the municipality, as the park receives ‘neighbourhood’ status. An
economic asset such as Technopark requires additional services that are not usually administered by the
municipality. To achieve a vision of transforming technopark into a world-class innovation, technology and
business hub, it will require drastically improved services, management and security within the park.
The benefits of such a strategy would not only enhance the property values of the current buildings and the
attractiveness of park as a whole, but would improve investor sentiment in the whole town of Stellenbosch.
The proposed SRA, will be managed by a not for profit company (NPC) with a dedicated manager, CEO or
management company to ensure accountability of the spending, and implementation of the tasks at hand. The
broad goals of the Technopark SRA or improvement zone can be stated as follows:
Improve the property values of Technopark.
Improve the marketing and image of Technopark (as a top business address).
o Improve communication platforms (Website).
o Improve interaction within the park (between tenants and owners).
o Improve external communication (future tenants and external stakeholders).
o Monthly newsletters and communications.
o Provide and drive an attractive Technopark branding campaign.
o Technopark open-day
Provide events and public gatherings to enhance community interaction and engagement
(Business Forum)
Improve the traffic flow in and out of Technopark.
Drive a campaign for a second road entrance to Technopark.
Improve parking conditions and supply infrastructure for parking.
Improve the safety and security of Technopark.
o Improve visible monitoring
o Improve lighting
o Install security cameras
o Perimeter fencing to protect valuable property
Improve public areas, parks and gardens
o Lawns, Gardens and Trees (Landscaping)
o Dam maintenance
o Public footpaths (with lighting)
o Public facilities for socializing (ie. Drinks Gazebo, Benches etc.)
Waste & Recycling
o Provide rules for Technopark waste and recycling
o Provide infrastructure ie. temporary storage facilities & collection points
General Maintenance of the Park
o Infrastructure (eg. Piping, lighting, footpaths, roads, parking areas, traffic circles)
o Stormwater drainage maintenance (Clear blocked drainage, water furrows etc.)
o Loose edgings and paving.
1 Introduction This business plan is intended as a motivation and financial guiding framework for the implementation of the
Stellenbosch Technopark Special Rating Area (SRA), also known as a City Improvement District (CID). This
business plan consists of an explanation and demarcation of the existing geographic areas named Technopark,
situated in Stellenbosch. The park is currently zoned as a Special Zone-one or science and technology park,
having a mix of commercial tenants in the park. Recently the Technopark Owners Association formed a trust,
which they now will be converting to a not for profit company (NPC) to undertake the management of the
proposed SRA for Technopark. Institutionally the new Technopark NPC, will be responsible for all planning and
management in partnership with the municipality (who must continue to perform their normal service duties).
Significant gains have been made by the TPOA trustees in the past few years, with a limited budget. This
business plan makes the case for the rationale for additional investment and ramping-up operations in the park
for the future benefit of all owners and the town. It is envisioned that transformation of Technopark into an SRA,
is necessary for a variety of factors. This includes pressure to maintain property values, and ensure a demand
for the park continues. Currently a low level of maintenance of the park makes this increasingly difficult. Poor
aesthetics of the park and the increasing challenge of crime, maintenance and a general disrepair of the open
spaces and infrastructure is problematic. If steps are not taken now to reverse potential damage to the image
and maintenance of the park, it will increase future costs of any turn-around strategy.
Transforming Technopark through the implementation of this business plan, which has clearly stipulated goals
and a vision to improve the public face and services in the park will be of benefit to the Stellenbosch society. The
investment into the SRA will not only increase property values and demand for the park, but also ensure
Technopark, one of Stellenbosch’s economic assets, remains a driver of growth and jobs.
1.1 Location & Boundary of Proposed SRA
Stellenbosch Technopark is located on the urban edge of Stellenbosch town, and about 7km from the University
of Stellenbosch. It has easy access to the R44, a main corridor connecting the Southern Cape Metropolitan
areas (Somerset-West and Strand) with northern areas such as Paarl and Belville via the N1. The park is also
situated approximately half an hour drive from Cape Town international, and 45min from Cape Town CBD.
Additionally it is well located as a business innovation park surrounded by vineyards and breath-taking views of
the Stellenbosch Mountains. Its location and attributes makes it a very attractive home for business1.
1 The image of Technopark is however, changing, due to the low level of service in the park; as well as a lack of community
facilities.
Technopark is located in Stellenbosch Town, in a neighbouring municipality to Cape Town Metropol. The
planned SRA boundary will be equal to the current Technopark boundary depicted below.
1.2 Background & Current Situation
Technopark was originally conceived of as a Science Park in the late 1970’s when Prof Christo Viljoen, then
dean of the engineering faculty at Stellenbosch University, went to Taiwan. There he visited Shinshu Science
Park, one of the world’s revered successes. He brought over the concept to Stellenbosch, and managed to
obtain buy-in from the local and national government. The park was established in 1985, and was supported by
the Industrial Development Corporation (IDC) and housed an incubator and innovation lab. The park was
managed by a committee and the local municipality. The entering of firms into the park was very slow for
numerous reasons, including rigid control and a poor business community understanding of the concept and
benefit of a science park. Other external factors such as an economic slowdown forced the management to allow
it to become market-oriented in the 1990’s and the strict criteria of firms entering the park were relaxed. Today
the park is well developed, albeit not as a traditional science park, and consists of a variety of businesses
ranging from satellite manufacturers, engineering, banks and finance institutions to design schools. There are a
number of Internet & Communications Technology, (ICT) businesses, technology engineering firms, financing
firms and more.
The park consists of over two-hundred individual businesses, of which many are owners of their own properties
and buildings in the park. Technopark remains a special zone-one, or science park – where each property
divides the municipal land. Thus the municipal land, and open areas are meant for parks and recreation to be
serviced by the municipality. This area is depicted in the photo below, where the open spaces, meant to be park
and recreational areas are not sufficiently maintained by the municipality as a pedigree business park.
Furthermore, a study was previously conducted on the dams (due to previous efforts by the current TPOA),
which showed them to be in a state of dis-repair, as can be seen from their ‘green’ appearance in the picture
below. The dry areas also depicted in the photo are meant to be recreational areas, serviced by an irrigation
system that was originally installed in the park, however, ceases to function due to lack of maintenance. It has
been the responsibility of the municipality to provide services to the park, and to maintain the park, including
these open areas. Additional issues are described below in the motivation section.
1.3 Future Technopark, and the Stellenbosch Innovation District
Stellenbosch has recently been home to an array of incredible world-class innovations, many of which come out
of Technopark. To name a few: Sunspace, now Spacetec, a university spin-off residing in Technopark, managed
to produce one of the world’s most efficient micro-satellites. Sunspace was recently acquired by Denel to
become Spacetec, which is at the forefront of South Africa’s space technology. Technopark is also home to
Reutech Radar systems, global leaders in radar technology and have recently diversified into the green field with
their new renewable energy technologies. The park is also home to three companies involved in the international
Square Kilometre Array or SKA, a globally recognized project. One of South Africa’s fastest growing banks,
Capitec, also has its headquarters there. Technopark also boasts a R200 million solar technology research
facility, and multiple smaller SMME’s in the technology space. This park is a vital economic node in South Africa,
and can boast to be one of the most competitive business and technology parks in Africa.
Aside from Technopark, the town of Stellenbosch itself is just as innovative with most of the entrepreneurial spirit
and exchange of ideas happening in the town’s quaint coffee shops and wine-bars. The only thing missing until
now was a platform and co-ordination function where these incredible innovations can be showcased and where
resources and efforts can be coordinated to ensure innovations are directed at solving the town’s own socio-
economic challenges. This gap was not only seen as a need, but also an opportunity to revolutionize local
economic development for sustainability in an innovative way. It was the driving force behind the birth of the
Stellenbosch Innovation District (SID).
Technopark will play a very important role within the planned Stellenbosch Innovation District (SID), however,
lacks the character and spatial elements to make it a world class business and innovation hub. As Richard
Florida2 a global expert on the subject suggests in his book, flight of the Capital Class – “It is about quality of
place” that attracts, talent and investment which grows the economy. Quality of place refers to the value given to
that place by individuals who use the place or visit it. For this very reason, and especially a business park like
Technopark, increasing the quality of place through excellent management, and maintenance of the park, and
additional elements such as creating community spaces, and attractive places to meet will be extremely
important to maintain its economic well-being. Maintaining and upgrading Technopark in the right way will require
a great deal more effort, to what is currently the situation. Ensuring businesses and local investments in the park
are not only satisfied, but see new results that are of benefit to them and the local community3. This
2 Florida, R. 2011.The Rise of the Creative Class. Basic Books: New York.
3 This may be in the form of increased property values for owners and a more attractive, vibrant and interactive community
spaces for business persons, and visitors.
unfortunately has not been happening, and the spatial aspect and character of a place like Technopark must be
safe-guarded and continuously improved, if it is to remain a national and local economic asset, and ultimately a
job-creator into the future. The future vision and goals for Technopark are thus spelt out below.
1.4 Vision
The vision for Technopark is to achieve a competitive, innovative and sustainable business community.
1.5 Mission
The mission of the Technopark NPC is to promote, manage and maintain the park to ensure a prosperous,
innovative and sustainable business community.
1.6 Goal
The goal of the Technopark NPC is to ensure the park increases it value as a high quality business, innovation
and technology address in South Africa.
2 Motivation for a Technopark SRA Transforming Technopark, was a project that was conducted by a local PhD student, that looked at the future
prospects of the park, in terms of becoming a science and technology park as well as its future mandate and
sustainability. In addition, the Municipality had conducted two previous studies that suggested the park is an
economic asset and has potential to transform into a fully-fledged innovation-oriented technology park. The aim
of which is to stimulate economic activity and growth, which has a positive economic multiplier effect creating
employment. Whilst these recommendations are commendable and the potential for transforming Technopark
remains a real prospect and opportunity, there is no evidence of action on the part of the local administration or
government. Before such a vision could be achieved, the basic maintenance and up-keep of the park needs to
be dealt with. As in many municipalities across South Africa, resources are stretched and capacity to service all
areas of a town to the satisfaction of rate payers is not always viable. It is also the municipality’s role to ensure
that an equitable share of service delivery is provided in all parts of the municipality without prejudice to certain
other areas due to their economic status. Despite this however, if Technopark, which is regarded as an economic
asset is to maintain its status, which would attract more investment, it needs a level of service delivery over and
above what it currently receives from the municipality. It is for this general reason that a special ratings area
(SRA) for Technopark would make not only sense for the owners of Technopark by improving the address
through a quality of place, but also protect and improve one of the town’s economic assets. Below is a list of
issues that have been recognized as problematic, and serve as a motivation for the establishment of an SRA.
2.1 Problems in Technopark
The establishment of the Technopark Owners Association (TPOA) Trust was precisely to deal with specific
issues of maintenance that hampered the park. Over the years the maintenance and upkeep of Technopark, was
neglected which posed a real threat to the building owners, in terms of ensuring the property value did not
devalue. Since then the TPOA trust has slowly gained ground in terms of establishing and promoting the above
vision, as well as managing some additional services for the park on a volunteer basis - and more recently a
bolder action-plan and management for taking Technopark forward is represented by this proposed business
plan. The various issues are listed and dealt with below, which was also confirmed by the various studies that
were conducted in the recent past:
Safety and security: in the past, and more recently despite attempts to patrol the park, there have been
numerous break-ins and theft within the park. This is not only petty theft, but theft of expensive equipment such
as computers, and even vehicles. If tenants and business people leave the park later at night after work, there is
a general feeling of being unsafe, as the park has no activity after 5pm. People have reportedly been seen doing
drug deals late at night in the park, because it is dark and empty. This is certainly not the kind of elements that
are favourable for a top-class business park. If Technopark is to maintain its reputation as a safe and respectable
address and continue to attract investment and businesses, it will have to drastically enhance its security
measures. Currently there is no fence surrounding the park, which may be required to keep out these criminal
elements.
General Maintenance (Infrastructure): despite attempts to partner with the Municipality and provide some
funding to maintain aspects of the park, there remain problems with infrastructure. This includes, the roads
themselves, and the brick edging, which comes loose. The newly installed circles require maintenance due to the
poor brick-work and design. In the rainy seasons there are serious problems with drainage, which results in the
top-soils of the park areas to wash away. There are blockages of leaves, and this causes erosion within the ad-
hoc parking spaces. This increases the unattractiveness of the park, and requires constant maintenance.
Parking: this is another major issue in the park, as the number of cars that enter the park, require a consolidated
parking area. At the moment, cars are parking on open properties, and on municipal land along the edges of
roads, which is scaring the park. Furthermore, it is dangerous as cars parking need to be cautious for other cars
travelling down the road. Parking is of major importance to visitors, who also struggle to find which building to
navigate to by foot. Thus a public or visitor parking with security guards and a map of the park would help
tremendously.
Access and Mobility in the Park: currently there is one entrance for access and egress into and out of the park.
The TPOA had commissioned a traffic study to assist the municipality to provide a temporary solution for traffic
timing (which was well received). There are currently plans to widen the road, however, there is a need to assist
the municipality with a solution that becomes integrated as part of the spatial development framework for the
town. Furthermore, there are potentials plans for an additional road entrance into Technopark from the South.
This would enhance the safety, and escape route in case of fire, natural or any other disaster or threat (whereas
at the moment there is only one escape route).
Mobility, however, also refers to on-foot mobility which is at the moment non-existent. Traffic within the park is
problematic, as people drive extremely fast, and there will be a need for traffic calming measures. Footpaths
connecting the various buildings and between the open spaces would enhance the attractiveness and sociability
of the park. This also would have a positive impact on safety, as visibility and eyes on the look-out would
increase. This is extremely important for innovation, and community building which is part of the vision for the
park.
Dams, Gardens and Open-spaces: in 2011, a study was conducted on the state of health of the dams in
Technopark, by a Stellenbosch University student (which showed a willingness to collaborate with the University
by the TPOA). These dams were found to be unhealthy and required immediate assistance to rehabilitate not
only the life in the dams, but the water quality as well. The primary reason was, due to the lack of flow of water
into the dams, which are connected to a pipeline from Teewaterskloof dam, which also supplies water to many of
the farms in the area. Furthermore the irrigation system, and pump, that is meant to circulate water in the dams
was broken. It was repaired by the Municipality as the TPOA had made suggestions to improve it, but then again
ceased working, due to a lack of maintenance.
Ensuring the dams and irrigation systems (linked to them) work on a constant basis will require continued
maintenance, which it seems is not happening. Solving the dam issue would also solve many of the park’s
problems in terms of beautification, and would also provide a contact supply of water for irrigation. In summer the
park becomes extremely dry and dusty, which is a nuisance for tenants, and potentially devalues the properties.
Furthermore, providing irrigation to the park, would allow for the recovery of shrubs, and trees that are currently
battling, and will allow for the beatification of the open-space. This would attract tenants and business people to
use the public spaces, which at present are not used. Once again this is extremely important for enhancing the
ethos of the park, and making it an attractive and quality place to work.
Recycling: currently there is not adequate recycling in the park. A clear bag system could be implemented, in
partnership with the municipality which have done so in other neighbourhoods in the town. Technopark also
produces a lot of paper waste, which could be collected. However, the systems including the collection points
need to be installed and maintained.
Lighting: although there is street lighting in Technopark, there could be a gradual replacement of these with LED
lights which would reduce electricity consumption during peak hours when the lights come on. Furthermore,
lighting will eventually be required along the footpaths to allow for evening use, and provide safety when people
return to their cars after work (especially in winter time, when it is dark).
Marketing: a space like Technopark, requires marketing because of its unique set-up, as well as being close to
the university of Stellenbosch. Currently the marketing of the park is weak, and requires a proper budget and
marketing plan. A proper marketing and communication plan would make it attractive, especially as an innovation
and technology park which is aligned with the future goals of the park.
General issues: throughout the year various problems arise that are beyond the mandate and capacity of the
municipality. It is precisely for this reason that the Technopark Trust was formed to deal with these issues.
Currently however, the amount of funds required to ensure there is a proper impact for a turn-around strategy will
need to be increased. It is a short-term investment with long-term benefits for the property value of the space,
which would have a positive multiplier effect for the whole town.
2.2 What is a Special Ratings Area or SRA
A special ratings area (SRA), or previously known as a City Improvement District (CID) is a provision within the
law, that allows for a specific demarcated geographical area to collect additional rates, over and above the
current rates being paid to the municipality. Each municipality writes its own by-law that governs the rules and
framework of acceptance and governance. Stellenbosch Municipality has a specific policy, and policy document
that provides guidance for the establishment, implementation and maintenance of an SRA. (Please request this
from the municipality if required).
Furthermore, an SRA, as the name suggests provides an opportunity for each property owner to pay an
additional percentage, or rate, of what they currently pay to the municipality. The aim of which is to provide
additional finance to pay for value-adding services, should the specific demarcated areas wish to do so. It is a
democratic process, that requires at least 50% of the votes (within a commercial area) and 60% of the votes
(within a residential area) to approve the SRA. This would then enforce a 100% levy on all property owners.
Provisions can be made in the law, for special cases, which will need to be negotiated with the implementing
agency.
In all circumstances the municipality and the council approve or disapprove an SRA application. Which could be
for technical reasons, or non-compliance with the policy, or failure to reach a consensus as stated above. The
implementing agency can be either the municipality itself, which would then provide additional services to the
area, or it can be administered by a not for profit company, (NPC). The choice of a company to manage the area
would require drafting a memorandum of incorporation or MOI. This NPC will need to be established, with an
elected board and memberships (the owners) and will need to comply with certain mandates as agreed within the
MOI, and constitution, and as stated in the specific companies act of South Africa. (For more details on the
Stellenbosch Municipality’s requirements, please read the SRA policy document, and by-law, available from the
Municipality).
2.3 The benefits of an SRA
Despite the obvious benefits of an SRA (ie. improving services, and addressing challenges mentioned above),
this arrangement allows for a degree of management autonomy and self-control of urban or residential spaces
that require improvement. It is also often beneficial to both the owners, and the municipality as it enables a
partnership and vision to drive improvements within that space. Tangible benefits include a clear business plan
(such as this one) which have a clear mandate and goals to provide improvements within the designated area. In
other words it guarantees action, which could be seen as an investment to enhance the property value of the
space. In many cases this has more than recouped the initial investment in the SRA, as tenancy and demand for
the spaces improve. In many ways the small increase of revenues improve the general property values, as well
as increases the likelihood of ensuring full occupancy.
2.4 Examples of other SRA’s
Cape Town metro, boast many SRA’s, the most well-known is Cape Town Central Business District (CBD) City
Improvement District C.I.D. – which provided a turn-around strategy for this important economic area. Many of
the property values and commercial fees for these buildings have increased tremendously. Streets are safe and
clean, which allows for an influx of tourism in the area. Similarly Sea Point C.I.D. has made huge strides to
improve the area, especially along main road, and now the area is fast becoming a luxury and upmarket part of
Cape Town. More recently Strand applied for an SRA, and has a comprehensive turn-around strategy for the
CBD area, which will also benefit Stellenbosch as a neighbouring town. Stellenbosch has not yet approved an
SRA, despite the recent legislation that has been put in place. Technopark has the opportunity to become the
first SRA, and set the standard for SRAs in the Stellenbosch area to bring marked improvement to one of the
town’s greatest assets.
Source: http://cityimprovement.co.za/wordpress/?page_id=213 (Visit this website for a link to each CID’s homepage, which
gives a lot more relevant information)
2.5 Motivation for a Technopark SRA
The envisioned Technopark SRA, coupled to future plans as described in this business plan, would be a good
example of what could be achieved if the private sector took control of its own destiny in terms of management of
the park. It would be seen not only as a partnership with the local municipality to ensure the current investments
in the park (and the town) remain, but also to improve the standard and uniqueness of Technopark as an
innovation and technology hub.
The fundamentals of a top-class business and innovation hub, will require improved services above and beyond
what is currently being afforded the park. Technopark has the potential to become a special business and
innovation zone, not only in the Stellenbosch space, but also the Western Cape. Improved economic and
business performance is linked to the profile of companies that are attracted to the park, which is directly related
to the level of service the park receives. A dedicated Technopark SRA, and NPC organization would lead to the
professional management of the park as well as guaranteeing quality services including communications,
marketing, maintenance, project management, innovativeness and eventual sustainability of the park. Adopting
such a strategy provides a win-win for businesses, the municipality and most of all the owners. Finally, the
economic spin-off of attracting high quality business tenants to the park, through improved services will ensure
job creation and skills will create new business and jobs in the area. Below is a list of general benefits pertaining
to SRA’s which could translate into improving the current situation in Technopark:
Current SRAs/CIDs in Cape Town: Airport CID Athlone CID Blackheath CID Cape Town Central CID Claremont CID Epping CID Fish Hoek CID Green Point CID Groote Schuur CID Maitland CID Muizenberg CID Observatory CID Oranjekloof CID Paarden Eiland CID Parow Industria CID Sea Point CID Triangle Farm City Improvement District Vredekloof Community Improvement District Woodstock CID Wynberg CID Zeekoevlei Peninsula SRA
Improved property values,
Improved investor confidence,
Improved community atmosphere,
Stakeholder collaboration,
Capacity to investigate, document and deal with local problems affecting the area,
Provide authority to engage with local municipality,
A clear and dedicated plan, as well as budget to improve the local area,
Improved accountability of performance, and development of the area.
The SRA programme usually creates a positive sentiment, which attracts additional support and
investment into the area.
2.6 Additional benefits to the town
As already mentioned above, Technopark, would form an important part of the local strategy to enhance
innovative capabilities of the town through the Stellenbosch Innovation District (SID) project, as well as efforts by
the local municipality, and university. This programme is aimed at stimulating collaboration for innovation,
between the university, government and business. Technopark would form a central part of the strategy to
improve business performance through innovation, and the vision to transform the park into an innovation hub
may provide the impetus to fast-track and catalyse the development of the remaining empty properties, an
additional road, as well as improved maintenance from the municipality. It would also motivate for innovative and
smart projects that could make the park an exciting place to visit, and work. New facilities required for
collaboration could also become of central importance to Technopark in the near future, which would be of
benefit to all tenants in the park.
3 Organization and Management Currently the park is managed by the Technopark Owners Association (TPOA) and serviced by the Municipality
of Stellenbosch. In the municipal by-law of Stellenbosch, it gives the option of the SRA, to be managed by the
Municipality or privately by a not-for-profit company NPC.
In the case of Technopark, it has been agreed upon by the current TPOA trustees, to convert the current entity
into a legal organization in the form of a NPC which will manage the SRA. A special public meeting will be held to
nominate and appoint the board members for the new NPC, which has also drafted a new memorandum of
incorporation (MOI) for the SRA (Please request from the contact persons). All owners in the park will become
members of the NPC, and will have full voting rights. In agreement with the municipal policy, the additional funds
that are accrued through the additional levy will be paid directly into the account of the NPC, and administered by
the NPC to ensure the management of the SRA, and the goals of the business plan are carried out.
The NPC, are entitled to employ a management company, manager or CEO of the Technopark SRA, or arrange
for specific services through a self-administered procurement process or service level agreement. Both of these
options are envisioned for the Technopark NPC. Below is a diagram indicating the management structure and
the composition of the board, and the various management portfolios:
3.1 Institutional Arrangements
The organization to manage the SRA, will be a not for profit company or NPC, which will commence on the 1st of July
2015, if and when 50% of the members agree to the formation of an SRA. This organization and legal body will
comply to a Memorandum of Incorporation (MOI) which has been drafted (Please request a copy from the TPOA).
For legal aspect and dissolution of the NPC, please see the MOI.
4 Services & Service Providers Specific services for Technopark, over and above the services already provided by the Municipality of
Stellenbosch will be authorized by the Technopark NPC. The NPC, will ultimately become responsible for the
governance and management of the policy (MOI of the NPC), as well as the services stipulated in the business
plan. This includes all financial planning, management and administration to be included in the expenditure of the
SRA income.
Specific services and actions which are listed below, may be carried out by elected service providers and the
appointment of a management company, or CEO to manage the service providers and implementation plan over
a five year period. They will all ultimately be liable and held accountable by the CEO and NPC board of directors,
as well as members of the NPC.
LIST OF SERVICES AND SERVICE PROVIDERS
1. NPC Financial Management and Administration
a. To be selected
2. Management Company/ CEO of Technopark NPC
a. To be selected
3. Safety & Security Company
a. To tender
4. Marketing and Communications
a. To tender
5. Technopark Business Forum
a. By portfolio and management
6. General Maintenance (Infrastructure)
a. To tender
7. Gardens, Parks and Dams
a. To tender
8. Mobility Plan
a. To tender
Manager/CEO
Technopark NPC Organizational Structure
EXTERNAL SERVICE PROVIDERS
TP NPC BOARD
TP MEMBERS
TP SERVICE PORTFOLIOS
TP COMMUNICATION PLAN
Community
8 Directors + Chairman (Nominated by Owners)
Members
consisting of all
Owners in
Technopark +
Municipality
Service providers
to be selected by
portfolios,
approved by
board.
A Board member
will chair a
portfolio.
Management
Company or
employed CEO
9. Legal Services (When required)
a. To be selected
10. Stellenbosch Innovation Distict (Stakeholder Management – collaborative service)
5 Proposed Goals for Implementation Plan The Implementation Plan is a schedule of goals to implement improvements or upgrades as suggested in the
motivation above. The table below provides a summary of the implementation plan over a five year period for
each of the goals determined by the portfolio. Please note this is not an exact prediction, and these goals and
outcomes may vary and become adjusted along the five year implementation phase. It is necessary however, to
give an accurate as possible indication of how the goals will be achieved financially over the five year period.
The broad goals4 of the Technopark SRA or improvement zone can be stated as follows:
Improve the property values of Technopark.
Improve the marketing and image of Technopark (as a top business address).
o Improve communication platforms (Website).
o Improve interaction within the park (between tenants and owners).
o Improve external communication (future tenants and external stakeholders).
o Monthly newsletters and communications.
o Provide and drive an attractive Technopark branding campaign.
o Technopark open-day.
Provide events and public gatherings to enhance community interaction and engagement
(Business Forum)
Improve the traffic flow in and out of Technopark.
Drive a campaign for a second road entrance to Technopark.
Improve parking conditions and supply infrastructure for parking.
Improve the safety and security of Technopark.
o Improve visible monitoring.
o Improve lighting.
o Install security cameras.
o Perimeter fencing to protect valuable property.
Improve public areas, parks and gardens
o Lawns, Gardens and Trees (Landscaping).
o Dam maintenance.
o Public footpaths (with lighting).
o Public facilities for socializing (ie. Drinks Gazebo, Benches etc.).
Waste & Recycling
o Provide rules for Technopark waste and recycling.
o Provide infrastructure ie. temporary storage facilities & collection points.
General Maintenance of the Park
o Infrastructure (eg. Piping, lighting, footpaths, roads, parking areas, traffic circles).
o Stormwater drainage maintenance (Clear blocked drainage, water furrows etc.).
o Loose edgings and paving.
*Summary of Complete Project Implementation Plan over 5 Year Period (Milestones)
TASKS, MILESTONES & GOALS
TASK RESPONSIBILITY (Portfolio)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
q1
q2
q3
q4
q1
q2
q3
q4
q1
q2
q3
q4
q1
q2
q 3
q4
q1
q2
q3
q4
4 The goals of the Technopark SRA, are not limited to these goals, and can be added to within the course of operation.
Communications & Marketing
Future, Planning and Management (FPM)
x x x x x x x x x x x x x x x x x x x x
Park Management Future, Planning and Management (FPM)
x x x x x x x x x x x x x x x x x x x x
Business Forum Future, Planning and Management (FPM)
x x x x x x x x x x x x x x x x x x
Safety and Security Safety & Security x x x x x x x x x x x x x x x x x x x x Park Maintanence Future, Planning and
Management (FPM) x x x x x x x x x x x x x x x x x x x x
Innovation Hub Status Future, Planning and Management (FPM)
x x x x x
Waste & Recycling Future, Planning and Management (FPM)
x x x x x x x x x x x x x x x x x x x x
Gardens and Parks Gardens x x x x x x x x x x x x x x x x x x x x Dams & Irrigation Gardens x x x x x x x x x x x x x x x x x x x x
NB! Please see Appendix for detailed implementation plan of each portfolio and repsective tasks. *Project commencement date would be the 1
st July 2015 and end on the 31
st June 2020. Project may
commence before this date with current budget from the TPOA trust.
5.1 Tasks and Milestones
The various tasks that have been set out, (See Appendix 1 for details) will commence once the SRA has been
established. This is due to start in July 2015. Not all of the tasks as can be seen from the schedule will be
continuous. Many of the tasks and milestones will be short term, while others more long term. The overall
responsibility for the implementation plans rest with the Technopark NPC, who may transfer responsibility to the
CEO (or management company), who in turn is mandated to manage the various tasks and milestones. These
will briefly be described below under each portfolio:
5.1.1 Gardens and Public Spaces (GPS)
Garden Maintenance: refers to the general upkeep, beautification and maintenance of current gardens, flower
beds, park areas and edgings. This requires extensive effort, planning and management if the park is to improve
its potential for attractive public gardens. This will be maintained by selected gardening services and will report to
the CEO, and directly to the GPS portfolio committee.
Public Spaces: This is a project for the CEO/ Management as well as the GPS committee. The idea is to identify
space that can be used recreationally by tenants, and business people during lunch-hour or after work activity.
These could also be used for open-air meetings, or future park entertainment. The idea is to provide seating and
tables in partnership with an outdoor coffee vendor or the like.
5.1.2 Future, Planning and Management (FPM)
Communications and Marketing: the various tasks under this heading are aimed at drastically improving the
image and brand of technopark, from just another business park, to an innovative and active community. There
will be much work required for this turn-around strategy, which eventually leads to an improved business interest
in the park and increased property values. A comprehensive communication strategy consisting of brand
management, website management, newsletters and publications, events and more will be included. Please see
appendix for details.
The Business Forum: will be important to build upon the above communication strategy, and plans to improve
communications between businesses, various other tenants, the building owners and other stakeholders in the
town. It will be important to enhance the sense of community, which ultimately leads to collaboration, and
eventually innovation. This will be important to improve the quality of place, and the economic competitiveness of
Technopark, as not only a park but a thriving business destination.
Future Planning: this will be equally important to drive the future vision of Technopark as an innovative business
and technology park. Achieving this vision will require dedicated leadership and continual planning to achieve the
more long-terms goals envisioned for this economic asset in Stellenbosch. A primary task will include assisting
owners to identify potential tenants and high valued businesses that may be interested in residing in the park
(this will be in conjunction with commercial agents currently operating in the park). Owners will be encouraged to
make sense of transforming Technopark into a modern and innovative business hub, which attracts various
technology firms, who may want to be located close to Stellenbosch University. This enables improved
interactions between businesses in the park, and again will provide competitiveness and eventually more jobs –
but above all will improve the image and value of the park tremendously.
Park Maintenance: again is linked to the above vision, and will require more services to ensure tenants are
happy with the state of the park. Specific tasks for this portfolio will also be to repair the dams pump system and
the irrigation system that is linked to this in partnership with the Gardens portfolio. Over and above the specific
tasks mentioned now, this task is not specific, but will require constant maintenance of the park’s infrastructure
for example: potholes, paving, footpaths, concrete edges, weed removal, traffic circle repairs, litter and
cleanliness and specifically a recycling programme.
5.1.3 Safety and Security (S&S)
This will be a very important task to ensure property values remain high, and tenants and investments are not
scared away from the park. As mentioned, Technopark has had a number of incidents and break-ins. If the park
is to develop further as a hub of innovation, the expensive equipment and information will have to be
safeguarded to ensure peace of mind for tenants. The protection and safety of workers will also need to become
a higher priority, especially if the park is to become people centred.
6 Budget Plan & Financial Impact The budget line-items associated to the above goals and milestones can be found in the Appendix section 2.
There are two budget options, option 1 correlates to approximately 18% increase above the nominal value of the
current rates and taxes, and represent an optimal budget. Whereas option two, represents a more conservative
budget with about a 12% increase in rates and taxes. They relate to the overarching goal of transforming
Technopark into a fully functional business, innovation and technology park within the next five years.
7 Conclusion Currently Technopark is functioning under the management of the Technopark Owners Association Trust, which
despite its excellent work, is struggling to ensure the best possible outcomes for protecting the property values of
buildings in Technopark. The primary reason is that trustees are volunteers and struggle to find time to achieve
some of the tasks that have been identified as most important. Furthermore, the current budget is far below the
requirements to make any viable difference.
It is for this reason, that owners and stakeholders should view the proposed SRA, and this business plan, as an
investment into the future of Technopark, and their individual properties. The eventual aims will be the
transformation of Technopark into a world-class innovation, technology and business park.
This requires dedicated and full-time management and clear goals and tasks as have been stipulated and
identified in this business plan. The costs of inaction into the future are estimated to far outweigh the current
business plan which represents a controlled and managed investment into the park with clear positive outcomes.
Appendix 1: Detailed Implementation Plans
Implementation Plan: Gardens and Public Spaces (GPS)
TASKS, MILESTONES & GOALS RESPONSIBILITY & INDICATORS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q 3
Q4
Q1
Q2
Q3
Q4
Garden Maintanance CEO, Gardens & Public Spaces & Service Providers
Flower beds (Planting and Upkeep) Service providers reports to CEO x x x x x x x x x x x x x x x x x x x x
Planting new trees shrubs etc. Service providers reports to CEO x x x x x x x x x x x x x x x x x x x x
Repair irrigation system Service providers reports to CEO
Continuous Irrigation Service providers reports to CEO x x x x x x x x x x x x x x x x x x x x
Composting Service providers reports to CEO x x x x x x x x x x x x x x x x x x x x
Hard Landscaping Service providers reports to CEO x x x x x x x x x x
Public Spaces
Identify Public spaces (E.g for lunching, relaxing etc.)
CEO & GPS x
Beautify public spaces (Maintain area, provide bins, seating, tables etc.)
CEO & GPS x x x x x x x x x x x x x x x x x x x x
Establish feasibility of an outside restaurant for public use
CEO & GPS x x
Excercise track and facilities (eg. Outside gym) CEO, GPS & Local Gym x
Implementation Plan: Future, Planning and Management (FPM)
TASKS, MILESTONES & GOALS RESPONSIBILITY & INDICATORS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q 3
Q4
Q1
Q2
Q3
Q4
Communications & Marketing FPM & CEO to manage service provider A needs assessment for communication plan. Complete needs assessment with FPM
committee. x
Select communications service provider. Presentations from posible service providers. x x Communications strategy & workshop. Conduct a workshop with NPC board, and
required stakeholders x
Develop communications strategy To be completed by service provider x Implement communications strategy Tangible progress, in terms of website,
newsletter, blogging etc. x x x x x x x x x x x x x x x x x x x
Establish target market strategy Marketing strategy to ensure new tenancy interest
x x
Business Forum FPM & CEO Events Bi-annual event for Technopark business x x x x x x x x x x Workshops Workshops to get business inputs into SRA
management process x x x x x x x x x x
IASP Database registration Establish criteria for application, meet criteria and confirm application.
x x x x x
Future Planning CEO reporting to FPM Provide plan to achieve vision to transform technopark into an innovation hub.
Workshop, action plan and strategy document, x x x x
Future road (Access). Establish SRA position on support of new road link (New western entrance).
x x
Mobility and Transport Planning. Liaise with experts on mobility plan for TP x x x x x Provide new Guidelines for Future Development Document providing these guideliness x Technopark Phase-2 liaison with Municipality Establish Technopark Owners position x x x x Establish park tenancy attraction pamphlet Document providing these guidelines and
motivating factors x x
Park Maintenance CEO, Contractors reporting to Board Establish contract (MOU) with municipality for park maintenance
Draft MOU, in collaboration with Municipality x
Repair dam irrigation system (pump) in partnership with municipality
Complete task (ie. Pump Works) x x x x
Repair irrigation system Complete task (ie. Irrigation Works) x x x x General Infrastructure maintenance General upkeep of the park x x x x x x x x x x x x x x x x x x x x
Implementation Plan: Safety & Security (S&S)
TASKS, MILESTONES & GOALS RESPONSIBILITY & INDICATORS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q 3
Q4
Q1
Q2
Q3
Q4
Garden Maintanance of Public spaces CEO, Gardens & Public Spaces & Service Providers
Security Force Monitoring (Response Unit) x x x x x x x x x x x x x x x x x x x x
Vehicle Patrolling x x x x x x x x x x x x x x x x x x x x
Foot Patrolling x x x x x x x x x x x x x x x x x x x x
Camera Installations x x x x x x x x x x x x x x x x x x x x
Video Monitoring x x x x x x x x x x x x x x x x x x x x
Security Forum (with security firm, owners and police)
x x x x x x x x x x
Perimeter Security
Establish Feasibility of Perimeter fencing & Costing options
x x
Establish Feasibility of a boom and security office at the entrance
x x
Appendix 2: Final Budget
ITEM DESCRIPTION
COST PER YEAR (EXCL. VAT)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Amount Amount Amount Amount Amount
1 Communications R 136 049 R 136 049 R 136 049 R 136 049 R 136 049
2 Events R 13 605 R 13 605 R 13 605 R 13 605 R 13 605
3 IASP Database R 20 407 R 20 407 R 20 407 R 20 407 R 20 407
4 Business Forum R 13 605 R 13 605 R 13 605 R 13 605 R 13 605
5 Future Planning (Expenses) R 13 733 R 13 733 R 13 733 R 13 733 R 13 733
6 Administration R 27 210 R 27 210 R 27 210 R 27 210 R 27 210
7 TP Manager + Salaries R 299 308 R 299 308 R 299 308 R 299 308 R 299 308
8 Office Expenses R 68 024 R 68 024 R 68 024 R 68 024 R 68 024
9 Park Maintenance + Security R 489 776 R 489 776 R 489 776 R 489 776 R 489 776
10 Water, Irrigation, Dams R 54 420 R 54 420 R 54 420 R 54 420 R 54 420
SUBTOTAL R 1 136 136 R 1 136 136 R 1 136 136 R 1 136 136 R 1 136 136
14% VAT R 158 089 R 158 089 R 158 089 R 158 089 R 158 089
TOTAL R 1 294 225 R 1 294 225 R 1 294 225 R 1 294 225 R 1 294 225