East London Boating Association’s (ELBA) lease with Transnet Ports Authority (TNPA) continues to hang in the balance with TNPA confirming this week that if the lease falls through, the space will be advertised and offered to another non-profit organisation — a move that could put an end to 140 years of the Buffalo Regatta.
Last year, the regatta brought in approximately R4m to the city’s coffers.
The ELBA and TNPA have been in a stalemate since May after the East London high court dismissed the ELBA’s application for an order that the lease for R7,000 per month was concluded with TNPA before the latter set out a monthly rental of R35,000 excluding VAT, with an annual increase of 8%.
The ELBA has not lost the tender, as they are still the preferred bidder. This puts the ELBA in line to negotiate a market-related rental with TNPA but if they fail to come to an agreement, TNPA can go to the next preferred bidders.
Almost five months later, the two parties remain in negotiations. However, TNPA said this week that there was a directive that would allow TNPA to apply 50% discount on the evaluated lease rentals that could see the rent decrease to R17,000 per month as opposed to original R35,000. However, there was no explanation of the impact thereon on the annual increase clause.
ELBA’s Graeme Mountford said that despite the possible discount, the association was not an income generating body.
A rental of R17,000 per month would not be feasible for the ELBA’s clubs to afford because this would be an additional R120,000 a year.
Mountford said: “Even if the spot is advertised to another NPO or NPC, I can’t imagine it would be easy for that body to afford R17,000 a month for rent.
“If we lose the lease to another tenant, it will mean that the city is no longer in the requisite stage of development to host any provincial or national events which would be the end of the nearly 140 years of the Buffalo Regatta.
“The facilities at Nahoon Dam where Selborne College and Leander Rowing Club are rowing, are limited because there are no jetties and no lanes for racing.
“If there is another tenant, there could be a possibility for us to at least sub-lease the bays from the new tenant and when it comes to hosting the regatta then there could possibly be room to negotiate. Regardless, we are in full swing to prepare for the 2025 Regatta.”
Mountford bemoaned the setback that losing the lease would mean for the huge inroads that have been made to establish competitive rowing at Walter Sisulu and Fort Hare universities.
The universities lack capacity and resources to move their facilities to the dam.
Rowing coach for UFH and WSU, Lunga Mcetywa confirmed that the universities would not have the budget to transport rowing teams to Nahoon Dam.
Mcetywa said: “Rowing as a sport is new to the black community and the university clubs bridge the gap in terms of promoting diversity in the sport.
“An increase to R17,000 is impossible for the university clubs because the rowers cannot afford the fees.”
