Street trading% managementin% Johannesburg Retail ......Street trading% managementin% Johannesburg...

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Street trading management in Johannesburg Retail Improvement District: what is the ‘model’? Claire BénitGbaffou [email protected] 28.02.2014 Kerk street linear market/ Joubert Street demarcated sites, 2012

Transcript of Street trading% managementin% Johannesburg Retail ......Street trading% managementin% Johannesburg...

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Street  trading  management  in  

Johannesburg  Retail  Improvement  

District:  what  is  the  ‘model’?  

Claire  Bénit-­‐Gbaffou  

[email protected]  

28.02.2014  

Kerk  street  linear  market/  Joubert  Street  demarcated  sites,  2012  

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Outline  

1. The  Retail  Improvement  District:  What  it  is  2. Structure  of  the  model  –  governance  of  street  trading  

3. OperaSon  of  the  model  –  funding  and  pracScaliSes  

4. What  makes  the  model  work:  criScal  reflexions  

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1.  The  Retail  Improvement  District:  area  -­‐ Established  in  2005  

-­‐ Boundaries:  Jeppe  Street  to  the  north,  Commissioner  Street  to  the  south,  Von  Brandis  Street  to  the  east  and  Harrison  to  the  west  

-­‐ Board  of  Directors  (2010):  A]co,  Edcon,  Redefine  Property,Cityprop,  Jozi  Housing,  City  of  Joburg  

-­‐ RID  managed  by  Urban  Genesis  

-­‐ Revenue  collected  from  prop  owners  tax  (2011):  R5M.  Expenses  in  the  RID  (2011):  R4,7M.  

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A  variety  of  trading  stalls,  adapted  to  various  street  configuraGons,  and  allowing  for  a  variety  of  traders  

Carved  niches  in  blind  walls  and  narrow  streets  (Shoprite)  

Foldable  stalls  (Edgars)  

Trading  sites  (yellow  demarcaGon)  :  locaGon  negoGated  with  shop  owners  

Linear  market  in  pedestrianised  streets  

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A=62   E=48  B=57   C=65   D=36  

93

4  8  

11  

15  

9  

8  

17  

13  

2   3  5  

1Informal  Trader  LocaGons  

Rid  managed  linear  mall/market  

RID  managed  traders  

Newly  found  traders/nor  previously  documented  

Hawker  trader  stalls  

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2.  Governance  structure  for  street  trading  management  

RID  model    (as  in  Retail  Improvement  District,  Joubert  St.)  

Advantages:  Urban  Genesis  /  Central  Johannesburg  Partneship  as  a  mediator/  broker  between  City  agencies  and  departments,  and  street  traders.  Property  owners  subsidise  security  and  cleaning  services  for  street  traders    (integrated)  Inconvenient  or  challenges:  Street  traders’  voices  and  concerns  not  represented  in  decision-­‐making  bodies  /  processes.    Missing  from  the  sketch:  rental  collecSon    was  in  fact  not  implemented  in  the  RID;  role  of  CJP  in  securing  the  partnership  &  relaSonship  to  UG  (Urban  Genesis)  not  mapped.  

Joint  Venture  –  formal  

partnership

Micro-­‐trader Micro-­‐trader

Block  leader

RID  operaSonal  manager  -­‐  Urban  

Genesis Property  owners

Pay  levy  (part  of  property  

value)

24  hours  security

Cleaning  services

Traders  monitoring

MTC  rentals  and  allocaSons

DED  demarcates  trading  areas  

Metro  Police enforcement  

JDA  constructs  trading  infrastructure  

Elect  /  inform  on  issues

Regular  meeSngs  on  issues  faced  by  traders  /  local  

soluSons

Mediate  /  solve  issues  /  co-­‐organises

Pay  rent

Are  reported  to

Key  Urban  Genesis  –  staff  and  services  provided  Property  Owners  Traders  City  department  

Financial  flows  

Elects  /  Appoints  

CoordinaSon  

Occasionally  (dashed  line)  

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Stakeholders  and  partnerships  Joint  venture  (JV)  between  Metro  trading  Company  (CoJ)  and  Central  Johannesburg  Partnership  (CJP)  

-­‐   Purpose  of  the  JV:  to  administer  trading  stalls  rental  collecSon  and  administraSon  -­‐ Traders  (agreed  upon  by  the  JV)  to  enter  into  rental  trading  stall  agreement  with  the  JV  -­‐ Traders  to  pay  rentals  to  the  JV  bank  account  -­‐ MTC  to  solve  conflicts  between  traders,  with  JMPD,  as  alerted  by  CJP  -­‐ CJP  admin  (KUM/UG)  to  be  paid  from  this  account;  surplus  to  be  shared  between  CJP  and  MTC  (50/50)  -­‐ CJP  and  MTC  to  meet  monthly  with  JMPD  and  possibly  traders  representaSves  -­‐ 3  years  agreement,  with  annual  extension  

Regular  (?)  management  meeGngs  UG  and  block  leaders  /  traders  

UG  and  pikitup  –  manage  complementary  cleaning  services  

UG  and  JMPD  –  crime  and  control  issues  

Occasional  meeSngs  with  MTC,  DED,  JDA  (capital  investment,  policy  change,  broader  issues  

Every  day  conflict  resoluGon  Streets  are  occupied  –  traders  exert  control  over  one  another;  produce  safety;  manage  /  stabilise  number  of  trading  spaces  

Security  agents  on  street  –  a  recourse  in  case  of  crime/  conflict  

Role  of  block  leaders,  in  contact  with  UG  management  

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3.  Budget,  operaGons  

Out  of  a  budget  of  about  R3M  (RID  business  plan),  

About  R450.000  is  spent  on  clearning  per  year  /  R40.000  per  month  

For  8-­‐11  cleaners  

More  is  spent  on  security  (but  this  goes  beyond  trading  management?):  about  R2,2M  per  year,  200.000  per  month  

For  an  esSmated  number  of  traders  in  the  RID=  948  (2008  figure)  

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4.  The  RID  model  of  street  trading  management  rests  on…  

1.   Cross  subsidisaGon  –  property  owners  levy  pay  for  street  security  and  cleaning  

The  RID  is  funded  by  tax  on  property  Lack  of  clarity  on  the  amount  of  rental  

for  street  trading  stalls  collected  by  CJP  (including  issues  of  non  renewal  of  MoU  between  MTC  and  CJP  –  lack  of  sustainability  of  the  rent  collecSon  and  management)  

3.  A  grounded  administraGon  –  conflict  resoluGon,  maintenance,  control  

Security  agents  on  the  ground  Urban  Genesis  office  –  anending  to  

complaints,  mediaSng  with  the  City  Regular  meeSngs  to  solve  issues  

4.  A  strong  working  relaGonship  (networks  ;  regular  meeGngs;  funding)  between  management  (CJP/  UG)  and  the  City  

(TheoreScally)  monthly  meeSngs  between  CJP/UG  and  city  officials  (MTC/EDU;  JMPD)  ensuring  rapid  response  to  issues  

Model  sustainability  rests  on  formal  agreements  (rent  collecSon):  MOU  between  CJP  and  MTC,  City  Parks.  Extremely  difficult  to  consolidate,  renew,  sustain  

PracScal  agreements  and  meeSngs  with  City  services:  arSculaSon  with  Pikitup  (cleaners  teams  and  Sming),  with  JMPC.  

2.   A  variety  of  types  of  trading  stalls  with  high  access  to  pedestrian  flux  

Variety  in  types  of  stalls  allows  to  open  a  number  of  streets  to  trading,  and  adapt  to  pavement  and  circulaSon  configuraSon  

Variety  in  types  of  stalls  allows  for  a  variety  of  traders  (different  turnout,  capital,  goods)  to  access  opportuniSes.  

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Replicability  and  variaGons  to  the  model  

2.  Sustainable  finance  rests  of  CID  levy  

! Would  a  fee  /  levy  or  rental  on  traders  raise  sufficient  funding  to  pay  for  cleaning,  security  services  and  administraSon,  whilst  remaining  affordable  for  traders?  ! What  are  the  minimal  financial  needs  for  cleaning  and  security  services  to  be  provided?  RaSo  traders/  street  and  rental  levels  

3.  Management  efficiency  rests  on  CJP  strong  lobbying  power  and  networking  with  City  officials  &  poliGcians  

! Would  a  traders  structure  manage  to  set  up  and  maintain  working  relaSonships  with  the  various  departments  and  enSSes  of  the  City?  (CJP  itself  finds  it  difficult)  

! Hypothesis/  Hope:  consolidaSon  and  insStuSonalisaSon  of  partnership  with  Sme  

1.  Traders  not  at  the  center  of  this  model    –  variety  of  stalls,  accessibility  and  diversity  of  traders:  by  accident  more  than  by  design  -­‐ Limited  role  in  choosing  models,  opening  streets  for  trading,  etc.  !  TesSng  more  traders-­‐centered  management  models  (traders  cooperaSve  /foundaSon)?  SANTRA-­‐CJP  in  Park  staSon…  !  Consolidate  idea  of  importance  of  variety  of  street  stalls  (open  more  streets  to  trading;  access  of  a  greater  variety  of  traders)  

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References  Abdul  Abed,  2011,  Integrated  Trading,  an  Inner  City  Tour.  Yeoville  Studio  2011:  report  and  posters.  

Claire  Bénit-­‐Gbaffou  (ed).  Unpacking  Street  Trading  Management  in  the  RID.  CUBES/SOAP:  Unpublished  3rd  year  Planning  Students  research  report.  

Claire  Benit-­‐Gbaffou  &  Antonio  Pezzano  2011,  Models  for  street  trading  managament.  Yeoville  Studio  2011:  poster.  

Kagiso  Urban  Management  (undated),  RIB  Business  Plan:  Proposal.  

Kagiso  Urban  Management,  2008,  Retail  Improvement  District.  Phase  1  &  2:    Status  Quo,  Visioning  and  AcSon  Plan.  

Urban  Genesis,  2011,  Retail  Improvement  District:  Annual  review,  as  presented  to  the  RID  AGM  Powerpoint:  2010-­‐2011  Report.  

Urban  Genesis,  2012,  RID  OperaSon  Plan.  Powerpoint  presentaSon.