Case Law[2024] ZAWCHC 44South Africa
Walker v City of Cape Town and Others (12975/2022) [2024] ZAWCHC 44; [2024] 2 All SA 612 (WCC) (19 February 2024)
High Court of South Africa (Western Cape Division)
19 February 2024
Headnotes
form, the most important arguments of the Respondents in respect of the review grounds.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Walker v City of Cape Town and Others (12975/2022) [2024] ZAWCHC 44; [2024] 2 All SA 612 (WCC) (19 February 2024)
Walker v City of Cape Town and Others (12975/2022) [2024] ZAWCHC 44; [2024] 2 All SA 612 (WCC) (19 February 2024)
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sino date 19 February 2024
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Certain
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SAFLII
Policy
Republic
of South Africa
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Coram: Samela, J et
De Waal AJ
Date of hearing:
17 November 2023
Date of judgment:
19 February 2024
Case No: 12975 /
2022
PETRA
WALKER
Applicant
and
THE
CITY OF CAPE
TOWN
First Respondent
THE
MAYOR OF CAPE TOWN
Second Respondent
FOLKES
HOLDING (PTY) LTD
Third Respondent
JUDGMENT
DE WAAL AJ:
# Introduction
Introduction
[1]
The Applicant seeks the review of a
decision taken by the Second Respondent (‘the Appeal
Authority’), which decision
was taken in terms of the Municipal
Planning By-Law, 2015 (‘the MPBL’) of the First
Respondent (‘the City’).
The Appeal Authority
partially upheld and partially refused the appeal.
[2]
The appeal decision, which will also be
referred to as the “
impugned
decision
”, resulted from an
internal appeal brought by the Third Respondent (‘Folkes
Holding’) against a decision of the
City’s Municipal
Planning Tribunal (‘the MPT’). The MPT’s
decision was to grant certain departures
and to remove certain
restrictive title deed conditions in respect of the Applicant’s
property, Erf 4[…] Bantry
Bay, situated at 4[…] D[…]
W[…] Road (‘the subject
property’). This decision was
overturn in part by the Appeal Authority.
[3]
The matter has a long history, not only in
terms of the dispute between the Applicant and Folkes Holdings, but
also in respect of
the land use management scheme applicable to the
Bantry Bay area. I shall revert to that history below.
Suffice to
say for purposes of this introduction that:
3.1.
The Applicant required certain
departures
to regularise an existing outhouse on the subject property which had
been built prior to her becoming owner. The departures
were
required as the outhouse was non-compliant with provisions of the
City’s Development Management Scheme (‘the DMS’).
I should say at the outset that the granting of these departures has
not been challenged.
3.2.
The Applicant also required the removal of
certain
restrictive conditions
from the subject property’s title deed. This is what the
present matter is about. The restrictive conditions
which the
Applicant sought to have removed are the following:
“
E.(2)
No more than one house shall be built on each lot and no dwelling
house to be built shall be inconsistent
with the environment.
E.(3)
Each house shall be used only as a dwelling house.
F.(2)
That a space of not less than 4,72 metres in width be left in front
of all lots fronting
or abutting on the High Level Road, 15,74 metres
and the roadway marked Thoroughfare. That a space of not less than
3,15 metres
in width be left in front of all lots fronting or
abutting on any of the three roads 12,59 metres. Such space may be
utilised as
gardens or forecourts.
F.(3)
That not more than one dwelling be erected on any one lot without the
written consent
of the Council of the City of Cape Town, and that no
more than one-third of the area of any one lot be built upon.”
[4]
Title deed restrictions E.(2) and E.(3)
shall be referred to as such or as the “
single
dwelling restriction
” and title
deed restriction F.(3) shall be referred to as such or as the
“
consent use restriction
”.
Title deed restriction F.(2) is not directly relevant to the
dispute.
[5]
In what follows I first set out the
background and context. I then turn to describe the MPT’s
decision-making process;
the Appeal Authority’s decision-making
process; the legal framework; and the Applicant’s review
grounds. Thereafter
I set out, in summary form, the most
important arguments of the Respondents in respect of the review
grounds.
[6]
As far as the processes and decisions of
the MPT and the Appeal Authority are concerned, I relied to a large
extent on the useful
description provided to the Court in the heads
of argument prepared by the City’s counsel, Mmes M
O’Sullivan and
A du Toit. This description was not
challenged in any material respects by Messrs D Baguley and
C Fehr,
who appeared for the Applicant or by Mr S Rosenberg SC
and Ms T Sarkas, who appeared for Folkes Holdings.
[7]
Although I will comment on various aspects
of the documents and the parties’ evidence and submissions
throughout this judgment,
I summarise my analysis and conclusions
about the review grounds in the last part.
# Background and context
Background and context
[8]
The application for the removal of the
title deed restrictions took place in a particular context, which is
somewhat unusual.
[9]
As appears from the documents which served
before the City’s decision-makers, the title deed restrictions
in Bantry Bay long
precedes the adoption of a zoning scheme for the
City as we know it today. Bantry Bay originally formed part of
a larger
township, namely Botany Bay Estate township (‘Botany
Bay’) which was created in 1901. When Botany Bay was
broken
up into a number of lots, the developer imposed conditions on
the use of those lots which were inserted as title deed
restrictions.
The restrictions were meant to fulfil the role of
a zoning scheme.
[10]
The largest lot in Botany Bay was Lot HD,
which lot was subsequently developed into a separate township in 1928
to form Bantry Bay.
In this process, further title deed
conditions were imposed by the developer, the Administrator and the
Council of the City of
Cape Town. Again, the restrictions are similar
in nature to what one would find in a zoning scheme.
[11]
Both the Botany Bay and Bantry Bay sets of
title deed conditions apply to the subject property.
[12]
As already stated, the creation of the
townships of Botany Bay and Bantry Bay preceded the adoption of a
zoning scheme for the areas.
In lieu of a zoning scheme, the
title deed conditions were used to achieve a particular look and feel
for these townships.
To this end, development parameters and
uses permitted were set in the title deeds. At that time, it
was for instance regarded
important to restrict development in these
townships to a single dwelling and that there be generous set-backs
for buildings from
the streets to create space for gardens and
forecourts.
[13]
Although the degree to which this has
happened is in dispute, it is safe to say that the actual structures
on a significant number
of properties in Botany Bay and Bantry Bay
are no longer in sync with what was envisaged in the title deed
restrictions imposed
more than a hundred years ago. There are
now even blocks of flats and hotels on some of the properties.
[14]
More importantly – and on this aspect
there cannot be any doubt – over time the City’s various
zoning schemes
drifted further and further away from the vision
contained in the old title deed conditions for Bantry Bay.
Today residential
densification is generally regarded as desirable,
for instance. This is not only clear from the DMS, which forms
part of
the MPBL, but also from a variety of forward-looking policy
instruments adopted by the City, such as the Municipal Spatial
Development
Framework, 2018 (‘MSDF’); the Table Bay
District Plan, 2012 and the Densification Policy. The MSDF, for
instance,
aims to address current inefficiencies in urban form by
supporting “
inward growth
”.
This is done by promoting densification and diversification of land
uses especially in areas that have good transport
infrastructure and
are close to economic and other opportunities (such as the subject
property). Nowadays the quality of
the built environment is
preserved through attractive urban design rather than by insisting on
low density developments and large
gardens (needing lots of water to
maintain). An increase in the number of residents in an area
can also be considered to
improve safety due to more “
eyes
on the road
”.
[15]
I have culled from the City’s policy
documents the above uncontentious bit of background because even
though the present review
does not relate to the merits of the Appeal
Authority’s decision, it remains necessary to assess the review
in context. That
context indicates clearly that one is
essentially dealing in the present dispute with a set of archaic
title deed conditions which
have existed for a considerable period of
time in parallel with, and sharp contradiction to, a set of
progressive land use policies
and a modern development management
scheme, which were adopted by the City after extensive public
consultation.
[16]
It
is further clear from the voluminous sets of papers filed in the
review that, despite the obvious chasm between the Bantry Bay
title
deeds, on the one hand, and the policies and DMS, on the other, an
enormous and expensive effort is required, on the part
of the
relevant property owner, on each occasion when an application becomes
necessary in order to bring the historic conditions
in line (or even
just closer) to the letter and spirit of the DMS.
[1]
[17]
In this regard the plight suffered by the
Applicant is illustrative. She bought the subject property in
two stages.
She eventually became owner of the entire property
in 2002. She did not know at the time when she bought that the
existing
buildings on the subject property were non-compliant with
the title deed restrictions. When she realised this she made
several
attempts to regularise the building or, as she says, to
simply have the same development opportunities as 6
000
private properties in Cape Town (outside of Botany Bay and Bantry
Bay). By embarking on this process, the Applicant needed
the
assistance of lawyers and town planners, no doubt at great cost to
her. I summarise her efforts briefly:
17.1.
In her first effort, the Applicant applied
for the removal of the restrictions under the now repealed Removal of
Restrictions Act,
1967 (Act 84 of 1967). This application, which at
the time had to be made to the relevant provincial authorities, was
approved.
The approval was however set aside on procedural
grounds by the court (pursuant to a review brought by Folkes
Holdings).
17.2.
Another approval by the provincial
authorities suffered the same fate in or around 2013. The
approval was again set aside
again on procedural grounds.
17.3.
The decision which is the subject matter of
the present application thus relates to her third attempt to
regularise her house. Again,
as explained below, her efforts to
regularise the buildings on the subject property came to naught due
to procedural irregularities
in the process.
[18]
I
only know what the parties tell me on the papers about the past
mishaps. I am in no position to comment on those processes
and
do not intend to do so. But no matter from what angle one looks
at the situation, it is a sorry tale. Bear in mind
that one is
not dealing with a skyscraper or an hotel in the present instance but
with the regularisation of an ordinary house,
albeit one comprising
three parts. The story is certainly not an advertisement for
the kind of stable and predictable regulatory
environment which is
necessary to encourage investment in the property sector. A
developmental state such as South Africa
can ill afford this kind of
repeated bungling of administrative decision-making processes.
[2]
[19]
Against
this background, I do believe it is appropriate to kick off with a
reminder that the duty to observe procedural fairness
is ever
flexible.
[3]
Basic common
sense fairness to those affected is what is required from
decision-makers. Adherence to administrative
justice principles
is certainly not a licence for the endless stalling or repetition of
processes, especially not at the slightest
suggestion of
impropriety. As I attempt to show below, perceived shortcomings
can be cured sometimes, even on appeal, without
causing unfairness to
applicants or objectors. It is certainly not always necessary
to abort and reboot administrative decision
processes when there is a
challenge nor is it always the “
safest
”
strategy to cancel and repeat processes. A problem solving
mindset is more appropriate.
# The MPT’s decision
The MPT’s decision
[20]
The Applicant’s land use management
(‘LUMS’) application for the departures and the removal
of the title deed
conditions was accepted, i.e. formally received, by
the City on 23 January 2020.
[21]
It would have been immediately apparent
that if the title deed restrictions were to be removed
without
more
, the existing uses permitted in
the DMS for the applicable single residential one (‘SR1’)
zoning would govern.
In other words, in the absence of the
title deed restrictions, the floor of underlying rights of an owner
of a property in Bantry
Bay would be those contained in the DMS, i.e.
the Applicant would have the same rights as property owners with an
SR1 zoning in
other areas.
[22]
With effect from 3 February 2020
the uses associated with an SR1 zoning were amended to include as
a primary right an additional use right of
a “
third
dwelling
”,
subject to certain conditions [which are not relevant for present
purposes]. That meant for the Applicant that, in
the absence of
the restrictive title deed conditions, the floor of rights conferred
by the DMS would increase further. Most
importantly, for
present purposes, the February 2020 amendment meant that owners
of properties with an SR1 zoning were permitted
to have three
dwelling
units
on
the
property,
all
of which could be
rented
out
as
Airbnb units
and each of which could be used – potentially at least –
to accommodate up to 5 guests at any one
time.
[23]
After these amendments came into force, in
March 2020, the Applicant’s planner, Mr Tommy Brümmer
added to the
motivation for the LUMS application. The addition
was based solely on the pre-amendment version of the DMS and did not
make
reference to the effect of the February 2020 amendment of
the DMS described above. Mr Brümmer’s motivation:
23.1.
Stated that the effect of the granting of
the LUMS application would be to permit two dwellings on the site and
“
to enable another family to
reside in the area
”..
23.2.
Did not
deal
with the consequence of the restrictive title deed conditions being
removed, namely that the Applicant, and any future owner,
would be
permitted to operate three Airbnb units on the subject property.
[The original application also did not deal with
the floor of
DMS rights which would apply under the pre-amended DMS.]
23.3.
Did not address what the parking and
traffic related impacts might be were the property to be used as
three Airbnb units.
[24]
In November 2020, the application was
advertised containing the motivation as set out above.
[25]
I jump ahead to comment:
25.1.
The main concern of the Appeal Authority,
which resulted in the impugned decision, was that the Applicant did
not inform the public
in the amended motivation that the effect of
the change in law would be that if the restrictive conditions were
removed three dwellings
were permissible on the subject property (all
capable of being used as Airbnb units, as stated above).
25.2.
I shall revert to this aspect again below
but the notion of an applicant in a land development application
being required to educate
the public on the effect of changes in law
strikes me as untenable.
25.3.
In any event, as I shall also explain
below, the Applicant never applied for the abolishment of the
restrictive conditions
without more
.
She applied for the
relaxation
of those conditions so as to allow two dwellings and a domestic
worker quarters on the subject property. That is what she
wanted and applied for. The nature of the application never
changed. She did not apply for the DMS floor of rights.
She
had no interest in having three dwellings because she did not have
enough parking to meet the DMS requirement for operating
three
units. She was also never opposed to appropriate conditions to
ensure that the removal of the title deed restrictions
kept her use
of the subject property to what she applied for, i.e. two dwellings
and the domestic staff quarters. In other
words, she applied
for relaxation of the title deed conditions, to regularise the
existing structures on a particular basis and
not for alignment of
the title deed with the floor of DMS rights (whatever there were,
either before or after the February 2020
amendment).
[26]
Folkes Holdings and eight other property
owners objected. The objection of Folkes Holdings was lodged by
1 February 2021.
For present purposes the following
contained in the objection is relevant:
“
Before
setting out the details of our client’s objections, we raise
the following point
in limine
:
Our client believes that there are already three dwelling units on
the applicant’s property. We attach as Annexure
“
A”
copies of three Airbnb adverts in which the applicant advertises
three separate flats for hire. One accommodates four guests
in
two bedrooms while the other two accommodates two guests each in one
bedroom. The photographs on the Airbnb adverts show
that the
two sleeper units are different. Indeed, the description of
each are also different. If there are in fact
three dwelling
units on the applicant’s property, then the objector submits
that the application is a misleading one as it
seeks not only the
removal of certain restrictive title deeds conditions but also
departures so as to regularise two alleged dwellings.
The
objector challenges the applicant to reveal the true position when
she responds to this objection. For the purposes of
this
objection, we will deal with the application as presented, i.e. an
application which will allow a second dwelling on the property.
If in fact there are already three dwelling units on the property,
then we reserve our client’s rights to amplify the objection
prior to the MPT hearing in order to deal with the true facts.”
[27]
The Applicant responded to the
in
limine
point on 12 April 2021
as follows:
“
The
two units in the outbuilding (in addition to the main house) are
advertised by the owner on Airbnb are not authorised and application
has not been made for both units in the outbuilding to be
regularised.”
[28]
The Applicant stated her intentions clearly
and there can be no suggestion of a misrepresentation here. She
accepted that
the units advertised on Airbnb are not authorised but
it is reiterated that the application is for two dwellings, with
domestic
staff quarters on the lower floor of the second dwelling.
[29]
On 19 July 2021, Mr W Naude
of the City’s Spatial Planning and Environment Directorate
(‘the Planning
Directorate’) completed a report for the
MPT (‘the MPT report’) which recorded at page 4 the
contention
of Folkes Holdings that there were already three dwellings
on the property. The Applicant’s response, which was
application
was made for two dwellings and the staff quarters, was
regarded as acceptable.
[30]
The MPT report:
30.1.
was thus premised on the LUMS application
being for two dwelling units and staff quarters;
30.2.
observed, on that premise, that an increase
of one additional vehicle to the local road network (caused by one
additional dwelling
unit) would not have a negative impact;
30.3.
found that the impacts on surrounding
owners’ rights, caused by increased noise, would not
dramatically exceed those of the
operation of “
a
normal dwelling house(s) on a residential property
”;
and
30.4.
recommended that the LUMS application for
the granting of the departures and the removal of the restrictive
titled conditions be
approved.
[31]
The above are the relevant parts, but I
should add that the MPT report deals with much more than the matters
listed above.
The MPT report is indeed a detailed and
impressive document comprising of some 41 pages (without annexures).
[32]
On 3 August 2021, the MPT
confirmed the recommendation in the MPT report and granted the LUMS
application in its entirety
(‘the MPT decision’).
[33]
The MPT imposed the following as conditions
of approval:
33.1.
Condition numbered 2.1 was imposed to
address Folkes Holding’s concern that the property could be
used, and was being used,
for three dwelling units (more
specifically, three Airbnbs). This condition was that “
the
building (envelope and built form and number of units) shall be
substantially in accordance with [a plan which depicted the
bottom
storey of the outbuilding being used as domestic quarters]
”
to the satisfaction of the Director: Development Management.
33.2.
A further condition was imposed that the
Applicant pay a development contribution in accordance with the
Development Charges Policy
for Engineering Services of the City,
which was at that point in time, an amount of R42 195.82.
[34]
Whether it was going to be effective or
not, the first of the above conditions (‘the protective
condition’) was an attempt
to ensure that the use of the
dwellings on the subject property was to be in line with what the
Applicant applied for, which was
two dwellings and the domestic staff
quarters.
# The Appeal Authority’s
decision
The Appeal Authority’s
decision
[35]
On 1 September 2021 Folkes
Holdings lodged an appeal against the MPT decision, as provided for
by s108(1) of the MPBL.
The Folkes Holding
appeal:
35.1.
Contested only the approval of the LUMS
application for the removal of the title deed restrictions E(2); E(3)
and F(3) and the protective
condition. Folkes Holding claimed
inter alia
that the protective condition did not go far enough and it proposed a
reformulation of the condition should the appeal be refused.
35.2.
Did not take issue with the approval of the
application for departures from the DMS.
35.3.
Repeated the concern raised by eight of the
objectors, namely that D[…] W[…] Road, Bantry Bay, is a
narrow suburban
road, with a sidewalk only on one
side of the road and that increased
development and densification would mean more cars parked on the side
of the road and resultant
traffic congestion.
[36]
The issue of the existing use and how to
ensure, by way of a protective condition, that the Applicant’s
future use does not
exceed the two dwellings applied for featured
prominently. In this regard, Folkes Holdings stated the
following in its appeal:
“
6.1
During the interview with the MPT, it was pointed out that the
Applicant was letting out three
separate units on Airbnb and that in
reality the existing structure supported three dwellings and not
two. This was also
dealt with in the Appellant’s
objection– see the third unnumbered paragraph on the first page
of the objection and
Annexure A thereto which are the adverts on
Airbnb advertising all three dwellings for hire.
6.2
The response to this was that the smallest of these dwellings was to
be used as servant’s
quarters.
[4]
To address the Appellant’s concerns, and after discussion
amongst the members of the MPT, Condition 1 was decided
as being
worded so as to ensure that only two dwellings and a servant’s
quarters would be allowed. The Condition is
worded as follows:
“
Development
plan
The building
(envelope, built form and number of units) shall be substantially in
accordance with the plans drawn by Louise Wileman,
Project 1702,
Drawing # One1/5, Two/1 and 2, Three/1-4,001 -1003, 2001 & 3001 –
3002 all dated 2019-12-17; all Revision
0 (as indicated in the
attached Annexure C), to the satisfaction of the Director:
Development Management.”
6.3
What the members of the MPT lost sight of was that the building
envelope reflected on these
plans was an already existing structure
and that the applicant was seeking to regularise an unlawful building
which contravened
the title deed restriction that only one dwelling
was permitted on the subject property. The wording of this
condition is
vague and hardly ensures that the owner of the subject
property will stop advertising all three existing units for hire on
Airbnb.
The concept that the “
building
(envelope, built form and number of units) shall be substantially in
accordance with the (identified) plans
”
doesn’t
ensure that what is depicted on the plans as the “
servant’s
quarters
”
will be used as such.
6.4
In the event that the Appellant’s appeal is not upheld and the
title deed conditions
remain removed, the Appellant suggests that
Condition 2.1 be reworded as follows:
“
Development
plan
The existing three
buildings (envelope, built form, two units and servant’s
quarters) shall be entirely in accordance with
the plans drawn by
Louise Wileman, Project 1702, Drawing # One1/5, Two/1 and 2,
Three/1-4,001 -1003, 2001 & 3001 –
3002 all dated
2019-12-17; all Revision 0 (as indicated in the attached Annexure C),
to the satisfaction of the Director:
Development Management and
only used as such.”
[37]
Again, whether or not the above were to be
effective or not, Folkes Holdings was clearly alive to the danger of
the Applicant applying
for one thing and then using the subject for
another.
[38]
On 18 October 2021 Mr Brümmer
responded to the appeal on behalf of the Applicant. In the
response, he
again referred to the LUMS application as being one to
permit
two
dwelling units and domestic staff quarters within the existing
buildings on the subject property. He yet again addressed
the
concern about the possibility of the first floor of the outhouse
being used as a third dwelling unit by stating that the intended
use
was only for two dwellings (and staff quarters) and not three
dwellings. Turning to Condition 2.1 the following
was
stated by Mr Brümmer:
“
3.2
Condition 2.1 of the approval
The concern regarding a
third dwelling unit on Erf 4[…] is not justified as
application has specifically been made for
two units and not three.
At the time the
application was submitted, the property formed part of a PT2 parking
zone which requires no parking for any land
use. Consideration
was however given to the fact that there are 3 parking bays on the
site and it was considered appropriate
that the property only be
developed with two units with two bays reserved for the main house
and one bay for the smaller second
dwelling, as per the standard
parking requirements. Parking and transport in the road will
not be exacerbated and it is most
relevant that the City’s
Transport branches have no objection to the proposal, as such
indicating that there will be no negative
impact on the road
infrastructure.
There is accordingly no
objection to the condition of approval being amended as suggested by
the appellant.”
[39]
In other words, the Applicant accept that a
protective condition should be imposed to ensure that the subject
property was in fact
used in the manner applied for.
[40]
The City’s Planning Directorate then
prepared a report on the appeal of Folkes Holdings. This report
was addressed to
the Appeal Authority and is dated 8 December 2021.
The report recommended that the appeal be dismissed. It
was
felt that the appeal did not raise any new issues.
[41]
In terms of the procedures, the appeal did
not go directly to the Appeal Authority. The appeal was first
considered by the
City’s Planning Appeals Advisory Panel
(‘PAAP’). On 22 February 2022, PAAP held
a meeting at
which various matters were raised by the legal
representatives of Folkes Holding, including that there had been no
or insufficient
traffic studies conducted taking into account the
potential uses of the property which would flow from the removal of
the
restrictive
title deed conditions; and that the MPT decision had extinguished
important rights of owners of property owners in D[…]
W[…]
Street pertaining to amenities and the character of the area in the
absence of full information. But the argument
which would
eventually win the day for Folkes Holdings was expressed as follows
(as per the transcript which forms part of the
Rule 53 record):
“
And
before the MPT it was contended that in fact the current land use of
the property in question was not as represented in the
application.
The current land use of the property was to provide for three
effectively dwelling units which were utilised
in the context of an
accommodation establishment, a letting business where these
residential units were let out on Airbnb and where
in fact, the
applicant owner was not resident on the property and one was not
dealing with the situation where the dominant use
was in fact a
single residential dwelling use i.e., a dwelling for the
accommodation of the family.
So, the actual use was in
fact at odds with what the zoned and use rights were which provides
for up to three dwelling units on
a single residential property and
provides further as a consent use that they can be used for the
purposes of a bed and breakfast
or an accommodation facility,
provided the dominant use remains single residential and that
requires also that the owner be resident
on the property if one …
if a consent for the purpose in this case a bed and breakfast
establishment or accommodation facility
is permitted.
That
was an issue that in fact the MPT in the face of the objections by
the appellant, that the actual land use was not conformity
with the
application, dealt with merely by saying that in terms of the site
development plan
ex facie
,
the plan, it provided for two dwelling units effectively and that was
referred to as a domestic quarters.
. . .
This was an application
that was put up in fact on … not on a forthright candid
disclosure of the actual position, and that
in fact should itself,
really be dispositive of the application. An applicant cannot
seek to present on a misleading or incorrect
basis the factual
situation, and then ask the tribunal or the decision-making body to
exercise its jurisdiction and its discretion
on the basis of
incorrect assumptions….
. . .
So, the point simply is
that this was made at the MPT as well and brushed over simply by
referring to the development plan and imposing
a condition that it
can be used in accordance with the development plan, but it is
currently being used, contrary to what was being
applied for as three
Airbnb units.
. . .
And the point which has
not been addressed, is that before an applicant can seek a revision
or deletion of title deed conditions
which regulate land use, the
decision-maker and those advising it must be in a position to assess
the contemplated land use and
to make recommendations. It does
not help if in fact, the functionaries are considering a land use
which is in fact not the
actual or contemplated land use.”
[42]
This
was not an argument which had been raised before, at least not in the
terms set out above. I say this not because I believe
that it
was impermissible to raise this issue. I express no view on
that.
[5]
I mention that the
argument was new because it must have caught the City officials and
the Applicant’s representative, Mr Brümmer,
off
guard, which explain their responses set out below.
[43]
When Mr Brümmer responded to the
above submission on behalf of the Applicant he initially stuck to the
response set out
above. He said:
“
It
is correct that there are three units, there are three kitchens. We
have not applied for three units because of a parking shortage
therefore, our application was for two units and a domestic staff
quarters….”.
[44]
In reply, counsel for Folkes Holdings then
drove the argument home:
“
That
is the core problem in this matter. We know that this is three
dwelling units, we know that contrary to item 21 of the DMS,
the
landowner does not live in a dwelling unit. We know that this is
unlawful, but you are being asked to ignore all of that and
revise
land use conditions to facilitate in fact a contemplated land use
which in fact is never going to occur and has never occurred
from the
time of the MPT to today.”
[45]
From here the debate lost shape. In a
follow-up, Mr Brümmer then stated:
“
I
just want to say that there is actually, apart from the title deed
conditions which are a problem and obviously the building has
been
illegal since ‘97 when my client bought it, renting out a
dwelling unit as an Airbnb is a temporary accommodation, she
does not
need to live in any of the erven, each of those erven would be
effectively a dwelling unit which could be rented
out for 30 days to
a group of five people in each, that is what the DMS permits at
the moment.
So, the argument that is
being put before you that there is an illegal use of Airbnb actually
is not relevant, because if the title
deed was amended today and
those two units plus the domestic staff quarter were legalised, they
would be able to be rented out
as temporary accommodation for 30 days
at a time to five people.”
[46]
If above is read in context, Mr Brümmer
intended to deal with the issue of whether the
existing
use
was unlawful
under
the DMS
. This involved whether
the Applicant had to live in the dwelling and the potential use of
the subject property under the
DMS (the floor of rights).
Mr Brümmer did not suggest that the intention of the
Applicant was to use the subject
property as per what the DMS allowed
and differently to what she applied for. That would have been
entirely inconsistent
with the manner in which the issue was dealt
with by Mr Brümmer before.
[47]
However, Mr Naude who was responsible
for the MPT Report then stated that:
“
We
were under the impression that the staff, the servant’s
quarters would be a servant’s quarters. It is like today
the
applicant the first time mentioned that it is, even though it is
approved as a servant’s quarters for domestic room,
is going to
be used not as what it is supposed to be and that therefore it is the
third dwelling and it is definitely going to
require parking.
…
you
are allowed to have three dwelling units on the property, but then
you have to be able to provide parking as well. The reason
why they
are calling it a servant’s quarters now, is because servants
with domestic rooms do not require any additional parking
on the
property. So, they are trying to get away with that additional
parking which they cannot provide on site, and they never
applied for
parking departure at any point in time.”
[48]
But this is not correct. Mr Brümmer
never said that the Applicant intended to use the subject property in
a way
different to her application. What he did say at the PAAP
hearing was:
“
What
is important is that when our client purchased the property back in
‘97, there were already two dwellings on the property
and she
in fact bought a share of the building with a larger unit and then a
few years later she bought the second share with the
second unit and
then underneath the whole lot was the domestic staff quarters…
So, she has been really
trying very hard to get this legalised and it is correct that there
are three units, there are three kitchens.
We have not applied for
three units because of a parking shortage therefore, our application
was for two units and a domestic staff
quarters, the quarters right
at the bottom…”
[49]
In any event, both Mr Naude and the
Chairperson of PAAP were alive to the need to impose a protective
condition to ensure that
the Applicant is restricted to that which
she applied for, i.e. two dwellings and the domestic staff quarters.
[50]
In this regard, Mr Naude stated:
“
They
are allowed to have staff quarters, obviously, the plans are approved
or will be approved with naming it as a servant’s
quarters or
domestic quarters. So therefore, whatever happens in the
future, that room cannot be used as a dwelling unit
to rent out to
anybody, it needs to be a servant’s or domestic room.
That is what the building plan that will be approved
will indicate,
it will show as a servant’s quarter or domestic room, so they
cannot use it for something else like a dwelling
unit to rent out to
anybody.”
[51]
The Chairperson stated:
“
So,
what I am looking at is, if we were to put additional conditions to
the approval about the usage that, for example, the conditions
are
that the main house must … the owner must live in the main
house and that the domestic quarters cannot be used for any
other
purpose etcetera, it is something along those lines that we could add
to this. Japie?”
[52]
As suggested by the Chairperson of the
PAAP, the obvious response to the point raised by Folkes Holding
before the PAAP was to reformulate
the protective condition so as to
ensure that the future use of the subject property would be in line
with the application before
it. This was already an issue
before the MPT. I can think of no reason why the protective
condition could not be tightened
up on appeal to ensure that it
fulfils its purpose. The adjustment of the protective condition
was indeed the fall-back position
of Folkes Holdings in the internal
appeal.
[53]
Reverting to what was stated at the outset,
the PAAP lacked the kind of problem-solving approach which is
required. For instance:
why could Mr Brümmer
not simply have been asked to clarify, in terms, whether the
Applicant intends to use the property
as applied for and how a
condition could be formulated so as to ensure that this happens.
There would have been no unfairness
to anyone if that obvious and
common sense approach was followed. Instead, the process was
ultimately aborted and rebooted
for no good reason.
[54]
Based on the above, I find that:
54.1.
Accurate information regarding the existing
use of the subject property was before the MPT and the PAAP.
54.2.
To the extent that future use was relevant,
there was no information before the PAAP or the Appeal Authority
which suggested that
the Applicant intended to use the subject
property differently to the stated intention in her application.
54.3.
In any event, the danger of the subject
property being used differently to what was applied for could be
addressed through an effective
protective condition.
54.4.
Certainly it could not be found that the
Applicant sought to mislead the City by applying for two dwellings
with a domestic staff
quarters whereas in fact the Applicant’s
subjective intent was to operate three dwellings as Airbnb units on
the subject
property. If that was the case, she would have
objected to the principle of imposing a protective condition.
Bear in
mind, also, that she could not meet the parking requirements
which existed at the time and accordingly had no use for a right to
operate three dwellings.
[55]
Nevertheless, the PAAP recommended to the
Appeal Authority that the appeal be upheld in so far as the removal
of title deed conditions
are concerned. The PAAP’s
reasons are summarised as follows in by the Appeal Authority:
“
13.1
The current use is in contravention with the Municipal Planning
By-law, as all three units are rented out
as Airbnb accommodation.
13.2
The third unit is clearly not used as domestic staff quarters.
13.3
The proposal does not comply with the parking requirements.”
[56]
The basis for the negative recommendation
in the last subparagraph is that the Applicant does not meet the
parking requirements
for operating three Airbnb units, which is
something she never applied for.
[57]
On 21 April 2022 the Appeal
Authority followed the recommendation and partially upheld the
appeal. The Appeal Authority
substituted the decision of the
MPT with the following:
57.1.
The application for the removal of the
restrictive conditions, i.e. the single dwelling restriction
(conditions E(2) and E(3)) was
refused.
57.2.
The application for the removal of the
restrictive conditions, i.e. the consent restriction (F.(2) and
F.(3)) was granted.
[58]
The relevant parts of the Appeal
Authority’s reasons are the following:
“
14.11
The applicant’s formal response to the objection, dated
12 April 2021, and the
facts do not correlate.
Clearly there were, and still are, three dwelling units on the
property. It is cynical and
misleading to label the third as
“
domestic quarters
”
.
It is obviously not compliant with the DMS definition of “
domestic
staff quarters
”
as it is not used
for the accommodation of domestic staff employed at the dwelling
house.
14.12
In addition, the original application is based on patently wrong, if
not misleading,
information in respect of motivating the removal of
the “
one dwelling
”
title restriction. The motivation is based
on the pretext that a second dwelling unit “
for
a family to reside in the area
”
is
being provided. The appellant deliberately chose not to
motivate the alternative use of three dwelling units exclusively
for
transient guests which has been, and still is, the case. By
intentionally omitting to present the true facts of the status
quo
and the future intentions, the following consequences arise:
·
Potential objectors were denied the
opportunity to respond to this aspect.
·
The MPT decision was based on a motivation
that did not truthfully reflect the use of the property.
·
No motivation was presented by the
applicant for removing the title deed conditions in order to make the
DMS’s flexibility
permitting three dwelling units to be used
exclusively as temporary accommodation for transient guests.
This is the context
which the decision-maker should have considered
in applying its mind to section 39(5) of LUPA and section 47
of SPLUMA.
·
The applicant is in breach of the By-law.
14.13
The above comments are not an assessment of the merits of using the
property as
rented accommodation for short-stay guests.
However, it underscores the point that the applicant’s town
planning consultant
failed to demonstrate the merits of approving the
application for the purposes of having three dwelling units to be
used exclusively
for transient guests. As a result, the “one
dwelling” title deed restrictions cannot be removed as the case
has
not been made, and considered, as required in terms of SPLUMA and
LUPA.
. . .
14.16
. . . The application does not provide the required four parking bays
given that
the so-called “domestic staff quarters” is
indeed a third dwelling unit. No parking departure was applied
for
and therefore cannot be granted. As a result, the current
use of three dwelling units is a contravention of the DMS and will
continue to be so unless a parking departure is applied for and
granted.
. . .
14.20
The appellant did request that if the appeal is not upheld, and the
title deed conditions
remain removed, that condition 2.1 be
reworded that the existing building “
shall
be entirely in accordance with
”
the
plan submitted as opposed to being “
generally
in accordance
”
with. I note
that the applicant has no objection to such rewording. However,
this will result in an unnecessary administrative
burden, given that
the departures are already specified to the nearest millimetre.
. . .
14.22
The Condition of title, F.(3) also states “That not more than
one dwelling
be erected on any one lot without the written consent of
the Council of the City of Cape Town.” The City, through
a
series of amendments to the By-law, adopted the position that erven
zoned Single Residential SR1 may contain three dwelling units
as of
right and that each family or a by maximum of 5 transient
guests. In this context, it would be inconsistent not
to grant
the City’s consent, had it been applied for, even if the units
are to be used expressly for short-stay holiday accommodation.
I am, therefore, of the view that Condition F.(3) may be deleted
in its entirety.”
[59]
My difficulty with the above is that it
again assumes that the Applicant applied for three dwelling to be
used as Airbnb units.
This is not the case. She applied
for two dwellings and domestic staff quarters and to the extent that
there was a danger
that the subject property was to be used in a
different way, the obvious solution was to tighten the protective
condition.
# The legal framework
The legal framework
[60]
Restrictive conditions are conditions
registered against the title deeds of property restricting, in the
main, its potential uses.
They cannot be overruled by a
town planning scheme.
[61]
The City has explained, and it is common
cause that:
61.1.
In the present instance, the single
dwelling restrictive condition are of a type that were imposed at the
time that the township
where the property is located was created and
are “
developer’s restrictive
conditions”
. The
restrictive conditions F.(2) and F.(3) are of a type that were
imposed by a government body in terms of laws that predate
the
Townships Ordinance 33 of 1934 and are “
pre-1935
government-imposed conditions
”.
61.2.
Unlike conditions imposed by a government
body in terms of the
now-repealed
Townships Ordinance 33 of 1934 and the Land Use Planning Ordinance 15
of 1934, developer’s restrictive conditions
and pre-1935
government-imposed conditions, do not involve a condition or approval
granted or deemed to have been granted in terms
of the MPBL. The City
is therefore not required to enforce compliance with such conditions.
61.3.
Surrounding property owners and others in
the area may however seek to enforce such restrictive title deed
conditions.
61.4.
For this reason, an owner will often apply
in terms of s42(g) of the MPBL for the amendment or removal of a
title deed restriction
which stands in the way of an intended
development. The City has the power in terms of the MPBL to grant
such an application.
[62]
Because the LUMS application was accepted
by the City on 23 January 2020, it fell to be determined in
accordance with
the MPBL as it read prior to amendment by the City of
Cape Town: Municipal Planning Amendment By-law, 2019 which came
into
effect on 3 February 2020. This follows from
s142(9) of the MPBL, as amended in 2019, which provides as follows:
“
24.
Section 142 of the principal By-Law is hereby amended by the
insertion after subsection (8) of the following subsection:
“
(9)
Notwithstanding any amendment to this By-Law which may come into
effect, an application that has already been accepted by the
City in
terms of section 74(a) before the date that the amendments
become effective, will be processed and considered in terms
of the
legislation as it existed at the time of acceptance.”
[63]
The MPBL contains a section which
specifically deals with the removal of title deed restrictions.
Section 42 of the MPBL
specifically provides for applications
for the “
amendment, suspension or
deletion of a restrictive condition or consent or approval in terms
of, or the relaxation of, a restrictive
condition in a title deed
where the restriction relates to use,
subdivision, development rules or
design criteria
…”.
[64]
Section 99(1)(a)
of the MPBL provides that an application must be refused if the
decision-maker is satisfied that it fails
to comply with certain
minimum threshold requirements, one of which is that the
application must comply with the requirements
of the MPBL.
[6]
One of the requirements that the application must comply with
is s78 of the MPBL, which provides as follows:
“
78
Duties of an applicant
(1)
An applicant must ensure that –
(a)
no misrepresentation is made to the City;
(b)
the City is not misled;
(c)
all information furnished to the City is accurate; and
(d)
the application does not omit any relevant information.
(2)
A person who contravenes subsections (1)(a) or (1)(b) is guilty
an offence and
upon conviction is liable to the penalties
contemplated in sections 133(2) and 133(3).”
[65]
If the application is not refused under
s99(1) of the MPBL, the decision-maker must consider all relevant
considerations including
those aspects set out in ss99(2) and (3) of
the MPBL.
[66]
Section 99(2) lists as relevant
considerations: criteria contemplated in the DMS; any applicable
policy or strategy approved
by the City to guide decision making; the
extent of desirability of the proposed land use; impact on existing
rights; and other
considerations prescribed in relevant national or
provincial legislation including the development principles contained
in s7 of
the Spatial Planning and Land Use Management Act 16 of 2013
(‘SPLUMA’).
[67]
Section 99(3) then sets out the
considerations which are relevant to an assessment of whether the
proposed land use would be
desirable:
“
(3)
The following considerations are relevant to the assessment under
subsection (1)(c) of whether,
and under subsection (2)(d)
of the extent to which, the proposed land use would be desirable –
(a)
socio-economic impact;
(b)
…
(c)
…
(d)
compatibility with surrounding uses;
(e)
impact on the external engineering
services;
(f)
impact on safety, health and wellbeing of
the surrounding community;
(g)
impact on heritage;
(h)
impact on the biophysical environment;
(i)
traffic impacts, parking, access and other
transport related considerations; and
(j)
whether the imposition of conditions can
mitigate an adverse impact of the proposed land use.”
[68]
In addition to these considerations, and
assuming that the application is not refused under s99(1) of the
MPBL, s48(4) of the MPBL
read with s99(2)(g) requires the City to
have regard to s39(5) of the Western Cape Land Use Planning Act 3 of
2014 (‘LUPA’)
and s47 of SPLUMA when considering whether
to remove, suspend or amend a restrictive condition. Thus, the
City must take
into account:
68.1.
the public interest and the rights of those
affected (ss47 and 42(1)(c) of SPLUMA); and
68.2.
the criteria listed in s39(5) of LUPA which
are:
“
(a)
the financial or other value of the rights in terms of the
restrictive condition enjoyed by a person or entity,
irrespective of
whether these rights are personal or vest in the person as the owner
of a dominant tenement;
(b)
the personal benefits which accrue to the
holder of rights in terms of the restrictive condition;
(c)
the personal benefits which will accrue to
the person seeking the removal, suspension or amendment of the
restrictive condition
if it is removed, suspended or amended;
(d)
the social benefit of the restrictive
condition remaining in place in its existing form;
(e)
the social benefit of the removal,
suspension or amendment of the restrictive condition; and
(f)
whether the removal, suspension or
amendment of the restrictive condition will completely remove all
rights enjoyed by the beneficiary
or only some of those rights.”
[69]
It is clear that there is a wide set of
considerations which the City must take into account in determining
an application in terms
of the MPBL generally, and in determining an
application for the removal of restrictive conditions in particular.
[70]
Lastly as regards the MPBL, s108 confers
the following powers to the Appeal Authority:
70.1.
The Appeal Authority may receive relevant
information and reconsider the matter afresh (s108(5)); and
70.2.
The Appeal Authority may “
uphold
part or all of the appeal and vary the decision appealed against
”
(s108(7)(b)(i)).
[71]
To the extent that there was any doubt, the
Appeal Authority had the power to seek clarification from the
Applicant regarding what
her intentions were regarding future use
and, if considered necessary, to impose further protective conditions
to ensure that she
did not actually use the structures on the
property in contravention of what she was allowed to do.
# The review grounds
The review grounds
[72]
In this part I briefly summarise the
Applicant’s review grounds, it being common cause that
the impugn decision is administrative
action within the meaning of
the term in PAJA.
[73]
Firstly
,
regarding the alleged lack of information and more particularly, the
omission to describe (a) the then current use of the property
and (b)
the implications of the 2019 amendment), the Applicant contends that
these were not relevant considerations and the Appeal
Authority’s
decision is accordingly contrary to s6(2)(e)(iii) of PAJA. In
this regard, the Applicant contends that:
73.1.
How the property was used prior to the LUMS
application and even at the time of the application is simply not
relevant to the determining
the merits of the removal application
because the application is concerned with the desirability of how the
property will be used
in future, not how it has been used in the
past.
73.2.
The implications of the amendment of the
MPBL could also not serve as a ground for refusal of the removal
application. This is because,
in terms of s142(9) of the MPBL, the
application was to be processed and considered under the law as it
stood prior to the amendment.
73.3.
The Applicant can hardly be faulted for
failing to address something that the MPBL did not require her to
address. Had the
Appeal Authority nevertheless wanted that
information to decide the matter afresh in accordance with its wide
appeal powers, it
ought to have called for it.
[74]
Secondly
,
the Appeal Authority committed a material error of law and fact by
relying on what the Appeal Authority believed (or perhaps inferred)
to be the subjective intention of the Applicant. It was assured
that she would use her property other than as set out in
her LUMS
application. The Appeal Authority inferred that the Applicant
stated in the LUMS application that she will use the
subject property
for two family homes whereas in fact, she was going to use it as it
was used when the application was submitted,
namely as three Airbnb
units. The Applicant contends that there was no basis for
drawing the inference.
[75]
Thirdly
,
the Appeal Authority’s decision was irrational as it removed
the title deed restriction which favoured the Applicant, i.e.
the one
which granted a right to the City to consent that the subject
property may be used for more than a single dwelling. This
left
the Applicant in a worse position than she would be had the entire
application been dismissed at the outset or had the full
appeal been
upheld.
# The Respondents’
submissions
The Respondents’
submissions
## (i)The City’s submissions
(i)
The City’s submissions
[76]
The City contends that because of the
complexity of the task imposed by the MPBL on the City, in terms of
which it must consider
and weigh up a wide range of factors in order
to determine the merits of an application, the MPBL empowers the City
to refuse a
planning application where it is not possible for it to
assess an application on all the relevant facts. It is in this
context
that s99(1) of the MPBL requires that the decision- must
refuse an application if he or she is satisfied that it does not
comply
with the requirements of the By-Law. Section 78(1)
of the MPBL imposes a duty upon an applicant to ensure that the City
is not misled; that all information furnished to the City is
accurate; and that the application does not omit any relevant
information.
It stands to reason that an application must
necessarily be refused if the requirement in s78(1) of the MPBL is
not met, because
in the absence of accurate and full information, the
enquiry, for example as regards desirability, cannot be undertaken.
[77]
Furthermore, according to the City, the
Appeal Authority’s decision to refuse to grant the removal of
title deed restrictive
conditions E(2) and E(3) was not based on the
merits but on the basis that the LUMS application had been materially
incomplete
in the following respects:
77.1.
Firstly, the LUMS application had omitted
to describe what the current use of the property was, which was
regarded to be a relevant
consideration regardless of what
the intended use of the property was.
Furthermore, the LUMS application had omitted to assess what the
factual implications
were of the 2019 amendment to the MPBL.
This, it was believed, had significant consequences for both the
proper assessment
of the removal application by the various City
officials and for a fair public participation process.
77.2.
Secondly, the officials who had been tasked
with assessing or commenting on the LUMS application had not been
aware of the current
use of the property and had not focused on the
true implications of the 2019 amendment for the removal application.
The implications
for parking and traffic in D[…] W[…]
Road, for example, had not been assessed based on all the relevant
information.
The Appeal Authority determined that
although the Applicant denies the assertions regarding traffic and
parking, she did not provide
any facts in support of this denial.
While the MPT must be taken to have known about
the 2019 amendment, it was for the
Applicant to have motivated why the restrictive conditions should be
removed, and what the implications
of that would be.
77.3.
Thirdly, the public, having read the
motivation, would not have been alerted to the
fact that
if
the
restrictive
title deed conditions
were
to
be
removed,
the
subject
property
would
be
capable of
being
used for three Airbnbs
accommodating
up
to 5 transient
guests each. Nor were they alerted to the fact that the actual
use of the property was already for such purposes.
[78]
The City further contends that the
application for the removal of the restrictive title deed conditions
could not be determined
by the Appeal Authority in the absence of a
full and complete application; proper assessment by the various
officials; and a proper
public participation process.
[79]
In this regard, reliance is placed on
s99(1) of the MPBL which requires that an application be refused if
the decision-maker “
is satisfied
”
that it does not “
comply with the
requirements
” of the MPBL.
The City contends that the Appeal Authority was satisfied that the
removal application had been misleading
(whether intentionally or
not); that the information had not in all respects been accurate; and
that materially relevant information
for purposes of the removal
application had been omitted.
[80]
For these reasons, the City contends that
the LUMS application for removal of the single dwelling restriction
did not comply with
s 78 of the MPBL.
[81]
As regards the restrictive conditions F(2)
and F(3), the City contends that:
81.1.
Condition F(2) could be removed because it
related only to the street setback and its removal had been properly
motivated by the
case
officer
who had assessed the departures.
81.2.
The part of condition F(3) which limited
the area that could be built upon to 30%, was linked to the setback
departures which had
been assessed by the case officer and the MPT to
have a minimal negative impact, and could therefore be removed.
81.3.
The other part of condition F(3), namely
that not more than one dwelling could be erected on any one lot
without the written consent
of the City could also be removed. The
reason for the decision as regards condition F(3) was that the City
had, through a series
of amendments to the MPBL, adopted the position
that erven zoned SR1 may contain three dwelling units as of right and
that each
of
these
dwelling units may be used as accommodation by either one family or a
by maximum of
5
transient
guests. It would be inconsistent not to grant the City’s
consent were it to be applied for.
[82]
The effect of the decision of the Appeal
Authority is that the Applicant is not entitled to more than one
dwelling on the subject
property and that house shall only be used as
a “
dwelling house
”.
The Applicant is also no longer entitled to apply for the consent of
the City for increased or different use of the
subject property.
## (ii)Folkes Holdings’ submissions
(ii)
Folkes Holdings’ submissions
[83]
Section 48(4) of the MPBL provides
that:
“
The
City must have regard to section 39(5) of the Land Use Planning
Act and section 47 of SPLUMA when considering whether
to remove,
suspend or amend a restrictive condition.”
[84]
Folkes Holdings contends that the factors
set out in s39 of LUPA are pivotal to the determination of an
application for the removal
of restrictive conditions made under the
MPBL.
[85]
Folkes Holdings contends that, contrary to
what is argued by the Applicant, the potential (future) use of the
property in the event
that the application is granted must be
considered as it bears on these factors, and in particular the effect
of such removal on
the holder of rights in terms of the restrictive
condition. The Applicant’s motivation for the removal of
the remaining
conditions failed to adequately address the SPLUMA and
LUPA criteria for the determination of such an application, as
required
in terms of s78(1.
[86]
Folkes Holdings contends that before an
applicant can seek a revision or deletion of title deed conditions
which regulate land use,
the decision-maker and those advising it
must be in a position to assess the contemplated land use and to make
recommendations.
It does not help if the functionaries are
considering a land use which is in fact not the actual or
contemplated land use, as recommendations
will be made on the basis
of the land use requirements and consequences, for example, in
relation to parking, traffic density in
the road and related issues,
which are inappropriate or in fact, of no application.
[87]
Folkes Holdings contends that if a land use
restriction is to be altered in furtherance of a different land use,
which is stated
to be acceptable, the correct land use must be
presented for the decision-maker’s evaluation.
# Analysis of review
grounds
Analysis of review
grounds
[88]
I deal with the review grounds in the
following order:
88.1.
Non-compliance with s78 of the MPBL;
88.2.
Existing use and intention to use in
future; and
88.3.
Rationality and the removal of the consent
restriction.
## (i)Non-compliance with s78 of the MPBL
(i)
Non-compliance with s78 of the MPBL
[89]
It will be re-called that s78 of the MPBL
imposes duties on an applicant not to make misrepresentations to the
City; not to mislead
the City; to ensure that all information
furnished to the City is accurate; and that the application does not
omit any relevant
information.
[90]
If the applicant fails to ensure that no
misrepresentation is made or fails to ensure that the City is not
misled, a criminal offence
is committed. This does not apply to
a failure to ensure that all information furnished to the City is
accurate and that
no relevant information is omitted. The City
argues that if one or both of the latter applies, a requirement of
the MPBL
is not complied with and the application can be refused on
this basis alone under s99(1)(a) of the MPBL (which was in force when
the Applicant made her application but was subsequently repealed).
[91]
Section 78 is problematic if read as a
standalone. How would an applicant, especially one not able to
afford expert assistance,
know what is relevant for purposes of a
LUMS application? Take the present matter as an example: there
is no provision of
the MPBL or the application form which requires an
applicant for a removal of a title deed restriction, or for that
matter any
other LUMS application under the MPBL, to provide
information regarding the existing use of the property. How
should an applicant
know that this must be provided and that the
failure to do so would be fatal? It is not obvious.
[92]
Reading s78 of the MPBL as a standalone
would also be inconsistent with the detailed provisions regarding the
procedure to be followed
when making a LUMS application, set out in
ss70 to 76 of the MPBL. Those provisions:
92.1.
Provide that the City may require an
applicant to consult with an authorised official regarding the
information which must be submitted
with the application (s78(10(a);
92.2.
Provide that the City Manager may prescribe
requirements to determine the nature of the information that is
required (s78(2);
92.3.
Set out in great detail what information is
required and provide that the City Manager may call for additional
information before
acceptance (s71(3)(l);
92.4.
Provide that the City must refuse to accept
(not refuse) an application which does not comply with an information
specification;
lacks necessary information required in terms of s71;
or contains manifestly incorrect information (s73(1)(c);
92.5.
Provide for the calling of further
information after acceptance (s75); and
92.6.
Provide that an application is complete if
the City has received the application fee, and all information
necessary for the City
to assess the application and the information
submitted is compliant with all information specifications (s76).
[93]
An interactive process is envisaged by the
above. In terms of the approach, the City works together with
the applicant to
ensure that all relevant information is obtained
before the public participation commences. It is not a
competitive process
and hence there is no difficulty with the City’s
planning officials providing assistance or even guidance to an
applicant
as to what is required. Ultimately the MPT, staffed
at least partially with members independent from the City, makes the
decision.
[94]
Given the above provisions, s78 cannot be
interpreted to allow the City at the end of the process and at the
appeal stage, to turn
around and refuse an application because of a
view formed at that stage that there was failure to provide relevant
information.
Read in context, s78 allows a refusal only when
the information is required by the MPBL or called for by the City and
then not
provided in the sense that relevant information is withheld.
This fits in with the remainder of the section, which relates
to attempts to misrepresent, mislead and so on. Section 78
relates to a wilful failure to provide relevant information
required
by the MPBL or the City. That was not the case in the present
matter.
[95]
In any event, the information relating to
the existing use was not relevant in the present matter. Whilst
there may be cases
where intended use can be inferred from existing
use, this is not the position in the present matter. Here the
Applicant
spelled out her intentions regarding future use (two
dwellings and the domestic staff quarters) and did not object to
conditions
which would have ensured that the subject property is used
in accordance with her intent.
[96]
Finally, even assuming that it is relevant,
the information regarding existing use was before the MPT and the
Appeal Authority.
It was provided by Folkes Holdings. It
is so that the information was provided in response to the call for
public comment
on the application. It is also so that the
public was not alerted to the existing use by the Applicant herself.
But
the public participation process cannot be rebooted on every
occasion when new and relevant information is provided by an objector
so that others can comment on the new aspect. If this were to
be the case the process would be circular and never ending.
It
is also difficult to understand what the purpose of public
consultation would be if
the Applicant
has to provide all relevant information, whether favourable or
unfavourable. This would mean that the only new issues which
the public can raise would be irrelevant ones, which could never be
right. The question is whether all the relevant facts
were
before the decision-maker and not about who placed those facts before
the decision-maker.
## (ii)The relevance of subjective intent
(ii)
The relevance of subjective intent
[97]
Counsel for the Applicant referred me to
cases which indicate that the subjective intent of an applicant is
not relevant.
[98]
In
Longkloof
Residents’ Association and Others v Future Found Properties
(Pty) Ltd and Another
(unreported
judgment in the Western Cape High Court, case number 21290/2021,
delivered on 25 May 2022), the Court held
that:
“
The
subjective intention of the person who submits the plans is
irrelevant. The assumption that in future the residence on Erf 1[…]
will be used contrary to the approved building plan and contrary to
the zoning rights attached to the first respondent’s
property
has been denied by the first respondent but is, in any event, a
consideration which cannot be taken into account by the
City when
presented by a compliant application for building plan approval.”
[99]
The Court in
Longkloof
endorsed the following passage from
Sinclair-Smith
and Another v Saphrey Trust and the City of Cape Town
(unreported judgment in the Western Cape High Court, case number
9987/2009, delivered on 24 June 2009), where the Court
held
that:
“
it
is incumbent on the City of Cape Town to consider whether plans
objectively comply with the zoning and building regulations and
that
the subjective intention of the person who submits the plans is
irrelevant.”
[100]
Counsel for the City and Folkes Holdings
sought to distinguish the above authorities on the basis they were
concerned with building
plans and not land use planning applications.
[101]
I do not agree. Generally speaking,
it seems to me that the subjective intention of an applicant in a
land use application
would also be irrelevant. I see no reason
why a decision-maker should concern itself with allegations of
subjective intent.
For instance, why should there be a concern
that an applicant for a rezoning from “
residential
”
to “
place of instruction
”
actually subjectively intend to run an “
abattoir
”
on the property? Surely, in such a case, the City must rely on
the enforcement rights it has in law to stop actual
breaches of
permitted land use when they occur. See, for instance, the
extensive powers granted to the City under Chapter 9
“
Enforcement
”
of the MPBL (ss123 to 135).
[102]
Even in the peculiar circumstance of the
present matter subjective intent may not have been relevant. What
I mean is that
the mere fact that the Applicant may have subjectively
intended to use the subject property different to what she applied
for is
not in itself a reason for refusing the application. Her
intent was irrelevant provided that there was a proper formulation
of
the extent to which the restrictive conditions was relaxed or amended
or, if scrapped, a proper formulation of a protective
condition to
ensure that the Applicant’s use of the subject property remains
what was granted.
[103]
Since the City does not enforce the
particular title deed restrictions which are the subject of the
present application, it may
have been better to consider imposing a
condition (as was suggested by Folkes Holding) rather than
reformulating the title deed
restriction. Once a condition is
imposed, s133 of the MPBL comes into play, which provides that a
person is guilty of an
offence if the person contravenes a decision
taken or a condition imposed or deemed to have been taken or imposed
in terms of the
MPBL. In short, any attempt to contravene the
condition could be addressed by invoking this section.
## (iii)Rationality and the removal of the
consent restriction
(iii)
Rationality and the removal of the
consent restriction
[104]
The Appeal Authority’s reason for
removing the consent use application is as follows:
“
The
Condition of title, F.(3) also states “That not more than one
dwelling be erected on any one lot without the written consent
of the
Council of the City of Cape-Town.” The City, through a series
of amendments to the By-Law, adopted the position that
erven zoned
Single Residential SRl may contain three dwelling units as of right
and that each of these dwelling units may be used
as accommodation by
either one family or a by maximum of 5 transient guests. In this
context, it would be inconsistent not to grant
the City’s
consent, had it been applied for, even if the units are to be used
expressly for short-stay holiday accommodation.
I am, therefore, of
the view that Condition F.(3) may be deleted in its entirety.”
[105]
The Applicant’s contention is that it
makes no sense and it is irrational to remove Condition F.(3) if the
single dwelling
restriction is to remain as it would result in the
Applicant being worse off than before she applied for the removal of
the single
dwelling restriction.
[106]
I agree with the Applicant on this issue as
well. If the single dwelling restriction is
to
be removed
and if replaced with a
condition under the MPBL that the Applicant may only use the subject
property for two dwellings and domestic
staff quarters, then
Condition F.(3) should also be removed. If not in this
scenario, it would leave the Applicant with
another option to seek
consent for use other than that applied for in the LUMS application.
But if the single dwelling restriction
is
to remain
, there is no rational basis
for removing the option of obtaining consent. Neither the
Applicant nor Folkes Holding asked
for the removal of Condition F.(3)
in those circumstances. If anything, if this part of the Appeal
Authority’s
decision is left intact it would prejudge the
merits of the removal application. I say this because if the
consent application
must succeed because of the underlying floor of
rights for an SR1 zoning then the same should apply to the removal
application.
# Costs
Costs
[107]
Biowatch Trust v Registrar Genetic
Resources and Others
2009 (6) SA
232
(CC) applies and costs must follow the result as far as the
dispute between the City and the Applicant is concerned. As far
as Folkes Holdings is concerned, the following passage in
Biowatch
is relevant:
“
[56]
I conclude, then, that the general point of departure in a matter
where the state is shown to have failed to fulfill its constitutional
and statutory obligations, and where different private parties are
affected, should be as follows: the state should bear the costs
of
litigants who have been successful against it, and ordinarily there
should be no costs orders against any private litigants
who have
become involved. This approach locates the risk for costs at the
correct door – at the end of the day, it was the
state that had
control over its conduct.”
[108]
There are however reasons to deviate from
this general point of departure in the present matter. Although
not articulated
in this way, the core category of private litigants
sought to be protected by
Biowatch
are the ones who participated in order to improve governmental
decision-making processes and then seeks to defend the outcome in
subsequent legal proceedings. A situation such as the present
one, where a law point was taken by a private party’s
representatives, which point had little to do with the merits and was
ultimately not a good one, falls at the periphery of
Biowatch
.
To this I must add that the problem raised by Folkes Holdings
could have been addressed easily through a properly formulated
protective condition (as was suggested in the written representations
and appeal). Folkes Holdings was however content to
allow the
point to derail the entire appeal. I cannot see how it should
be granted immunity from costs in these circumstances.
# Order
Order
[109]
In the result, I propose to make the
following order:
109.1.
Second Respondent’s decision to
uphold the Third Respondent’s appeal is reviewed and set aside
in its entirety.
109.2.
The matter is remitted to Second Respondent
for reconsideration.
109.3.
The First and Third Respondents shall pay
the Applicant’s costs on the party and party scale and they
shall be liable to do
so jointly and severally, the one paying the
other to be absolved.
H
J DE WAAL AJ
Acting
Judge of the High Court
Cape
Town
19 February
2024
I
agree and it is so ordered.
______________
Samela
J
APPEARANCES
Applicant’s
counsel:
Donovan
Baguley
Cei
Fehr
Applicant’s
attorneys:
Erleigh
& Associates Inc.
First
and Second Respondents’ counsel:
Michelle
O’Sullivan and Aymone du Toit
First
and Second Respondents’ attorneys:
Fairbridges
Wertheim Becker Inc.
Third
Respondent’s counsel:
Sean
Rosenberg SC and Trisha Sarkas
Third
Respondent’s attorneys:
Edward
Nathan Sonnenberg Inc.
[1]
I note that s 48(1) of the MPBL provides that the City may on
its own initiative, subject to consultation etc, remove, suspend
or
amend a restrictive condition in respect of any land unit.
[2]
Gaertner
v Minister of Finance
2014 (1) SA 442
(CC) paras 51 – 56 emphasises the
importance to a developmental state like South Africa of rigorous
and efficient
collection of customs duties. In my view this
dictum
applies
equally to the efficient assessment and determination of land
development applications.
[3]
Logbro
Properties CC v Bedderson NO
2003 (2) SA 460
(SCA) at para 8
[4]
The reference should be to “
domestic
staff quarters
”
as per the DMS definition.
[5]
Generally, even if an appeal is a wide appeal, argument must be
restricted to the grounds of appeal.
[6]
Section 99(1)(a) of the MPBL was however deleted with effect from
3 February 2020.
sino noindex
make_database footer start
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