By Nangamso Mabindla
2 September 2005

IN A bid to encourage Quigney residents to improve the quality of the East London region as part of the urban development zone (UDZ), Gaster Sharpley, the chief executive of the Buffalo City Development Agency, is holding a public meeting on Monday, 5 September.

The national UDZ tax incentive, which was recently gazetted, is a scheme aimed at encouraging inner city renewal across South Africa. Any taxpaying, property owning individual or entity may claim the tax benefits of the UDZ incentive.

The incentive takes the form of a tax allowance covering an accelerated depreciation of investment made in either refurbishing an existing property or creating new developments within the inner city, over a period of five, or 17 years, respectively.

Quigney, which is part of the beachfront, is in decline. The City has discovered that for tourism and investment to succeed, the area needs to be attractive and well maintained.

"We want to educate owners about the UDZ and the importance of refurbishing their houses when they convert them," Sharpley said. "If a property owner refurbishes and converts a house, then he or she can claim 20 percent a year for five years."

Residents will receive all the necessary information at the public meeting, ensuring they understand the importance of upgrading their properties before converting them into communes.

However, there is also an incentive for people interested in building new developments for business use.

"These individuals can claim 20 percent in the first year and 5 percent for [the next] 16 years. At the meeting we will give people such information. Hopefully this will encourage them to improve the quality of buildings in the Quigney area," Sharpley added.

He said nine estate agents had joined the agency and the municipality to help promote the UDZ.

The meeting - to be held at the Regent Hotel - will be attended by Buffalo City officials, the estate agents and other stakeholders.