• Infrastructure

Waterpark dream runs dry

- 2022-05-31 09:50:00

The ambitious vision of the local entrepreneur Roland Donovan Jacobs to build a 20ha water play park in Windhoek's Rocky Crest has reached a deadlock.
The land worth N$80 million is at stake for the businessman known for his Streethouse brand, which operates clothing chain stores and children’s amusement parks across the country.
After the Windhoek municipality sold 10ha for N$10.3 million for this project in 2016, and allocated the next 10ha intended for phase 2 of the project, the development was hampered by the economic recession and the extended drought, Jacobs said.
According to him, since the outbreak of Covid-19 and the accompanying restrictions, banks simply do not want to lend money for entertainment activities. Bank Windhoek announced last year that it would revoke the mortgage on the land if repayment was not brought up to date.
According to documentation from the most recent city council meeting, Jacobs took out mortgages totalling N$24 million on the property.
Council earlier this month refused to relax strict conditions on the resale of the land, insisting that bulk service infrastructure be installed first. According to the municipality, the land was allocated without a tender within the stipulations of its policy on special projects.
Looking back
In 2008, Streethouse Entertainment applied to purchase 20ha of land, southeast of Rocky Crest Extension 8, for the purposes of an amusement and recreation park. Final approval was given in 2013 and the deed of sale was signed in 2015.
Jacobs says the title deed was only transferred in May 2016, but from the signing date, he had to pay N$638 000 interest. He then had to prove to financiers that his concept could work and he established smaller amusement parks at Okahandja, Swakopmund and at Maerua Mall in Windhoek.
So far, he has already spent more than N$10 million of his own money on the development of the Streethouse Family Amusement Park, he said. In the meantime, collaboration with various partners from Canada, South Africa and local experts have come and gone.
“When I started in 2006, the cost estimate was U$20 million, which was about N$150 million. Since then, with the exchange rate, costs have skyrocketed. At Okahandja we invested N$12 million to test the concept - through the onset of the recession - but with Covid we finally had to close,” he says.
Amendments rejected
Due to the intensive need for water, the planned park was reviewed and reduced in 2017 due to a lack of supply at the site. Furthermore, in 2019 it was proposed that 50% of the land for housing be developed. On 27 May 2021, the Roads Authority approached Jacobs with a proposal to buy the land to build a new NaTis centre and a new connecting road between Rocky Crest and Pioneerspark.
Despite the fact that the construction of bulk services would be adapted to this, the municipality opposes the transaction.
“We offered them the payment of the 20% fine because no bulk service was done, but they refused,” he said.
Conditions apply to special projects to prevent speculation and ensure that the land is developed for its intended purpose as a special project, the municipality said.
In several internal meetings to discuss the development, the then-acting CEO Jennifer Comalie said the municipality would be responsible for the mortgages if the land was taken back.
Already in 2020, Fillemon Hambuda said the city council wants to avoid mistakes such as the Hilton deal when land made available at a discount for huge profits was resold by developers.
Jacobs, however, says similar mistakes are still being made. “It probably depends on who you are. I paid for my land, but many of my neighbours were allocated large tracts of land without ever paying a cent.
“I urge the municipality to expose all the contracts in Rocky Crest. That way we will see what applies to the one, is not applied to all,” he said. - [email protected]