Buffalo City Metro has agreed to renew the lease of the East London Golf Club for R21,500 a month — up from the R4 a year the club paid for decades, but well short of the nearly R100,000 initially proposed — ending a long-running dispute.
The agreement, approved at a recent council meeting, grants the club a lease of almost 10 years, running until the end of February 2036.
It follows months of disagreement between the two entities over sharply differing property valuations and proposed rental amounts.
The city had initially proposed charging nearly R97,600 a month after evaluating the 142ha Bunkers Hill property in KuGompo City.
The club, however, placed the value at just more than R35,000 a month.
The final figure of R21,500 was arrived at after further valuations and negotiations and included a discount applicable to the club.
Metro spokesperson Bongani Fuzile said the agreement followed a detailed process to resolve the gap between the competing valuations.
“This decision follows an initial application by the East London Golf Club requesting a 20-year lease renewal after the expiry of its previous agreement with council,” he said.
“However, the process required further review due to significant discrepancies between property valuations obtained by the municipality and those commissioned by the club.
“Given this substantial difference, BCM undertook additional investigations, including commissioning a further valuation by its finance directorate, as well as an independent valuer to assess multiple municipal properties.
“Following these processes, a market-related rental value of R43,000 a month was agreed upon through consultations and negotiations between BCM and the East London Golf Club.
“In line with existing council policy, which provides a 50% discount on market-related rents for qualifying sports clubs, the final rent payable by the East London Golf Club has been reduced to R21,500 a month.
“The council is satisfied that the agreement strikes a balance between supporting local sporting institutions and ensuring responsible management of municipal assets.”
For more than 50 years, the golf club operated under a nominal lease, paying just R4 a year for the property.
That arrangement lapsed at the end of August 2025, leading to a short-term lease that expired at the end of February.
The prospect of a steep rental increase became a major point of tension between the two parties, with the club warning that the proposed figure would be unaffordable.
Attempts to obtain comment on Wednesday from club president Rob Moodie and captain Derick Boardman were unsuccessful, but board member Justin Price welcomed the agreement, saying it would allow the club to move forward after years of uncertainty.
“We’re excited the lease approval has finally been granted, and that we have found each other in terms of the monthly rent,” Price said.
“As we are yet to receive the actual agreement, we are yet to see some of the terms imposed.
“However, we can now start and carry on with some much-needed infrastructure developments at the club, which will allow us to host much bigger tournaments.
“These developments have been on hold for the past five years, amid uncertainty over our lease of the property.”
Though the rental agreement has been settled, concerns have emerged over a list of 42 conditions attached to the lease.
In a report tabled before the BCM council by acting city manager Vincent Pillay, the municipality outlined a series of requirements the club must meet for the agreement to remain valid.
Among the conditions are that the club must not deny membership or access to any member of the public, and that it must actively promote golf among previously disadvantaged communities.
The club will also be required to provide free access, coaching and equipment to members of the public from disadvantaged backgrounds, and keep a register of such activities.
“Should such a register not reflect an acceptable frequency to the municipality, the lessee will be found to be in contravention of its lease agreement,” the report states.
Other conditions relate to the use of the facility by the municipality.
City authorities will be granted “free utilisation and limitless access” to the club, excluding food and beverages, for conferences and workshops, subject to prior booking. Parking must also be provided.
Mayor Princess Faku and people invited by her office would receive free entry to competitions at the facility, with provision made for a VIP area during such events.
The city will also be entitled to 50% of revenue from any future naming rights deals and half of all advertising revenue generated by the club.
In addition, the municipality must be indemnified against any liability relating to injury or death of individuals using the facility, and the club would be required to submit audited annual financial statements to city authorities.
The conditions have drawn mixed reactions.
Grassroots golf development mentor Millie Dondashe welcomed the provisions aimed at improving access for previously disadvantaged communities.
Dondashe said though the club already ran development programmes, these often came at a cost to participants.
“These include green fees and competition fees, which can be very expensive for people from areas such as Duncan Village.”
She said greater access and support could help broaden participation in the sport.
However, DA councillor Geoff Walton raised concerns about the extent of the conditions imposed by the municipality.
He said the party supported the lease agreement, particularly as it would allow the club to proceed with planned upgrades and improvements.
“It is to be hoped this will enable the club to embark on the extensions and improvements they wish to carry out, which could not be carried out without a lease,” Walton said.
“We appreciate that the club will involve previously disadvantaged persons in golf development activities.
“That is important. However, we understand that the club already has such a programme.
“But we are not in agreement with certain conditions where BCM exercises leverage over the club for certain events,” he said.
Walton said there was no justification for preferential treatment to be given to political office-bearers.
“In principle, this is wrong and needs to be carefully monitored,” he said.
“We hope that the conditions imposed will not in any way compromise major tournaments at the club.
“Some of the conditions probably meet the definition of overreach.
“In essence, the municipality wants free use of facilities which would normally be paid for by the municipality, for example conference venues.
“That is not appropriate as the lease should stand on its own, and the hiring of facilities is a separate matter altogether.
“Exactly how such conditions will be managed is something we will find out only later, as well as the impact that may have on the club.
“But we note the club appears content to comply therewith, probably more because they have to than want to.”
Daily Dispatch
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