CBN ARCHIVE - March '99:
South Africa - March '99 - Good Hope Centre stirs up storm

N OFFER to buy the City's Good Hope Centre has provoked a storm of controversy between different factions within the City Council. The proposal from a consortium terming themselves the SA Film Finance Corporation would convert the centre to a film studio "with support from several industry sectors from equipment hire and production companies, to film labs and post production specialists," says the consortium's Chris Rowland.

"We have a couple of preliminary meetings with them and they have made an offer," says the City's Director of Economic Development, Rod Young. "But under our procedures we are required to seek public comment on that proposal and to allow people to make alternate offers or suggestions for the centre. That Proposal Call was advertised and once we have the necessary input we can take it to the next stage."

In its 25 year chequered history the Good Hope Centre has almost never operated at a profit. Built at an original cost of R14m it has had several revamps and refits, none of which have changed its image as a growing municipal white elephant. The annual operating loss is now rising at the rate of over R300 000 a year, and its deteriorating condition is expected to add to that loss considerably over the next decade. In 1997/98 the net annual cost of the centre to the municipality was R4,9m; almost R3m being the difference between current expenditure and current income. The balance being annual amortisation of the still R8,4m owing on original construction and subsequent improvement cost.

But now that there is a firm offer in the offing there have been several voices raised in support of hanging on to the Centre. Chairlady of the council's Community Development Committee, Faldiela de Vries, wants to keep it. "If we market the centre better we could start making a profit. By next year we could break even if we decrease expenditure and increase income." Councillor Hanief Toseker, who heads up the City's Planning and Development Committee, says encouraging high tech sectors and the local film is Council policy. "We would like to attract the makers of feature films to the City." Even national Water Affairs Minister, Kader Asmal, has thrown his oar in against the idea of redeveloping the centre.

Film producer, Chris Rowlands, says the Good Hope Centre could make an ideal studio. "Its already almost sound proofed, plus its 82 foot (25m) ceiling lends itself to the making of not only international commercials, but attracting the makers of feature films and television serials. The size is good, its 36 000 square feet is as big as the largest sound stage on the Universal lot in Los Angeles." Rowlands says the location of the centre also is attractive as foreign makers coming to South Africa are showing an increasing reluctance to travel beyond centre city limits because of the rising incident of urban crime and violence. "Recently more than a couple have cancelled plans for local shoots for that reason," says Jody Chiat of film recruiters, Radical Crew.

Since the consortium's formal offer proposal the City has made a valuation of the centre and had it checked by an outside valuer. "Both those numbers are locked in my safe", says Young. "What I can say is that we have indicated that the consortium's offer is too low, but buying isn't the only option. Part of that valuation recognises that we are entering an expensive maintenance phase with the centre structure - the ice floor plumbing we installed needs renovation, for example."

Rowlands says whether the film consortium's use is by purchase or long lease is not crucial, but a co-operative joint venture centre for local film making is an idea that has been mooted by the local industry for some years. But whichever way - or assuming there is not some large public protest or some more attractive offer for the centre - may not be the deciding issue. What may be more crucial is whether the city's new generation of councillors consider themselves smarter and better businessmen than those of the old regime.

As City Exco Chairman Saleem Mowzer puts it "The (debate about the centre) creates a space for us to debate the way we manage and use all our facilities."