3.1 Objectives

The JDA's objectives will contribute to achieving the goals of iGoli 2010, and will guide the JDA in the formulation of projects in areas where it operates. It objectives are:

• To create jobs, development and housing opportunities in the City
• To increase the rates base in project areas where the JDA operates by stabilising decline, attracting investment into new developments, facilitating and securing improvements to infrastructure and promoting mechanisms to improve management of the public environment
• To boost Johannesburg's image as a place to live, invest and visit through national and international recognition of the transformation of the City Centre
• To respond to and realise the aspirations of the whole population of Johannesburg to improve the quality of life and economic opportunities provided to them in areas where the JDA operates by
  • Improving access to work opportunities
  • Promoting investment opportunities
  • Supporting initiatives to provide environments in which communities can develop, grow and realise their human potential
  • Improving access to and availability of cultural activities

3.2 Social Obligations

In addition to meeting its obligations under employment equity legislation, and conducting procurement in a progressive manner, the JDA will use its programmes and activities to improve broader social and environmental conditions:

• Though achieving 'planning gain' and negotiations with developers in JDA projects and programmes (for example, seeking offsets or land swops for housing opportunities)
• By mainstreaming key social requirements (seeking to ensure a positive impact on women, children and young people, senior citizens, people with disabilities and people living with HIV/AIDS) into key JDA projects and programmes. Examples include:
  • Ensuring that new buildings in the Special Activity Precincts provide easy access for people with disabilities;
  • Requiring commercial developers (on, say, the Constitution Hill Precinct) to include facilities for childcare provision;
  • Requiring that housing institutions, which take advantage of opportunities through the JDA, have explicit policies which preclude discrimination against people living with HIV/AIDS as tenants
• Ensuring that there is a balance between 'public goods' (for example, public open space, well-designed environment, access to public transport) and commercial requirements in JDA-initiated or supported projects

3.3 Business Strategy and Operating Plan

3.3.1 Business Strategy
The JDA's business strategy reflects its key function as a purpose-made, partnership vehicle for rapid, effective, integrated delivery of development projects.

The first five years of JDA operations will embody five developmental phases:

This sets out the broad business phases for the JDA's first five years. In its third year, the Shareholders and Board will take the opportunity to review the JDA's mandate and performance, with the possibility to extend it for a further five years.

The key characteristic underpinning this strategy is that the JDA must work in highly coordinated fashion, complementary to its partners:

CJMC: By vesting developmental responsibilities for certain projects, areas and sectors in the JDA, the new CJMC core administration will be able to concentrate on 'getting the basics right' - institutionalising the new unicity governance structure, and ensuring equitable and improved service delivery across the city. The JDA will be able to work with the new Regional Offices of the CJMC to improve service delivery in the JDA target areas and sectors, aimed at meeting specific objectives requested by the JDA's business and community partners.

Coordination will also be evident in the JDA's contribution to implementation of iGoli 2010. The development of tourism-related facilities and activities in the Special Activity Precincts will assist the creation of the 2010 Tourism Development Cluster Programme.

Business: The establishment of the JDA and its initial programme and project portfolio capitalises on the past three years of building relationships, formulating and implementing projects with the Central Johannesburg Partnership (CJP) and Johannesburg Inner City Business Coalition (JICBC). This relationship will strengthen and facilitate the development of future linkages and opportunities. The establishment of the JDA will also provide public-private development mechanisms not previously available under the CJMC, (for example, the Joint Venture Development Fund).

Gauteng Provincial Government: The Gauteng Provincial Government (GPG) is a key stakeholder in Johannesburg's regeneration efforts. This relationship finds form in the JDA's role as a development agent, utilising finance from the Blue IQ fund via the development mechanisms for Greater Newtown and Constitution Hill.

The JDA will pursue and aggressive programme of affirmative procurement to maximise "affirmative spend" in the project process. In particular it will introduce where appropriate construction management contracting processes and will develop and implement the New Engineering Contract procedures in appropriate circumstances.

3.3.2 Operating Plan
The JDA's operating plan consists of a series of individual project and overall programme plans nested together to form the activity profile of the agency. An overview of these is provided in Annexe Two.

Business operations are conducted through its Board and core personnel components, with special operational units for each project. The relationship between the JDA's shareholders, Board and management is set out in the company founding documents. The internal operations and relationships of the JDA are set out in its Human Resource procedures. These procedures are attached in Annexe Three.

JDA operations will involve a range of development 'tools' to promote, support and catalyse economic development within its target area. Some of these tools depend directly on its own capacity, for example, the ability to build strategic alliances and development partnerships. Others, such as the ability to manage the Joint Venture Development Fund will be contained within its Memorandum & Articles. A third set will require the delegation of specific powers from the CJMC to the JDA, including:

• Regulatory authority against public nuisance
• Control and development authority over the assets assigned to it (for example via long-term leases or land availability agreements)
• Limited planning authority (delegated authority within the frameworks/policies previously agreed by CJMC)
• Acquisition of property via donation, exchange, expropriation (by Council using its powers on behalf of the JDA)

Powers will be framed within a set of agency agreements (for example, between the JDA, Metro Police Service and Central Johannesburg Partnership on regulatory enforcement), delegations from CJMC and service delivery agreements (SDAs).

The JDA will also have a range of financial tools that can be used to provide income streams to fund operations and generate financial returns. These could include various fees, levies and financial services, for example:

• Financial returns on projects structured through Special Purpose Vehicles
• Fundraising and contributions
• Volunteerism and 'loaned executives'
• Programme and project management fees
• Service fees for financial packaging, consulting, developing conferences and other events, and networking access
• Public-private sector agreements