Property developer Phillip Georgiou ordered to demolish PE hotel

Posted On Friday, 14 August 2015 11:24 Published by
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Port Elizabeth High Court orders Phillip and Yvette Georgiou to demolish parts of their multimillion-rand boutique hotel, spa and wedding venue in Kragga Kamma Road.

Yvette and Phillip Georgiou

But Phillip Georgiou vowed yesterday to appeal against the judgment, saying he would take the matter to the highest court in the country, if necessary. “I have acted within my rights and have done things by the book,” Georgiou said. “I have special consent and all the relevant plans. “One of the things we need to get right in Port Elizabeth is that the municipality should make things easier for business owners. I have created a lot of employment here.” He said title deed restrictions affected many business owners and he did not understand why the municipality would pursue this matter and turn a blind eye to others.

In her judgment, Judge Elna Revelas ordered the Georgious to demolish all buildings and structures at the Georgiou Boutique Hotel & Spa deemed unlawful under the National Building Regulations and Standards Act, which were erected on their erven at 252, 250A and 250 Kragga Kamma Road. According to the judgment, the structures include a gym, a pool with a roof, an enclosed patio and a chapel which had all been built without building plans being submitted. Internal alterations for the use of the restaurant were also noted by a municipal official.

The Georgious have also been restrained and interdicted from continuing any further building work. They have also been restrained and interdicted from using the specified properties in any way which would contravene municipal zoning scheme regulations and restrictive conditions on the title deed. The couple have also been ordered to pay the costs of the application brought by the Nelson Mandela Bay Municipality. Revelas said the continued use of the properties and building of structures without approved building plans, despite notices to cease building work, constituted criminal offences.

Georgiou said: “We have already spent half a million [rand] in legal fees, but we are willing to pay whatever it takes. “We have an excellent legal team and we believe we are an asset to Port Elizabeth. “We have brought a limousine service here. We also provide excellent service and we often have celebrities visiting us. “We love PE so why should we be forced to go somewhere else like Cape Town? “What we have developed here is world class and a very unique offering,” he said. Revelas said in her judgment: “The respondent [Yvette Georgiou], through some misplaced optimism or opportunism, has proceeded to build buildings and extend her business on the basis that the municipality would simply rubber-stamp her unapproved plans as built.

“Applications for rezoning do not have certain outcomes, since they involve a process that takes into account the objections of surrounding residents and erf owners. “They have already voiced their objections. “Decisions of this kind are often challenged in litigation and the resolution thereof may take years,” she said.

According to Phillip Georgiou, with the exception of “one or two neighbours”, the wider community supported the business and many couples from the northern areas and the townships made use of the hotel and wedding venue.

“What this municipality needs to do is clear up the red tape and encourage entrepreneurship here,” he said. “You cannot say you support business owners but then continue to stifle them.”

The rezoning application was one of the charges listed against suspended human settlements head Lindile Petuna, when city manager Mpilo Mbambisa gave notice of intention to suspend him. Mbambisa claimed that Petuna ignored his instruction as well as the advice of the municipality’s legal team that rezoning applications which were in conflict with title deed restrictions be turned down. He said Petuna instead recommended the rezoning application submitted by Georgiou in December 2013 be approved, despite it being unlawful. In December, The Herald reported that then-deputy mayor Chippa Ngcolomba was opposed to the municipality’s decision to institute legal action against the Georgious for allegedly failing to comply with municipal zoning regulations. At the time, Ngcolomba said he believed the matter should be settled out of court as the Georgious were making an effort to comply with the requirements.

“As a metro where job creation is stagnant, we cannot encourage investors to leave and invest somewhere else,” he said. Ward 8 councillor Gustav Rautenbach said he had received a spate of complaints from residents in the area who were opposed to the hotel development and events venue. “I think it was a fair ruling and it should send out a message that if you want to do something you should always follow the right procedure. You cannot do what you want,” he said. Rautenbach said while residents were pleased with the judgment they had expected the court’s decision would be appealed. Municipal spokesman Roland Williams said as the decision would be taken on appeal, the matter was sub judice. “Our director of legal services is studying the judgment as well as the appeal and will advise the city manager regarding the course of action.” 

Source: Herald

Last modified on Wednesday, 19 August 2015 09:31

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