The eThekwini Municipality is considering a proposal from Seaworld Investment Holdings recommending the redevelopment of the Virginia Airport site into a mixed-use development.

According to the municipality this proposal has been treated strictly in line with the provisions of legislations and policies governing Supply Chain Management (SCM) in this country.

Once the City receives input and comments, a decision whether or not to accept the unsolicited proposal will be made.

The development will comprise commercial, hotel, upmarket residential, offices, leisure and related developments.

Total capital outlay for the project is R6.1 billion. The Municipality is not required to fund the development and will only offer its services and expertise in the implementation of bulk infrastructure and services.

The proposal states that SeaWorld Investment Holdings (Pty) Ltd would source funding and develop a brand new airport, five times the size of Virginia Airport in Scottburgh.

The Virginia Airport site is currently leased to operators for both business and recreational aviation. When the lease expired in October 2011 the City resolved to undertake a feasibility study to investigate alternative and optimal use of the site to advance the economic development aspirations of the City and grow the rates base.

The Council resolution among other things included “to consider the extension of the lease by a period not exceeding 10 years”. Considering an extension is not similar to a commitment to extend.

Therefore, no commitment was made and the City is not reneging on any agreement. While considering an extension the City also decided to embark on a feasibility study to ascertain options for optimal use of the Virginia Airport site.

The study concluded that the site was no longer suitable to be utilised as an airport for a variety of reasons including that the City was no longer benefitting financial returns from that use.

Plans have been made to relocate commercial flight operators to King Shaka International Airport with the flight school operators relocating to Scottburgh.