New possibilities for Lang­strand’s Jetty Pub and Kiosk

Better proposition
The new lease agreements for two council-owned businesses located at Langstrand might be extended to anything from one to five years.
Compiled by Otis Daniels
The management committee (MC) of the municipality of Walvis Bay has recommended that the owner of Tropicana Latino Café and Cigar Lounge be granted permission to lease the Jetty Pub and that RT Investment be granted permission to lease the kiosk at Langstrand Resort.

The Jetty Pub will be leased at a monthly fee of N$3 333.33 (VAT exclusive), for the period from 1 December 2022 to 31 January 2027, while the kiosk will be leased for N$1 700 (VAT exclusive). Both facilities will be leased for the period from 1 December 2022 to 31 October 2027, with a 10% increment per annum.

The MC said it should be noted that in order to ensure the availability of the services during the 2022 festive season, the general manager for community and economic development will have to approve a one-year lease agreement for both successful bidders in terms of delegation of powers effective from 1 December 2022 to 31 December 2023.

Ministerial approval must be obtained for the leases and after this, the one-year lease agreement will run concurrently with the five-year ministerial lease approval. The contractual agreement will be strictly enforced by the relevant department.

The Jetty Pub and Kiosk had been leased on an annual basis ever since opening. For the last six years, for the period between 1 March 2015 and December 2021, these facilities were leased to Linus Nyemwatya at a monthly amount of N$1 000 for the kiosk and N$1 500 for the Jetty Pub. The leases were, however, terminated due to continuous non-payment of rental fees, and the debt was handed over for collection to the credit control and revenue collection division. Following the termination, the council called for expression of interest from aspiring entrepreneurs to lease the two facilities on a five-year lease period.

The MC pointed out that the Jetty Pub and Kiosk are located in a prime area for tourism and local holidaymakers, which makes their operation seasonal.

“For these businesses to succeed, it is important to create an enabling environment, starting with the type of lease agreement signed by the aspiring entrepreneur.” Initially, these facilities were offered to the lessee on an annual basis. This makes it difficult for the lease to plan appropriately and created a lot of work in terms of contract management. Against this background, the department of community and economic development (DCED) approached the council to reconsider the annual leases, as it is not suitable for business growth and appropriate investment.

In 2021, the DCED made a submission to the council requesting the extension of the lease period from one year to a maximum of ten years, to allow for proper business growth and appropriate investment. This request was subsequently approved and the recommendation to lease the Jetty Bar and Kiosk will therefore be approved on a five-year lease period, renewable for one more term. A five-year lease term, however, requires ministerial approval by the recommendation of the council.