Saldanha Bay Municipality v Britannia Beach Estate (Pty) Ltd and Others

The appellant municipality imposed conditions under s 42 of the Land Use Planning Ordinance 15 of 1985 (LUPO) on six rezoning and subdivision applications by the respondent property developers. Three applications were approved before 1 July 2007 subject to payment of capital contributions calculated under an existing tariff (Resolution R55 of 1997). Three later applications were approved after 1 July 2007 subject to a new tariff introduced by Resolution R35 of 2007. All conditions were accepted by the developers and no statutory appeals were lodged. Subsequent council resolutions created uncertainty about the applicability of the new tariff, including Resolution R43, which was later withdrawn. The respondents approached the Western Cape High Court, which held that the new tariff had been impliedly revoked, declared it invalid, and ordered the municipality to account for alleged overpayments. The municipality appealed to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The order of the Western Cape High Court was set aside and substituted with an order dismissing the application with costs.

The case clarifies the enforceability of development contribution conditions imposed under s 42 of LUPO and confirms that accepted land-use conditions are binding and independent of subsequent changes in municipal policy. It reinforces the principle that such conditions cannot be amended without compliance with statutory procedures and limits attempts by developers to challenge contribution levies indirectly through policy disputes.