The first big investment in the Port Elizabeth Central and North End business district is well under way after the national government declared the area an urban development zone this year.
And Tavcor Embassy is already at an advanced stage of constructing a R10-million technical service centre for its flagship Audi range near its present headquarters in Mount Road, North End.
In June, the national treasury approved an application by the Mandela Bay Development Agency, the municipality's development arm, to declare the central business district a UDZ.
Accordingly, big tax incentives were offered for new and existing investments in residential and commercial property in the designated area, which covers about 250 hectares, and stretches roughly from the harbour to just beyond Mount Road.
When the UDZ was approved, the MBDA said it was a powerful tool to lure investment to the CBD, and reduce the risk of investment in residential and commercial property in the area.
Tavcor project manager Bruce Jefferies said the incentives were a big reason for his company's investment in the area.
The investment comes within a year of other big vehicle dealers having decided to move their passenger car showrooms out of the area.
Continental Cars, which operated from North End for 33 years, has opened a new showroom in Newton Park, while Maritime motors, although it falls outside the UDZ, is currently constructing new premises on the William Moffett Expressway.
On Tuesday, MBDA consultant planner Jonathan Mercer said, so far, not many companies had responded to the incentive, but he was sure more people would make use of it.
But it was best for companies to get into the area as soon as possible, he warned, as the incentive would be valid for only four years.
The scheme allows those who invest in the area to deduct 20 per cent of the cost from their taxable income.
Mercer said the incentives were complementary to the MBDA's revitalisation of the CBD that included security, cleaning services and key development projects.
The Tavcor Technical Centre would be a multi-functional motor centre predominantly providing Audi owners with a state-of-the-art service centre.
Jefferies said complex technical repairs for Eastern Cape Volkswagen dealers would be handled at the centre. Construction on the 3 600mē project started in June and it was scheduled to open in April next year.
