CAPE TOWN – The mayoral committee approved the establishment of a municipal entity to run Cape Town Stadium on Monday.
The facility has been a drain on council coffers since the 2010 World Cup because it does not attract enough events to offset maintenance costs.
Some people have suggested the stadium be demolished, but the city says this is not practical because it has not reached the end of its economic potential.
The new stadium management entity will be a state-owned company with the city holding 100% of the shares.
It will be required to meet income targets to reduce the city's contribution.
Current stadium management staff will be seconded to the new company and the city will provide support services for three years.
Deputy Mayor Ian Neilson said: “We will also be exploring the rest of the management of the rest of the Greenpoint common area by this entity as well. So intention is to see if we can retain the issue of unified control of the precinct.”
Neilson says further public participation will be initiated on a proposal to include the urban park and surrounds in the management area.
(Edited by Masechaba Sefularo)