KNYSNA NEWS - A proposed lease for the historic Old Gaol building in Queen Street has been thrown into uncertainty after the Knysna Municipality confirmed on Monday afternoon, 20 April, that it will place the deal under review following new information that has come to light.

The move comes amid growing public concern over the planned use of one of Knysna's oldest heritage buildings, with residents questioning whether proper processes were followed and whether the site would be used for a pub rather than a restaurant. 

In an initial response, the municipality said the matter had followed established administrative procedures and that no unlawful or informal approval had been granted.

It confirmed that a formal application had been submitted - for a restaurant, not a pub - and said a short-term lease was in the process of being finalised.

The municipality stressed that allegations of irregular approval were incorrect and reiterated that the mayor has no authority to approve or allocate municipal property, with such decisions governed by delegated administrative processes and legislation.

However, it also acknowledged that concerns had been raised regarding rezoning, land-use change applications, heritage approvals, and public participation processes.

While insisting that any use of a heritage building such as the Old Gaol is subject to strict regulatory requirements, the municipality did not directly address concerns about the potential impact of increased commercial activity on the structure and character of the site.

Lease now under review

In a late development on Monday, the municipality confirmed a shift in position.

"Due to new information that has come to light, the municipality is going to take the decision to lease the property on review," it said.

The decision places the proposed short-term lease on hold pending further internal consideration. Officials had earlier indicated that the lease was in its final stages, with any long-term arrangement requiring additional council approval and public participation.

The Old Gaol, one of Knysna's most significant heritage landmarks, has previously accommodated commercial activity. The municipality maintains that any future tenant will be bound by conditions aimed at protecting the building's structural integrity and historical features.

For now, the future of the proposed lease - and the intended use of the site - remains unresolved as the review process gets under way.

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