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B214 7.2 7.2 LEASE - MANLY WARRINGAH SOCCER ASSOCIATION - CROMER PARK

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					\P\AE\5341.doc\214                                    PAGE           FILE NO: 330/051/004

                                                    B214
Report to Governance Committee Meeting on 26 November 2002


 7.2           LEASE - MANLY WARRINGAH SOCCER ASSOCIATION -
               CROMER PARK

Reporting Officer
Manager Governance

Management Plan
Program:                        Corporate Support
Program Goal:                   To meet customer needs by providing responsive services that
                                support Council’s operations
Program Function:               Property Management
Management Plan:                warringah PLAN 2002-2005

Purpose
To enter into a lease agreement with the Manly Warringah Soccer Association for the use of
Cromer Park.

Background
The Manly Warringah Soccer Association initially approached Council with a view to leasing
fields 1 & 2 at Cromer Park. This was in response to an action arising out of the Dee Why
Valley and South Creek Open Space Corridor Plan of Management. The Association were
seeking development consent to erect a grandstand, however, were required to accord with
Action 55 of the Plan as follows:
  “ Review application for Dolphins Soccer Club to upgrade field one and install grandstand,
    taking into consideration that this will require a deed of agreement concerning leasing of
    the field. Install a fence around field one to Soccer Federation standards.”
Initially the Club were seeking to lease fields 1 & 2, however, action 55 only makes the
leasing of field 1 currently permissible.
Negotiation has been ongoing in regards to the lease and lease fee with the Association
initially seeking to take over the maintenance of the field. They have since advised that this
would not be financially feasible.

Issues
As stated, the Association initially sought to take over all maintenance of Cromer Park Field
One. The Association has since cited that this would not be financially viable. The
Association note that they have expended some $509,044.73 on general upgrades to Cromer
Park since 1998 and further propose to expend some $678,526 within the next 2 years in
constructing a grandstand at the ground.


A review of the Association’s most recent audited accounts reveal a total income for 2001 of
some $845,757 with total expenditure of $800,976 resulting in an operating profit of $44,781.
Report of Warringah Council Meeting held on 26 November 2002
                                                      ITEM

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                                                    B215
Report to Governance Committee Meeting on 26 November 2002


Given that the maintenance of Field One alone equates to approximately $35,000 p.a. for
Council, it would appear obvious, given the current commitments of the Association, that it is
not in a position to maintain the field.
The initial offer from the Association was to pay a rental of $10,000 p.a. and maintain the
field. Council would be liable for all outgoings under this proposal. The revised offer is to pay
an initial annual rental of $20,000 p.a. to increase annually with CPI. This is a gross rent
inclusive of all outgoings.
This offer is considered fair and reasonable. The terms and conditions of the lease are
summarised as follows:
Lease Term:          10 years with 2 x 5 year options to renew.
Lease Fee:           $20,000 p.a. inclusive of outgoings with annual increases linked to CPI.
Maintenance:         The Association is responsible for internal maintenance of the amenities
                     block and the grandstand to be constructed on the premises.
Security:            The tenant must secure the premises against vandalism which is the sole
                     responsibility of the tenant.
Insurance:           The Association is required to take out public liability insurance of $20M.
The initial years rental is to be $20,000 with annual increases linked to the CPI. It is proposed
that the rental be deposited into a Cromer Park Reserve Account. This account is to be used to
pay any outgoings estimated at between $3,000 - $5,000 p.a. and offset the maintenance cost
of the field.
The lease agreement will also reflect the principles of Crown Land Management as defined in
the Dee Why Valley and South Creek Open Space Corridor Plan of Management. These
principles include, among other things, that multiple use of Crown Land should be
encouraged – appropriate provisions will be included in the lease agreement.

RECOMMENDATION OF DIRECTOR PUBLIC OFFICE
1.     That Council enter into a lease with the Manly Warringah Soccer Association for
       Cromer Park Field One, based on the terms and conditions contained within this report.
2.     That the Cromer Park Reserve account be established for the proceeds of the rental to be
       utilised for the maintenance of Field One and payment of outgoings. Such Reserve to be
       managed by Council’s Services Group.
3.     That Council authorise the General Manager to execute the necessary lease document in
       order to effect this resolution.




Report of Warringah Council Meeting held on 26 November 2002
                                                      ITEM

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                                                    B216                             ATTACHMENT
Sketch of Lease Area




Attachment to Report of Warringah Council Meeting held on 26 November 2002
                                                        ITEM

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                                                    B217                             ATTACHMENT
Sketch of Lease Area




Attachment to Report of Warringah Council Meeting held on 26 November 2002
                                                        ITEM

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