Council Meeting May Section Page PITCH PUTT LEASES CORNER OF

Document Sample
Council Meeting May Section Page PITCH PUTT LEASES CORNER OF Powered By Docstoc
					      Council Meeting, 17 May 2005                                     Section 5.4 – Page       1


5.4      PITCH & PUTT: LEASES – CORNER OF WELLINGTON ROAD AND
         GARNETT ROAD, MULGRAVE
           (LEASE26:DB:SAL)

           Ward: Jell

           Responsible Director: Don Cameron



            RECOMMENDATION
            That Council resolves to:
            1. Advertise Council’s intention to enter into two separate Lease Agreements
            with Golphrobics Pty Ltd (“Golphrobics”) for the two parcels of land that are
            comprised within the Pitch and Putt golf facility located on the northeast corner
            of Garnett and Wellington Roads, Mulgrave in accordance with s. 190 and s.
            223 of the Local Government Act, 1989 [and being the land indicated on the
            plans attached].
            2. In accordance with Section 223 of the Act, public notice of Council’s
            intention to enter into the leases with Golphrobics be advertised in the
            Waverley Leader, which Notice states the “essential terms” of the leases
            namely:-
              Rental: The sum of $6,029.16 per annum (plus GST) for each lease (being a
            total of $12,058.32) payable by way of equal calendar monthly instalments;
                Rental Review:        To be reviewed annually in accordance with CPI
                   Term:              15 years with an option for 1 further term of 5 years
              Permitted Use:          Pitch & Putt facility and associated administrative
            services
            3 A Committee of Council comprising 3 Councillors be appointed to consider
              submissions received under Section 223 of the Local Government Act 1989
              on Tuesday 12 July 2005 at 7.30 pm, at the Civic Centre.
            4     In the event that there are no submissions received in accordance with
                  Section 223 of the Local Government Act 1989, the Chief Executive
                  Officer or his delegate be authorised to sign and seal the lease documents
                  on behalf of the Council.


            INTRODUCTION
            The purpose of this report is to consider the re-leasing of the pitch and putt
            operation located on the corner of Wellington Road and Garnett Road, Wheelers
            Hill, to Golphrobics Pty Ltd.

            BACKGROUND
            The former Waverley Council leased the parcel of land at the northeast corner
            of Garnett and Wellington Roads to Australian Pitch and Putt (now Golphrobics



                                                                             Pitch and Putt Leases
Council Meeting, 17 May 2005                                    Section 5.4 – Page       2

      Pty Ltd) in May 1990 for the development of a ‘Pitch and Putt’ mini golf
      course. The lease was for a 10 year period with two five year options.

      The site has since been extensively developed at the company’s expense.
      Around 78% of the site is Crown Land, with Council owning the balance.
      Council is the Committee of Management for the Crown Land.

      ANALYSIS
      The first 5 year option of the existing lease with Golphrobics Pty Ltd is due to
      expire on 2 May 2005. Rather that extend the current lease for its final 5 year
      option, Golphrobics Pty Ltd has agreed to enter into a new lease for 15 years
      with a 5 year option. This will enable both parties to ensure compliance with
      current statutory and regulatory requirements enacted since the original lease
      was executed in 1990. Some of these matters centre around the new GST
      legislation, privacy legislation requirements, risk management obligations,
      essential services legislation and the new Retail Tenancies Act.

      As a majority of the leased area falls on Crown Land, Council’s solicitors have
      advised that the Department of Sustainability and Environment (DSE) will
      require its standard 17D Lease Agreement to be entered into for its portion of
      the site (in the past this has not been required and the Department’s
      requirements have been able to be included in Council’s standard lease). This
      will require Council to enter into two separate leases for the demised area, one
      for the Crown Land (the standard 17D Lease Agreement) and another for
      Council’s land.

      For ease of management and consistency, the two leases have been drafted in a
      similar format. However the Crown Land Lease will require the Minister’s
      approval.

      PROPOSED TERMS OF LEASE
      Rental:                  The sum of $6,029.16 per annum (plus GST) for each
                               lease (being a total of $12,058.32) payable by way of
                               equal calendar monthly instalments;
      Rental Review:           To be reviewed annually in accordance with CPI;

      Term:                    15 years with an option for 1 further term of 5 years;

      Permitted Use:           Pitch & Putt facility and associated administrative
      services.

      FINANCIAL IMPLICATIONS
      Each lease will have a rent of $6029.16 per annum payable in equal calendar
      monthly instalments. The rent shall be reviewed annually for CPI adjustments.




                                                                      Pitch and Putt Leases
Council Meeting, 17 May 2005                                   Section 5.4 – Page       3


      IMPLEMENTATION
      As the current extension period for the original lease expires on 2 May 2005, a
      holdover period has been entered into with Golphrobics Pty Ltd where the
      terms of the old lease will apply up until the date the new leases take effect.
      In accordance with the Local Government Act, after Council’s adoption of this
      report a one month advertising period will occur from the 18 May until 18 June
      2005 advising the public of Council’s intention to enter into the leases. A
      Committee of Council comprising 3 Councillors will then be appointed to
      consider any submissions. If no submissions are received the Chief Executive
      Officer is authorised to sign and seal both sets of documents. The
      commencement date for the new leases will be on the date the Crown lease is
      subsequently approved by the Minister.

      CONCLUSION
      After consultation and negotiation relating to the existing lease agreement for
      the operation of a Pitch and Putt facility with Golphrobics Pty Ltd, Council has
      reached agreement to renew the lease for a period of 15 years, with the option of
      a further five year term.




                                                                     Pitch and Putt Leases