2015-03-31 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                 31 MARCH 2015


Subsequent to the Council purchase, NDLG wrote to Council requesting use of the building for
storage, meeting and office space until such time as the building was relocated to the proposed
historical precinct. A licence to occupy the building was granted to the group by Council on 1 May
1992.

The total annual rental for the land (2014/15) is $7,101 and is currently subject to an annual
increase of 5% per annum. The rental figure includes a mandatory administration fee of $850
which is required to be paid at the time of commencement of each tenure term. The QR invoice
to Council for 2014/15 has been paid in accordance with QR requirements.

The existing licence between Council and QR expired on 30 June 2013, however the Licence
effectively held over as Council was attempting to negotiate the terms of the Licence with QR.
Council continued to pay the annual licence fee in lieu of alternative building licence
arrangements being pursued with NDLG.

The three options available for the ongoing management of the NDLG are discussed below.

Option 1 – Transfer of the Building Licence to NDLG at no cost

Transfer the building licence to NDLG taking into account the following:
(a) Preliminary discussions with the group prior to the 31 July 2014 Ordinary Meeting indicated
     that they were amenable to this option. This option had been formally put to the NDLG
     committee and Council received written advice from the group supporting the transfer of
     the building pending further specific discussions regarding the ongoing costs to manage
     the property.
(b) The arrangement avoids regular negotiations and discussions with QR which are more
     efficiently dealt with directly by the group. It should be noted that NDLG have a licence over
     the adjoining portion of land directly with QR for the nursery for $1 per annum.
     Comparatively, Council is currently levied a commercial rate for the land on which the
     NDLG building is located.


Option 2 – Cost Recovery

Implement a cost recovery approach. In summary this approach:
(a) Retains a building under Council management for ongoing community use.
(b) Increasing the rent payable to Council from NDLG in line with the rent payable to QR by
     Council.
(c) This option exposes Council to further unilateral rental increases and policy changes by
     QR. The outcome of which would be passed onto the group under this option.


Option 3 – Business as Usual

Continue with current approach. In summary this approach:
(a) Retains a building under Council management for ongoing community use.
(b) Exposes Council to further unilateral rental increases and policy changes by QR.
(c) Continues the subsidisation of the current rental arrangement from the general rate.

On 18 August 2014 a meeting was held between NDLG and Council officers regarding options
for the future management of the NDLG building. Council reiterated that its preferred option for
the site was Option 1.


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