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PROPOSED REVISED LEASE TERM - SHOP 7 SUNRISE SHOPS · Report
SERVICES & ORGANISATION COMMITTEE MEETING 9 MAY 2023
5.1 PROPOSED REVISED LEASE TERM - SHOP 7 SUNRISE SHOPS
Author Property Advisor - Commercial Property, Robyn Mercer
Property Department
Index ECM/Subject: 46.01 Leases
Attachments None
EXECUTIVE SUMMARY
At the Ordinary Meeting on 15 March 2023 Council agreed to enter into a commercial lease of Shop
7, Sunrise Shops to Luke and Kayla Marshall TA Butchers of Noosa for a five (5) year term.
Council also authorised the CEO to award up to two (2) subsequent lease extensions each of three
(3) years subject to the Lessee complying with the terms of the lease.
The total approved lease period was eleven (11) years.
Subsequent to the Ordinary Meeting, Butchers of Noosa have requested adjustment of their lease
period to a five (5) year term and two (2) subsequent lease extensions of five (5) years each, for a
longer total lease period of fifteen (15) years.
This report is seeking approval of a revised lease term for Shop 7, Sunrise Shops.
RECOMMENDATION
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 9 May 2023 regarding the lease of Shop 7, Sunrise Shops
and:
A. Agree to enter into a commercial lease of the premises to Luke and Kayla Marshall TA Butchers
of Noosa for a five (5) year term;
B. Agree to an initial rent-free period of six (6) months; and
C. Authorise the CEO to award up to two (2) subsequent lease extensions each of five (5) years,
subject to the Lessee complying with the terms of the lease.
REPORT
At the Ordinary Meeting on 15 March 2023 Council agreed to enter into a commercial lease of Shop
7, Sunrise Shops to Luke and Kayla Marshall TA Butchers of Noosa for a five (5) year term. Council
also authorised the CEO to award up to two (2) subsequent lease extensions each of three (3) years
subject to the Lessee complying with the terms of the lease. The total approved lease period was
eleven (11) years.
The purpose of this report is to seek Council approval for a revised lease period of Shop 7, Sunrise
Shops to Butchers of Noosa. Subsequent to Council approval at the Ordinary Meeting on 16 March
2023, the Lessee has undertaken further due diligence and requested approval for the lease
extension periods to be extended from three (3) years to five (5) years.
The proposal represents an opportunity for Council to achieve a longer tenure period and enhances
the period of economic benefit derived from the lease and activation of the Centre.
Previous Council Consideration
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SERVICES & ORGANISATION COMMITTEE MEETING 9 MAY 2023
Ordinary Meeting 16 March 2023
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 7 March 2023 regarding the lease of Shop 7, Sunrise Shops
and:
1. Agree to enter into a commercial lease of the premises to Luke and Kayla Marshall TA
Butchers of Noosa for a five (5) year term, as generally outlined in the report and
attachments;
2. Agree to an initial rent-free period of six (6) months; and
3. Authorise the CEO to award up to two (2) subsequent lease extensions each of three (3)
years, subject to the Lessee complying with the terms of the lease.
Finance
The revised lease period does not change the financial return proposed to Council from $51,600 per
annum base rental and does not change the proposed use of additional space adjacent to Shop 7,
with the Lessee to fund all planning, approval and expansion works.
The proposed six (6) month rent free period is intended to help offset the Lessee’s establishment
costs. This approach is in line with industry standards and Council’s previous approach to
commencement of new tenancies at Sunrise Shops. Lease revenue will be recognised in the
2023/24 budget.
Risk & Opportunities
The revised lease period does not introduce any additional risks for Council. The Lessee’s proposal
demonstrates a commitment to the Centre and identifies new business and employment
opportunities. The lease proposal will help activate the Centre and meet the needs of the community.
Consultation
External Consultation - Community & Stakeholder
Colliers International Sunshine Coast
Internal Consultation
Departments/Sections Consulted:
- Director Corporate Services
- Property Manager
Mayor Community Services Corporate Services
Councillors Director x Director
Community Development Financial Services
Chief Executive Officer Community Facilities Fleet
Executive Support Libraries & Galleries ICT
Local Laws Procurement
Waste & Environmental x Property
Health
Revenue Services
Executive Services Environment & Sustainable Infrastructure Services
Development
Director Director Director
Page 3
SERVICES & ORGANISATION COMMITTEE MEETING 9 MAY 2023
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning, Design and
Delivery
Used in these records
PROPOSED REVISED LEASE TERM - SHOP 7 SUNRISE SHOPS · ReportReportsMeeting 197 · read item & discussion ↗
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