PROPOSED REVISED LEASE TERM - SHOP 7 SUNRISE SHOPS · Report

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

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