2018-02-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                     6 FEBRUARY 2018


Finance
While Council has not undertaken a formal valuation of the property, it is valued on real
estate.com between $350k - $439k. The balance of funds in the Heritage Levy as at 30 June
2017 was $300k.

A significant factor in weighing up the Museum’s proposal is that it has not provided a business
case demonstrating its ability to pay for its 50% of the cost of purchasing the property.
Furthermore, it has not secured an income stream to maintain the building nor guarantee of
obtaining grants to do so.

Risks & Opportunities
There is no legislative restriction on Council contributing towards a not for profit organisation
purchasing an asset. There are however, significant risks associated with this proposal which
include:
    Setting a precedent for other similar requests for Council to assist community groups in
      purchasing land/buildings;
    The lack of a business plan or revenue to support the Museum’s purchase and subsequent
      sustainable operation and maintenance of the premises;
    The perception that significant rate-payer funds have been allocated to a single community
      organisation with little broad community benefit; and
    Council’s potential liability if the Museum is unable to sustainably operate and maintain the
      property and/or its existing operations.

On the basis of these risks, staff are recommending that Council not proceed with the Museum’s
proposal.

Consultation
External Consultation - Community & Stakeholder
Nil

Internal Consultation
Mayor and Councillors
Director Corporate Services
Libraries and Galleries Manager
Property Manager
Heritage Librarian

Departments/Sections Consulted:

      Chief Executive Officer   X   Community Services                      X   Corporate Services
      Executive Officer             Community Development                       Financial Services
      Executive Support             Community Facilities                        ICT
                                X   Libraries & Galleries                       Procurement & Fleet
                                    Local Laws                              X   Property
                                    Waste & Environmental Health                Revenue Services

      Executive Services            Environment & Sustainable Development       Infrastructure Services
      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




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