2021-10-12 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                12 OCTOBER 2021


5    REPORTS FOR CONSIDERATION OF THE COMMITTEE


1    NOOSA FM LEASE AT THE J

Author            Community Facilities Manager, Ashley Saward
                  Community Services Department

Index             ECM/ Subject/ 72.01 The J

Attachments       Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Community Facilities Manager to the Services & Organisation
Committee Meeting dated 12 October 2021 and:
A.   Authorise the Chief Executive Officer to extinguish the current Noosa FM lease at The J; and
B.   Authorise the Chief Executive Officer to enter into negotiations with Noosa FM for a new 3-
     year lease at The J with an option of two further 3-year lease terms (in accordance with the
     Community Purpose Land and Infrastructure Tenure Policy) at Council’s sole discretion; and
C.   Apply the exception to the requirement for tendering of the lease under Section 236 (1) (b) (ii)
     of the Local Government Regulation 2012, as the lease is to a community organisation.

REPORT
Background
Noosa FM were a founding tenant at The J from the time of its opening in 2006. The original lease,
voluntarily signed by both parties, outlines the following key terms:
    An initial 5-year term from 1 October 2006 to 30 September 2011, with 3 x 5-year options
     thereafter;
    Base rent of $6,000 p.a. from 1 October 2006 to 30 September 2009;
    Base rent of $10,000 p.a. from 1 October 2009 to 30 September 2011;
    Base rent of 50% of the current market rent from 1 October 2011 to 30 September 2016; and
    Base rent of 66% of the current market rent from 1 October 2016 to 30 September 2026.
Base rent is defined as being the cash component payable by Noosa FM and is supplemented by a
community contribution component. The community contribution component comprises a range of
community advertising, simulcasting and training requirements and when combined with base rent,
forms total rent.
When The J looked to increase Noosa FM’s rental payments to $10,000 in 2009, Noosa FM
requested for the rent to remain at $6,000 p.a. (plus CPI increases) on the grounds of being unable
to afford a rental increase. Noosa FM were successful with their request, however, there was no
clarity regarding an expiration date of this variation and thus the reduced rental rate remained in
place through to the end of calendar year 2017.
In 2017, Noosa FM belatedly requested the activation of the next available lease extension option.
At the time, Noosa FM was unable to comply with the full financial requirements stipulated by the
lease (i.e. the suggested rental rate) and as such the extension option was not activated by Council.
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