2018-12-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                11 DECEMBER 2018



9                        NOOSA FM LEASE AT THE J
DOCUMENT INFORM AT ION




Author                              Community Facilities Manager, Ash 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 11 December 2018 and agree to:
A.                       Extinguish the current Noosa FM lease at The J and replace it with a new 2 year lease
                         (based on Council’s standard lease terms and conditions) with the option of further three x
                         1-year terms at Council’s discretion and an annual rental of $10,500 pa (plus CPI increases);
B.                       Apply the exception to the requirement for the tendering of the lease under Section 236 (1)
                         (b) (ii) of the Local Government Regulation 2012, as the lease is to a community organisation;
C.                       Consider any financial implications of this new lease arrangement in BR3, and
D.                       Reconsider Council’s position of providing both a rental subsidy and a Community Alliance
                         grant to Noosa FM, when Noosa FM’s 3-year Community Alliance funding comes up for
                         renewal in the 2019/20 community grants round.



REPORT
Background
Noosa FM were a founding tenant at The J from the time of its opening in 2006. The 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.




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