2021-04-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                             12 APRIL 2021


    Lease Provision                  Proposal
    Lessee Name:                     Tanglewood Company Pty Ltd
    Premises:                        Part of Lot 8 RP901384
    Annual Rent:                     $85,400 (excluding GST)
    Nett Lettable Area:              305m2
    Indicative Commencement Date:    1June 2021
    Rent Free Period:                6 months
    Initial Lease Terms:             5 years
    Options to Extend:               4 x 5 years
    Market Rent Reviews:             At the commencement of each option.
    Outgoings:                       Lessee is responsible for their proportionate share of outgoings for the
                                     centre.
    Permitted Use:                   Wholesale and retail food production, grocery, organic and wholefoods.

Previous Council Consideration
Nil.

Finance
The financial return posed by the new lease is as detailed above. Tanglewood Company proposes
to undertake substantial fit out works to the premises. The proposed six (6) month rent free period
is intended to help offset the lessee’s establishment costs. Some legal and transactional costs will
be incurred by Council in the order of $3,000 and will be absorbed in the current Property budget.
Lease revenue will be recognised in the 2021/22 budget.

Risks & Opportunities
Risks

The proposed lease poses minimal risk as it seeks to re-establish an anchor commercial tenant.

Opportunities

The lessee’s proposal demonstrates a commitment to the centre and identifies new business and
employment opportunities. The new lease proposal will help activate the centre and meet the needs
of the community.

Consultation
External Consultation - Community & Stakeholder
Colliers International Sunshine Coast
Savills Valuations Pty Ltd

Internal Consultation
      Director Corporate Services
      Property Manager




                                                                                              Page 5 of 43