2019-04-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                            9 APRIL 2019


 Lease Provision             Proposal
 Permitted Use:              Exercise physiology, clinical pilates & complementary allied health
                             services
 Rental Free Period :        4 months
 Bond:                       3 months rental and outgoings
 Special Conditions:         Tenant responsible for fitout works required for its use of premises.
It is recommended Council agrees to enter a commercial lease with NEPP Pty Ltd for Shop 3
generally in line with the above provisions.
Previous Council Consideration
Ordinary Meeting Minutes, 16 August 2018, Item 2, Page 5
That Council note the report by the Property Advisor to the Services & Organisation Committee
Meeting dated 9 April 2019 regarding the commercial lease of Council premises at Shop 3,
Sunrise Beach Neighbourhood Shopping Centre and:
A. Agree to enter a commercial lease of the premises to Casey Reid & Julie Sevier for a three
   year term;
B. Agree to an initial rent-free period of 3 months; and
C. Authorise the CEO to award two subsequent lease extensions of 3 years, subject to the
   lessee complying with the terms of the lease.
Finance
The financial return posed by the new lease is as detailed above. Revenue at the centre is
currently impacted by the vacant tenancy. The total rent-free period is in line with market
practice for a new lease with a tenant undertaking its own fitout.
Risks & Opportunities
The report seeks to minimise risk associated with securing a new lessee and allowing the lessee
to activate its business plan. The lessee’s proposal demonstrates a commitment to the centre
and identifies new business and employment opportunities. The proposed allied health clinic
should benefit from the pending Blue Care retirement and aged care development directly
adjacent to the site.
Consultation
External Consultation
 Commercial Real Estate Agents
 Property Valuer
Internal Consultation
Manager Property and Property Officer
Departments/Sections Consulted:
   Chief Executive Officer        Community Services                       X   Corporate Services
   Executive Officer              Director                                     Director
   Executive Support              Community Development                        Financial Services
                                  Community Facilities                         ICT
                                  Libraries & Galleries                        Procurement & Fleet
                                  Local Laws                               x   Property
                                  Waste & Environmental Health                 Revenue Services

   Executive Services             Environment & Sustainable Development        Infrastructure Services
   Director                       Director                                     Director
   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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