2015-01-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                   12 January 2015


12                        PELICAN PLACE NEW LEASE AGREEMENT WITH TEWANTIN RSL SUB-BRANCH
DOCUMENT IN FOR MATI ON




Author                               Project Officer, Michelle Stirling
                                     Corporate Services Department

Index                                Subject: Property Management – 46.01 Leases

Attachments                          1.    Aerial Map – Pelican Place New Lease Agreement


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Officer, Property and Facilities to the General
Committee Meeting dated 12 January 2015 and

A.                        Approve the new lease agreement to the Returned and Services League of Australia
                          (Queensland Branch) Tewantin-Noosa Sub-Branch Incorporated, for 5 years commencing
                          2 March 2015, over part of Lot 1RP74197 (3 Pelican Street, Tewantin); and

B.                        Approve the Chief Executive Officer to award a subsequent 5 year extension of the lease
                          subject to the lessee complying with the terms of the lease; 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 proposed lease is to a community
                          organisation.


REPORT
The purpose of this report is to seek Council approval for a 2 x 5 year lease agreement to the
Returned and Services League of Australia (Queensland Branch) Tewantin-Noosa Sub-Branch
Incorporated (RSL Sub-Branch) for Pelican Place, at 3 Pelican Street, Tewantin (over part of Lot
1RP74197, as per Attachment 1). The Sub Branch proposes to use the building to offer its
welfare services.
Pelican Place, 3 Pelican Street Tewantin, provides a rentable area of 108m2, containing office
space, storage and toilet facilities. These premises were vacated by Council’s Plumbing Services
team in October 2014.
Under the new lease arrangement the RSL Sub-Branch will be responsible for all outgoings and
Council will provide 5 x off street parks in the adjoining car park and assume responsibility for
external building structural maintenance.
CBRE have undertaken an independent valuation which values the commercial rental at $19,990
pa plus GST, plus outgoings. The RSL Sub-Branch has proposed a rental figure of $20,000 pa
including GST, plus outgoings. The difference between the valuation and the offer by the RSL
Sub-Branch is approximately $1,800 pa which is acceptable given the proposed lease is to a
community organisation.
Under Section 236 (1) (b) (ii) of the Local Government Regulation 2012, Council is not required
to tender for the leasing of a property if the purpose of the lease is to a community organisation.
The requirements of this exception are that a relevant Council resolution is first obtained.




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