2018-10-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                15 OCTOBER 2018


Council has the opportunity to assist the Club with the cost of resolving the booster pump issue
by providing a one-off capital contribution payment of $100k. There are reasonable grounds for
such a payment given the Club has completed a $1.025m improvement to Council’s asset at no
cost to the organisation. Council’s assistance would make a large difference to the Club and
would ensure maximised community use of the asset following certification.

Once the booster pump issue has been resolved and certification is granted, a new lease will
need to be drafted to cover the expanded building. Simultaneously the existing lease will need to
be extinguished. Discussions between Council and the Club to date have indicated that a long-
term lease is warranted given the significant investment the Club has made in Council’s asset.

Management recommends that Council authorise the Chief Executive Officer to enter into a new
lease with Noosa Gymnastics Club for the expanded main hall with an initial term of 10 years and
two further options of five years each. It is recommended the rental rate be set at a level
commensurate with that already paid by the Club, with upward adjustments made to reflect any
additional costs incurred by Council as a direct result of the extended building area. The Club has
agreed to this in preliminary consultation undertaken on the matter.

It should also be noted that Council should apply the exception to the requirement for tendering
of this lease under Section 236 (1) (b) (ii) of the Local Government Regulation 2012, as the site
will be leased to a community organisation

Previous Council Consideration
Ordinary Meeting, 23 October 2014, Item 4, Page 4
That Council note the report by the Manager Community Facilities to the Infrastructure &
Services Committee Meeting dated 14 October 2014 and
A.    Authorise the Chief Executive Officer to enter into a 10 year lease with Noosa Gymnastics
      Club Inc. for the main hall at the Bicentennial Community Centre (as identified in
      Attachment 1);
B.    Authorise the Chief Executive Officer to enter into a 10 year lease to Noosa Christian
      Outreach Church to operate a Montessori School, if they are successful with their school
      accreditation, for the demountable building at the Bicentennial Community Centre (as
      identified in Attachment 1); and
C.    Apply the exception to the requirement for tendering of these leases under Section 236 (1)
      (b) (ii) of the Local Government Regulation 2012 as both leases are to community
      organisations.
Finance
The $100,000 contribution towards the cost of the booster pump is proposed to be included as a
capital cost in the next budget review (BR2) along with the new booster pump asset.

The additional lifecycle costs associated with the extended building will be incorporated into the
market rates set for the new lease to mitigate the impact to general rates.

Risks & Opportunities
Without resolution of the fire pump issue the building cannot receive final certification. This would
render a valuable Council and community asset unusable following the expiration of the current
interim certification.

The Noosa Gymnastics Club is well established and well managed and any risk of it not being
able to meet its commitments under a new leasing arrangement will be mitigated by the usual
legal conditions of a lease.


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