2023-03-07 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                  7 MARCH 2023



4    PROPOSED NEW LEASE – SHOP 7 SUNRISE SHOPS

Author            Property Advisor – Commercial Property, Robyn Mercer
                  Corporate Services Department

Index             ECM/Subject: 46.01 Leases

Attachments       1. Assessment and Recommendation – Colliers
                  2. Proposed
                  Commercial Terms and Conditions
                  – in accordance with Section 254J (3) of the Local Government
                  Regulation 2012 – g) negotiations relating to a commercial matter involving
                  the local government for which a public discussion would be likely to prejudice
                  the interests of the local government.


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 7 March 2023 regarding the lease of Shop 7, Sunrise
Shops and:
A.   Agree to enter into a commercial lease of the premises to Luke and Kayla Marshall TA
     Butchers of Noosa for a five (5) year term, as generally outlined in the report and
     attachments;
B.   Agree to an initial rent-free period of six (6) months; and
C.   Authorise the CEO to award up to two (2) subsequent lease extensions each of three (3)
     years, subject to the Lessee complying with the terms of the lease.


REPORT
The purpose of this report is to seek Council approval to enter into a new lease for Shop 7,
Sunrise Shops. Shop 7 has been vacant since June 2022 following departure of the previous
tenant. Between June 2022 and October 2022 Council undertook emergent works to restore
Shop 7 to a suitable condition for advertisement for lease.

Following completion of the restoration works, Colliers International (Council’s managing agent
for the Centre) conducted an Expression of Interest process and advertised the tenancy for
lease in accordance with Council’s procurement requirements. The Expression of Interest and
advertising process is detailed within Attachment 1.

In February 2023 Colliers received an offer to lease from Butchers of Noosa. The proposal is
for a high-end, gourmet butcher shop providing the community and visitors with fresh, quality
meat products and a range of complimentary items at a base rental of $51,600 per annum.

The proposal represents an opportunity for Council to achieve an optimal tenancy mix at Sunrise
Shops that serves the community, generates customer activity and achieve an enhanced
commercial yield for Council.



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