2014-04-28 General Committee Meeting Agenda Pages 65-200

GENERAL COMMITTEE MEETING AGENDA                                                     28 APRIL 2014


11.   SHOP 6 SUNRISE NEIGHBOURHOOD SHOPPING CENTRE – 2 x 5 YEAR LEASE
      AGREEMENT

Author            Project Officer, Michelle Stirling
                  Corporate Services

Index             ECM/ Application/ LEASE13/0017

Attachment        1.       Aerial Map



EXECUTIVE SUMMARY

Not applicable.

RECOMMENDATION

That Council note the report by the Property Officer, Property and Facilities to the General
Committee Meeting dated 28 April 2014 and;

A.    Approve the new lease agreement with the Barker Family Trust for Shop 6, Sunrise
      Neighbourhood Shopping Centre for 5 years commencing 28 April 2014;

B.    Approve the CEO 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) (c)
      (iii) of the Local Government Regulation 2012 as the renewal is to the existing tenant.


REPORT

The purpose of this report is to seek Council approval of a 2 x 5 year rental agreement to the
existing tenant occupying Shop 6 the Bakery, Sunrise Neighbourhood Shopping Centre. The
existing tenant has approached Council and requested consideration be given for a new lease
without Council going to public tender.
The Sunrise Neighbourhood Shopping Centre, at 2 Grasstree Court, Sunrise Beach, was
constructed on Council freehold land by the Noosa Council in approximately 1996, as Council
identified the Sunrise Beach area as lacking local facilities.
The 8 shops provide a rentable area of 927m2, with forecast annual revenue of over $330,000
and have enjoyed close to 100% occupancy since construction.
The lease with the Barker Family Trust for Shop 6, the Bakery, expired on 27 April 2014. The
tenant approached Sunshine Coast Regional Council in October 2013 requesting Council to offer
a new lease without going to public tender.
The tenant has had an exceptional rental record since 2002 and under Section 236 (1) (c) (iii) of
the Local Government Regulation 2012, Council is not required to tender for the leasing of the
property as it is re-leasing to the existing tenant. The requirements for this exception are that the
rent is to be at market value as determined by an independent valuer and that a relevant Council
Resolution is first obtained.




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