2015-11-10 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                              10 NOVEMBER 2015


NYRC Lease Proposal

NYRC held a committee meeting on 18 May 2015 to discuss a range of matters and
subsequently considered and carried motions relating to:
 Negotiating a new land lease with Council; and
 Surrendering the existing lease to enable the construction of capital improvements.
On 4 June 2015 NYRC requested Council consider a 25 year lease proposal (subsequently
revised to 20 years) as the basis to secure funds for its kitchen refurbishment. NYRC expects
that the refurbishment will provide a modern, functional kitchen to more appropriately serve the
needs of members and guests.
Typically, financial institutions will require security of tenure before lending money. Consequently
the two years remaining on the existing lease will not fulfil the lending institution’s requirements,
hence NYRC’s application to enter into a new lease.

Proposed NYRC Lease Responsibilities

NYRC will be responsible for the following:
 Tenure establishment costs - all associated costs with establishing the lease including survey
   plan, registration/lodgement, surrender of existing lease and legal costs to prepare the lease
   (approximately $5,400).
 All ongoing maintenance and utility costs in accordance with Council’s Community Purpose
   Land and Infrastructure Tenure Policy.

Policy and Legislative Considerations

The Community Purpose Land and Infrastructure Tenure Policy states that longer term leases
(more than 10 years) may be considered in exceptional circumstances e.g. where the applicant
proposes to make significant contributions, capital improvements and/or developments at the
proposed site.
Consequently, in accordance with this provision and the organisation’s strong operating track
record it is proposed that a twenty year lease be offered to NYRC.
Under Section 236 (1) (b) (ii) of the Local Government Regulation 2012, Council is not required
to tender for the leasing of the property as the purpose of renewal of the lease is to a community
organisation. The requirements of this exception are that a relevant Council resolution is first
obtained.

Previous Council Consideration

Nil.

Finance & Risk

The Director Corporate Services has reviewed the group’s current and future financial capacity
(particularly as the organisation is proposing to take on additional debt to fund the kitchen
refurbishment). Based on the audited 2014/2015 financial report it appears that if current
profitability for NYRC is maintained and prudent capital expenditure occurs the group is
sustainable and will meet its future expected debt repayment obligations.




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