2020-02-11 Services and Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                11 FEBRUARY 2020


The primary lease provisions proposed are as follows:

 Lease Provision               Proposal
 Lessee Name:                  Fireball International Pty Ltd
 Premises:                     Lease B being part of Lot 95 on SP137431 253 David Low Way
 Nett Lettable Area:           45m2
 Commencement Date             01.03.2020
 Initial Lease Terms:          3 years
 Options to Extend:            3 options, each of 1 year
 Market Rent Reviews:          CPI reviews annually with Market review at exercise of option
 Outgoings:                    100% of outgoings for the building and land in proportion to the area
                               leased (approximately $3,000 per annum).
 Permitted Use:                Professional Office
 Rental Free Period :          3 months
 Bond:                         Three month’s rent plus Outgoings plus GST to be paid by the lessee
                               to the lessor by cash or bank guarantee upon execution of the lease.

It is recommended Council agrees to enter a commercial lease with Fireball International Pty Ltd
generally in line with the above provisions.

Previous Council Consideration
Special Meeting Minutes, 22 May 2018, Item 1, Page 3
That Council note the report by the Economic Development Manager to the Special Council
Meeting dated 22 May 2018 and:
A.    Award the Tender Number 1718T127 for the tenancy of the Digital Hub to the following
      tenderers and delegate authority to the CEO to finalise lease negotiations with each:
      1.    Atmail Pty Ltd;
      2.    Alkira Software Pty Ltd;
      3.    Commtract Communication Services Pty Ltd;
      4.    PB Research and Development Pty Ltd; and
B.    Agree to proceed to an Invitation to Quote for Property Management Services via Council’s
      Vendor Panel Marketplace; and
C.    Approve the Co-working tenancy process and tenancy mix as noted in this Report.
D.    Request the CEO to report 6 monthly to Council on the Digital Hub progress, financial
      performance and other KPIs as per other Council business areas. Update reports are
      provided to Council on a six monthly basis.

Finance
The financial return posed by the new lease is slightly above the previous financial return for the
leased space. The total rent-free period of 3 months is in line with market practice for a new
lease with a tenant undertaking their own fit out.
Risks & Opportunities
The report seeks to minimise risk associated with securing a new lessee and allowing the lessee
to activate its business plan. The lessee’s proposal demonstrates a commitment to the Peregian
Digital Hub and Council’s strategic objectives. Fireball International has been engaged locally for
over 12 months, building their Fire prediction technologies. It is somewhat fortuitous that Fireball
International is seeking to establish a head office at this time, with aspirations to grow
significantly and quickly.




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