Services & Organisation Committee Agenda - 8 April 2025
Date: Tuesday, 8 April 2025 at 1:30PM
Location: Noosa Shire Council Chambers , 9 Pelican Street , Tewantin , QLD 4565 , Australia
Organiser: Noosa Shire Council
Duration: 00:06:27
Synopsis: Lease Renewals Approved: Shop4 Sunrise Dental 5y+2x2, Shop6 1+1+1, Procurement Exemption s236; transparency/benchmarking gaps, Vacancy: Shop1 EOI Colliers, Governance: Unanimous, delegated options, No deputations.
Meeting Attendees
Committee Members
Karen Finzel Jessica Phillips Nicola Wilson Frank Wilkie Non-Committee Members
Executive Officers
Director Development And Regulation Richard MacGillivray Director Corporate Services Margaret Gatt Director Infrastructure Services Kyrone Dodd AI-Generated Meeting Insight
Key Decisions & Discussions Frank Wilkie : Moved to confirm prior minutes; carried unanimously (01:19) (Item 4). Robyn Mercer : Presented Shop 4 lease renewal—Sunrise Dental Care to receive a 5-year term with two 2-year options (total potential 9 years) due to strong performance and community service (02:08–02:49) (Item 7.1). Council : Approved Shop 4 lease renewal and empowered CEO to grant options, applying tender exemption under s236(1)(c)(iii) LGR 2012 for an existing tenant; carried unanimously (03:51–04:05) (Item 7.1). Robyn Mercer : Noted Sunrise Shops has 8 tenancies; Shop 1 vacant and under EOI/marketing by Colliers; 7 tenanted (03:06–03:42) (Item 7.1). Frank Wilkie : Queried vacancy context to underscore value of retaining reliable tenants (02:54–03:42) (Item 7.1). Council : Approved Shop 6 lease renewal (bakery/cakes) as three successive 1-year options (mutually agreed), allowing strategic review of tenancy mix; unanimous (04:27–05:18; 05:18–end) (Item 7.2). Karen Finzel : Recorded unanimous votes on both items, including assent by online attendee Jessica Phillips (03:56–04:05; 05:18–end) (Items 7.1, 7.2). Administration : No presentations, deputations, or confidential session; meeting closed 1:38 pm (opening/closure) (Items 5, 6, 9, 10). Contentious / Transparency Matters Procurement transparency : Both renewals bypassed tender via s236(1)(c)(iii) for existing tenants; this is lawful but reduces competitive testing and should be transparently justified on record (Items 7.1, 7.2). Market testing : Record notes Colliers is marketing the single vacancy (Shop 1), indicating external market engagement, but no public discussion of market rent benchmarking for the renewals was captured (03:06–03:42) (Items 7.1, 7.2). Attendance clarity : Minutes record Jessica Phillips and Tom Wegener online; transcript confirms Phillips’ participation but Wegener made no remarks in session (opening; 03:56–04:05) (Attendance). Public interest : No deputations or community submissions on the leases were received or discussed, despite precinct relevance (Items 6, 7.1, 7.2). Legal / Risk LGR 2012 s236(1)(c)(iii) : Minutes expressly invoke the exception allowing disposal by lease to an existing tenant without tender; this aligns with QLD Local Government Regulation where justified (Items 7.1, 7.2). Delegations : CEO authorised to grant lease options conditional on lessee compliance—consistent with prudent delegation but requires compliance monitoring (Items 7.1, 7.2). Procedural integrity : Unanimous votes, clear movers/seconders, and identification of remote participation meet open decision-making norms under the Local Government Act 2009 framework (Items 4, 7.1, 7.2). Risk of foregone competition : While lawful, serial use of s236 exemptions can attract probity scrutiny if not supported by value-for-money evidence; no such evidence discussed on record (Items 7.1, 7.2). Tenure structure risk : Shop 6’s 1+1+1 structure gives flexibility but could increase churn risk; Council noted it as a strategic choice pending centre planning (04:27–05:18) (Item 7.2). Sunrise Shops – Tenancy Mix, Service Continuity, and Economics Community services : Renewal of a long-standing dental service secures essential health access for Sunrise community and stabilises precinct revenue (02:08–02:49) (Item 7.1). Reliability emphasis : Staff cited on-time rental performance and reputation as renewal drivers, underscoring risk mitigation vs. vacancy (02:08–02:49) (Item 7.1). Vacancy management : Only Shop 1 vacant with active EOI via Colliers, indicating controlled vacancy and proactive leasing (03:06–03:42) (Item 7.1). Strategic optionality : Shop 6 rolling one-year options maintain services while enabling medium-term repositioning of the centre’s mix (04:27–05:18) (Item 7.2). Financial sustainability : Discussion linked tenant retention to precinct sustainability, consistent with Council’s commercial stewardship role (03:06–03:42) (Item 7.1). Governance Notes Karen Finzel : Chaired, ensured movers/seconders, confirmed unanimous outcomes; meeting ran efficiently with no confidential items (opening; 03:51–04:05; 05:18–end) (Items 7.1, 7.2, 9, 10). Executive present : Minutes record attendance of Directors Richard MacGillivray , Margaret Gatt , and Kyrone Dodd ; transcript shows Robyn Mercer led the lease briefings (Attendance; 02:08–05:18). Record completeness : No conflicts of interest, material changes, or legal threats were recorded; all decisions were straightforward property leasing matters (entire session) (Items 7.1, 7.2).
Official Meeting Minutes
MINUTES Services & Organisation Committee Meeting Tuesday, 8 April 2025 1:30 PM Council Chambers, 9 Pelican Street, Tewantin Committee: Crs Karen Finzel (Chair), Cr Jessica Phillips, Cr Frank Wilkie, Cr Nicola Wilson “Noosa Shire – different by nature” SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 8 APRIL 2025 1. DECLARATION OF OPENING The meeting was declared open at 1.30pm 2. ACKNOWLEDGEMENT OF COUNTRY Noosa Council respectfully acknowledges the Traditional Custodians of the lands and waters of the Noosa area, the Kabi Kabi people, and pays respect to their Elders, past, present and emerging. 3. ATTENDANCE & APOLOGIES COMMITTEE MEMBERS Cr Karen Finzel (Chair) Cr Jessica Phillips (via Microsoft Teams) Cr Nicola Wilson Cr Frank Wilkie NON COMMITTEE MEMBERS Cr Tom Wegener (via Microsoft Teams) EXECUTIVE Director Development and Regulation Richard MacGillivray Acting Director Corporate Services Margaret Gatt Acting Director Infrastructure Services Kyrone Dodd APOLOGIES Nil. 4. CONFIRMATION OF MINUTES Committee Resolution Moved: Cr Frank Wilkie Seconded: Cr Nicola Wilson The Minutes of the Services & Organisation Committee Meeting held on 11 March 2025 be received and confirmed. Carried unanimously. 5. PRESENTATIONS Nil. 6. DEPUTATIONS Nil. 7. REPORTS FOR CONSIDERATION OF THE COMMITTEE SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 8 APRIL 2025 7.1. SUNRISE SHOPS - SHOP 4 LEASE RENEWAL Committee Recommendation Moved: Cr Frank Wilkie Seconded: Cr Nicola Wilson That Council note the report by the Commercial Business Advisor to the Services & Organisation Committee dated 8 April 2025 and A. Approve the lease renewal to Sunrise Dental Care Pty Ltd for Shop 4, Sunrise Shops for five (5) years commencing 1 July 2025; B. Authorise the Chief Executive Officer to award a subsequent two (2) by two (2) year extensions 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. Carried unanimously. 7.2. SUNRISE SHOPS - SHOP 6 LEASE RENEWAL Committee Recommendation Moved: Cr Frank Wilkie Seconded: Cr Nicola Wilson That Council note the report by the Commercial Business Advisor to the Services & Organisation Committee dated 8 April 2025 and A. Approve the lease renewal to Cartor Pty Ltd for Shop 6, Sunrise Shops for one (1) year commencing 28 April 2025; B. Approve the CEO to award subsequent two (2) by one (1) year extensions 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. Carried unanimously. 8. REPORTS FOR NOTING BY THE COMMITTEE Nil. 9. CONFIDENTIAL SESSION Nil. 10. MEETING CLOSURE The meeting closed at 1.38pm.
Meeting Transcript
Karen Finzel 00:00.000
Good afternoon and welcome to the Services and Organisation Committee meeting, Tuesday 8th of April 2025, commencing at 1:30pm. I notice we have all councillors in attendance. Good afternoon and welcome to the services and organisation committee meeting, Tuesday 8th of April 2025, commencing at 1:30pm. I notice we have all councillors in attendance. Good afternoon and welcome afternoon and welcome to Councillor Jessica Phillips, who's online, Councillor Frank Wilkie, and Councillor Nicola Wilson. I'd like to say acknowledgement to country. We acknowledge and respect the Australian First Nations people and their deep and abiding connection to this country. We recognise the Kabi Kabi people as the traditional owners of the lands and waters of the Noosa area and offer our gratitude for their careful custodianship of this unique environment over thousands of years. We pay respect to Kabi Kabi elders who have come before us and acknowledge and deeply regret the traumas experienced by Kabi Kabi people through colonialism and beyond. Now I've read that today out of our corporate plan for the Noosa Shire Council to show our commitment and Our First Nations people. Firstly we have, that's our declaration of our opening, we've done acknowledgement of country. We have everyone in attendance with no apologies. Do I have a mover for the confirmation of the minutes? Confirmation of the minutes. Frank Wilkie 01:19.592
I'll move it, Madam Chair. Karen Finzel 01:21.052
Thank you. Do we have a second? That's first by Councillor Wilkie and second by Councillor Wilson. All in favour? Thank you, that's unanimous. Thank you, Councillor Jessica Phillips online. We have no presentations, no deputations. deputations. So we will start with reporting. So we will start with reports for consideration of the committee. 7.1, sunrise shops, Shop 4 lease renewal. And thank you and welcome to our staff to the table. And we invite you to give us an overview of your report. Thank you. you, councillors. Good afternoon. There are two reports before you today for your consideration of two lease renewals at sunrise shops. And so I'll hand over to Robyn, who is going to take us through the report and the recommendation. Robyn Mercer 02:08.432
Thank you. Welcome, Robyn. Thanks, Thank Thank you. Good afternoon. The Shop 4 lease renewal report is in front of you today seeking a renewal of the existing tenants lease for a period of nine years in total with a five year base period and two two year options. Sunrise Dental has been a long standing tenant at sunrise shops. They're got a Sunrise Shops, they've got a very solid reputation in the community providing dental services. They are strong and consistent with their rental payments and I support the recommendation to renew their lease for a further period. Thank you. you Karen Finzel 02:49.249
Madam Chair. Do we have any questions? Frank Wilkie 02:54.389
Just a general question about the tenancies at Sunrise Shops. How many are vacant? me understand how important it is that we retain good tenants. Robyn Mercer 03:06.452
Certainly. So Shop One is currently vacant and Colliers are running the Expression of Interest and Marketing campaign for that tenancy. tenancy, of the eight total tenancies, the other seven are tenanted. Shop One is currently vacant and Colliers are running the Expression of Interest and Marketing campaign for that tenancy. Of the eight total So securing a renewal of an existing tenancy that is committed to the centre and is a reliable tenant and offers... good service for the community is important to retaining the tenancy mix. It's important to the financial sustainability of the precinct. And our broader commitment to the community as well in terms of services. Frank Wilkie 03:42.069
Thank you. you. Karen Finzel 03:43.504
Thank you. Do we have any further questions? Do we have a mover for the report? Frank Wilkie 03:51.224
Happy to move it, Madam Chair. Karen Finzel 03:52.644
Thank you. That's Councillor Wilkie. I'll second. Seconded by Councillor Wilson. Would you like Would you like to have a report? No, thank you for the report. Great decision. It's good to secure reliable tenants that provide valuable service for that shop, those shops there. Thank you. you. Councillor Phillips? All in favour? That's a yes from Councillor Phillips. That's unanimous. Thank you. The second item, 7.2, Sunrise Shops, Shop 6, the lease... the lease renewal. Robyn Mercer 04:27.872
Yeah, so similar to Shop 4, this is an existing tenancy that we're looking to renew their lease for a further term. The lease in question is for Shop 6, which is occupied by a bakery and cake type offering. They have been a long-standing tenant at the Sunrise Shops. The period or tenure of lease that is being put forward for recommendation is three years broken into three one-year options. Now that looks a little different to a standard tenancy and that has come about from a mutually agreed outcome. that's a really agreed outcome that suits both the tenant and council at this time. So that suits the tenants and it suits council in that it gives us a strategic opportunity to look at the tenancy mix and the longer term plans for the centre. Karen Finzel 05:18.580
Thank you. Any further questions? No, I'm happy to move it Madam Chair. Okay, that's moved by Councillor Wilkie. Do we have a seconder? I'll second. Second by Councillor Wilson. Do you have any further comments? No, I'd just like to say thank you again for the report and thank you for the respect you've shown to the long term tenant. negotiating this this way forward with them. I fully support the approach taken. Thank you. staff it was a well written report and thank you for your time and effort today and thank you for your time and effort today. Thank you very much. Thank you. We'll take that to the vote. All in favour? Thank you. That's unanimous. Councillor, that's a yes. Thank you. very much. Thank you. And do we have a... do we have a confidential session? No. So there is no confidential session. No reports noting by the committee and the meeting closure at 1:38pm. Thank you everyone. Good afternoon. Related Noosa Council Meetings
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