NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 21 October 2010

 

LATE AGENDA††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Page

 

8††††††† General Manager Report

8.6†††† Bowraville Theatre - Lease of Retail Shop

8.7†††† Investments - Capital Funds Lost in Global Financial Crisis

 

 


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Ordinary Council Meeting

21 October 2010

General Manager's Report

ITEM 8.6††††† SF1347††††††††††† 211010†††††††† Bowraville Theatre - Lease of Retail Shop

 

AUTHOR/ENQUIRIES:†††† Steven Williams, Property Officer ††††††††

 

Summary:

 

Council has previously resolved to seek to negotiate a 10 year lease to the Bowraville Arts Council (BAC) for the whole of the Theatre building including the retail shop space.

 

The BAC has advised that they seek to lease only the Theatre component of the property consistent with the current lease agreement

 

Staff have advertised for expressions of interest for the lease of the retail space and have determined a preferred tenant.

 

In the circumstances it would be appropriate to pursue this lease rather than wait for an outcome of dealings with the BAC.

 

 

 

Recommendation:

 

1††††††† That Council lease the retail space at the Bowraville Theatre being part Lot 1 in deposited plan 330860 for a period of three years with an option for a further three years on the terms and conditions deemed appropriate by Councilís solicitor.

 

2††††††† That Council accept the preferred proposal for the lease of the retail space at the Bowraville Theatre being part Lot 1 in DP 330860.

 

3††††††† That the General Manager and Mayor be authorised to negotiate the final terms of the retail lease and to sign all documents necessary to give effect to the lease agreement.

 

 

 

OPTIONS:

 

Councilís intention was to lease the whole of the property to the BAC where upon the BAC would sublease the retail space at their discretion.† Council can continue to pursue this outcome despite the BACís current† intention.† Note that a delay in leasing the property is simply forgone rental income.

 

 

DISCUSSION:

 

The retail shop at the Bowraville Theatre has traditionally been leased directly from Council.† The proceeds of the lease were directed to the long outstanding loan from Council to the BAC.

 

The previous tenant vacated the property earlier this year.

 

Council resolved at its meeting on 29 July 2010 to waive the loan balance and to seek to negotiate a 10 year lease of the whole of the property to the BAC.

 

Staff are attending to the Deed of Agreement waiving the loan balance and continue to seek common ground as to the proposed lease tenure.

 

The BAC has, however, advised through their solicitor that they do not wish to lease the whole of the property and have specifically request that any lease exclude the retail shop space.

 

Staff have advertised for expressions of interest for the a retail lease of the shop space and have determined a preferred tenant.† The proposed tenant has requested a 3 x 3 lease at a base rental of $150.00 per week (exclusive of GST).† The tenant has operated a successful hair salon in Bowraville for many years and references indicate that she would be a suitable and reliable tenant for the property.

 

In the circumstances Council should seek to lease the property to the preferred tenant at a base rent of $150.00 plus GST for a period of three years with an option for a further three years.

 

It is recommended that the net rental proceeds be directed to a Reserve for the ongoing upkeep of community buildings

 

 

CONSULTATION:

 

Council solicitor Terry Perkins

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

The recommendations do not give rise to any environmental issues

 

Social

 

The recommendations do not give rise to any social issues.

 

Economic

 

The recommendations do not give rise to any economic issues although it should be noted that it is in Councilís interest to generate income from this property as soon as possible.

 

Risk

 

The recommendations do not present any specific risk to Council.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

Council will incur recurrent spending on this property, work pest and fire safety measures, as well as lease administration.† The working fund allocation is suggested as a means to contribute to these expenses.

 

There is currently no Reserves for the future upkeep of the property.† The recommendation to establish a Reserve will mitigate future working fund pressures as and when upkeep and maintenance is required.

 

Source of fund and any variance to working funds

 

There is no variance to working funds proposed by the recommendation.

 

 

Attachments:

There are no attachments for this report.


Ordinary Council Meeting

21 October 2010

General Manager's Report

ITEM 8.7††††† E014/2010††††††† 211010†††††††† Investments - Capital Funds Lost in Global Financial Crisis

 

AUTHOR/ENQUIRIES:†††† Faye Hawthorne, Accountant ††††††††

 

Summary:

 

At the Council meeting of 16 September 2010, Council decided that prior to accepting the tender from CPG Research & Advisory Services for investment services, that a report be requested from CPG Research & Advisory Services asking how much capital funds Council has lost in the global financial crisis.

 

 

Recommendation:

 

That Council accept the tender from CPG Research & Advisory Services for the supply of Councilís Investment Advisory Services for the period 1 July 2010 to 30 June 2015.

 

 

OPTIONS:

 

1.†††††† Notation of the report on capital funds lost by Council in the global financial crisis and acceptance of the tender from CPG Research & Advisory Services for the supply of Councilís Investment Advisory Services for the period 1 July 2010 to 30 June 2015

2.†††††† Notation of the report on capital funds lost by Council in the global financial crisis and acceptance of the another tenderer for the supply of Councilís Investment Advisory Services for the period 1 July 2010 to 30 June 2015

 

 

DISCUSSION:

 

Attached please see report and spreadsheet calculations from Andrew Vallner Ė Managing Director Ė Advisory Ė CPG Research & Advisory Pty Ltd in relation to Capital Funds Loss in the Global Financial Crisis.

 

 

CONSULTATION:

CPG Research & Advisory Pty Ltd

 

 

FINANCIAL IMPLICATIONS:

This loss on income has been included in Councilís budget reviews during the Global Financial Crisis.

 

Direct and indirect impact on current and future budgets

The impacts are detailed in the report.

 

Source of fund and any variance to working funds

The impact on working funds has been taken into account in budget reviews during the Global Financial Crisis.

 

 

Attachments:

1View

25404/2010 - Capital Loss in GFC - Advice from CPG

 

2View

25405/2010 - Investment Transactions (spreadsheet)

 


Ordinary Council Meeting - 21 October 2010

Investments - Capital Funds Lost in Global Financial Crisis

 


Ordinary Council Meeting - 21 October 2010

Investments - Capital Funds Lost in Global Financial Crisis

 

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