Council Minutes - Town of Cambridge

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COUNCIL MINUTES TUESDAY 28 AUGUST 2012 DETAILS: Subsequent to the February Council Meeting, the Town has been progressing the design concept for the project and has continued discussions with the COPSLSC. The Club have revised their own business plan and it is apparent that they view the gym as a major component that will not only service its life saving members, but also bring additional revenue from Associate Membership that can offset the costs of better fitness and training facilities. The Club has continued to seek a non-compete clause from the Town relating to the gym, and given that the Town has no plans to develop, operate or lease a gym in the vicinity, it is a request that may be conceded by the Town. If the Council were to agree, it would be drafted such that if the Club cease to provide a Gym at any point in time (to associate members and the public), then the non-compete clause would lapse. The Club has also sought an option to extend the lease at the end of the term, given that the COPSLSC is looking at a significant investment on its part. The Town has reiterated it would not provide an option exercisable by the Club, but would consider a term which signifies a commitment to negotiate an extension in good faith. Council's approval is sought to draft amended terms reflecting the above for inclusion in the Agreement to Redevelop and Lease and the Lease itself. POLICY/STATUTORY IMPLICATIONS: The recommendations made in this report are considered an integral part of the community facilities leasing policy. FINANCIAL IMPLICATIONS: The commitment by the Town to the Surf Club component of this project is $4.5 million. The leasing policy would see a $25,000 contribution from the Club and $50,000 from the Town annually based on a 1,480m² building. STRATEGIC DIRECTION: This is a key strategic initiative for the Town as outlined in the Strategic Plan. The Town is aiming to provide community infrastructure and facilities that are well used and maintained. Its intent is to develop, renew, rationalise and consolidate capital and environmental assets to ensure their sustainability for future generations. ATTACHMENTS: Nil H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\AUGUST 2012\C CR.DOCX 197
COUNCIL MINUTES TUESDAY 28 AUGUST 2012 COUNCIL DECISION: (COMMITTEE AND ADMINISTRATION RECOMMENDATION) Moved by Cr Langer, seconded by Cr Walker That the Agreement and Lease for the redevelopment and lease of the City of Perth Surf Life Saving Club premises be amended to incorporate: (i) (ii) a non compete clause relating to the Gym, such that the Town would agree not to permit the activity of a Gym on its land within 500 meters of the surf club premises, and if the Club ceases to provide a Gym at any point in time (to Associate Members and/or the public) that the non compete clause will lapse; and a clause to signify an intent to negotiate an extension or a new lease on expiry. Carried 9/0 H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\AUGUST 2012\C CR.DOCX 198
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Council Minutes - Town of Cambridge

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