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Willoughby City Council

Policy Register

Short Title Lease of Tennis Courts

Division Corporate Services

Category Property

File No C07-0077

Date adopted by Council 23 November 1998


Amended 28 May 2012

Resolution No 98/1422 Additional Resol No

POLICY

Lease Term

The lease term for tennis courts is a maximum of 10 years, and is based on a
commitment by the lessee to all capital expenditure relating to the tennis courts and
associated facilities during the term of the lease.

Rental

The rental is set by Council and is based on an independent market rental valuation
with consideration of rebates for:

 Capital works/improvements amortised over the term of the lease


 Community-based activities and involvement

Each case is assessed by Council individually.

The rental is paid at least quarterly in advance.

The rental is reviewed by Council annually in line with the movements in CPI and by
an independent market rental valuation after 5 years.

Capital Improvements and Maintenance

The lessee is generally responsible for all capital works, however this is dependent
on the extent of the works and the term of the lease and will be assessed by Council
on an individual basis.
Willoughby City Council
Policy Register

The lessee will specify all major capital improvements to be undertaken during the
term of the lease at the commencement of the agreement and a proposed schedule
of works (eg. a 10 year plan) forms part of the lease agreement.

All capital works are to be undertaken only with Council approval via the appropriate
approval process.

The lessee is responsible for all maintenance and repairs to tennis courts, facilities,
buildings, park (where applicable).

At the end of the lease term the lessee will leave the courts and associated facilities
in a satisfactory condition. All improvements become the property of Council/Crown.

Availability of Courts

The lessee will make the tennis courts available for use by the public for at least
50% of the court’s available time.

The courts may be used exclusively by Club members provided that such use does
not result in making the courts available to members of the public for less than 50%
of the court’s available time. Available time must be advertised to users of the
courts and the general public through appropriate media.

The lessee will make courts available to schools and other community groups at
reasonable charges.

(These conditions may vary under individual Plans of Management).

Club Membership

The lessee will make Club membership available to anyone in the community.

Playing Fees

The lessee will set a schedule of fees for use of the courts which will be endorsed by
Council. The schedule of fees will form part of the lease and may not be altered
except with Council’s consent. It should be noted that an appropriate ratchet clause
may be inserted into any fee structure (eg. CPI).

Insurance and Indemnity

The lessee will indemnify Council and the appropriate Minister.


Willoughby City Council
Policy Register

The lessee will take out a public liability insurance policy in the amount of not less
than $20,000,000 or other amount specified by Council from time to time.

Evidence of the currency of this policy to be forwarded to Council annually. The


interests of Council are to be endorsed on any such policy.

Plan of Management

The lessee will comply with any Plan of Management associated with the land.

Payment of Outgoings

The lessee is responsible for the payment of all rates, taxes, water and sewerage
rates and charges, sanitary and garbage charges, water usage, gas, electricity,
telephone, cleaning and all other outgoings as may be applicable to the site during
the term of the lease.

Goods and Services Tax

In the event of any government introducing a Goods and Services Tax or its
equivalent, the rental payable at that time will be varied so that the net rental
receivable by Council will be the same as if no Goods and Services Tax had been
introduced.

Income/Expenditure

The lessee will submit audited accounts of income and expenditure for Council’s
consideration at the end of each financial year.

Planning matters

The use of tennis courts and associated facilities is to be strictly in accordance with
current development consents, LEP, zoning, plan of management, classification of
the land and any other appropriate criteria.

Third Party Agreements, subleasing, licensing and assignment of leases

Any lessee of Council-owned or managed land must not offer to enter into any third
party agreements whatsoever for the management, use and/or control of the land or
facilities thereon (“relevant agreements”) without the prior written approval of
Council. Any proposal by a lessee to any third parties to enter into relevant
agreements must be via an open and transparent tender process, evidence of which
must be supplied by the lessee to Council if requested by Council.
Willoughby City Council
Policy Register

Regardless of the terms of the relevant lease (but subject to any legislative
requirements), any lease of Council-owned or managed land is exclusive to the
lessee and the lessee shall not be permitted to assign, sublease or transfer the
lease to any other person or organisation without the prior written consent of
Council.

In addition, where a lease relates to or is over Crown land or otherwise subject to the
Crown Lands Act 1989, the consents which a lessee is required to obtain from
Council under this section must also be obtained from the Minister administering the
Crown Lands Act.

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