The issue of leasing agreements and tender processes between the Council, community groups and business operators continues to be muddied, despite the issuing of a new leasing policy almost 18 months ago.
Two weeks ago, Ricky Schmidt, the owner of the Bateau Bay Driving Range, which sits on a Council-owned block, flagged that despite prolonged attempts to get his lease renewed, he was eventually hit with the news that the land and business he leased would be put out to tender.
Schmidt is not the only party whose lease agreement hangs in the balance or is being forced to re-tender, with reports suggesting that Wyong Pistol Club, Gosford Bowling Club and Gosford Tennis Club are facing the same problems.
Central Coast Newspapers has also received calls from several other community groups who have been unable to engage with Council over the renewal of leases for community centres and other council-owned buildings in the wake of Council’s financial crisis.
Schmidt said he been finally asked to a meeting with the Council at the start of April, however, Council has declined to reveal exactly how many groups and businesses also have their futures hanging in the balance.
Instead, it points to the creation of a Leasing Policy adopted almost 18 months ago as information enough to satisfy worried parties.
“Prior to the Policy being adopted, leasing arrangements were inconsistent, which created financial and tenure uncertainty for both Council and lease holders, including for the current tenant of the Bateau Bay Golf Driving Range site,” said the Council.
The inconsistencies among its leaseholders have not been revealed, and neither have the reasons for Council putting leases out to tender for sites that have been used by businesses and groups for five, or in some cases, more than 10 years.
Schmidt said that until he found out about the Council meeting, he received stock standard replies that did not specifically address his business’ predicament.
Council released a statement, referring community groups and business owners to the Leasing Policy on its website that outlines criteria for how leases are assessed.
“Having this Policy available on the website since 2020, has (also) enabled current and prospective lessees to understand the process.
“Council tenders are advertised on Council’s website, and registered on Tenderlink.
“In some instances, particularly for high profile sites, other forms of advertising will be included, such as online and/or in local newspapers,” it said.
The blanket statements from Council do not address how the decision to put a site out to tender is made; whether that is dependent on a lease expiry date, or why it has taken so long since the adoption of the Policy for leaseholders to get firm answers on what the future holds for them.
Schmidt is hopeful he will succeed in maintaining his lease for at least another five years, although he is aware that his days are numbered.
He explained that in his last telephone call with the Council, he was told that even if he is granted a “five by five” lease – five years, followed by another five years – the lease will expire after 10.
“I knew this from day one,” he explained. “The driving range is on the same site as the water treatment works and there has been talk for some time that Council will need to expand those works at some stage.”
“I just wanted confirmation sooner rather than later of what the future holds for me and the Driving Range,” he said.
In the near future, Council has confirmed that the Driving Range site will continue to be used for recreation, and that will be noted in the tender documents.
“All existing lease holders, including the current Bateau Bay Golf Driving Range lease holder, are welcome to submit a tender proposal when Council advertises an asset for tender,” the Council policy says.
“Council is committed, and obligated, to ensuring the best financial return and community benefit on assets for commercial leases including leases for recreational uses/purposes.
“Importantly funds received from commercial leases help fund wider community services,” it said.
Schmidt said he is waiting for the tender to be advertised.
“We had surveyors up here the other day, apparently checking and confirming where the boundaries are … whatever the final decision is, I just don’t want to see the community lose the Driving Range,” he said.
Nicola Riches