surrender of lease - southern region surf life saving ... · pdf fileordinary meeting of...

Ordinary Meeting of Council 28 19 November 2007

Wollongong City Council

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REF: CM219/07

SURRENDER OF LEASE - SOUTHERN REGION SURF LIFE SAVING ASSOCIATION HELICOPTER RESCUE SERVICE PTY LTD Report of Manager Commercial Projects and Property (NR) 25/10/07 05.04.01.060

PROGRAM Economic Growth

FUNCTION Commercial Property

STRATEGY Develop a strategic approach to managing Council’s property and land holdings to foster economic growth as well as commercial returns to Council

PRECIS

The Southern Region Surf Life Saving Association (SLSA) Helicopter Rescue Service Pty Ltd (SRHR) has agreed to surrender its lease over the heliport at Port Kembla Road, Coniston. The heliport is not used by the Service which has not been operating since February 2005.

RECOMMENDATION

1 Council authorise the surrender of the lease to Southern Region SLSA Helicopter Rescue Service Pty Ltd dated 31 July 2003 due to expire on 31 May 2008.

2 Authority be granted to affix the Common Seal of Council to the Deed of Surrender.

BACKGROUND

In 1998 a five year lease was entered into with Southern Region SLSA Helicopter Rescue Service Pty Ltd for the provision of rescue services from the heliport at Port Kembla Road, Coniston. The purpose of the lease was that the heliport facility be used for rescue and emergency services as well as commercial helicopter operations. The leased site was offered at $1.00 per annum in light of the community services to be provided and the non-profit nature of the SRHR. The licence is due to expire in July 2008, but the SRHA has not been successful in renewing its service contract with the NSW Ambulance Service and has therefore offered to surrender the lease. During the construction of the hanger, SRHA were responsible for the internal fit out of the hangar (walls, office space, mezzanine, toilets, showers and kitchen) at an estimated cost of $150,000. During the negotiations, in respect to the surrender of the lease, it was negotiated that Council would purchase the fit out for $42,000 reflecting depreciation of the asset. Council has been in negotiations with the successful tenderer (CHC Helicopter (Australia) to operate the service out of the Coniston Heliport. CHC currently operate out of the Illawarra Regional Airport at Albion Park. The aircraft operated by CHC are too large for the Coniston hangar without major alterations, however negotiations continue. It is therefore proposed that an expression of interest be called seeking a commercial operator for the Coniston Heliport. PROPOSAL

Wollongong City Council enter into a Deed of Surrender of Lease with Southern Region SLSA Helicopter Rescue Service Pty Ltd legally ending the lease due to expire on 31 May 2008 thereby allowing Wollongong City Council to enter into a lease with another organisation which will be able to provide helicopter rescue services to the Illawarra and South Coast regions.

Ordinary Meeting of Council 19 November 2007 Page 129


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CONSULTATION AND COMMUNICATION

Kells the Lawyers were consulted in order to obtain advice on how the lease should be surrendered.

PLANNING AND POLICY IMPACT

The recommendation of this report has no impact on the planning or policy provisions of Council.

ECOLOGICAL SUSTAINABILITY This matter is consistent and complies with the four principles of Ecologically Sustainable Development as outlined in the Protection Administration Act 1991. This matter is consistent and complies with the principles of Ecologically Sustainable Development (ESD) as outlined in the Protection Administration Act 1991, as amended by the Protection of the Environment Operations Act 1997. ESD is interpreted to mean development that improves the quality of life, both now and in the future, in a way which maintains the ecological processes upon which life depends. The four principles of ESD have been considered and the effect of this proposal on them is as follows: Precautionary Principle Council is undertaking action which will mitigate any environmental impact and enhance the current amenity without any scientific evidence of environmental impact. Inter-generational Equity Council, through this proposal, will enhance the quality of life for current and future generations. Ecological Integrity This proposal will not affect the ecological diversity of the existing life systems and will enhance and maintain the essential ecological processes and life systems of the local area by adhering to environmental safeguards. Pricing The ecological, social and economic costs of this proposal have been considered and adequately assessed as part of this project.

RISK ASSESSMENT

Risk identification has been carried out and associated risk with surrendering the lease is deemed to fall into category L - Low Risk.

FINANCIAL IMPLICATIONS

Currently the maintenance of the heliport is funded by the Commercial Projects and Property Division. An expression of interest would see Council earn income from the site and a valuation is currently being sought.

OPTIONS

Council can agree or refuse to enter into the Deed of Surrender of Lease.

CONCLUSION

Entering into the Deed of Surrender will enable Wollongong City Council to lease the property to another service provider.

Ordinary Meeting of Council Page 130 19 November 2007


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Name Position Title Date Signature

This report provides Councillors with all the relevant information and is correct at the time of writing. This information has been relied upon in preparing the report and its recommendations. Signed by:

Nikita Robertson Legal Administration Officer 25/10/07

Peter Coyte Manager Commercial Projects and Property

31/10/07

Lyn Kofod Acting Chief Financial Officer 31/10/07

ATTACHMENTS

1. Surrender of Lease - Southern Region SLSA Helicopter Rescue Service Pty Ltd

ATTACHMENT 1 - Surrender of Lease - Southern Region SLSA Helicopter Rescue Service Pty Ltd Page 131


ATTACHMENT 1 - Surrender of Lease - Southern Region SLSA Helicopter Rescue Service Pty Ltd


ATTACHMENT 1 - Surrender of Lease - Southern Region SLSA Helicopter Rescue Service Pty Ltd 1


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