Brimbank proposes new lease agreement with St Albans Sports Club

Brimbank Council is inviting written submissions on a proposed new lease agreement with St Albans Sports Club Incorporated for the use of Kings Park Reserve, in Gillespie Road, St Albans.

The proposed lease, which is subject to commercial terms and conditions due to the operation of a gaming venue on site, provides for a 10-year lease term, with options for two further periods of five years.

Mayor of Brimbank, Cr Lucinda Congreve said Council’s current lease with the Club was last negotiated in 1999 and would expire on 1 December 2019.

“Council has been working closely with the St Albans Sports Club Board through a process to review the terms of the tenancy agreement.

“The lease being proposed is for 10 years, with options to extend for a further two terms of five years.

“In line with our current lease agreement with the Club, we’re proposing the Club remains solely responsible for funding and undertaking all maintenance and upgrades at the site, as well as managing its use,” Cr Congreve said.

An independent market rental assessment of the proposed lease and licence was undertaken to determine the commercial value of the lease and associated licence –determined to be $270,000 per annum.

The club would be eligible for discounted rent (up to 80 per cent) based on a discount framework designed to meet Council’s community and sports development objectives, and to increase gambling harm reduction initiatives above regulated requirements in line with Brimbank’s Electronic Gambling Policy.

It’s proposed the annual rent would increase annually by a set percentage or CPI during the initial term, followed by a market review for future terms and the same increases annually.

St Albans Sports Club Incorporated operates a gaming venue at the Gillespie Road site with 35 State Government approved pokies.

In line with Brimbank’s Electronic Gambling Policy, leases being renegotiated with sports clubs operating a gaming venue on Council land are now subject to commercial terms and conditions.

Written submissions on the Key Principal Terms of the proposed lease will be received until 24 September 2019.

Any submitters requesting to be heard in support of their written submission will be heard by a Hearing of Submissions Committee at 6pm on 7 October 2019 at the Brimbank Community and Civic Centre.

Next review date: 
22 August 2019