FAQs - Lease and Licence Policy

Council has developed the draft Lease and Licence Policy which aims to: 

• have a consistent, equitable and transparent process and decision making in relation to the leasing of all Council property (land and buildings).
• comply with best practice and legislative requirements when negotiating and managing Council’s lease and licence agreements.
• optimise financial return for the commercial portfolio and establish fair and consistent subsidies for community/ volunteer tenants, whilst encouraging higher usage rates.
• clarify roles and responsibilities and manage Council’s assets responsibly

Lease 

A lease is an agreement in which the landlord (Council) agrees to give a tenant the exclusive right to occupy Council land/building for a fixed term, subject to the lease terms and conditions. A lease conveys an interest in the land. Usually a lease is used where Council property is occupied fully for a specified sport or purpose (e.g. tennis courts, kindergarten).

Licence 

A licence is an agreement in which the Licensor (Council) gives permission to the licensee to carry out a permitted activity on Council property without the right to exclusive occupation. A licensee may have exclusive occupation during that time they occupy (e.g. every Monday between 9 -11am). A licence is used where a Council facility is shared by a number of groups and more than one licence may be granted over the same property.

The draft policy does not intend to change existing lease or licence agreements. All current agreements remain in place and unchanged. If your agreement is in overholding or expired, the new policy will provide guidance on what to expect when we commence negotiation with your organisation/ club.

The policy will apply when:

•  a lease or licence has expired and requires renewal,
• a new agreement is negotiated and entered into, or
• where a review and/ or variation to an existing agreement is applicable.

If adopted, the proposed draft Lease and Licence Policy will be applicable at the time of preparation of a new lease or licence. Where current agreements are in place there is not impact and they continue to operate under their existing agreements. For most, there will be no or minimal impact if the proposed draft Lease and Licence Policy is adopted. 

For new lease or licence agreements entered with Council, the rent, fees and charges are categorised in the draft Policy. There is an expectation that some tenants will be responsible for more repairs and maintenance which will be determined through negotiations. All tenants will have a maintenance schedule attached to their new lease or licence that will clearly set out the tenant’s and Council’s repair and maintenance obligations as determined by our Facilities Management Team.

We are working internally to review sites that have no existing written agreement is in place and apply a risk matrix to the commencement of negotiations for new agreements. We will work with each organisation/ club on likely timing and will communicate and provide updates as we move forward. 

This process will take time to action, and we look forward to working with you in partnership to fomalise written agreements

The maximum term is generally five years, and preference will be given for licences rather than leases to allow a premises to be multi use for greater community activation. Community tenants will generally be responsible to pay for rates, fire service levy, waste charges and utilities and must hold $20 million public liability insurance

Council insures buildings/ assets on Council owned land and Crown land, if however, a building is not constructed by or is not owned by Council the tenant is responsible for insuring the building. We will work with individual organisations and clubs to advise on building insurance requirements. 

All tenants and licensees are advised to insure any contents, this is not provided by Council. 

All tenants and licensees must hold and maintain public liability insurance at a minimum of $20 million.

Council delegates the running of the buildings/ facilities not the activities that occur therefore Council is not the decision maker for activities undertaken.

Other insurances may be applicable, however we will work with organisations and groups on any specific requirements