Project objective

We’re seeking feedback on the proposed leases to Cheltenham Golf Club (the Club) to manage the operations of the facilities on the Cheltenham Golf Course (CGC).

The current lease to the Club commenced 29 May 2009 for a period of 21 years at a commencing rental of $33,100 (plus GST) per annum. The Lease expiry date is 28 November 2030.

With five years remaining on the current lease, the Club has noted concerns regarding insufficient time for members to benefit from the planned expenditure required to address the errant golf balls safety concerns on its boundaries.

The Club has also highlighted that if debt is necessary to pay for the capital works, loan repayments amortised over the remaining lease period may not be feasible.

Due to these reasons, the Club are seeking to bring the new lease proposal forward and negotiate a new 21-year lease as soon as practicable.

Project impacts

The proposed new lease to the Club will provide them the ability to invest in the required course capital upgrades on the 8^th ,9^th and 5^th tees to address errant golf ball safety concerns.

The Club has committed to increase their budget allocation to progress the implementation of the Tree Management Plan (TMP) which aims to significantly improve the courses vegetation and biodiversity management.

Financial

Council currently receives rental of $69,994 per annum (plus GST). The Club has proposed a commencing annual rent of $46,000 GST inclusive and assignment of Telstra Mobile Tower Lease to Council with current rental of $33,000 per annum.

Telstra has a sub-lease with the Club for a 20-year lease expiring 1 day before the Head Lease expires (27 May 2030). The Club has agreed in principle to transfer the lease directly to Bayside City Council. This would fully align the Club as a category 3 community tenant due to the transfer of the rental income from Telstra for this site to Council. The current rent for Telstra Tower is $33,000 per annum (rent in 2030 approximately $45,000).

The Club’s capital contribution is in the form of cost associated with the works to mitigate stray golf balls on the 5^th and 8^th/9^th holes estimated to be in the order of $840,000 to $1.75M and the commitment to invest $150,000 over 5 years to implement the TMP.

The tenant is responsible for operational costs associated with running CGC under that lease. The investment and proposed rental are included below.

Not proceeding with a new lease may limit the immediate capital investment required to address the errant golf ball issues with only five years remaining on the existing lease.

Social and community considerations

CGC provides a value for money golfing option and is open to all ages, genders and abilities. Specific competition times are set aside for both male and female members throughout the week. Further investment into the course will support ongoing user benefits provided by golfing activities.

What information do we need from the community?

We’re inviting feedback on the proposal to provide new leases to The Club for the management and operation of on the Cheltenham Golf Course site.

The engagement is designed in accordance with Council’s Community Engagement Policy and Section 115 of the Local Government Act 2020.

What can the community influence?

• whether Council proceeds with new leases to The Club.
• any variation to the terms of the proposed leases

What can’t the community influence?

• Primary use of the site as a public golf course
• Council’s Lease and Licence Policy

Stakeholders and community

This stakeholder assessment is a generalised understanding of sections of the community that have a connection to the project or matter. This information is used to understand the types of tools and techniques that will achieve the strongest and most effective outcomes for engagement and communication.

Impact: What level of change the stakeholder / community segment may experience as a result of the project / matter

Interest: What level of interest has been expressed or is anticipated

Influence: Reference to the IAP2 Spectrum

Selected tools and techniques

The tools and techniques selected for this project are informed by the project content, stakeholders and type of feedback sought.

Key tools for communicating the project

• site signage
• letters distributed to nearby and neighbouring residents
• news story on Council’s website and e-newsletter This Week in Bayside
• social media
• direct email to related community engagement project subscribers and Have Your Say members
• newspaper advertisement in The Age

Key methods for gathering feedback

• online consultation via Council’s Have Your Say platform, including opportunities to ask questions and provide feedback
• contact details for interested community members to ask for further information or provide feedback
• printed information available, as required.

Project timelines

• Community consultation on leases
  20 August – 21 September 2025
• Consideration of community feedback
  A community engagement summary report will be prepared
• Council to decide on new leases
  Council is expected to consider community feedback and the proposed leases at a meeting in November 2025.
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Decision-making process

Community and stakeholder consultation on the proposed leases will be held for a 4-week period in August-September 2025.

Community feedback will be collated and presented to Council for their consideration and amendments will be made to the proposed leases, as required.

It is expected that a report on community feedback and the proposed leases will be considered for adoption by Council at a meeting on 18 November. The agenda for this meeting will be published on Council's website on 12 November 2025.

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All Council meetings are live-streamed via Council’s website. Community members can also ask a question or request to be heard at this meeting.

More information

Shane Macfarlane

Property Officer

smacfarlane@bayside.vic.gov.au