We’re seeking feedback on Council’s intention to provide a new 15-year lease (with a 6-year option) to Same Pty Ltd for the Dendy Street Beach Pavilion Café for a commencement rent of $80,000+GST and annual turnover rent of 7.5% of turnover in excess of $1,000,000.

The community engagement program is designed to meet the requirements of Section 115 of the Local Government Act 2020

This community engagement program will only consider feedback from the community for the Lease of the Dendy Street Beach Pavilion Café. It does not include the design nor construction of the new Café. Find out more about the Dendy Street Beach Pavilion and Masterplan.

Social and community considerations

• Dendy Beach is a popular destination for Bayside residents and domestic and international tourists, attracting tens of thousands of visitors every year. Currently, the nearest food and beverage outlet is a 10-minute walk. The addition of food and beverage availability in this location will greatly enhance convenience and the visitor experience.
• The Dendy Street Beach Pavilion is currently under construction and due for completion in early 2023, with space allocated for a café. The internal café area is 107 sqm with a 24 sqm balcony.
• The café will provide a welcoming environment and meeting place for community members with indoor seating and an outdoor deck area.
• Trading days will be seven days a week, 52 weeks a year (except Christmas Day) with permitted hours ranging from 7am to 10pm. Minimum operational hours are 8am until 4pm, dependent on weather
• The proposed tenant intends to provide seated table service and take-away of high-quality food at a reasonable price. The menu will be tailored to a very broad audience including children and will cater for a wide range of dietary requirements.
• The café will employ a range of waiting and food preparation staff contributing to the local employment market.
• The lease of these premises will not significantly impact the natural environment as it replaces an existing building. The new pavilion is situated further back from the beach than the existing pavilion, accommodating the lower forecourt plaza area.
• The design of the cafe reflects the natural and beachy theme which was the preferred look identified through previous community engagement.

Financial consideration

• The lease is to a commercial food and beverage provider and the tenant would be responsible for the internal fit-out of the café representing a capital contribution of between $350,000 to $400,000.
• The rental is a commercial rent and is in-line with current market rates for café rental.
• The proposed tenant was selected following the completion of a two-stage Expressions of Interest (EOI) comprising 49 enquiries and 15 applications. Three proponents progressed through to the second stage with Same Pty Ltd being selected following assessment against the key selection criteria and final interview. The two phases of the process considered criteria including the financial return to Council, quality of fit out proposed, the level of experience of the proponents and the proposed plan to activate the site. To complete the EOI process and establish café services at the site, the finalisation and execution of a Lease is required.

We’re inviting feedback on the proposed decision to provide a new lease to Same Pty Ltd for the use of Council property on the Dendy Street Beach Pavilion Café site for a period of 15 years.

The engagement is designed in accordance with Council’s Community and Stakeholder Engagement Policy 2021 and Section 115 of the Local Government Act 2020,

What can the community influence?

• whether Council offers a new lease to Same Pty Ltd for a period of 15 years
• any variation to the terms of the proposed lease.

What can’t the community influence?

• Council’s Lease and Licence Policy 2018
• The lease for the Life Saving Club that forms a separate part of the building, which is not included in this engagement
• The building itself, which has been the subject of a separate community engagement process.

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

Stakeholder / community	Impact	Interest	Influence
Local residents	H	H	L
Dendy Street Beach visitors	H	M	L
Wider Bayside community who may be impacted by the lease	L	L	L

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 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
• 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.

Key Dates:For this phase
Item title	Start date (& time if relevant)	End date (& time if relevant)	Description (if required)
Community consultation	Wednesday 19 October 2022	Wednesday 2 November 2022	Read about how we’re consulting with our community on this project (link to Engagement Plan Overview)
Consideration of community feedback			A Community Engagement Summary report will be prepared
Council considers feedback and decides on new lease	Tuesday 20 December 2022		Council is expected to consider the proposed lease and community feedback at its December meeting.

It is expected that Council will consider community feedback and the proposed lease of the Dendy Street Beach Pavilion Cafe at its meeting on 20 December 2022.

The agenda for this meeting, including the community engagement report, will be published on the Wednesday before the Council meeting (14 December) via Council's website. Project subscribers will be notified of the results of the engagement and the Council report at this time.

To receive updates on this project, click on the blue 'subscribe' button at the top of this page.

All Council meetings are live-streamed via Council’s website. Interested members of the community can ask a question of this meeting or request to be heard.

More information

Shane Macfarlane

Property Leasing Officer

smacfarlane@bayside.vic.gov.au

Ph: 9599 4457