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New lease for Bayside Waste and Recycling Centre

At its July meeting, Council granted a new lease to Future Recycling Pty Ltd to redevelop and operate the Bayside Waste and Recycling Centre.

What you told us

Read about community feedback on the Bayside Waste and Recycling Centre lease.

We’re seeking your feedback on our proposal to grant a 20-year lease to Future Recycling Pty Ltd to operate the Bayside Waste and Recycling Centre.

Under the proposed lease, Future Recycling Pty Ltd will contribute $4,698,000 towards the redevelopment of the centre.

The redevelopment will include the demolition of the current office and weighbridge as well as installation of a new hardstand throughout the site, undercover drop off and sorting shed and new recycling bays for green organics, timber, steel, soil and concrete. Existing structures will be demolished and replaced with a new purpose-built facility.

The new facility will also include a repair café where members of the community can bring in items for repair and a recycle shop where recycled items can be purchased by the community.

Due to the significant capital investment in the site a 5-year rent free period is proposed to support Future Recycling’s redevelopment of the transfer station.

Rental return includes $1,105,126 plus GST for the first 10 years. Estimate (subject to market rent review) for the entire 20-year term is $10,105,126. After the initial rent-free period rental escalation is set to 5% fixed increases for each year of the term. A turnover rent of 4% above yearly estimated revenue will also be payable.

This consultation is on the lease for the waste and recycling centre only. We undertook a five-week community consultation process in March - April 2022 to understand how our community use the centre, what their experience has been, and what type of services they love or want to see added to the centre in the future. Almost 1,000 community members shared ideas and feedback on the Bayside Waste and Recycling Centre. Read about the previous engagement on the Bayside Waste and Recycling Centre.

Timeline

  • Timeline item 1 - complete

    Community consultation - future vision

    Read what the community told us about their future vision for the Centre.

  • Timeline item 2 - complete

    Community consultation - proposed lease

    17 May 2023 – 14 June 2023* (5pm)

    Read about how we're engaging with our community on this project.

    *Consultation period extended as the project had been deferred to the 18 July 2023 meeting.

  • Timeline item 3 - complete

    Consideration of community feedback

    A Community Engagement Summary Report will be prepared.

  • Timeline item 4 - complete

    Council to decide on new lease

    Council is expected to consider community feedback and the proposed lease at its 18 July 2023 meeting

What's in the proposed lease?

  • 20-year lease

    A term of 20 years

    Commencing Annual Rent: $200,000 plus GST
    Rent-free term: 5 years
    10-year rental return: $1,105,126 plus GST
    Estimate full-term rental return: $10,105,126 plus GST
    Rental Escalation: Fixed 5% increases to rent each year of the term.
    Turnover Rent: 4% of revenue over the yearly target


  • More recycling options

    An increased number of materials accepted for recycling and diverted from landfill.

  • Fully funded upgrade

    Upgrade proposal fully funded by Future Recycling, with no capital investment by Council.

What's in the proposed upgrade?

Future recycling are proposing to undertake a complete redevelopment of the of the site to include a new purpose-built state of the art transfer station facility incorporating:
  • Under cover drop off area

    A fully under cover drop off area to minimise dust when receiving materials.

  • New recycling bays

    Purpose built bays to separate recyclable products

  • Concrete hardstand

    A concrete hardstand installed over the entire site to minimise dust and debris.

  • Container deposit scheme

    A container deposit scheme to align with the statewide introduction later this year.

  • Repair cafe

    A repair café where members of the community can bring in items for repair.

  • Recycle shop

    A recycle shop (in association with Vinnies) where recycled items can be purchased by the community.

What's the proposed upgrade plan?

Improved recycling facilities delivered over three stages. The recycling centre will remain fully operational throughout all stages of development. Future Recycling anticipate a completion date of all three stages by September 2024.

View images of the proposed upgrade

View before and after images of the proposed upgrades for the Bayside Waste and Recycling Centre. Images provided are examples based on Future Recycling's other sites.

Please provide your feedback on the proposed lease

Complete the quick survey or upload a written submission regarding this proposed lease.

Complete the survey form

Upload a written statement


To make a submission or enquiry, please get in touch via the following methods:

  • Online via the survey on this page
  • Ask a question in the Q&A forum
  • Email Damien Darcy, Property Coordinator ddarcy@bayside.vic.gov.au
  • Phone 9599 4496
  • In person to the Corporate Centre at 76 Royal Avenue, Sandringham
  • Post to Bayside City Council, PO Box 27 Sandringham 3091
  • Anonymously via the postal, phone or email details above.

Please note: Materials can be provided in accessible formats on request.

Submissions closed at 5pm 14 June 2023 - Consultation period was extended as this project had been deferred to the 18 July meeting for consideration.

Please select the blue subscribe+ button at the top of this page to receive updates about this project, including notification of when it will be considered at Council meetings.

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Contact us

yoursay@bayside.vic.gov.au

(03) 9599 4444

www.bayside.vic.gov.au

Bayside City Council, 76 Royal Avenue

PO Box 27, Sandringham VIC 3191

For general enquiries to Bayside Council

bayside.vic.gov.au/contact-us

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