Project objective

We're seeking feedback on a proposed new lease to Carmac Holdings Pty Ltd ATF Tim McKimm Family Trust (Tenant) for the occupation of the land known as Royal Avenue Tennis Centre (RATC), Sandringham.

The Tenant has operated and resided at the site since 2008 and was the successful applicant to an Expression of Interest campaign in late 2011 which resulted in the grant of a lease. The current lease term commenced 1 April 2012 for a 10-year term which expired on 30 March 2022. The current rent for the site is $100,226.66 per annum (plus GST).

The Tenant has proposed a new lease with a term of 9 years and 9 months with a commencing rent of $115,000 plus GST per annum, as determined by an independent Market Rent assessment.

Project impacts

The proposed new lease to the Tenant will ensure that RATC continues to provide a value for money tennis option in Sandringham and enable the Tenant to plan for future investment in the tennis infrastructure, facilitating the ongoing high level of community access to the site.

Financial

Council currently receives rental of $100,226.66 per annum (plus GST) for RATC. The proposed lease commencing annual base rent will be $115,000 per annum (plus GST). Rent escalation of CPI per annum would apply to the Tenants lease and include a market rent review (year five).

The Club’s proposal also includes capital investment of up to $529,450 of investment into the facilities over the duration of the lease will substantially improve the current user experience while also being sympathetic to the parkland setting and traditional timber

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

Social and community considerations

The Tenant has a proven record of operating tennis facilities. As long-term operators, they have a strong connection with the local community and have a reputation for their professionalism, friendliness and commitment to creating a positive and rewarding sporting experience.

The proposed RATC lease to the Tenant will provide positive social benefits for young people, adults and older adults through their participation and engagement in sport and recreation activities.

Further investment into the courts will support ongoing community benefits provided by tennis activities. There are significant social and physical health benefits associated with playing tennis, which provides an outlet for relaxation and exercise, actively supporting community wellbeing.

What information do we need from the community?

We’re inviting feedback on the proposal to provide new leases to Carmac Holdings Pty Ltd for the management and operation of on the Royal Avenue Tennis Centre site.

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

What can the community influence?

• If Council proceeds with the new lease to The Tenant
• Variation(s) to the terms of the proposed leases

What can’t the community influence?

• Primary use of the site as a public tennis centre
• 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 discuss the project
• printed information available, as required.

Project timelines

• Community consultation on lease

20 November – 17 December 2025

• Consideration of community feedback

December 2025 - January 2026.

A community engagement summary report will be prepared.

• Council to decide on new lease

Council is expected to consider community feedback and the proposed lease at a its February 2026 meeting.

Decision-making process

Community and stakeholder consultation on the proposed leases will be held for a 4-week period between 20 Novamber and 17 December 2025.

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

It is expected that a report on community feedback and the proposed lease will be considered for adoption by Council at a meeting on 17 February 2026. The agenda for this meeting will be published on Council's website 1-week before the meeting.

Select the blue +Subscribe button at the top of this page to receive project updates, including when it will be considered at Council meetings.

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

More information

Shane Macfarlane

Property Officer

smacfarlane@bayside.vic.gov.au