Project objective

We’re seeking feedback on proposed leases to BlueFit to manage the operation of all current and proposed facilities on the Brighton Golf Course site. This would be under three separate leases for the Golf Course, proposed Warm Water Pool, and the proposed Wellness Centre.

BlueFit, a leisure facility management company, is the current leaseholder of the Brighton Golf Course site, having taken over management from Leisure Management Services in July 2023. Its current lease expires in 2028.

The creation of three new leases will permit Council to separate the land for the proposed public Warm Water Pool from the Golf Course and the land for the proposed Wellness Centre (a separate private development proposed by the BlueFit).

Proposed new facilities have been subject to sperate community engagement programs, with strong community support, and will be subject to all applicable building and planning permit processes and requirements.

Project impacts

The proposed new leases will increase the return from the site, generating two new revenue streams and more investment into the course, as well as community benefits from wellness and therapeutic facilities.

Financial

Council currently receives rental of $256,000 plus a small turnover rent ($28k last financial year) for the entire golf course site. The creation of three new leases will add new revenue streams once rent-free periods are completed. It should be noted that if the Wellness Centre Proceeds, Council will be entitled to turnover rental from the issue of Certificate of Occupancy capped at twice the rental.

The Tenant will also contribute $1M towards the Warm Water pool, plus $495,000 towards the Pro Shop component and pay a commencing rental of $60,000 plus 1.5% turnover rental. The tenant is responsible for operational costs associated with running the Warm Water Pool under that lease. The investment and proposed rentals are included below for each of the sites.

BlueFit

Investment

Annual Rent

Lease Term

Golf Course

$1,000,000

$Market rent set by valuer including 1.5% turnover rental,

annual CPI increase

10 years plus (includes 2 years rent free)

Further term of 10 years

Warm Water Pool (incorporates new Golf Pro Shop

$1,000,000 WWP.

Plus $495,000 for new Pro Shop.

$60,000 plus GST plus 1.5% turnover rental, annual CPI increase

10 years (includes 8 years rent free)

Further term of 10 years

Wellness Centre

Fully funded by BlueFit

$250,000 plus GST

Additional turnover rent with cap at double base rent,

annual CPI increase

15 years (10 year rent free, % turnover rent payable from date of Cert of occupancy)

Two further terms of 15 years

If Council does not progress the lease proposals and defers consideration until the current Brighton Golf Course lease expires in 2028, it will impact access to the land at Brighton Golf Course to undertake construction of the Warm Water Pool.

This would also affect the development of the Wellness Centre, to which Council has already given landlord consent in June 2022 to proceed with design for the Wellness Centre, following community consultation and support for the proposal.

Not proceeding with a new lease may also limit capital investment back into the golf course with five years remaining on the existing lease.

Social and community considerations

Brighton Golf Course provides a value for money golfing option. Further investment into the course will support ongoing user benefits provided by golfing activities. There are significant social and physical health benefits associated with the use of warm water pools including quicker recovery from illness, injury, and surgery. The Wellness Centre will also provide an outlet for relaxation and wellbeing services which can support community wellbeing.

What information do we need from the community?

We’re inviting feedback on the proposal to provide three new leases to BlueFit for the management and operation of all current and proposed facilities on the Brighton Golf Course site.

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 proceeds with new leases to BlueFit
  • any variation to the terms of the proposed leases
  • management and operation of the community facilities on the site
What can’t the community influence?
  • Primary use of the site as a public golf course
  • The Warm Water Pool and Wellness Centre facilities, which have been the subject of separate community engagement processs.
  • 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

Stakeholder / community

Impact

Interest

Influence

Brighton Golf Course members

H

H

Consult

Neighbouring residents

H

H

Consult

Potential future users of the Warm Water Pool and Wellness Centre

H

H

Consult

Broader Bayside community

L

M

Consult


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 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.

Project timelines

  • Community consultation on leases
    22 November – 20 December 2023 (5pm)
  • 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 early 2024.

Decision-making process

Community and stakeholder consultation on the proposed leases will be held for a four-week period from 22 November – 20 December 2023.

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 in early 2024 (specific dates have not yet been released).

Select the blue +Subscribe button at the top of the 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 also ask a question or request to be heard at this meeting.

More information

Damien Darcy

Property Coordinator

ddarcy@bayside.vic.gov.au

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