Council to oppose surf club rent increase

Gosford Council will write to the Minister of Lands in an attempt to ensure commercial rent is not charged by his department for Crown land upon which local surf clubs are built.

The Killcare surf club could face an immediate increase of $12,000 a year if the State Government's proposal to charge commercial rent goes ahead.

Gosford Council constructed three surf club buildings at Umina, Ocean Beach and Killcare, offering them 20-year leases with a subsidised rent.

As Killcare and Umina surf club buildings are on Crown reserves, with council the reserve trust manager, they are allowed to lease the premises subject to the agreement of the Minister for Lands.

Umina surf club has a fixed rent agreement until 2017.

Council will submit a case to justify its current rent discount for Killcare surf club to the Land and Property Management Authority in an attempt to save the club from paying commercial rent.

If its submission is rejected, council will review alternative rent proposals for lease of Crown land to the clubs.

Council has now proposed to lease Killcare surf club 15 years from April next year at $3000 per annum.

Current market rent has been assessed at $15,000 per annum for Killcare requiring a $12,000 subsidy by council.

Council resolved in 2008, to have the difference between the actual rent and market rent be shown as a donation to Killcare surf club.

Council has now resolved to write to the Minister for Lands seeking support for the appropriate level of lease fees for surf clubs on Crown land, given the voluntary status and contribution they make to the community.

"In order to satisfy the concerns of the LPMA relating to the rebate of the rent, it is intended to inform the LPMA that council supports the vital community work carried out by various community group members, including surf life saving club members," according to a council report.

"The rent is subsidised by council because charging of market rent may cause the clubs difficulty to meet that commitment and result in reduced services by club members to the community.

"Thus, any reduction in the service provided may need to be substituted for by council paid life guards.

"The rent subsidy should be retained for all surf life saving clubs on council land or Crown reserves managed by council.

"This shows the general public council's appreciation for the community work carried out by groups like surf life saving clubs.

"The benefit to the community outweighs the subsidy."

However, the Land and Property Management Authority advised council that: "All reserve Trusts should be mindful of ways to ensure the long term sustainability of reserves under their management."

"The draft document does not provide any justification to a rebate of 95 per cent.

"As previously advised, currently the Authority's community rebate is capped at a maximum of 50 per cent.

"Justification for the 95 per cent rebate is requested to allow the lease to be approved.

"On the proviso that the issues are addressed, approval will be given for a 15 year lease term."

Meanwhile, deputy mayor Cr Craig Doyle said the situation could best be described as "bureaucracy gone mad".

"Commercial rent for volunteers. This is nuts," Cr Doyle said.

"This proposal needs to be killed off immediately by the Minister of Lands."

Liberal candidate for the state seat of Gosford Cr Chris Holstein said council had shown its full support of local surf clubs when it completed the surf club rejuvenation project.

Clare Graham, 5 Oct 2010 Council agenda SF.33, 5 Oct 2010