Where is Lounders Boatshed Cafe located?
Lounders Boatshed Café is located in Tenancy 1 (northern portion of building) and shares this building with a second commercial tenancy located at the back of the building (southern portion). the building is owned by the City of Adelaide and is situated on the banks of the River Torrens [Image 1].
Lounders Boatshed Cafe (Lessee) commenced trading in 2017 and has developed a strong following with the locals and is a popular destination for a unique food and beverage experience in the Park Lands.
Image 1 - Location Map
In July 2020, Council (acting as Landlord) provided consent for the Lessee to install a Gazebo to the eastern side of the Café to provide year-round comfort for customers. At the same time, in-principle consent was also provided for a new 15 year Commercial Park Lands Lease Agreement being entered into, subject to undertaking Community Consultation.
The current 4+4 year Commercial Lease Agreement is in its second term and is due to expire on 31 December 2024. It is proposed that upon successful completion of all statutory lease processes as outlined in the Local Government Act (SA) 1999 (LG Act 1999) and Adelaide Park Lands Act (SA) 2005 (APL Act 2005), that the new 15 year lease will supersede the 4+4year lease agreement.
When was Lounders Boatshed Cafe established?
Lounders Boatshed Cafe (Lessee) commenced trading in 2017 and has developed a strong following with the locals and is a popular destination for a unique food and beverage experience in the Park Lands.
In July 2020, Council (acting as Landlord) provided consent for the Lessee to install a Gazebo to the eastern side of the Café to provide year-round comfort for customers. At the same time, in-principle consent was also provided for a new 15 year Commercial Park Lands Lease Agreement being entered into, subject to undertaking Community Consultation.
The current 4+4 year Commercial Lease Agreement is in its second term and is due to expire on 31 December 2024. It is proposed that upon successful completion of all statutory lease processes as outlined in the Local Government Act (SA) 1999 (LG Act 1999) and Adelaide Park Lands Act (SA) 2005 (APL Act 2005), that the new 15 year lease will supersede the 4+4year lease agreement.
Why is Council consulting on this lease?
Lease consultation is a statutory requirement under the Local Government Act (SA) 1999 when the term of the lease is greater than 5 years. This lease is for 15 years.
Why does Lounders Boatshed Cafe require a long-term lease?
As per the Adelaide Park Lands Management Strategy, this organisation provides commercial services that support use and enjoyment of the Adelaide Park Lands. A 15-year lease agreement allows the organisation to plan for the future, and obtain a return on its capital investments to date.
What is the process for granting a long-term lease?
The process for granting a 15-year lease term is set out in the Local Government Act 1999 (LG Act 1999) and the Adelaide Park L ands Act (APL Act 2005).
Under the LG Act 1999, Council is required to formally undertake community consultation for a lease or licence over community land when the term is greater than 5 years (including any rights to renew).
Following community consultation, if any negative responses are received, the results of this process will be presented to the Kadaltilla/Park Lands Authority and Council for their consideration.
If approved by Council, the APL Act 2005 requires that all leases or licenses in the Park Lands that are for 10 or more years (not exceeding 42 years) be submitted to both Houses of Parliament (where the lease or license will be tabled for 14 sitting days). During this time Parliament has the right to allow or resolve to disallow the grant or renewal of a lease or licence.
This process can take anywhere between 3 to 5 months. If the lease is not disallowed during the 14 sitting day period, then both the Lessee and Council is able to progress to execute the lease.
What are the 15 year lease agreement details
The proposed 15 Year lease term has been supported by Council in-principle (subject to the outcome of community consultation). The 15 Year Lease agreement essentially mimics the current 4+4 Year Lease Agreement with a few new elements; please see below for more information:
Licensed Area – Clause 24 and Attachment B
In response to customer demand, the Lessee is seeking to formalise two Licensed Area’s in front of the Café so that tables and chairs can be utilised as part of a Park Land outdoor dining experience.
Enclosed Gazebo – First Schedule, Item 9: Special Condition 8 (Annex A)
The lease formally recognises the newly installed gazebo as part of the leased area which the Lessee has exclusive rights over. Tenancy 2 can access this area for the purpose of providing their staff access to the toilet.
Proposed Deck - First Schedule, Item 9: Special Condition 9 (Annex C)
The proposed deck was considered in the 4+4 Year Lease agreement. However, this 15 Year Lease Agreement also provides details of the location and physical limitation of the proposed structure.
While Council has not formalised landlord consent for the proposed deck, the purpose of including this level of detail in Annex C, is to allow the community to visually connect with the Lessee’s future aspirations for this site.
