Expression of Interest Process
In accordance with Council's Adelaide Park Lands Leasing and Licensing Policy, Council undertook an EOI process for the Rymill Park Kiosk. In 2019 Council resolved to commence lease negotiations with the successful proponent, Creative Place Hospitality Group (CPH Group).
The proposal received from CPH Group demonstrated a strong understanding of the site and the unique policy setting that accompanies a commercial lease in the Adelaide Park Lands. The business offering promoted the continued use of a kiosk/café and desire to maintain the rowboat hire. The business proposal included the integration of functions and events, and the creation of a ‘Hire Shop’ for picnic baskets, lawn games (bocce) and kites.
The EOI submission also identified high level infrastructure upgrades which included an internal reconfiguration of the Kiosk, new toilets and improved/extended ‘back of house’ area. Other improvements included a deck to the front of the Kiosk, a roof over that deck to provide year-round serviceability and improved lighting and paving around the Kiosk.
From 2020 to 2021, progress by the proponent stalled because of impacts of the COVID-19 pandemic including an unstable economic climate. Since this time, CPH Group actively developed their original proposal, which was presented to Kadaltilla in September 2023, and again in October 2023, and then Council in November 2023.
Process for granting a Long-Term Lease
The process for granting a 21-year lease term is set out in the LG Act 1999 and the Adelaide Park Lands Act (SA) 2005 (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).
In accordance with Council’s Community Consultation Policy, consultation will be undertaken for 21 Days, with all responses and the results of this process to be presented to Kadaltilla 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 6 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.
21 Year Lease Agreement Details
Council have agreed to enter into a longer term lease agreement, not exceeding 21 years. The following section itemises elements that are bespoke to the draft lease agreement.
Lease Term: Schedule, Item 2, Item 3 & Clause 13.
21 years, to be captured as 7+7+7 year lease agreement where the Lessee has the option and right of renewal to commence the next seven-year term. However, if the Lessee does not complete the project and open the Kiosk within 18 months from the Lease Commencement Date, the Lessee will not be entitled to the Renewal Terms, and the lease will revert to a seven-year lease only.
Proposed Redevelopment: Clause 8.3, 8.3.5, & 8.3.6
This clause details the consents required to proceed with the redevelopment of the Kiosk and what to do if any changes are made to final endorsed plans that are considered to be a Material Variation.
This clause also contains a mechanism by which the Lessee must use all reasonable endeavours to ensure the Proposed Redevelopment is substantially completed, within 12 months from the Commencement Date, and that the Kiosk is operational to Council’s satisfaction.
Further, if the Lessee has not fully completed the Proposed Development and the Kiosk is not operational to Council’s satisfaction (acting reasonably) within 18 months from the Commencement Date, the Lessee acknowledges and agrees, without limiting any of the term of this Lease, the Lessee will be in breach and will no longer be entitled to the Renewal Terms.
Permitted Use: Clause 6.1, Schedule Item 6
Kiosk, café/restaurant, event/function space combined with prescribed trading hours. This has been designed to allow flexibility of trade and ensure that there are minimum hours of operation to ensure that the Kiosk remains open to the general public and is not closed during the day as a result of a private function. This includes remaining open and accessible for all Park Lands users on Fridays, Saturdays, Sundays and Public Holidays between 8:00am and 2:00pm.
Lease Plan: Annexure A
The current Kiosk (unimproved) building footprint is 110m2. The proposal increases the building footprint to 181m2 (as defined by the Adelaide Park Lands Building Design Guidelines (APLBDG):
Internal floor area: 110m2 (existing),
Toilets and service area: 71m2 (new), and
Kiosk deck: 106m2
(not included in building footprint calculation as it is not an enclosed area - criteria of APLBDG).
The lease plan will however include the Kiosk Deck as this inclusion delineates the extent community land (Park Lands) alienated by lease (Section 202 - LG Act 1999).
Rent and Rent Reviews: Schedule, Item 4, Item 5a, Item 5b & Item 5c
A market rent assessment will be undertaken by an external independent valuer to determine the annual rent, which will take into consideration the capital investment made by the Lessee. Rental valuations are not captured by this report as they are commercial in-confidence.
Rowboats and Lake Access: Schedule, Item 10 Special 3
The Lessee has indicated their desire to maintain the former Rymill Park Lake rowboats. While the Lessee will manage use of the rowboats on the lake, the lease does not provide for exclusive use of the lake by the Lessee.
Council and State Events: Clause 11.6
The lease agreement acknowledges that the Kiosk is in an area of the Park Lands that is used regularly for public, major or special events which may limit or restrict the use of and/or access to the Kiosk. It also acknowledges Council’s limitations to influence public, major or special events in or affecting the Park Lands (and the Leased Premises) that are described as a declared event under the South Australian Motor Sport Act 1984 or Major Events Act 2013.
To minimise impacts to the Lessee and event organisers in Rymill Park going forward, it is proposed that:
The draft lease agreement includes a requirement for Council Administration to provide up to 11 months’ notice of any event planned for Rymill Park, where practical.
The City of Adelaide’s Adelaide Events Guidelines is amended to:
minimise event fencing intrusion,
preserve line of sight of Kiosk from Bartels Road, and
maintain access for deliveries from Bartels Road.
Tree Protection: Schedule, Item 10 Special 5
Located on the western side of the proposed leased area, are three Plane Trees. They are not classified as Regulated or Significant Trees; however, their protection is an integral component of the final design and future use of the Kiosk. The lease recognises this, and that Council will remain responsible for all maintenance and that the Lessee will report any damage caused to trees or request for maintenance.
Toilets: Schedule, Item 10 Special 7
As part of the proposal, publicly accessible toilets will form part of the overall building footprint. While they will be publicly accessible toilets when the Kiosk is open, they will not be classified as Council public toilets. The Lessee will remain responsible for these toilets including opening/closing, cleaning, servicing and stocking of supplies (toilet paper, soap, handtowel / hand-dryer) to a standard acceptable by Council. The toilets will be plumbed to the Glenelg Adelaide Pipeline (GAP). Council public toilets are located within the adjacent playground (east of Kiosk).
Green elements: Schedule, Item 10 Special 9
An integral part of the final design is to incorporate vertical greening around the structure. The Lease recognises that the Lessee is responsible to maintain these elements for the life of the lease.
The proposed new facilities will attract significant attention and provide a stronger offering to enable trade, not only during the summer, but also through winter and cooler days. This should allow the operator to trade at a higher, more consistent level than any previous lessees.
