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LATE ITEM AGENDA C1501-5 Proposed Lease to Sea Rescue Fremantle for Signal Station, Cantonment Hill Ordinary Meeting of Council Wednesday 28 January 2015, 6.00pm
LATE ITEM AGENDA
C1501-5 Proposed Lease to Sea Rescue Fremantle for Signal Station, Cantonment Hill
Ordinary Meeting of Council
Wednesday 28 January 2015, 6.00pm
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TABLE OF CONTENTS
SUBJECT PAGE
C1501-5 PROPOSED LEASE TO SEA RESCUE FREMANTLE FOR
SIGNAL STATION, CANTONMENT HILL 3
City of Fremantle
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C1501-5 PROPOSED LEASE TO SEA RESCUE FREMANTLE FOR SIGNAL STATION, CANTONMENT HILL
ECM Reference: 039/076 Disclosure of Interest: Nil Meeting Date: 28 January 2015 Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Council Agenda Attachments: Sea Rescue Proposal
Advertised Expression of Interest Confidential attachment
EXECUTIVE SUMMARY
The Chair of Cantonment Hill Activation Working Group, under a resolution from meeting dated 16 January 2015 has requested that an item be put forward directly to the Ordinary Council meeting to consider development of an agreement between the City of Fremantle and Fremantle Volunteer Sea Rescue Inc (FVSR) for the floor levels one (1) and two (2) of the Signal Station, Cantonment Hill, Fremantle and a Licence for the non exclusive use of the ground floor level and the roof of the Signal Station, Cantonment Hill, Fremantle.
BACKGROUND
At the Ordinary Council Meeting 16 October 2013, Council resolved the following; That Council:
1. Endorses calling for expressions of interest through an EOI with input from the Cantonment Hill Working Group in relation to public and or commercial activities at the Cantonment Hill site, including the signal station, that could provide activation and a degree of caretaker presence in the short to medium term without obstructing the larger master planning and implementation process.
2. Authorises interim actions including reconnection of services at the signal station, the up-lighting of the building and mural artwork
3. Authorises additional funds of $150 000 to be transferred from the Cantonment Hill Reserve for the interim actions and to support the activation of the ground floor of the signal station and naval store
4. Lists progression of the implementation of the Cantonment Hill Master Plan as a high priority in future budgets.
5. Delays changing the Cantonment Hill Working Group project scope, pending the Expression of Interest process outcomes.
An expression of interest calling for submissions to activate the Cantonment Hill Reserve was advertised, closing on Monday 26 May 2014. Seven expressions of interest were received with the majority focused on use of the Navel Stores.
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The Cantonment Hill Activation Working Group has Concluded that it is possible for more than one applicant to activate the Navel Stores with the leasing options of how this will occur still under consideration. One viable submission was received for the use of the Signal Station only from FVSR.
COMMENT
The Cantonment Hill Activation Working Group has considered the proposal received from FVSR for a Lease over the Signal Station at Cantonment Hill Reserve. FVSR was established in 1972 as a volunteer rescue group with a current registered 125 active volunteers in a variety of roles within the organisation. As one of Australia’s busiest marine rescue units FVSR attended 712 calls for marine assistance in 2013. FVSR currently operates out of the old Harbour Masters tower located off Mews Road in Fishing Boat Harbour. Due to an increased size of operations the location is no longer viable with the building’s age creating maintenance and structural issues. As the building wasn’t designed for its current use redeveloping the tower would not be financially prudent. Added to this, the location does not allow line of site or radio communications to areas of the river which is part of FVSR patrol area. The Signal Station is attractive to FVSR as it is purpose built and ideally suited to the core purpose and requirements of a marine based emergency service group. Consideration needs to be given to the proposed architectural and landscape plans of the Cantonment Hill Working Group when negotiating a leasing arrangement so that flexibility can be given to allow staged works to progress in the area as necessary. Although FVSR is supportive of City and Community wishes to have the Signal Station open to the public, they are mindful of the possible compromise that public access may have to their operations and the security of their equipment. To accommodate this, it is proposed that FVSR activate the ground floor of the Signal Station under the non exclusive use of a Licence until such time as the City is able to progress with future plans in line with the proposed architectural and landscape concepts yet to be finalised by Council. This Licence will also allow access to the roof space for FVSR radio equipment while allowing for future development of possible public access via a viewing platform. It is also proposed that the City enter into a Lease with FVSR for the use of levels 1 and 2 of the signal station; this will allow fit out in line with FVSR’s business model which will include radio communications and in house training facility. The City’s Heritage Coordinator has advised that from a purely heritage conservation point of view, the best use for a heritage place is often the use for which the building was originally designed. The use and appropriate management of the place for its original purpose often minimises the need for changes that have an impact on the heritage fabric of the building. Furthermore, the continuation or reinstatement of the original activities and
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practices will demonstrate how the place was intended to work, and will help to make the reasons for its significance readily apparent with only minimal additional interpretation needed. The proposal by the Fremantle Volunteer Sea Rescue to use the Cantonment Hill Signal Station as a Marine Operations Centre does not precisely match the original use of the place; however the similarities between the two mean that the heritage benefits will be almost the same and the proposed new use is supported in terms of its likely contribution to conserving the cultural significance of the Signal Station. It is of the opinion of the City’s Asset Department that the Signal Station in its current state is not fit for occupation as numerous sections of the building are not compliant with minimum standards under the Building Code of Australia. Under the projected costs by the City’s Architects it is estimated that between $500,000 - $650,000 would be necessary before the building was acceptably compliant with the Building Code of Australia (BCA). It is the City’s intention to eventually redevelop the Signal Station, in staged works, to a standard that complies with all BCA requirements; however the City does not have allocated budget to undertake complete refurbishment works immediately. In its current condition the Signal Station requires remedial works to allow the building to be used for the purpose of a radio communications facility. According to Legal Advice received by the City, as these works are minimal they would not require a building permit or an occupancy permit under the Building Act therefore it is not necessary for a building surveyor to sign a certificate of design compliance that works comply with the BCA. Secondly the repairs to the building would not constitute an addition or “new part” of the building under the Premises Standards which means that the Premises Standards which relate to the Disability Access Code will not apply. The cost estimate to perform remedial works to allow the building to be used for the purpose of a radio communication facility are currently being investigated. It is recommended that FVSR accept the premises in an “as is” condition after preliminary works are undertaken by the City to ensure structural integrity. Public access to the building may be cost prohibitive. Based on the advice received and the concept of an “as is” agreement the proposed essential terms of a Lease/Licence are as follows; Land Description. Portion of Lot 50, on Diagram 28219 being the whole of the land in Certificate of Title Volume 1269 Folio 207 Property Description. Signal Station
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Registered Proprietor. City of Fremantle Site Area. Lease - Floor levels one (1) and two (2) of the Signal Station, Cantonment Hill Licence – Ground Floor and roof of the Signal Station, Cantonment Hill Commencement Date. Proposed May/June 2015 Lease Term Lease - ten (10) years Licence – five (5) years Option. Lease - Ten (10) years Licence - five (5) years Annual Rental $1.00pa + GST Permitted Use. Signal Station and training facility Statutory Charges. Lessee/Licensee will be responsible for outgoings including but not limited to ;
All Service usage (electricity, water, phone etc)
Council Rates and State Emergency Services Levy
Land Tax
General Maintenance
Building Insurance
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Conditions Lease
1. The Lessee acknowledges that the premises is leased in an “as is” condition. 2. A no warranty clause will be included in the lease whereby the City accepts no
responsibility for the compliance of the building under the BCA. 3. The Lease will be subject to approved development application for Sea Rescue’s
proposed works and fit out (if required). 4. Lessee to acknowledge future works are planned for the premises and surrounding
area of Cantonment Hill Reserve and that the Lessor or its agents will require access to the site from time to time after providing reasonable notice and acknowledge some disruption to quiet enjoyment is expected.
Licence
1. The Licensee acknowledges that the premises are licensed in an “as is” condition. 2. Licensee acknowledges that the Licence for the use of the ground floor will be
subject to review and exercised from the Licence area based on proposed plans for the Signal Station building and surrounding area of Cantonment Hill Reserve. Notice of six (6) months in writing will be given of the variation to the Licence area.
3. Licensee acknowledges the shared usage of the roof of the Signal Station and that the Licensor to its agents will access the site from time to time after providing reasonable notice. This area will also be subject to future works as determined by the Lessor and acknowledge some disruption to quiet enjoyment is expected.
RISK AND OTHER IMPLICATIONS
Financial
To enable Sea Rescue Fremantle to occupy the building under the permitted use of radio communication tower and internal training facility, costs need to be determined for capital works to ensure that the building is in a safe and structurally sound condition. Legal
A Lease and Licence would be subject to the Local Government Act WA 1995 and the Commercial Tenancy Act 1985. A copy of the Legal Advice received by the City relating to the occupancy requirements under the BCA has been attached to this item (confidential attachment). Operational
Nil Organisational
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The City will need to undertake capital works on the building, in line with the permitted use of the proposed lease, prior to any occupation. It is yet to be determined the extent of those works.
CONCLUSION
The Lease to Sea Rescue Fremantle will be a first stage in phased activation of the Signal Station and surrounding area. The primary goal being a level of activation which would contribute not only a use in line with the buildings heritage significance but create passive surveillance in an area which City Officers have combated graffiti and vandalism due to vacancy. Given that the City does not have indicative figures for the cost of works required to make the building is structurally compliant, nor the budget for such works to be undertaken, it is proposed that Sea Rescue is given 75 days to finalise a period of due diligence prior to the City committing to a Lease or Licence over the Signal Station. In turn the City will, within the 75 days, source quotes for the required building works that would ensure the premise is structurally safe to enable an “as is” Lease with a permitted use that does not include access by the general public. These costs will be reviewed by the Cantonment Hill Activation Working Group and then reported to Council for budget approval prior to consideration of a Lease or Licence with Sea Rescue Fremantle.
STRATEGIC AND POLICY IMPLICATIONS
Nil
COMMUNITY ENGAGEMENT
Nil
VOTING AND OTHER SPECIAL REQUIREMENTS
Simple Majority Required
OFFICER'S RECOMMENDATION
For Council to approve;
1. An offer to Fremantle Volunteer Sea Rescue Inc valid for a period of 75 days to
complete due diligence and submit a business case to the City, without a commitment to a long term lease at this stage.
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2. City Officers to source costs to improve the building’s structural integrity for review by the Cantonment Hill Activation Working Group and presented to Council for budget approval.
3. City officers to prepare and negotiate an “as is” Lease between the City of
Fremantle and Fremantle Volunteer Sea Rescue Inc, subject to points 1 & 2 of the Recommendation, for review by the Cantonment Hill Activation Working Group prior to being presented to Council for approval.
Late Item Agenda - Ordinary Meeting of Council 28 January 2015
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LATE ITEM AGENDA ATTACHMENTS
Ordinary Meeting of Council
Wednesday 28 January 2015, 6.00pm
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ATTACHMENT 1
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ATTACHMENT 2
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