Revised Policy 3.4.2 Windy Harbour Leases

Background & Issues

Reserve 38881 (Lots 12439 and 13304) Windy Harbour is vested in the Shire of Manjimup for the purpose of Recreation, Camping, Caravan Park and Holiday Cottages with the power, subject to the consent of the Minister for Lands, to lease all or any portion of Lot 12439 and Sites 307, 308 and 309 on Lot 13304, for any term not exceeding 21 years.

Windy Harbour leases were historically for a term of one year with Council renewing them on an annual basis. In accordance with the Windy Harbour Management Plan, Council introduced the availability of 20 year leases at Windy Harbour in 2001.

Clause 4.02 of the Windy Harbour 20 year lease states “The Lessee shall at its own expense observe, perform and fulfil the requirements of all statutes as well as all regulations, by-laws, ordinances, local laws and policies of the Lessor relating to the Land and the Demised Premises …”

As the lessee’s buildings are situated on Council controlled land, Council has a duty of care and a statutory responsibility to ensure these buildings are in a safe, habitable condition and meet health standards.

Objectives

The objectives of this policy are to:

· outline Council’s requirements for new leases, transfers of leases, continuation of leases and conversion of annual leases to 20 year leases; and

· ensure buildings on Council controlled land at Windy Harbour are in a habitable condition to protect occupants from unhealthy or dangerous conditions which may result in the loss of amenity or personal risk.

Area of Application

All Windy Harbour lease sites on Reserve 38881.

Policy Measures

1. Council’s preferred lease arrangements at Windy Harbour will be for 20 year leases. Council will not issue any new annual leases. Council will not transfer an annual lease to a new leaseholder.

2. Council accepts that some lessees may wish to remain on an annual lease and not enter a 20 year lease.

3. When an annual leaseholder dies and bequeaths their annual lease to a beneficiary, under these circumstances Council will not refuse to transfer an annual lease. Council would however encourage the beneficiary at that stage to enter into a 20 year lease.

4. The party seeking the lease arrangement with Council will be responsible for the conveyancing fee set in Council’s fees and charges; for new leases and lease transfers.

5. In the event of the transfer of a 20 year lease the lease will be assigned without altering the lease term or the expiration date of the lease. Council will not terminate the current lease or issue a new 20 year lease to the transferee.

6. When a 20 year lease expires Council will give the current lessee/s first option to request a new lease. Granting a new lease will be at Council’s discretion.

7. Council may conduct building and health inspections on any lease site located within Windy Harbour. An inspection will occur for each site at least once every five years at Council’s discretion. The lease site shall be inspected for compliance with the Building Act 2011 and the Health Act 1911.

8. Any matter arising from such an inspection, or otherwise brought to the attention of Council, will result in the issue of an appropriate Works Order for it to be rectified. A reasonable time frame to expect such works to be completed is 90 days from issue of the Works Order.

9. Failure by a lessee to attend to a Works Order in the time frame specified may subject the lessee to those penalties specified in the relevant legislation. Continuing non-compliance of a Works Order may also result in the matter being referred to Council for consideration of the termination of the lease.

10. The Lessee will be responsible for the reinspection fee set in Council’s fees and charges should the lessee fail to give reasonable notice of being unable to be present or provide access for a scheduled inspection or require a reinspection due to works not being completed in accord with a Works Order.

11. If an inspection has not been completed within the previous five years, prior to the issue of, or transfer of, a lease, the lease site shall comply with an inspection.

12. If the offer and acceptance for the sale of a lease is made before Council have been asked to approve the transfer of the lease, Council may provisionally consent to the transfer of the lease, subject to the completion of works identified in the inspection within 90 days. Council will not formally transfer the lease until the works have been carried out and approved by Council officers. Once completed works have been approved, Council’s consent will become unconditional and Council staff can issue the lease administratively. The completion of the works is the responsibility of the party seeking the lease arrangement with Council.

13. The Chief Executive Officer may grant an extension of 90 days to complete a Works Order where there is evidence that a substantial portion of the required works have been completed. Any requests for a further time must be referred to Council for consideration.

14. In the event that a lease is terminated by Council the leasehold will be disposed of by way of tender, auction or sale on the open market and the balance of the proceeds, less any costs including Council’s administrative costs and any outstanding monies owed for Council rates, lease fees or other property related charges, will be paid to the lessee whose lease is terminated.