Redevelopment FAQ – Lease and Sub-lease

When will the club have a new lease?
Over the last few months, RRC along with all the other clubs in the precinct have been working with the City of Melbourne (CoM) to negotiate a new 21 year lease term.
On 29 May CoM Council passed a resolution to enter into head leases with the existing seven lease holders in the rowing precinct and then enter into sub-leases via delegation with any sub-tenants.
The CoMs intention to enter into the new leases now needs to be publically advertised for 28 days. Subject to any feedback and responses required, the leases will return to a council meeting for final endorsement/ratification. The documents are then provided to the Department off Sustainability and Environment who are responsible for executing the head leases on behalf of the state.
This process may take a bit of time – therefore the committee do not expect to receive a signed lease before August/September 2012.
Can MLC sub-lease their space to another sub-tenant?
No.
Under the new arrangements all leases, whether head or sub leases, will be entered into between CoM and the tenant. As such MLC or any other tenants would require the approval of CoM.
While this has not been a problem at RRC it will avoid the risk of sub-tenants, and sub-tenants of theirs, letting the facilities to anyone else without the knowledge or control by either RRC or CoM.
 
What is the renewed tenancy period for MLC?
MLC have been offered a further 21 year lease with RRC, for two boat bays.
Cost for the redevelopment project (currently estimated at between $2 and $2.5 million) will predominately be met by MLC, who are effectively making an upfront payment for their two boat bays and use of the first floor facilities, rather than paying an annual fee over the 21 year period.
Further information on the project’s finances can be found in the “Finance” section of this document.
 
Is there an upper limit on the number of members/rowers a sub-tenant can have at the club at a time?
Our sub-lease agreements will not limit the number of rowers at the rowing club at one time.
We will agree a maximum number of rowers with our sub-tenants, however the primary mechanism for ensuring that RRC and our sub-tenants have reasonable expectations and relations is through a code of conduct and regular management meetings.

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