Leasing and Licensing of Community Facilities Policy Review

Council is undertaking a comprehensive review to ensure a consistent, fair and financially sustainable approach to managing leased and licensed community facilities across the City of Burnside.

The proposed model introduces a cost recovery approach, similar to those already used by many other councils. Rental charges will be based on the size and type of leased area, with built structures such as clubrooms weighted more heavily (two-thirds) than open space (one-third). This reflects their higher usage and greater potential to generate income for tenant groups.

The aim is to ensure tenants with exclusive access to public land contribute proportionately, helping to reduce the amount subsidised by the broader community. At the same time, the policy supports community groups by maintaining affordable and transparent access, and supporting long-term reinvestment in the facility through a Council-managed sinking fund.

This approach balances the benefits of exclusive use with the shared responsibility to manage public resources equitably and sustainably. Rental contributions will be allocated to a Council-managed sinking fund specific to each leased facility. This means your rent will directly support future upgrades and renewal works at your site, delivering long-term benefits for both your club and the broader community.

Under the updated policy model, Council differentiates between two types of use:

• Exclusive use of built facilities (such as clubrooms) which is covered by a lease agreement; and
• Non-exclusive use of open spaces (such as ovals, cricket nets, and training areas), which is covered by a licence agreement.

For example, a bowling and tennis club that leases both its building and outdoor facilities under a single exclusive lease will pay a higher lease fee. In contrast, a club that leases only a (similar sized) building but shares access to the open space will pay:

• A lease fee for the exclusive use of the building, and
• A seasonal licence fee for the shared use and upkeep of the open space.

The revised policy does not propose any changes to licence fees or how shared use is managed.

There are no proposed changes to the licence fees or use through the revised proposed Policy.

Overall, this approach delivers a more transparent and equitable framework, supporting consistent application of policy, appropriate cost attribution, and long-term reinvestment in the facility through a Council-managed sinking fund.

Council has calculated that it costs approximately $170,000 each year to manage its portfolio of community leased facilities. This figure reflects the full range of activities involved, not just preparing lease documents, but also supporting tenants, monitoring compliance, coordinating works, renewal processes, forward planning and broader asset management. For transparency, a breakdown of proposed rent amounts for each community lease under the administrative cost recovery model is attached. 

Leases can vary in complexity. Some require minimal involvement, while others need more active oversight. This level of resourcing allows Council to manage all tenancies proactively, consistently, and fairly.

The rental framework has been designed to recover a portion of the overall cost of providing these facilities, while keeping charges affordable for community tenants. It recognises the important role these groups play in supporting community wellbeing and aims to strike a fair balance between cost recovery and ongoing community benefit.

A key feature of the proposed model is that rental income will be reinvested into a Council-managed sinking fund dedicated to each leased facility. This means your rent directly supports future upgrades and renewal works at your site, benefiting both your club and the broader community.

For example, a $5,000 annual contribution over ten years would result in $50,000 being available to be reinvested into your facility. These funds could go towards improvements like upgraded kitchens, accessible toilets, or other essential infrastructure.

Council will manage and spend these funds in line with the Buildings Asset Management Plan 2024-2033, ensuring investments align with strategic priorities and deliver lasting value. Council staff will continue to engage with community tenants to understand facility use and condition, helping to guide upgrades that meet both operational needs and community expectations.

Yes. To be eligible for and continue receiving the discounted administrative cost recovery rent, community tenants must meet a set of community key performance indicators (KPIs) during the term of their lease. These KPIs help ensure that facilities are well managed and continue to deliver value to the broader community. They include:

• Facility maintenance – Allowing inspections and completing identified maintenance
• Good governance – Providing required documents like insurance, AGM minutes, and financials
• Financial sustainability – Demonstrating sound finances
• Community participation – Encouraging local membership and engagement
• Environmental sustainability – Reducing energy and water use, minimising waste, and adopting sustainable practices
• Strategic alignment – Aligning club activities with the Burnside 2030 Strategic Community Plan
• Community tenants must also maintain their facilities in line with lease obligations.

Where a tenant does not meet these KPIs, the lease may revert to a market rent, as determined by a licensed Valuer. It is expected that a market rent would be significantly higher than that charged under the proposed administrative cost recovery rent model. This structure provides a clear financial incentive for tenants to meet agreed performance outcomes, ensuring they can continue to benefit from a substantially reduced rental rate while supporting efficient use of community assets.

Yes. Community tenants that enter into a lease under the new policy will remain eligible to apply for Council’s community grants program, subject to the usual assessment criteria.

This ensures that community tenants can continue to access financial support for activities, programs or improvements that benefit the wider community.

Renovations or capital works or initiatives or projects listed as a club responsibility as part of a lease or licence with council are not eligible.

Yes. Where private coaches operate independently of a community tenat and run their own commercial sessions using Council facilities, they will be required to enter into a hire agreement with Council and pay the applicable fee under Council’s Fees and Charges Schedule.

This ensures a fair and consistent approach for all users, in line with how other community members and organisations book facilities for exclusive use.

However, this requirement does not apply when coaches are formally engaged as part of the Club’s official programs or activities.

Council will work collaboratively with community tenants to implement these arrangements in a fair and practical way that recognises how clubs operate day-to-day.

Any signage on Community Land must comply with Council’s Signage Guidelines (attached under documents heading). Before putting up a sign, community tenants must seek Landlord approval by submitting the approved application form (Appendix B of the proposed policy) with all necessary details.

If the sign also requires development authorisation, it is the club’s responsibility to obtain this approval before installation.

The proposed changes will not apply immediately. If the proposed policy is adopted, the new lease arrangements will only take effect at the time of lease renewal.  

For example, if a club has three years remaining on its current lease, the new rent model would only apply when a new agreement is negotiated. This approach allows clubs time to prepare, plan, and adjust accordingly.

Yes. Community tenants who have leased a facility from Council for at least five years may request a funding contribution for upgrades that clearly benefit the community, support increased participation in sport or community services, and the contribution is financially appropriate.

To be considered, requests must be submitted using the approved form by 30 November for consideration in the following year’s budget process.

Please note that all requests are assessed on merit, and Council is not obligated to approve funding.

Yes. Council understands that changes to lease arrangements may affect Community tenants differently, and support will be available for tenants experiencing financial or operational hardship.

This may include options such as temporary rent relief, flexible payment plans, adjustments to lease terms, co-location opportunities, and advocacy support.

All requests for support will be considered on a case-by-case basis and in consultation with the tenant.