We would like your feedback on a proposed update to the Adelaide Park Lands Leasing and Licensing Policy.

The proposed draft Adelaide Park Lands Leasing and Licensing Policy (draft Policy) explains how we manage lease and licence agreements for community land within the Adelaide Park Lands, to ensure these spaces continue to benefit the community. The draft Policy has been developed using community feedback, industry benchmarking, and current best practice.

The proposed update follows the adoption of the Adelaide Park Lands Community Buildings (Sport and Recreation) Policy in 2024, which guides the redevelopment of leased community buildings.

Work has already started on redeveloping a community building in Golden Wattle Park / Mirnu Wirra (Park 21W), and planning is well underway for another community building redevelopment in Mary Lee Park (Park 27B).

The draft Policy proposes changes to how lease and licence fees are applied, including for community buildings redeveloped by Council. It introduces new fee rebates and provides clearer information about:

• the responsibilities and expectations of both lessees/licensees and Council, and
• how lessees and licensees are selected.

Selection of Lessees/Licensees

The existing Policy requires an Expression of Interest (EOI) process to select a lessee/licensee, except in ‘extenuating’ circumstances.

The draft Policy also requires an EOI process but identifies situations in which it need not be applied.

Community Gardens

The draft Policy proposes that community organisations that license community gardens be exempt from the EOI process and charged nominal (nil) fees.

Commercial Lessees/Licensees

The draft Policy describes circumstances in which Council may deal directly with a commercial lessee without issuing an EOI.

Subletting

The existing Policy allows lessees to charge each sublessee up to 50% of all costs associated with operating and maintaining their leased or licensed area.

The draft Policy proposes that:

• a lessee must not impose or charge any obligations that are more onerous than those Council would impose; and
• non-commercial lessees and licensees obtain a formal decision of Council before entering into a subletting agreement with a commercial organisation.

Lease and Licence Fees – Non-Commercial Organisations

The existing Policy differentiates between fees for community organisations and those for educational institutions.

The draft Policy proposes three fee categories for non-commercial lessees/licensees based on annual revenue and organisation type. The annual revenue thresholds are informed by the Australian Charities and Not-for-profits Commission.

Permitted Use

Lessees and licensees will require approval before undertaking activities that are inconsistent with their permitted use. Non-commercial leased and licenced facilities may only be used for community development activities that are open and accessible to the public. Requests to host community events will be considered on a case-by-case basis.

Tenure

Standard lease terms of five years are proposed, enabling agreement conditions and responsibilities to remain relevant.

Longer terms of 10 to 21 years will be considered where the lessee proposes a significant capital contribution.

For longer agreements, renewal rights will be incorporated to enable periodic reviews of conditions and performance. This approach provides Council with an appropriate level of control to monitor outcomes, manage risks and ensure the desired community benefits are being realised.

Park Lands Stewards

Community Organisations and Educational Institutions will be incentivised through lease and licence fee rebates to partner with Council in delivering measurable community benefits. Activities such as tree planting, Park Lands clean-ups, opening facilities as safe refuges and implementing practices that promote diverse and affordable access and participation will be acknowledged through rebates.

Rebates of up to 50% will be determined by Council and applied retrospectively in the following year, based on the previous year’s fees. To qualify for the maximum rebate, lessees and licensees must demonstrate delivery of multiple measurable community benefit actions.

Responsibilities

Maintenance responsibilities will remain with lessees, with expectations clearly documented in each agreement. Council will take responsibility for the key structural elements of Council-owned buildings.

Lessees will be required to minimise waste sent to landfill and enter into electricity contracts which prioritise renewable energy sources.

Council will provide capacity-building and volunteer recognition opportunities and conduct an annual leasing and licensing forum to improve the capability and compliance of lessees and licensees.

Selection of a Lessee/Licensee

An Expression of Interest (EOI) will remain the common practice for selecting a new lessee.

The draft Policy describes circumstances in which Council may deal directly with a lessee without issuing an EOI. This will improve transparency and increase efficiency by delivering more timely outcomes and clearer decision-making processes.

Governance

There will be an obligation on non-commercial lessees and licensees to submit annual reports detailing matters, such as subletting arrangements and casual hirers, along with their annual income and expenditure.

Fees

Commercial lease fees will continue to be based on market rent valuations, with periodic reviews. This approach is consistent across the local government sector.

Council will categorise non-commercial lessees and licensees by organisation type and annual revenue, with revenue thresholds informed by the Australian Charities and Not-for-profits Commission.

Non-commercial lease and licence fees will be applied across the following three categories:

Fees will be based on building floor area (lease fees) and playing field/court area (licence fees).

Licence fees will be doubled where access is controlled by the licensee (e.g., locked tennis courts).

Where a community building is redeveloped entirely at the lessee’s cost, resulting in a new asset owned by the lessee, a ground lease will be granted. Lease fees will be applied at the prescribed rate.

Where Council contributes to the redevelopment of a community building, the lease fee will be determined through negotiation and will be no less than the prescribed rate for a building of equivalent floor area, taking into account:

• the value of the redeveloped community building (independently determined)
• the lessee’s financial contribution to the redevelopment
• the lessee’s capacity to pay

The negotiated lease fee will require approval via a formal decision of Council.

Community Use

Subletting and casual hiring remain important mechanisms for increasing utilisation of Park Lands assets. Council will work with non-commercial lessees/licensees to ensure processes are in place to facilitate broader community use.

Non-commercial lessees and licensees will require Council approval before entering into a subletting agreement with a commercial organisation.