Badgingarra Research Station

Badgingarra Research Station - Extension To Farm Lease Agreement

Location: Lot 3712 Winjardie Road, Badgingarra

Applicant: N/A

Folder Path: Business Classification Scheme / Council Properties / Acquisition and Disposal / Purchasing

Disclosure of Interest: None

Date: 13 February 2017

Author: Chief Executive Officer

Signature of Author:

PROPOSAL That Council agrees to the extension to the Farm Lease Agreement for the Badgingarra Research Station (BRS) between the Shire of Dandaragan and the Department of Agriculture and Food Western Australia (DAFWA) for a further three years to the 28 February 2020 and that Council amends the Sublease with West Midlands Group (WMG) to reflect this extension.

BACKGROUND Council has been discussing the possibility of acquiring the BRS since discussions first commenced in 2012, when the Department of Agriculture and Food WA (DAFWA) advised it would be selling off some of its assets. At Council’s meeting held on the 26 September 2013, it was resolved: 

That Council agree to contact the Department of Lands, State Lands Services expressing its interest in acquiring the Badgingarra Research Station located at Lot 3712 Winjardie Road, Badgingarra.

CARRIED 8 / 0  Info from Dandaragan Shire Website

Council’s Expression of Interest (EOI) to purchase the BRS was communicated to the Department of Lands, via representatives from the Lands Property Asset Clearing House. On the 3 November 2015, an email was received from Mr Tyack from the Department of Lands advising that the BRS was no longer surplus due to a proposed business direction and will be retained for ongoing research therefore, removing it from their disposal program.
However, since this time, the proposed business direction did not occur in which DAFWA then advertised the BRS for lease as of 1 February 2016 for 12 months. On the 10 December 2015, Council held a special meeting and resolved the following:

That Council agrees to submit an Expression of Interest to the Department of Agriculture and Food Western Australia for the lease of the Badgingarra Research Station, Lot 3712 Winjardie Road, Badgingarra as per the following conditions:

•        amount to be stipulated at $36,848 per annum as per the previous arrangement between the West Midlands Group and the Department of Agriculture and Food Western Australia for the amount of $36,848 per annum for a 12 month period;
•           Department of Agriculture and Food Western Australia be advised that the Shire of Dandaragan wish to purchase the property freehold at the conclusion of the lease at an agreed value; and
•           that the West Midlands Group be required to meet all lease conditions via an appropriate agreement on behalf of the Shire of Dandaragan to be subleased at the amount of $36,848 per annum.

CARRIED 7 / 0    Compiled by Redgum Village for Projects in Dandaragan

Council’s EOI to lease the BRS was successful with a lease agreement being signed in May 2016 for a 12 month period commencing from 24 May 2016 with an option of a further 12 months. The WMG currently sublease and manage the property as it has done for the last three to four years. On the 31 January 2017 Cr Richardson, representing the Shire President, and the CEO met with the Minister for Agriculture and Food the Hon Mark Lewis MLC together with representatives from the WMG, the Badgingarra Community Association and DAFWA. It was discussed at this meeting that an extension to the lease would allow the current operations to continue while decisions could be made at a State Government level in relation to the future of the BRS. The group generally agreed that a three (3) year term would be ideal.

COMMENT The current lease expiry date is 23 May 2017. The lease agreement provides an option to extend the term of the agreement for a further 12 months by mutual consent of both parties. In consultation with DAFWA, Council has been successful in securing an extension to the lease of up to three years commencing from 23 May 2017 to 28 February 2020 at the same rent and conditions as detailed in the current lease.

CONSULTATION

•            Department of Agriculture and Food
•            West Midlands Group
•            Badgingarra Community Association
•            Minister for Agriculture and Food, Hon Mark Lewis MLC

STATUTORY ENVIRONMENT There are no statutory implications in relation to the leasing of the BRS. Appropriate lease and subleases have been prepared by Council’s solicitors to ensure our interests are protected and clearly outlined.

POLICY IMPLICATIONS There are no relevant policies in relation to this item.

FINANCIAL IMPLICATIONS WMG has confirmed that they will continue to reimburse the Shire for the same amount so that the lease arrangement has a nil effect on the Shire’s operational budget. The agreement with the WMG would need to be amended to reflect the extension and to continue to ensure they are responsible for the lease conditions during that period.

STRATEGIC IMPLICATIONS 2016 - 2026 Strategic Community Plan

Goal 1: Great Place for residential and Business Development

Objectives

1.1 Ensure planning and land availability provides opportunity for sustainable growth

How Shire will Contribute

c) Activate Growth Plan

Objectives

1.4 Ensure Shire is "open for business" and supports industry and business development

How Shire will Contribute

b) Identify and engage with future new business and industry opportunities
c) Realise potential of Council controlled or lazy land assets

ATTACHMENTS Circulated with the agenda is the following item relevant to this report:

•            Correspondence from DAFWA confirming the three year extension to the lease (Doc Id: 86450) (Marked 9.3.2)

VOTING REQUIREMENT Simple majority

OFFICER RECOMMENDATION That Council agrees to extend the Farm Lease Agreement for the Badgingarra Research Station between the Shire of Dandaragan and the Department of Agriculture and Food Western Australia for a further three years to the 28 February 2020 and that Council amend the Sublease with West Midlands Group to reflect this extension.

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