The Devonport City Council and Providore Place Devonport Pty Ltd have entered a new head lease for tenancy space within the food pavilion.
It replaces the original agreement signed in 2016 and brings to an end a long-running dispute between the two parties.
The initial agreement was an operating partnership between Council and PPD Pty Ltd, while the new lease is purely a commercial arrangement.
The original agreement did not take into consideration the level of effort and time required to establish a number of new businesses within Providore Place.
The new lease rental payments have been structured to recognise the time and effort required to establish these new businesses and as such PPD Pty Ltd will pay Council $230,000 (plus GST) for the period until October 2021 with renewal options potentially extending the lease period by a further eight years. In addition to the rent all operating costs and outgoings are the responsibility of PPD Pty Ltd.
At the time of the end of the first option to renew the lease, the income achieved will be equal to the amount PPD Pty Ltd was to pay annually under the terms of the original lease.
Council is yet to determine its approach to the current unpaid rent associated with the original lease.
The Drysdale cooking school space on the mezzanine level, whilst part of the original lease, does not form part of the new lease. TasTAFE has entered into a lease with Council directly for the space at a starting rent of $40,000 per annum.
The Mayor, Councillor Annette Rockliff said that Council is better positioned to realise the outcomes intended for Providore Place with a commercial lease that minimises risk to Council and positions the tenant to scale the business for ongoing success.
“It means that both parties are now able to concentrate on moving forward in making Providore Place a key destination within the region with an accent on the Coast’s wonderful produce,” she said.
She said the new lease ensured that the vision for Providore Place would continue with a lessee in place who is taking on the costs associated with running the facility and paying rent to Council.
All current tenants will also remain in place and the lessee will continue to manage the space.
Nigel Tapp |Media & Communications Officer |Devonport City Council
03 6424 0562 | 0427 132 972 |email@example.com