DETAILS of the lease agreement underpinning Wave Park Group’s proposed $25 million Alfred Cove surf facility have finally come to light.
The unconfirmed minutes of a special meeting of council called to discuss the lease reveal it will run for an initial period of 30 years with two further 10-year extensions available to the operator.
Wave Park Group, trading as URBNSURF Perth, will pay the City of Melville $700,000 a year to rent the 4.1ha site.
It will also be required to provide the City with a $700,000 lease guarantee, as well as a rehabilitation guarantee, the value of which will be determined by an expert at a later date.
The City will provide Wave Park Group with a rent-free period of six months from the development’s date of completion.
That rent-free period will be extended by a further four months if the Department of Lands agrees to sell part of Crown Lot 9789 to the City, which will enable the ground lease to be registered on one title.
The lease prevents Wave Park Group from sub-letting any part of the site without the written permission of the City, and a cafe located at the surf facility must remain available to the general public without them having to pay admission.
Additionally, Wave Park Group will provide a contribution of up to $50,000 towards the creation of a “living stream” on the western boundary of the facility.
Melville councillors spent more than four hours debating the lease, with some further amendments to the final document attempted but ultimately voted down.
Cr Matt Woodall proposed the rehabilitation guarantee be set at a minimum of $700,000 and the lease guarantee increased to $1.4 million.
He also wanted to cap the lease at 30 years, with any further extensions to be voted on by Melville council.
Cr June Barton also failed to move a motion to have the lease peer-reviewed by a second law firm “experienced in contracts involving contaminated sites.”