DETAILS of the lease agreement underpinning Wave Park Group’s proposed $25 million Alfred Cove surf facility have finally come to light nearly two weeks after Melville council authorised the document.
Released this week, the unconfirmed minutes from 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 per 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 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 free of charge.
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.
The Melville Bowling Club will be required to vacate its current site by October 2018 and the lease is contingent on Wave Park Group sourcing 100 per cent of the required finance to construct the surf facility and obtaining all relevant building permits and required regulatory approvals by the end of February 2019.
Melville councillors spent four and a half hours debating the lease, with a number of further amendments to the final document attempted but ultimately voted down.
Councillor Matt Woodall proposed the rehabilitation guarantee be set at a minimum of $700,000 and the lease guarantee upped 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”.