Secret Harbour Surf Lifesaving Clubsecretharbourslsc.com/...Feasibility-Study-Business-Plan1.pdf · The Feasibility Study/Business Plan has been ... The clubhouse will include a kiosk/café

Secret Harbour Surf Lifesaving Club

Feasibility Study and Business Plan October 2010

Creating Communities Australia Pty Ltd i

Project Details

Prepared for: Client Secret Harbour Surf Life Saving Club

Contact Details

Secret Harbour Surf Lifesaving Club - Building Project Committee

Mr Max Hannah

Mr Bill Bevan

Mr Ross Onions

Address PO Box 7066

Secret Harbour WA 6173

Phone (08) 9524 7092

Prepared by: Project Team Allan Tranter - Project Director

Carole Lambert - Project Manager

Graeme Hall- Facilities Planning Officer

Address 100 Jersey Street

Jolimont WA 6014

Phone (08) 9284 0910

Fax (08) 9284 0912

Email [email protected]

Document prepared October 2010.

Creating Communities Australia Pty Ltd ii

Contents

Executive Summary 3

Recommendations 5

1. Introduction 6

2. Concept Design 8

3. Preliminary Cost Estimates 9

4. Usage of the Facility 10 Seasonal implications 10 Usage Policy 12 Fee Schedule 13

5. Management Structure 14

6. Operational Budget 16 6.1 Amended Budget – Key Items 16

7. Kiosk/Café. Lease Agreement 19

8. Project Funding 21

Appendix 1 – Secret Harbour Surf Life Saving Club- Business Plan. 26

Appendix 2 – Concept Plans - Secret Harbour Surf Life Saving Club. Lin Kilpatrick-

Architect. 30

Appendix 3 – Concept Plans- Secret Harbour Surf Life Saving Club- Business Plan.

JCY Architects and Urban Designers. 31

Copyright The work is copyrighted. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes, provided acknowledgment of the source is included. Permission of any more extensive reproduction must be obtained from Creating Communities on (08) 9284 0910.

Creating Communities Australia Pty Ltd 3

Executive Summary The development of new club facilities is a key factor in ensuring that the Secret Harbour Surf Life Saving

Club will be well placed to meet the following ongoing challenges:

The provision of beach services to a large section of coastline.

The provision of beach patrols to a popular surfing beach.

The delivery of the sport of surf lifesaving to a club membership of 1,500 individuals (based on

anticipated population growth).

Since engaging Creating Communities Australia to work on the facility redevelopment project in 2008, the

club has actively participated in the development of a Needs Assessment Report. The needs assessment

process incorporated the following approach in order to arrive at its recommendations:

Background research, including demographic analysis and literature review.

Consultation with club members and key stakeholders.

Site visits to contemporary club facilities.

Commercial Demand Analysis.

The key recommendation from the Needs Assessment report is for the club to acquire sufficient space so

that it is able to meet the needs of an expanding club and accommodate a café./kiosk to be leased out

providing the club with a commercial income. The benefits of this approach are:

Provides the club with the additional space and facilities required to enable it to grow its

membership to 1,500 individuals.

Makes use of existing facilities and surrounding infrastructure.

Enhances the infrastructure within the Secret Harbour coastal precinct, thereby creating a

modern, attractive community hub for local residents and visitors.

Provides security of tenure for the Secret Harbour Surf Life Saving Club.

Provides a potential income stream (through the inclusion of a commercial café/ kiosk) that will

be used to maintain the buildings and support the operations of the club.

The second phase of the project – the Feasibility Study/ Business Plan - has been limited in what it can

provide to the club because it was unable to deliver a final concept plan as an outcome. A planning matter

regarding building within 100m of the high water mark and limitations to the land available to the club have

at this stage prevented the development of a concept plan.

The Feasibility Study/Business Plan has been concluded based on the following instructions provided from

the club:


The clubhouse will be redeveloped either on the existing site (which may include additional

land area to the north and north-east), or by integration with the adjacent seaside centre

building.

The clubhouse will be redeveloped to an area of approximately 2,000m2.

The clubhouse will include a kiosk/café to provide lease income.

The clubhouse will include a gymnasium facility for use by members and to increase

membership.

The clubhouse will include a multi-purpose hall for community use.

Approximate areas of clubhouse facilities are as determined in the Needs Assessment Report.

The redeveloped clubhouse may also include a new beach change room facility for public use.

The existing beach access track may require realignment to accommodate an extended

clubhouse building.

Creating Communities Australia has compiled a Feasibility Study/ Business Plan document that:

Considers how the facility will be used and includes an outline for how the club could make its

facility available for community use. Consideration has also been given to the seasonal

requirements of the club.

Provides the club with policy guidance and a suggested fee structure for the use of the facility.

Considers three management options for the club to consider based on:

o The club‟s existing governance model.

o Incorporating an asset management function to the Board of Directors.

o Revision of the club‟s constitution to establish a committee structure and a trust/

foundation to manage the physical assets of the club.

Provides an amended budget which focuses on the income and expenditure line items that

would be affected by the club operating a new club facility.

Identifies the commercial considerations that the club would need to make if it were to enter

into a commercial lease arrangement with regard to the operation of a kiosk/café.

Identifies potential funding options which the club could access for the development of a new

building.

Outline an implementation plan for a club room development project.

The outcome from the business planning phase of the project has identified that and enhanced club facility

is important to the long term sustainability of the Secret Harbour Surf Life Saving Club. The current

population expansion in the area and the likelihood that beach usage is going to increase significantly

necessitates the need for a strong and sustainable surf club. By developing a building that can ensure the

club is financially sustainable will guarantee that the club is able to continue providing beach safety and

sporting opportunities.


Recommendations

It is recommended that the Secret Harbour Surf Life Saving Club:

Adopt the Feasibility Report/ Business Plan for a new club facility as provided.

Engage a suitably qualified architect to develop building plans that fit within the limitations of the

site.

Pursues all of the sources of capital funding identified in the Feasibility Study/Business Plan

document.

Adopt one of the three governance models provided to meet its future needs.

Pursues the best possible operator to be the lessee of its kiosk/café.

Maximises the income gained from the lease arrangement of the kiosk/ café.


1. Introduction

In 2008 Creating Communities Australia was engaged by the Secret Harbour Surf Life Saving Club

(SHSLSC) to work alongside the club and its members to consider its future facility needs. The project

outlined by the club was to oversee the planning, design, management and funding requirements of a club

house redevelopment project. The need for a new building is determined by the club‟s current 20 year old

building not being capable of supporting the club‟s need to provide beach safety and sporting opportunities

on one of Australia‟s longest stretches of beach. The club‟s needs are augmented by its location within an

area of very high population growth and popular surfing spots.

The objectives of the project were to:

Determine the needs and expectations of the club‟s members and other key stakeholders.

Identify the most appropriate site for a redeveloped club house and confirm the design

requirements.

Determine a sustainable management model and verify all funding opportunities that may be

available to the club.

The „Needs Assessment‟ produced during the initial phase of this project concluded that a building meeting

the needs of the club would require the following elements.

Table 1 – Space Requirements for Functional Areas.

Storage and Operational Facility Requirements

Size m2 Training, Social, Public and Commercial Facility Requirements

Size m2

Entry foyer 30m2 Multi-function room (examinations, training, meetings, social, etc)

250m2

Administration office 30m2 Kiosk/Café. 300m2

Clothing/Merchandise shop 20m2 Balcony 150m2

Meeting room 25m2 Dry training room (divisible into two spaces) 100m2

Gymnasium 250m2 Kitchen/ Servery (including cool room and store)

65m2

Toilets and change room 140m2 Male and female toilets (to support multi-function room and dry training room)

50m2

First aid room 25m2 Store room 40m2

Beach patrol operations room 40m2 Plant room 30m2

Equipment store (vehicles, surf skis, patrol and rescue equipment, etc)

500m2 Public toilets and change rooms 50m2

Wet training room 35m2

Canteen (including storage for stock) 50m2


Storage and Operational Facility Requirements

Size m2 Training, Social, Public and Commercial Facility Requirements

Size m2

Cleaner‟s store 10m2

Total Space Required 1,155m2 Total Space Required 1035m2

Total Area 2190m2

The possible location of a new club house was also considered at length in order to determine that the

existing site was the best and preferred option.

The recommendations made from the first stage of the project were:

That the SHSLSC supports the redevelopment of their clubhouse facility to cater for the primary

facility requirements.

That the SHSLSC supports the redevelopment of the clubhouse facility at the existing location

which is the Secret Harbour coastal node, Palermo Cove, Secret Harbour.

That the SHSLSC endorses the integration of the existing club facilities with the adjacent

commercial site as the preferred redevelopment option.

That the SHSLSC proceeds with Stage 2 of the clubhouse redevelopment project to investigate the

feasibility of:

o Integrating, redeveloping and/or extending all the existing buildings (commercial and club)

to accommodate the club‟s facility requirements and a commercial kiosk/café.

o Either the SHSLSC or the City of Rockingham acquiring the redeveloped commercial

buildings.

That the SHSLSC work collaboratively with the City of Rockingham and Secret Harbour

Developments in undertaking Stage 2 of the project.

That, as part of Stage 2, SHSLSC further investigates the benefits of the club managing the kiosk/

café under leasehold arrangements as a means of generating income for the club.

In order to consolidate the outcomes of the Needs Assessment report the Business Plan/Feasibility Study

developed for the club is required to consider the following:

Facility usage.

Facility Management and maintenance.

Lease contractual obligations.

Income and expenditure predictions.

Funding guidelines, including a matrix for likely receipt of funds.

Project implementation plan.


2. Concept Design

Two concept designs were developed as part of the Feasibility Study and Business Plan. An initial design

commissioned by Secret Harbour Developments was produced by JCY Architects and Urban Designers

(Appendix 3). This initial design incorporated the existing Seaside Village buildings as part of the club

facilities.

A subsequent design was developed by Lin Kilpatrick Architect as part of the Business Plan development

(Appendix 2). The Lin Kilpatrick design was developed in direct response to the findings of the needs

assessment document.

Following the development of the two design options, information was received from the City of Rockingham

regarding the current State Coastal Planning Policy. The requirements of this policy are that infrastructure

in coastal foreshore areas needs to be located more than 100m from the horizontal setback datum. Advice

received from the City of Rockingham‟s Strategic Planning and Environment Team suggested that in the

case of the Secret Harbour Surf Lifesaving Club building this setback requirement could not be satisfied.

Strong advice was provided by the City suggesting that any development of the Secret Harbour Surf Club

building should not include any extensions to the building in a westerly direction. It was recommended that

alternate facility development options be investigated. The other options included but were not limited to;

construction to the east or incorporation of the existing Seaside Village buildings.

The details of the State Coastal Planning Policy indicate that the two options developed for consideration by

the club are unlikely to receive the necessary support. While both of the concepts are attached within this

Feasibility Study Business Plan document the club has not made a decision regarding its preferred

approach.

Due to the lack of a clear position regarding the design, neither of the possible options has been finalised.

The concepts are presented within this document are for consideration only.

A site analysis undertaken as part of the Needs Assessment identified the club‟s existing site as being the

most suitable to the needs of the club.

The following club house development options need to be considered by the club:

Remain at the existing site and develop the building within the parameters of the area that is

available.

Revisit the locations that were previously considered.

Identify a new site and establish a new club house building.


3. Preliminary Cost Estimates

The following preliminary cost estimates have been established using the building areas outlined in the

concept design brief produced as part of the Needs Assessment report.

Table 2 - Preliminary Cost Estimate

Facility M2

Cost per meter

$ Total Cost

General members and visitors areas 960 2,000 1,920,000.00

Store rooms, plant, etc 580 1,000 580,000.00

Circulation allowance 200 1,500 300,000.00

Balcony 150 750 112,500.00

Kiosk/café. 300 2,000 600,000.00

External works - - 100,000.00

Observation tower - - 30,000.00

External services - - 150,000.00

Contingency (5%) - - 180,000.00

Professional fees - - 370,000.00

Total 2,190m2 $4,342,500.00

Source – Ralph Beattie Bosworth Quantity Surveyors.

The cost estimate of $4 million is based on surface areas only and does not take into consideration newly

built structural forms or refurbishments. Also not considered within this cost is the cost of the land or

furniture, fittings and equipment.


4. Usage of the Facility

The development of a building which includes facilities that can be made available to the community

provides the Secret Harbour Surf Lifesaving Club with an income stream not previously available.

A facility such as a surf club presents challenges with regard to community access, these being:

The club‟s heightened requirement to use the amenities during its peak season.

Increased operational costs for management and security as a result of having external users

accessing the facility.

The design brief developed for the Secret Harbour Surf Club offers a combination of areas that can

potentially be made available for public access as well as areas intended for exclusive use by the club.

External fee paying users will be actively encouraged to use those areas of the building identified as being

available for public use.

Amenities within the building considered exclusive to the club are:

Club administration areas.

The boat shed and storage areas relevant to the operational portion of surf lifesaving.

The change room and toilet facilities.

Facilities which are most suited to being used by external sporting clubs, community groups and commercial

organisations are:

Meeting room facilities.

Multi-purpose community use facility.

Kiosk/café.

A multi-purpose community use facility is likely to attract social events such as wedding, parties, and

presentation nights particularly on weekends. Weekday usage is more likely to be children‟s activities,

passive exercise, art and cultural classes and education.

The meeting room facilities would be ideal for small meetings, counselling and training courses.

Seasonal implications

From a club perspective the amount of community usage is likely to vary significantly between the different

seasons. With surf lifesaving being predominantly a summer activity the club is likely to have greatest

demand for access to its facilities during the summer season.


The following tables outline the potential usage that may occur during the different seasons.

Table 3 – Multi-Purpose Community Use Facility (Summer)

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Daytime

Morning

Club Club

Daytime

Afternoon

Club Club

Evening

Club Club Club Club Club

Table 4 - Multi-Purpose Community Use Facility (Winter)


Daytime

Morning

Daytime

Afternoon

Evening

Club Club

Table 5 - Meeting / Training Rooms (Summer)


Daytime

AM

Morning

Mtg-1 Mtg-1 Mtg-1 Mtg-1 Mtg-1 Mtg-1 Mtg-1

Mtg -2 Mtg -2 Mtg -2 Mtg -2 Mtg -2 Mtg -2 Mtg -2

Daytime

PM

Afternoon



Evening



Table 6 - Meeting / Training Rooms (Winter)


Daytime AM

Morning



Daytime PM

Afternoon



Evening




Usage Policy

In making the Secret Harbour Surf Life Saving Club facilities available to the community, the club will need

to establish and abide by the following policy guidelines:

Hours of hire- With the building being suggested as a venue for community events, the booking

material provided to hirers needs to provide clear information regarding the club‟s expectations

about the hours that the building can be used. Usage of the facility beyond 12.00 midnight needs to

be managed by the club.

The club‟s policy regarding hours of use can be flexible as long as there is a clear approvals

process for variations from the policy position.

Fee schedule – The club should adopt a clear position regarding the fees it charges for the use of

its facility. The nominated fees to be charged should be approved by the board and reviewed

annually.

Security requirements- The use of the facilities by external users requires the club to have a

clearly defined position regarding appropriate provision of access to the building as well as an

overall position regarding security arrangements.

A key element of the club‟s condition of facility usage is that the club reserves the right to require

the provision of licensed security guards for particular functions.

Payment conditions-The club‟s position with regard to payment for facility hire should be clearly

articulated in a policy document for the hire of the facilities. The policy document should be

reflected in a „Conditions of Hire‟ document provided to all users.

o Payment of bond - A bond should be collected from all ongoing hirers or people using the

facility for one off occasions. Bonds should be repaid promptly following a booking. A

separate bond account should be set up for all long term users who pay a bond and all

interest from bond monies should become part of the clubs general revenue.

o Due dates for payment - All bookings should follow a prescribed outline for the payment of

hire fees. The payment of the bond and an initial portion of the hire fee should be required

as confirmation of any booking. The remaining balance of the booking fee should be paid

a set period prior to the booking date.

o Administration fee -The hire conditions should clearly stipulate that the club reserves the

right to enforce an administration fee for the cancellation or amendment to bookings.

o Insurance requirements of facility hirers - All hirers are required to ensure that where

relevant they have in place all relevant insurance policies, thus exonerating the Secret

Harbour Surf Lifesaving Club from any undue risk with regard to the activities being

conducted in their facility by outside users.

General items

Behaviour expectations - All hirers are required are expected to adhere to an appropriate

standard of behaviour.

Types of celebrations- Restrictions should be placed on selected age celebrations; eighteens,

twenty firsts and bucks nights.

Liquor licence requirements - Any liquor licence requirements that are outside of the club‟s

normal operating hours need to be approved by the relevant liquor licensing authority. The

obtaining of and payment for any amendments or special permits are the responsibility of the user.


Requirement to purchase all liquor from SHSLC - Unless agreed to differently, all alcohol

consumed on the premises will need to be purchased from the Secret Harbour Surf Life Saving

Club.

Cleanliness of the facility – Users of the building will be required to relinquish the facility at the

conclusion of their hire period in the same condition as it way when they started. The use of

contract cleaners at the hirer‟s expense should be a condition of use and be paid for out of the

bond charged.

Fee Schedule

The following fee schedule is proposed for the club, based on a 2013 commencement. The set fees are

based on providing a competitive rate that will attract users to a new facility.

The prices set for the facility have been based on prices used by neighbouring facilities that are considered

comparable to the Secret Harbour Surf Lifesaving Club.

Table 7- Suggested Fee Schedule

Facility for Hire Commercial Community

Rate

Member

Rate

Multi-purpose community use facility ( with alcohol) $70.00 $50.00 $45.00

Multi-purpose community use facility (daytime no

alcohol )

$70.00 $25.00 $20.00

Meeting room (large) $40.00 $20.00 $15.00

Meeting room (small) $25.00 $10.00 $5.00

Gym usage TBA TBA TBA


5. Management Structure With the development of its club facilities the Secret Harbour Surf Lifesaving Club has a need to consider

the adoption of a governance model that will serve the club and its members well. Corporate governance is

the system by which a club is controlled; it is about how a club can better manage itself to good effect for the

benefit of both members and stakeholders.

A principal aim for the club is to operate in a commercial environment that provides a source of income for

the club whilst ensuring not to discourage members from becoming part of the board due to the perceived

workload or complexity of issues.

There are a number of models available to the club which could provide a structure to meet its governance

requirements.

Figure1 – Existing Structure (Secret Harbour Surf Lifesaving Club)

Figure 1 represents the current governance structure of the Secret Harbour Surf Club, with the responsibility

for managing the club house facility and lease arrangement for a café assigned to one of the existing

Director positions (notionally the Director of Finance and Administration). This model is likely to increase

significantly the work load of an existing board member‟s portfolio.

Figure 2 – Amended Governance Structure.


Figure 2 utilises the existing governance structure of the Secret Harbour Surf Lifesaving Club with the

addition of a new Director role. The asset portfolio would incorporate all assets of the club, club facilities,

café lease and merchandising.

This model is developed around what is currently used by the North Cottesloe Surf Club. An integral part of

the North Cottesloe Surf Club model is the engagement of an external real estate company to manage all

contractual and financial arrangements regarding the commercial real estate interests of the club.

Figure 3 – Establishment of a Trust/Foundation.

Figure 3 is based upon a structure similar to the Melbourne Cricket Club (MCC) and how that organisation

manages its capital assets. Under a structure such as this the business and affairs are overseen and

controlled by the Board. Responsibilities of the club may be executed by sub committees to which the Board

appoints committee members

A foundation established by the club could fulfil the following functions with regard to any building or capital

assets of the club:

Engage in all building or capital works on behalf of the club.

Build, rebuild, refurbish, develop buildings and other amenities for the enjoyment of club members.

Manage any lease or license arrangements on behalf of the club and its members.

The establishment of a trust or foundation and the role of the Board of will require a full review of the club‟s

constitution and require significant changes to the board and how it functions.


6. Operational Budget

It is anticipated that the following budget areas will be affected by a change to the clubs facilities.

Bar Sales - The club currently operates a bar and generates a small surplus from this activity. With the

requirement that all hirers purchase all beverages from the club as a condition of hire, there is a realistic

expectation that this will increase bar turnover. It is likely that the club may benefit from increased turnover

because it generates greater purchasing power and increased profit margin.

Canteen Sales - There is potential for the clubs current canteen sales to remain static if a café./ kiosk

facility is to be part of the project. The club has indicated that it is likely to adopt a position with regard to the

operation of a canteen that would ensure that they do not compromise their relationship with any kiosk

operator.

Hire income - The hire income has been forecast based on the availability of the function room and two

meeting rooms. The income from the use of the clubs facilities is based on the assumption that the club will

be a dominant user during the summer period and it has also adopted a fairly modest build up of expected

usage. Any position taken by the club regarding the availability of their facilities by users will impact upon

the potential income yield.

(The fee schedule for the ‘hire of facility’ was based on a number of local authority facilities that

attract a similar type of usage.)

Café. Lease Fee - An initial café lease fee of $80 per m2 was used for the budget planning, and over the

course of the first five years of operation this is expected to increase to $100 per m2.

Bar Expenditure – Bar expenditure has been broadly estimated on a 100% mark up as this is about what

could be expected during the course of a full year of trading.

Bar Staff Costs - If the operation of the bar was to include making the service available to facility hirers, it

will be essential for the club to engage appropriately trained bar staff. Staff will need to be paid in

accordance with the relevant casual hire rate plus statutory on-costs.

Building Insurance and Cleaning Costs - It is likely that there will be additional operational costs incurred

as a result of a larger building with expanded usage.

6.1 Amended Budget –Key Items

The budget for the Secret Harbour Surf Life Saving Club is far more expansive than the information

considered as part of this project. Areas reviewed for the purpose of the business plan document are the

income and expenditure line items that will be impacted by the operation of a new club facility.

The net impact figure at the bottom of the table provides an indication of the potential revenue that the

Secret Harbour Surf Life Saving Club could generate as a result of operating a new club facility in

accordance with the business plan.

Table 8 – Amended Budget


Budget Item- Amendments 2013 2014 2015 2016 2017

Income

Bar sales 75,000.00 90,000.00 95,000.00 105,000.00 110,000.00

Canteen sales 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Hire Income 10,800.00 13,050.00 16,470.00 24,490.00 20,780.00

Income from café. lease 24,000.00 24,000.00 27,000.00 30,000.00 30,000.00

Total 119,800.00 137,050.00 148,470.00 169,490.00 170,780.00

Expenditure

Bar expenditure 40,000.00 45,000.00 47,000.00 52,500.00 55,000.00

Bar staff costs 4,000.00 5,200.00 5,200.00 7,200.00 7,200.00

Insurance 8,000.00 9,000.00 10,000.00 11,000.00 11,000.00

Building Management Fees 2,400.00 2,400.00 2,700.00 3,000.00 3,000.00

Repairs and maintenance 20,000.00 20,000.00 21,000.00 21,000.00 21,000.00

Cleaning expenditure (non

recoverable) 10,000.00 10,500.00 11,000.00 11,500.00 11,500.00

Total 84,400.00 92,100.00 96,900.00 106,200.00 108,700.00

Nett Impact on Profit and

Loss $35,400.00 $44,950.00 $51,570.00 $63,290.00 $62,080.00

Required booking levels

In order for the club to generate $20,000 in income from the hire of the multi-purpose community use facility

and meeting rooms need to be used for the number of hours as outlined in Table 8. The figure of

$20,000.00 is considered to be an attractive figure for the club.

Table 9 provides a clear indication of the external usage of the clubs facilities required in order to generate

$15,000 from the use of the main function room and $5,000 from the use of the meeting rooms.


Table 9 – Indicative Facility Usage

Multi-purpose Community Use Facility Meeting rooms

Hire fee

per hour

($)

Room usage

(hours per annum)

Availability

(hours per week)

Hire fee

per hour

($)

Room usage

(hours per annum)

Availability

(hours per week)

$50.00 300 5.79 $10.00 500 9.6

$60.00 250 4.8 $15.00 333.3 6.4

$70.00 214.3 4.1 $20.00 250 4.8

$80.00 187.5 3.6 $25.00 200 3.8

The table goes further to provide clear guidance with regard to the pricing schedule that may need to be

adopted by the club. It then outlines the number of hours that the club needs to make its facility available to

fee paying users in order to generate a desired level of income.

In regards to facility usage there are a number of other factors that need to be considered, these being:

Usage of the facilities by external users reduces the capacity of the club to access the facility.

Usage of facilities tends to be focussed on peak periods, which tend to be the same times that the

club may wish to use the facilities.


7. Kiosk/Café- Lease Agreement

Arrangements with a lessee for the kiosk/café will need to be negotiated and formalised through a lease

agreement. Such an agreement will provide absolute clarity on the following conditions:

Effective date of the agreement.

Details of the parties involved in the agreement.

Details of the lease premises - Description of the lease premises (this should also include a plan

of the lease area)

Term and Rent – Details of when rent is payable and should include:

o Without demand – i.e. stipulation that rental should be paid without an invoice being

issued.

o No deduction or off set rights to prevent the lessee from deducting expenses that may be

the responsibility of the lessor.

Rent Review - Information regarding any changes to the cost of the lease. Options for rent review

include:

o CPI increase -Percentage increase based on increases in the cost of living.

o Set percentage increase -Sets out the minimum percentage increase in rent to take effect

at each review period.

o Fixed increase – Agreed changes to rent that are set out in the lease document. An

example may be $120 per square meter in year one and $140 per square meter in year

to.

Use of Premises – State the permitted use of the premises (prohibited use indicates what should

not be permitted in the premises).

Repairs and Maintenance - A lessee‟s responsibility to keep the premises in good condition and

repair with exception for damages beyond control and ordinary wear and tear.

A lease agreement should also offer a clear stipulation of a lessor‟s obligation to alter, remodel,

improve or decorate etc.

Alterations –Requirement for permission to make any changes to the premises.

Ordinances and statutes – Requirement to comply with all federal, state and local statutory

requirements.

Assignment and sub-letting – Stipulation that a lease cannot be sub-let or sub-leased without the

lessor‟s permission.

Services and Utilities- There is a requirement for a lessor to maintain services to common areas

and agreement is also required if the provision of services involves sub-meter arrangements.

Entry and Inspection – The right for a representative of the lessor to be able to enter the

premises at any time for any reason.

Insurance – Outlines the insurance coverage required by the lessee of premises.

Common Areas – Both a lessee and a lessor are required to pay the costs for any common areas.


Car Parking - If there is any dedicated car parking areas associated with the premises, the

quantity and location should be identified in a lease agreement.

Signage - Details regarding signage requirements or stipulations should be outlined in a lease

agreement.

The terms or conditions provided above are indicative only. More prescriptive advice should be

sought once greater detail is understood regarding the details of any lease area.


8. Project Funding

Funding for Secret Harbour Surf Lifesaving club is expected to come from a number of funding agencies.

Table 10 - Capital Funding Partners

Funding Amount

($) Funding Agency and Guidelines

$1,350,000.00

$440,000.00

City of Rockingham

Applications to the Community Sport and Recreation Facilities Fund

require a one third contribution from the relevant local authority towards

the capital cost of the project.

At the Ordinary Council Meeting in April 2010 the 'City Business Plan”

2010/11 to 2019/20' was formally adopted. Within the 10 Year

Infrastructure Program the Secret Harbour Surf Life Saving Club

Redevelopment Project has been included in 2012/13 at a total cost of

$4,000,000 with a municipal contribution of $1,350,000.

Developer Contribution Scheme- City of Rockingham

The City is currently preparing a Community Infrastructure Plan as the

basis for a Development Contributions Plan in accordance with State

Planning Policy 3.6.

The new Golden Bay Development is likely to be in the contribution

catchment for the SHSLSC redevelopment project and therefore some

development contributions could be anticipated.

The plan is not completed and no determination has been made as to the

contribution that would be sought from the proposed 2,200 dwellings.

Based on an estimate of $200 per dwelling, up to $440,000 could be

anticipated.

It is important to note that this contribution to the project is based on a

number of assumptions. These being:

o The completion of the City's Development Contributions Plan

o The establishment of the per dwelling contribution

o The required amendments to the Town Planning Scheme.

$800,000.00

Lotterywest – Community Facilities, Advancing Participation in Community

Life

Recognises the widespread benefits of having access to appropriate,

broadly accessible facilities to help increase participation in community

life.

Community facility grants may support proposals for:

o Community playgrounds;

o Skateboard Parks;

o Community Buildings;

o Interpretive Centres; and

o Trails and other facilities.


$800,000.00

Department of Sport and Recreation - Community Sport and Recreation

Facilities Fund (CSRFF)

Aim is to provide financial support to community groups and local

government authorities who are seeking to develop basic infrastructure

for sport and recreation.

Seeks to increase participation in sport and recreation.

$20 million provided annually up until 2012/2013, returning to $9.151 in

2013/2014.

Funding provided on a shared basis between the local group, the local

government authority and CSRFF.

60% of total funding is provided to regional areas with the balance of

funding allocated to projects in the metropolitan area.

$1,000,000.00

Federal Government Regional and Local Community Infrastructure Program

–Strategic Projects.

Aim is to assist local government authorities to build and modernise

community facilities such as town halls, libraries, community centres and

sports grounds.

Previous Regional and Local Community Infrastructure Programs have

been delivered as follows:

o Funding allocated to all 566 local government authorities

Australia wide one the basis of a strategically applied formula.

o Funding to larger strategic projects on a competitive basis.

Funding applications for a minimum of $1 million dollars will be

considered. There is no specified upper limit to the funding that can be

recieved other than the availability of funds.

Applications for round two of the Regional and Local Community

Infrastructure Program closed on 15 January 2010.

The Regional and Local Community Infrastructure Program was not

continued as part of the Federal Governments 2010-2011 budget.

An alternative infrastructure fund was foreshadowed for implementation

in July 2012. Initial indications were that there was to be a contribution of

$700 million in 2012-2013 and $735 million in 2013-2014.

The future of this programme is currently unclear.

TBA

Secret Harbour Surf Lifesaving Club

The estimated capital contribution to the project of $4,342,500.00 is for

the construction of the building only. The estimated amount does not

include furniture, fittings and equipment.

The club is aware of the need to make a financial contribution to the

project in the form of cash or in the form of in-kind contributions.

The club will be able to meet its contribution requirements either in the

form of cash accrued in its building fund, project specific fund raising,

sponsorship, or through the securing of loan.


Funding Timeline

Table 11 -Suggested Funding Timeline

Funding agency Amount

$ Comment 2010 2011 2012 2013 2014

Department for Sport

and Recreation

(Community Sport and

Recreation Facilities

Fund)

$800,000.00 Funding application to be

submitted to City of

Rockingham (September

/October 2010)

*

Lotterywest 800,000.00 Applications for Lotterywest

funding can occur at anytime

throughout the year.

*

City of Rockingham 1,350,000.00 Funds committed as part of

2012/2013 budget.

*

Developer Contribution

Scheme.

Federal Government

Fund

1,000,000.00 TBA * * * *

Expected period of deliberation by funding provider through to when there will likely be

provision of funding.

* Indicates the time that application for funding should be submitted.

(It should be noted that with the uncertainty currently surrounding capital funding by the Federal

government. It is believed that the club should be prepared respond to announcements of funding

opportunities as they are announced. The Needs Assessment Report and subsequent Business

Planning Document will ensure the club is well placed to submit the required applications).


Project Implementation Plan

Following are a number of key factors that will affect how and when the pre construction phase, construction

phase and post construction phase developments can be implemented:

The capacity of the club to submit funding submissions for the project.

The availability and timeliness of external funding programs.

The capacity of the Secret Harbour Surf Lifesaving Club to reach timely agreement on a

project design.

The scope of works agreed to and the subsequent length of the building program.

The project implementation plan incorporates not only the key development milestones for the project but

also identifies actions regarding the governance of the club and the impact of commercial arrangements that

the club may enter into as a result of the amended amenities.

Table 12 - Project Implementation Matrix

Key Project Milestones 2011 2012 2013 2014 2015

Year divided in quarters 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Pre- Construction Phase

Applications for funding ■ ■

Project Funding

Confirmed ■

Project Architect

Appointed ■

Detailed Design Phase ■

Construction Phase

Building Tender ■

Builder Appointed ■

Construction

Commenced ■

Building phase ■ ■ ■ ■ ■

Post Construction Phase

Seek Expressions of

Interest for operation of

Kiosk

■

Lease Kiosk ■

AGM of Club to Amend

Governance Structure ■

Official opening of new

club room. ■


Disclaimer The professional analysis and advice in this report has been prepared by Creating Communities Australia for the exclusive use of the client for the purposes specified in it. This report is supplied in good faith and reflects the knowledge, expertise and experience of the consultants involved. The report must not be published, quoted or disseminated to any other party without Creating Communities Australia‟s prior written consent. Creating Communities Australia accepts no responsibility whatsoever for any loss occasioned by any person acting or refraining from action as a result of reliance on the report, other than the addressee. In conducting the analysis in this report Creating Communities Australia has endeavoured to use what it considers is the best information available at the date of publication, including information supplied by the addressee. Unless stated otherwise, Creating Communities Australia does not warrant the accuracy of any forecast or prediction in the report. Although Creating Communities Australia exercises reasonable care when making forecasts or predictions, factors in the process, such as future market behaviour, are inherently uncertain and cannot be forecast or predicted reliably. Creating Communities Australia shall not be liable in respect of any claim arising out of the failure of a client investment to perform to the advantage of the client or to the advantage of the client to the degree suggested or assumed in any advice or forecast given by Creating Communities Australia. The work is copyrighted. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes, provided acknowledgment of the source is included. Permission of any more extensive reproduction must be obtained from Creating Communities Australia on (08) 9284 0910.


Appendix 1 – Secret Harbour Surf Life Saving

Club- Business Plan.


Secret Harbour Surf Life Saving Club Facility Development – Business Plan

Task Measure Action By whom

Secure Capital Funding

Maximise the capital funding secured for the club house development.

Make high quality grant submissions to: o Community Sport and

Recreation Facilities Fund. o Lotterywest. o Equivalent program to the

current “Regional and Local Community Infrastructure Program- Strategic Projects”

when details of the program become public.

Board of

Management

Construction of new Club Room Facility

Handover of building to the club. Club to appoint: o Architect o Builder

Board of

Management/City

of Rockingham

Governance Structure Adoption of governance structure to meet

the needs of the club. Seek appropriate legal guidance.

Amend constitution accordingly. Board of

Management

Revise Operating Budget-Secret Harbour Surf

Lifesaving Club

Budget approved by members Development of detailed budget to match the operation of the proposed new club facility.

Director of

Finance and

Administration

Schedule of Fees and Charges

Approval of fees and charges as part of budget deliberations.

Fee schedule developed.

Promotion of fees and charges to prospective facility users.

Director Finance

and

Administration /

Board of

Management

Conditions of Hire

Conditions of hire document drafted.

Develop conditions of hire for club facilities.

Appoint manager / coordinator for community use i.e. bookings officer role.

Board of

Management


Secret Harbour Surf Life Saving Club Facility Development – Business Plan

Task Measure Action By whom

Promotional Strategy for Club Facilities

Prospective users aware of the facility. Board to agree on areas available for community use.

Engage with City of Rockingham and key stakeholders to make the community aware of the facility.

Develop promotions and marketing strategy for club facilities.

Board of

Management

Management of Community Bookings

Process adopted for the management of community use of the club building.

Club to develop policies required to successfully operate a facility that is actively used by the community.

Engagement of sub-contractors to support the clubs conditions of hire.

Board of

Management

Management of Bonds

Club to establish a Trust for all bonds collected.

Development of a procedure for receiving and repaying of Bonds to facility users.

Director of

Finance and

Administration /

Board of

Management.

Kiosk Lease

Engagement of a high quality kiosk / café. operator.

Secure a minimum of $80 per square meter in year one.

High quality selection process for the procurement of a kiosk operator.

Board of

Management.

Engagement of Bar Staff

Appointment of: o Bar Manager /Coordinator o Bar Staff

Advertise positions.

Appoint appropriate staff.

All staff to have Responsible Service of Alcohol accreditation.

Board of

Management.

Purchasing Agreements

Secure best possible purchasing opportunities.

Maximise profit from bar sales.

Secure a preferred provider.

Board of

Management.



Appendix 2 – Concept Plans - Secret Harbour Surf

Life Saving Club. Lin Kilpatrick- Architect.


Appendix 3 – Concept Plans- Secret Harbour Surf

Life Saving Club- Business Plan. JCY Architects

and Urban Designers.

Documents

Secret Harbour Surf Lifesaving Clubsecretharbourslsc.com/...Feasibility-Study-Business-Plan1.pdf · The Feasibility Study/Business Plan has been ... The clubhouse will include a kiosk/café