What is a Major Land Transaction/Business Plan?

    A Major Land Transaction involves the sale, lease, or development of property by a local government when the value exceeds $10 million or 10% of the operating revenue. The Business Plan ensures transparency and community input on proposed transactions before a final decision is made by the Council.

    Can I have a say?

    Yes, the Council approved the Business Plan for community advertising on 28 May 2024. The community can comment on the proposal during the extended eight-week period from 29 May to 26 July 2024

    How do I make a submission?

    You can submit your feedback in writing:

    • Online at mandurahmatters.com.au 
    • By mail to PO Box 210, Mandurah WA 6210 
    • By email to council@mandurah.wa.gov.au
    • In person at 3 Peel Street, Mandurah

    What steps are required for the project to proceed?

    The following steps are required for the proposal to proceed to development: 

    • Community consultation and review of submissions
    • Council makes a decision whether to approve the Major Land Transaction, taking into consideration the feedback received during community consultation
    • City submits a request for the land excision from a Class A reserve, which is required to enable the proposal to proceed to the next step. This is led by the Department of Planning, Lands and Heritage who must advertise for community consultation the land excision for 30 days.
    • Parliamentary approval is sought for the land excision. It must pass both Houses of Parliament. 
    • Finalisation of the sublease agreement.

    Why would Council support a venue serving alcohol on the family-friendly Western Foreshore?

    All the proposals Council received during the EOI process included a licensed hospitality offering. This was a key part in how they could deliver a sustainable business at this site, to the high standard expected for this prime location. 

    In this market, the food and beverage components are an important drawcard in creating the foot traffic for the other commercial elements to work. 

    Modern hospitality venues recognise that to be sustainable, engaging a broad audience that includes families is critical, and the preferred proponent is no different.

    Will the use of the war memorial be impacted, including the ANZAC Day services?

    The commercial site Business Plan proposal includes proposed trading hours that recognise the annual ANZAC Day Dawn Service

More FAQ's on the Western Foreshore Commercial Site – Proposal Business Plan

    What is a Business Plan?

    As the Western Foreshore Commercial Site Proposal constitutes a Major Land Transaction, the City is required to prepare a business plan. The Business Plan will commence the process for community consultation, and provides an overall assessment of a proposal, including: 

    • Expected effects on provision of local facilities and services
    • Impacts on other service providers and facilities in the area
    • Financial effects on the City 
    • Alignment with the City's Strategic Community Plan
    • The City’s ability to manage the transaction
    • Other relevant considerations

    What can I include in my submission?

    Your submission can include: 

    • Support or objections to the proposal
    • Concerns or suggestions for improvement 
    • General feedback to help the City refine the proposal

    What happens once the consultation period is closed?

    After the submission period ends on 26 July 2024, all feedback will be presented to the Council for consideration. Council will then decide whether to proceed with the transaction, make changes, or not proceed.

    Should I contact my local councillor directly with feedback?

    You can contact your local councillor anytime, however all submissions must be received either in writing as outlined above, or via mandurahmatters.com.au, to be considered as part of the consultation feedback.

    What consultation process is the Council undertaking?

    Council is seeking community feedback on the Business Plan through an eight-week public consultation period. The feedback will be considered before making a final decision on whether to proceed with the advertised transaction proposed in the Business Plan.

    When will the new developments begin and how long will development take?

    The current process is about getting community feedback regarding the Business Plan, and that feedback will be vital in helping Council decide if and how to proceed regarding the commercial site on the Western Foreshore. Consequently, it is too early to be able to put specific dates to the proposals. However, Council will keep the community updated on the progress of the project through its website, emails and in other communications activities

    Will all the elements to the proposal be built at the same time?

    The proponent is seeking to deliver the golf course, café and licensed restaurant/microbrewery first as phase 1, to be followed by the chocolate factory in phase 2. Timing is still to be negotiated as the various consultation and approvals process is carried out.

    How much space will the proposed commercial development take up?

    The proposal includes four key components over 8,000m2 , with the majority of this space being the 18-hols mini golf course:

    • 18-hole mini golf course and Café - 5,050m² 
    • Licensed restaurant and microbrewery – 2,500m² 
    • Chocolate factory - 450m². 

    There have been commercial leases on the Western Foreshore since 1987, with 6,581m² dedicated commercial space, including Kings Carnival and an aquatic operator (kayak hire).

    What about the land adjacent to King Carnival where the barbecues are currently located – an area of potential cultural significance?

    The Western Foreshore Leisure Precinct is located within a registered Aboriginal Cultural Heritage site – Winjans Camp. The camp itself is located approximately 1km away from the proposed commercial development and is located within Yaburgurt Kaaleepga Reserve. However, the proposed development site is close to the shore of the DJILBA (Peel Harvey Estuary) and as such the interface of the development with the DJILBA will be carefully considered. 

    The City is committed to undertaking its due diligence for the heritage value of the site and working with the local Elders to achieve a design that respects the aboriginal and cultural heritage of the site, including seeking the necessary State planning approvals.

    What is a Peppercorn Lease?

    A peppercorn lease is a lease agreement where the rent is set at a very low rate, often just a symbolic amount (the peppercorn) per year. This type of lease is suggested for the Western Foreshore Leisure Precinct in the first two years to facilitate the development of the space and associated community assets. The development of the leisure precinct will present significant  

    Why is a Peppercorn Lease Being Considered for the Western Foreshore?

    A small rent in the first two years encourages investment for longer term benefit. By offering a peppercorn rent early on, the City is essentially incentivising that investment, but our proposed lease for the first 25 years also ensures that the City will receive more rent than it would if market rent was applied from the start. Over these 25 years, with the first two years’ peppercorn rent being $1 each, the total rent amounts to $6.2 million. In contrast, applying market rent from year one would result in a total rent of $5.5 million.  

    Such arrangements are common in commercial developments. This deal is more favourable and has been negotiated to benefit the ratepayers.  

    The proponent must also cover all rates, taxes, levies, charges, and outgoings related to the premises, as if they were the owner.  

    Revenue from the sublessee would be reinvested back into the management, maintenance and ongoing renewal costs for the Western Foreshore Leisure Precinct. This ensures ongoing financial commitment by the City to keep the Precinct well-maintained, activated, and promoted as a destination that will attract the local community and tourism alike. 

    How is the value of the Peppercorn Lease justified?

    Although it might look as though a low rent in the first two years would negatively impact overall income, the proposed lease actually realises a better deal for the community. By negotiating the lease in this way, the City expects to generate an additional $700,000 over the first 25 years than if it just charged market rates from the start.