If Council agrees to proceed with the project, how long is the lease?
The initial lease period of 42 years is the maximum possible for a Council to grant under the Local Government Act 1999.
Should the lease with Adelaide Football Club go ahead, Council has made a commitment to negotiate during the latter part of the initial period (likely starting at some point in the 2050s) for a further 42 year lease period, or maximum period under the laws of the day.
How much will it cost? How much will the Adelaide Football Club pay? How much will Council pay?
Development costs
To develop the Precinct as shown in the Master Plan is estimated to cost the Adelaide Football Club $100 million.
This is made up of $55 million to develop the dedicated Adelaide Football Club facilities, and $45 million to develop shared use facilities and the public realm.
Council is contributing $11.26 million to the Adelaide Football Club’s investment in the public realm portion of the development that will be of benefit to the West Torrens community.
Rates and lease fees
Council will not be charging rates for land available for public use, but will charge rates on land exclusively used by Adelaide Football Club. Rates are calculated on the value of the buildings on the land, and in accordance with the Local Government Act 1999.
Adelaide Football Club’s investment to upgrade and maintain the Precinct’s public spaces is considered a ‘community benefit’. On that basis, Council proposes to apply rebates to the Club’s lease fees and rates over the 42 year lease period as follows:
Lease fee rebate of 55% for years 1 to 5, and 40% for years 6 to 42.
Rates rebate of 87% for years 1 to 5, and 72% for years 6 to 42.
The agreement between Council and the Adelaide Football Club will include a process that requires the Club to demonstrate the community benefit delivered. If the community benefit delivered is not satisfactory, the lease fee rebate may be adjusted.
Considering income from lease fees and rates (inclusive of rebates) and Adelaide Football Club’s investment in development of the public spaces, Council is expected to gain a substantial financial advantage from the project. Maintaining a strong financial position enables council to maximise its investment in community infrastructure and services.
Why is Council contributing money to the Adelaide Football Club, a private enterprise?
Council is contributing funds to the development of shared use facilities and public realm because these aspects of the Master Plan will provide our community with quality open space, landscaping, and pedestrian access, as well as opportunities for informal sport and recreation.
Considering income from lease fees and rates (inclusive of rebates) and Adelaide Football Club’s investment in development of the public spaces, Council is expected to gain a substantial financial advantage from the project. Maintaining a strong financial position enables council to maximise its investment in community infrastructure and services.
Who will maintain the land?
Under the lease agreement Adelaide Football Club will be responsible for routine cleaning and maintenance of the leased area, including maintenance of landscaping and turf.
Will Department for Infrastructure and Transport (DIT) land adjacent South Road be returned to Council? Will Council consult the community on the land’s leasing and use at that time?
DIT has acquired land from Council for the River Torrens to Darlington motorway project for 2 purposes: land that will form part of the completed motorway, and land that is required during construction of the motorway.
Land acquired for the completed motorway will not be returned to Council.
On completion of the motorway (estimated 2031), the land acquired for use during construction may or may not be returned to Council, a decision that will be made by the State Government of the day.
If land were returned to Council ownership, the Adelaide Football Club would be within their rights to request additional land be included in their lease area. If Council chose to consider such a request, it would be bound by the usual statutory requirements relevant to a long-term lease, including a period of public consultation.