Council has an existing 30-year lease with Ivanhoe Grammar School. The initial 20-year term is from November 2014 to November 2034, with an additional 2 x 5-year extensions.

As stated in the current lease, any major changes made to the two pavilions, as opposed to minor renovations, require the creation of a new lease. This is a legal requirement under s115 of the Local Government Act 2020.

This lease term is considered fair and reasonable given the significant financial investment by IGS of $14 million for the redevelopment of the community sports pavilions. IGS have also invested $1 million upfront towards storm water harvesting over 2 years at the start of the current 30-year lease (2014).

There was also a considerable and detailed cost benefit analysis undertaken, along with an assessment of information gathered on use, need, allocations, maintenance, operations, and rental income, to understand the project value and help determine fair and reasonable lease terms.

The Lease is managed by Council’s Sports and Leisure Contracts Lead with oversight by the Manager Healthy and Active Communities. Regular meetings and inspections are conducted to monitor lease compliance and tenant obligations and maintain open communication on all matters.

The Strategic Property team also provide technical oversight and advice in terms of the lease conditions and obligations. Legal advice is sought where required.

There are also a number of key performance indicators (KPIs) and reporting requirements that are included in the existing lease and will carry over to the new lease.

The Terms and Conditions of the proposed new lease remain the same as the existing lease. The following new key terms and modifications endorsed for inclusion are:

1. Tenure - 30 years plus 2 x 5-year options (total 40 years)
2. Rental – $12,000 per year (plus annual increase of 4%)
3. Repairs and maintenance remain the responsibility of IGS, currently $400,000 pa.
4. Removal of current obligation on IGS to install a fourth tennis court and multi court.
5. Review of role, purpose, and membership of the Chelsworth Park Reference Group – remove reference from the lease and establish as an advisory committee to Council.
6. Removal of current obligation for IGS to contribute $6,000 per year to a sinking fund, having regard to the proposed increase in rental.
7. Removal of Council receiving 50% of sporting club fees and charges for ground and pavilion use.
8. The tenant acknowledges and agrees that public access to Chelsworth Park (other than the new pavilions to be constructed by IGS) must be maintained at all times during the term and further terms and that IGS will not erect any fences or other obstructions on or around the premises to prevent such public access.

In addition to the terms and condition of the new lease, the following clause will be included:

• The Tenant acknowledges and agrees that public access to Chelsworth Park (other than the new pavilions to be constructed by IGS) must be maintained at all times during the Term and Further Terms and that IGS will not erect any fences or other obstructions on or around the Premises to prevent such public access.

The lease also states that IGS must obtain Landlord/Council consent for any major alterations to the Lease premises and where required, obtain a planning permit for any related works.

The maintenance of Chelsworth Park will remain the responsibility of IGS, currently costing $400,000 per year.

The Lease (current and proposed) contains schedules for maintenance and inspections to be carried out by Council to ensure that the standards agreed to are being met as well as ongoing capital investment into irrigation for the sports fields. This will remain the responsibility of IGS.

Currently, Fees and Charges are collected annually by IGS (in line with Council’s Sporting Facilities User Guide and Allocation Policy). This equals approximately $25,000 per year and 50% is provided back to Council in current lease fees.

The new lease proposes to charge an annual rental to IGS as opposed to sharing income fees.

The draft key terms have been developed considering costs and benefits as well as information gathered on use, need, allocations, maintenance, operations, and rental income, to understand project value and help determine fair and reasonable proposed lease terms.

IGS has a lease until 2023. If this new lease and proposed pavilion redevelopment did not proceed, then the existing lease would remain and the pavilions’ redevelopment would not go ahead under the current lease arrangement. There is no capital budget for the pavilion development in Council’s current 10-year program. A cost estimate for Council to replace the Chelsworth Park pavilions is estimated at $18 million and would not be funded before 2034.

The yearly maintenance costs for IGS is approximately $400,000, with the grounds curated and managed at higher level of specification. If Council were to take over maintenance, the estimate is $300,000 per annum plus indexation with reduced service level.

Considering these factors, if IGS builds the pavilion and maintains the grounds, Council could save around $13.8 million over 40 years.

Information gathered on use, need, allocations, maintenance, operations, and rental income assisted Council to explore different options and impacts of the proposed lease and terms in terms of costs and benefits.

Table below summarises these:

The need for new sporting club facilities is urgent as community sporting clubs and public usage is significantly affected.

This is a complex project where Council has two responsibilities, as owner of land and responsible authority under the Planning and Environment Act. Both of these responsibilities require statutory processes and time.

Council has built in additional community engagement opportunities to ensure that the community is well informed and has opportunity to comment on both the lease and proposed pavilions.

IGS is responsible for all pathway maintenance within the leased premises. Refer Lease below – lease area is inside the red line. Paths outside the lease area are maintained by Council.

View the lease plan.

The design and flood mitigation will need to be approved by Melbourne Water. IGS is responsible for all maintenance and repairs to the leased premises. This would also apply to maintenance following flooding events.

Yes. IGS must obtain landlord/Council consent for any major alterations to the Lease premises or changes to usage for the current and draft lease.

Yes. The lease will require IGS to comply with all regulations and standards as per the lease arrangement and as they change over time.

The school recognises that these facilities, compared to other schools’, are in poor condition and need to be upgraded to adequately accommodate their students’ needs, particularly for female in sport. These facilities were built when IGS was an all-boys school and the changerooms do not support female participation.

The investment is only commercially viable if the lease is extended in line with the proposal.

Training and Saturday morning competition days will not increase as they are confined by the school term calendar. The numbers of students will most likely increase in sporting teams at Chelsworth Park, but overall the times the school uses the park will not change.

Post-COVID some clubs and sports across Banyule have experienced a decline in participation, however there is some evidence that numbers are returning.

Sports club usage at Chelsworth Park may increase, particularly anticipating growth in women's participation, however days/times that the facility is currently being used will remain relatively the same.

Sports Club usage of the pavilions and sports fields will be in line with Council’s Sporting Facilities Users Guide and Allocation Policy, and will not change from the current usage.

The community will receive two new sporting pavilions without imposing any financial burden on Council, freeing up funding for other projects. The pavilions will:

• support more opportunity for physical activity and social connection
• directly benefit nine Banyule sports clubs who account for approximately 80% of the total available hours. These sports clubs are comprised of local community members and residents from across Banyule.
• be available for community groups and organisations to use, particularly during the day in non-peak sports training times.

This project presents a unique opportunity to deliver significant community sports infrastructure for generations to benefit from at no cost to Council. It aligns strongly with several of Council’s key strategies and organisational priorities.

The primary purpose of the upgrade is to provide accessible and inclusive fit for purpose sports facilities that support sports club and school use.

Council and the community support better use of existing facilities or new facilities that are designed with flexible multi-use so there is wider value and community benefit.

Chelsworth Park Development Options Report ( July 2021 ) confirmed that neither the timber or brick pavilions are ‘fit for purpose’, meaning that the structure, design, or condition of the buildings does not adequately fulfill its intended function or meet the needs of its users. Essentially, the buildings are not suitable or effective for their intended use due to various deficiencies or shortcomings including:

• Lack of access and compliance with DDA and building code
• Lack of female-friendly and umpire change facilities
• Lack of environmentally sustainable design initiatives
• Non-compliance with current State sporting code facility guidelines
• Not meeting universal design principles
• The timber pavilion was constructed in 1975 and the brick pavilion in 1987. Both are ageing and no longer meet contemporary standards.

The need for redevelopment of both pavilions is identified in the adopted Ivanhoe Sports Precinct Plan.

When a building is described as being ‘end of life’, it typically means that the structure has reached a point where it is no longer economically feasible or safe to continue using it without significant renovation or reconstruction.

If a building is described as ‘not fit for purpose’, it means that the structure, design, or condition of the building does not adequately fulfill its intended function or meet the needs of its users. Essentially, the building is not suitable or effective for its intended use due to various deficiencies or shortcomings.

Feedback from clubs and school user groups in relation to the constraints and challenges of conducting their activities in the pavilions includes:

• Football Clubs struggle to attract female players
• Athletics Club has nowhere for athletes to change
• No change rooms for umpires
• Toilets and change rooms do not comply with DDA requirements and building standards.

Repairing and upgrading the pavilions is not an option. The pavilions no longer meet the needs of the users in their current format.

This project is being designed, planned, funded and constructed by IGS. The design brief was drafted by IGS in consultation with Council.

Council provided:

• The Otium Report – 2021 - initial development options and functional requirements of clubs, including some early design principles
• Independent Planning Report 2022 - guidance for options around building envelope
• Example Architects Brief
• Example Architects Request for Quote
• Best Practice Checklist
• Sustainable Building Guidelines
• Sustainable Building Guidelines Matrix

This project is led by IGS and input into the architect brief is not part of the engagement process. Council is satisfied with the information provided to IGS to inform the brief for the architect.

Yes, they have been designed to comply with all building codes, DDA requirements and State sporting requirements.

The architect is required to consider all controls, zoning, local planning policy, overlays and provisions as they relate to the site and the pavilion redevelopment.

The draft landscape plan has been developed to minimise tree loss and retain all significant trees and the overall canopy. There is proposed to be a loss of approximately 10 trees scattered around the perimeter of the pavilions. The landscape plan proposes to off-set tree removal by replacing species removed and planting an additional 400 trees in the river corridor of Wilson Reserve.

Yes -This can be done to inform the final design.

At this stage, there are no plans to upgrade the road, but this can be considered if/as the project progresses.

• The Otium Report 2021 - initial development options and functional requirements of clubs, including some early design principles
• Independent Planning Report 2022 - guidance for options around building envelope
• Transport Impact Assessment
• Arborist Report
• Ivanhoe Sports Precinct Plan 2022
• Memorandum of Heritage Advice
• Landscape Plan

These reports form part of the planning application and would be made available during the public notice period for this application.

Specialist advice from a heritage consultant has indicated that a Cultural Heritage Management Plan will not be required for this project.

IGS are designing, constructing and funding the new pavilions. A condition in the proposed lease specifies that a Project Control Group be appointed and a representative from Council’s major projects team be a member and attend quarterly project meetings.

An application for a planning permit would be made if Council resolves to enter into a new lease agreement. The projected timeline is for an application to be made in May 2024. Council will have 60 statutory days to make a decision. This timeline, however, is subject to referral authority requirements i.e. Melbourne Water and further information requirements. A decision on the application may not be made until the end of 2024.

Council will issue a planning permit, as the Responsible Authority under the Planning and Environment Act 1987.

Should a permit not be granted, the permit applicant (IGS) would have appeal rights under Section 77 of the Planning and Environment Act 1987 and VCAT would make a decision on whether or not a permit should be granted. In the event of an appeal being lodged, anyone who objected to the planning application would have the option to join as a party to the appeal proceedings.

The existing lease with IGS will remain, the pavilions will remain as they are while Council considers other options

Many sporting grounds pavilions in Banyule have been upgraded and redeveloped to make them fit for purpose, to support female participation in sport and to cater for accessibility need.

Restrictions on the redevelopment can be made through conditions on a planning permit, if granted, however would need to align with the relevant planning policy, zone and overlay permit requirements.

The required advertising period under Section 52 of the Planning and Environment Act 1987 is 14 days, however submissions can be made and must be considered by Council up until the day a decision is made.

Construction timelines and access would be determined once a contractor is appointed. Council and IGS would be seeking to minimise impact on access.