Legislative Assembly for the ACT: 2018 Week 6 Hansard (7 June) . . Page.. 2252 ..
(c) Continuation of 16 Peppercorn lease arrangements for stand-alone community halls was approved by the Treasurer in February 2018.
Licences for arts facilities, however, are linked to Deeds of Grants for the arts organisation that manages the facility and do not require Minister approval. This funding enables the arts organisation to present arts programs for community access in those facilities as well as managing the facility.
(d) Reporting on peppercorn arrangements is a Community Service Obligation and will be published in the annual report.
(2) Five years is most common as this is consistent with the Leases (Commercial and Retail) Act 2001, as the Act provides a tenant with a minimum term of 5 years unless they opt out using a solicitors certificate. Most leases range between three and five years.
(3) ACT Property Group's Community and Other Tenancies, Application and Accommodation Policy 2007 is used as a guide to determine eligibility for community accommodation.
In the Suburban Land Agency, the sub-lease is negotiated as part of the sale, including the term and fee, and approved by the relevant delegate as part of the overall sale process. Value for money considerations when entering into a sub-lease include when the land is required for future use, and options for management of the land in the interim. A peppercorn arrangement reflects that the sub-lessee is required to manage the land to a standard required by the Territory, and meet all costs associated with the land management including all rates and charges.
(4) The ACT Government does not collect peppercorn rents. This is a financial decision because the costs for collection (generally five cents per annum) makes the process economically unviable.
(5) There is no rent or fee payable to enter into a peppercorn lease.
(6) To prepare, negotiate and execute a community licence agreement, this can vary quite significantly and this mostly depends on the individual tenant, property and circumstances.
Government—commercial lessees (Question No 1091)
Mr Coe asked the Treasurer, upon notice, on 23 March 2018:
(1) Can the Treasurer provide a consolidated list of the names of businesses or organisations whose peppercorn rent agreements with the ACT Government are currently active or in place.
(2) For each business or organisation identified in part (1), can the Treasurer provide the length of each peppercorn agreement with the ACT Government.
(3) For each current peppercorn rent agreement where rent is payable to the Territory, can the Treasurer advise why a peppercorn rent was applied rather than a commercial rent.