Lease and licence policy

May 30, 2022 Shane Sody

The City of Adelaide is proposing to tweak its policy on how it grants leases or licences over parts of your Open Green Public Park Lands.

This is an important document, because it lays the legal framework which the Council should follow when it allows some parts of your Park Lands to be closed off to you.

Lease or licence: what is the difference?

A "licensee" (such as a school or a university) has the first option to use a Park Lands site, but the public can use the area when the licensee is not using it. Many sports fields throughout your Park Lands are licensed in this way.

Examples include the licences granted to Blackfriars Priory College (Park 2), Adelaide University (Parks 10 and 12), St Mary's College (Park 24), Wilderness School (Park 6), Christian Brothers College (Park 15), and Pulteney Grammar (Park 20) among many others.

Examples of leased buildings in your Park Lands.

In contrast, a lease is more restrictive. Leases are typically granted over buildings or fenced grounds in the Park Lands, so that the lessee (e.g. a school or university) can prohibit access to the building (or area) at all times, with fences and locked doors or gates. Only paying members or customers are allowed entry. However leases can also be granted over wide areas to restrict public access.

Examples of three leased (effectively privatised) areas of your Park Lands. (Left:) Fenced tennis and hockey courts off Greenhill Road in Park 20; (Centre:) 3.8 hectares of fenced tennis facilities off War Memorial Drive in Park 26, and (Right:) Adelaide Bowling Club greens off Dequetteville Tce in Park 14.

What are the proposed policy changes?

The proposed new policy does not change what is allowed on your Park Lands. It's confined only to the procedure for granting leases and licences.

The Council is proposing some minor changes to its existing policy. The existing policy, and the proposed update, both make a distinction between leases and licences granted to:

"community" organisations i.e. not for profit clubs and associations, peak sport and recreation bodies and educational institutions; and
commercial (for profit) operators. These include cafes, restaurants etc on Park Lands

To make it more complicated, "community" lessees will continue to be allowed to sub-let part of their leased or licenced area to commercial operators, as long as the commercial activity is "subservient" to the community (not-for-profit) use.

An example given in the new draft policy is professional tennis coaching which (supposedly) would encourage "increased community use of the facility".

The maximum term of leases would be reduced from 42 years to 21 years (although State Government agencies would still be permitted to have leases of up to 42 years).

Licence fees would be linked to the size of the area that is being licensed.

One of the more significant changes is intended to facilitate more community use of areas that are leased or licensed. However the proposed changes could be sidestepped by private arrangements between lessees and council staff.

The Council's explanation of the changes is that:

Lessees and licensees will be required to submit to Council Administration:

• all sub-letting agreements for approval at least annually

• an annual report that includes details on sub-letting and casual hire numbers and related income

• a sub-letting agreement where a community lessee or licensee is considering a commercial organisation using its facilities

If Council is of the view that the lessee or licensee has not made their facilities sufficiently available, we will require the lessee or licensee to submit a plan to increase the level of community access.

It is unclear how the public would be assured that the Council administration was acting in accordance with this policy intent, nor whether any plans submitted to the Council would be made public.

The City Council wants your feedback by 5pm, Tuesday 14 June 2022.