Bundaberg Regional Council to confirm lease amount for airport lot
Bundaberg Regional Council is set to confirm whether it will or won’t apply an exception to a tender for an airport lease after a bizarre tender listing showed it would cost one tenant just $45,000.
Bundaberg
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Bundaberg Regional Council has removed a confusing tender listing from its website for a vacant airport lot, but questions about the lease arrangements linger.
The council will decide at an ordinary meeting on Friday if a farming company will be granted a lease at the Bundaberg Airport.
Sweet potato farming company Holt Farming Pty Ltd, which works alongside the Greensills, has applied to establish a new hangar on a vacant lot of land at the airport.
On October 5, a listing on the council’s website for tenders over $200,000 showed Greensill Aviation had won tender TEN/0852 for the lease of the lot at Bundaberg Airport.
The listing showed Greensill Aviation would pay $45,000 a year for 20 years to lease the vacant lot.
In response to the NewsMail’s questions, the council said “the listing of this contract was an administrative error”.
Greensill Aviation also confirmed this was an error on the council’s behalf and the listing was removed some time later.
This week, a separate vacant lot at the airport has been listed for discussion which Holt Farming Pty Ltd is seeking to lease.
Council will decide whether it will apply an exception to a tender or auction requirement under the Local Government Regulation for a vacant lot at Bundaberg Airport.
Council’s Chief legal officer Christine Large presented councillors with the proposal for the lease during a council briefing meeting on Monday morning.
Ms Large stated Holt Farming would enter into a contract for the site for ten years.
“It had historically been out for tender which wasn’t successful and this lease is now being entered into with the exception that it has previously been offered for tender,” Ms Large said.
“The proposed rent would be for market rent and would be increased annually by three per cent.”
The tenant would be responsible for all outgoings.
Holt Farming – whose director is David Holt, according to Australian Securities and Investments Commission documents – would be responsible for the construction of the hangar and the council would pay 50% towards hangar access.
“Historically, council has paid for 50 per cent of the construction for the access connection from the hangar to the taxiway and it’s councils intention to apply,” Ms Large said.
Councillors will vote on the decision at an ordinary council meeting on Friday.