West Torrens Council to hold special meeting over Adelaide Crows HQ proposal – as details of plan is revealed

The Adelaide Crows would pay a nominal amount for decades for using Thebarton Oval – in exchange for the millions the club will spend to redevelop it. See the whole deal here.

The Adelaide Football Club will not pay rates to West Torrens Council if Thebarton Oval becomes its new headquarters, it has been confirmed.

Instead, the Crows annually will pay $20,250 in rent for the first 10 years before it is increased to $40,500 for another 10 years.

Council chief executive Terry Buss has detailed how the club instead will be charged “rates-inclusive rent” in a report to be presented at a special meeting on Tuesday night.

The meeting has been called to approve the signing of a formal memorandum of understanding between the council and the Crows.

It details how the two parties will work to develop a masterplan for the $85m project while continuing community consultation.

The new masterplan – detailed in an open letter by West Torrens mayor Michael Coxon – will replace a previous scheme for the area approved by the council in 2018.

In his report, Mr Buss said the Crows were seeking a 84-year lease for a council-owned precinct, which included Thebarton Oval and the adjacent Kings Park Reserve.

The Thebarton Oval redevelopment plans circulated during community consultation.

Preliminary details of the lease were well advanced after extensive negotiations between council staff and club representatives.

Mr Buss said a “headline terms sheet” had “essentially been agreed between the two parties, although there are some elements that require further discussion/negotiation”.

“Key commercial lease terms and draft lease covenants were developed and subsequently endorsed by council,” said his report.

“ … at the commencement (for the initial 21 years) of the lease period, the rental is proposed to be rates-inclusive rental which acknowledges and recognises the substantial contribution, of some $45m, by the AFC on public realm facilities/assets which are to be delivered by the AFC and also the expenditure incurred by the AFC in solely maintaining the ovals.”

The proposed area that will be leased by the Adelaide Football Club for the Thebarton Oval redevelopment. Picture: Supplied

Mr Buss said the Crows also would be responsible “for all user costs/outgoings applicable to its use of the facilities”.

“A market-based approach will be used to determine the rental after the initial concessionary (phase in) period,” said his report.

Mr Buss said it was “not common” for the council to be presented with an “opportunity where a lessee is in a position to the fund the development of community facilities that council would ordinarily provide for its community at substantial cost”.

“The proposal from the AFC is unique in terms of its requirement to lease a substantial portion of community land within the council area but with a corresponding commitment to construct and maintain facilities for the benefit of the community,” said his report.

“While there is certainly value to the AFC in the use of community assets, a ‘commercial rate’ is not ordinarily appropriate for the use of community facilities either, especially where non-exclusive use applies.

“In this case, achieving the provision of sports facilities without a capital investment by the council is a key aspect of the project.”

Artist impression of the Crows’ proposed new base at Thebarton Oval. Picture: City Collective

Mr Buss said the Crows wanted to have naming rights to Thebarton Oval, which would involve the erection of sponsor signs on its interior and exterior.

“The (council) administration does not have any objections to this request, on the proviso that the name is not gratuitous and does not offend ‘normal’ community expectations or standards,” he said.

Mr Buss said if signs were put up on the outside of the oval, the council wanted to know what commercial arrangements were involved.

“This will allow council to receive a financial benefit via an increase in rates and/or additional rental,” he said.

The Adelaide Football Club would have to follow usual council processes to obtain approval to put up the signs.

A concept design for the redevelopment of Thebarton Oval. Picture: City Collective

Mr Buss said council staff were seeking the support of elected members to continue developing a long-term lease with the Crows for the Thebarton Oval precinct.

“If supported the next stage of the process will require the AFC to prepare a masterplan for the site, which will be subject to further community consultation,” said his report.

“No lease for the Thebarton Oval precinct by the AFC will be entered into until all consultation stages are complete and the council is satisfied that the masterplan acknowledges and reflects the feedback which has been provided by the community.”

Recommending elected members approve the memorandum of agreement, Mr Buss urged them to consider community feedback on the project, which had highlighted opposition to the acquisition of Kings Park Reserve, removal of trees and loss of open space.

This had to be balanced against strong support for the redevelopment of the fenced-off Thebarton Oval as the new Crows headquarters, which would contain new community facilities at no cost to ratepayers.

The special council meeting will start at 7pm on Tuesday.

Originally published as West Torrens Council to hold special meeting over Adelaide Crows HQ proposal – as details of plan is revealed