Mackay council freezes rates for The Dome’s Bendigo branch

A key tenant in the council-owned The Dome centre asked its rent not be increased in line with market recommendations, citing the number of empty shopfronts in the CBD.

The Mackay Regional Council on Wednesday voted on a recommendation to freeze the Bendigo Bank’s rent at The Dome in the CBD. Picture: Heidi Petith

A market-driven recommended rental increase for a key tenant in the Mackay council-owned The Dome centre was overruled in an effort to keep the stores open.

Bendigo Bank is a long-term major tenant in The Dome which has experienced a high vacancy rate in recent years.

Council documents state the branch opened in the centre in the CBD more than 15 years ago and is the bank’s only outlet in Mackay, operating five days a week.

The current lease for Shop 12 expired on July 31 and the bank lodged a renewal request with the council, which owns The Dome.

“A rental valuation has been completed by Knight Frank with the opinion that a market rental range of $72,800 to $81,900 per annum gross excluding GST is appropriate for this circumstance,” council documents state.

Bendigo Bank Mackay, that leases a space in The Dome precinct between Victoria and River Streets in Mackay, requested Mackay Regional Council freeze its rent in light of other empty buildings around the CBD. Picture: Heidi Petith

The council is not required to put the rent to tender under Section 236 of the Local Government Regulation Act, part of which states it is up to the council’s discretion when renewing the lease of land to an existing tenant.

The council on Wednesday voted to renew the lease for two years at $70,000 per annum instead of increasing the rent in line with the market.

The motion included a 2 per cent rent increase “at the commencement of the second year of the lease”.

Bendigo Bank is a long-term tenant at The Dome. Picture: NCA NewsWire / Paul Jeffers

“The current market rental range confirmed by registered valuers, Knight Frank is $72,800 to $81,990 gross however Bendigo and Adelaide Bank Ltd requested negotiation of that rent due to the high number of vacant premises available for lease in the CBD,” documents state.

The Dome is located between Victoria and River Streets in Mackay and has noticeably vacant tenancies including the cafe area once occupied by Jellybeans Kitchen. Picture: Heidi Petith

“As Bendigo Bank have been a long-term valuable tenant, a commercial decision to negotiate the rent was considered appropriate to retain this business as a tenant and to avoid a loss of considerable income for Council should Bendigo Bank vacate the premises.”

The council also voted to renew Mackay Regional Housing Company’s lease in the same centre for $31,000 per annum, having received a request for one year and two one-year options.

Connect Housing will remain operating in The Dome after councillors approved their lease renewal. Picture: Heidi Petith

Trading as Connect Housing, the organisation initially operated from shop 13 but later moved to shop 12 for smaller floor space.

“The lease to Mackay Regional Housing Company Limited represents the most advantageous outcome for both the community and council as it will ensure the social and affordable housing management services provided to the community are maintained while providing an income to council.”

Originally published as Mackay council freezes rates for The Dome’s Bendigo branch