Council agrees to lease Elfin House childcare to Grammar

Rockhampton council has weighed up the region’s desperate need for childcare spaces as it debates the risk of leasing a liquidated centre to an elite school until 2045.

Elfin House Community Childcare Centre was forced into closure.

Rockhampton Grammar School has stated it needs to spend $700,000 on upgrading a liquidated childcare centre before it can be reopened as it pushes the council, its owner, for a much longer lease.

Rockhampton Regional councillors debated RGS’s request for a 20-year lease for Elfin House Community Childcare Centre at today’s meeting and ultimately agreed to it after weighing up the “desperate” need for reopening the centre which shut in June.

Council had previously agreed to a lease expiring 2030 but RGS argued it needed a longer term to satisfy its $700,000 investment.

Deputy Mayor Drew Wickerson spoke for the lease being extended to 2045 saying it was “a bird in the hand” situation.

“For me it’s about the risk of losing the licence. It’s very hard to get a new player (childcare centre operator),” he said.

“People are not knocking down our doors to start these things up. We have to be sure we don’t lose an interested party that is sitting there ready to go with it.

“We have no guarantee that in six years’ time they won’t have changed their minds (regarding possible purchase or lease extension).”

“I see this as a partnership where we retain the tenure of the land and the property and another party comes in and invests a substantial amount of money in a set time frame in their interests and ours as well.”

Cr Shane Latcham voted against the 20-year lease, saying he supported the council’s previous decision for a lease to 2030 with a view to possibly selling it.

“The sooner we can get this off the books (selling it), the better,” he said.

“I think kicking the can down the road for 20 years is just too long.”

Cr Grant Mathers also argued against the extension.

“I’m really torn with this one,” he said.

“I’m really concerned about the ongoing cost this building would cost ratepayers into the future on a 20-year lease.”

Cr Sherie Rutherford spoke for the 20-year lease, saying the city desperately needed childcare spaces.

“We have an organisation (RGS) that already provides high quality childcare in the region,” she said.

“They’re investing in the facility and it’s a significant amount of money to bring it to standard.”

She said even with the lease extension council would still be able to negotiate a “much fairer” rental deal with RGS when the original lease expires in 2030.

The rent for the premises is currently $31,362.36 pa (ex GST) increased annually by CPI.

RGS is planning to open the centre early next year with an operating capacity of up to 75 places.

The school has been providing early childhood education and care to the community since 2007 when it took over the troubled Athelstane Child Care Centre.

It has an approved maximum of 193 children and is rated as exceeding national quality standards.

RGS has been approached for comment.

Originally published as Council agrees to lease Elfin House childcare to Grammar