The plans apply to Merimbula Airport’s general aviation precinct (the part of the airport not used for commercial air transport). Photography: David Rogers Photography.
A South Coast council has endorsed a shake-up to its airport as it plans for its long-term use.
Late last year, Bega Valley Shire Council (BVSC) decided to progress with planning around lease planning, including longer-term ones, at Merimbula Airport.
According to the meeting documents from the time, a 2022 rental assessment by Opteon Valuers formed the basis of a council proposal, where leases would be offered at either $20 or $5 per square metre.
The cost would depend on which part of the airport was being leased.
At a recent meeting, councillors voted to move to enter into up to 20-year lease agreements at set prices and construct new amenities at the airport.
“These arrangements are informed by a series of meetings with expression of interest (EOI) applicants, which provided insights into lessee expectations, infrastructure needs, and concerns regarding lease terms and site configurations,” the documents state.
“Key feedback from lessees included a strong preference for long-term leases with options to extend, reluctance to transfer hangar ownership to council at the end of the lease term, and interest in leasing only the building footprint with apron access under licence.”
These lease arrangements apply to the Merimbula Airport General Aviation (the GA) Precinct, which is the part of the airport not used for commercial air transport.
During the discussion, Councillor Mitchell Nadin asked about the level of flexibility in finalising leases with users under the plan.
“At this point in time, you’re going back out and you’re now in the hot seat to negotiate … Is it a negotiation, or is it a ‘take it or leave it’ [situation]?”
BVSC CEO Anthony McMahon responded that there had been ongoing meetings with relevant parties about what lease arrangements could look like.
He said this meant the council could still “go back out to the market” and discuss leases with other businesses, if it chose to do so.
“[We’d] go back and say, ‘Here’s council’s position. Do you want to sign a heads of agreement [document] or not?'”
Mr McMahon also flagged potential “second wave” negotiations, if not all slots were initially leased.
Ultimately, councillors approved lease arrangements of $20 per square metre for 20-year land-only tenure arrangements and non-exclusive licence agreements lasting up to 20 years to applicants (for apron space adjoining lease sites) at a rate of $5 per square metre.
Those amounts will be subject to annual CPI increases and have GST added.
The meeting heard there were provisions for subleasing in the plans.
Merimbula Airport is used by commercial airlines (such as Qantas) and for non-commercial uses. Photo: Qantas.
Councillors also voted to move forward with water and sewerage proposals for the GA Precinct (including the construction of a unisex toilet).
According to council documents, water, sewerage and drainage pipe works were installed for the GA Precinct, with lease lots to pay standard connection fees if they connected to the networks.
“[In instances when] we have water and sewer reticulation infrastructure within a certain distance of an unconnected property, then we do have the ability to levy an unconnected charge on those properties,” said Mr McMahon.
“That would not be the intention of this site.
“The intention would be if they, for example, requested [to have] a water meter installed on the property, that would be the point in time where they start paying the water charges.”
Meanwhile, the new toilet is expected to be built near Lot 10 at the airport, for the use of people using the hangars.
It would also be accessible for people living with a disability.
The council documents state that the project’s indicative costs range between about $50,000 (for a modular toilet block) and $100,000 to $120,000 (for a conventionally-built facility).
It is also noted that BVSC would need to cover the costs of water, sewerage and electricity as the site’s owner.
The total works are estimated to cost $100,000 (including the infrastructure and planning process), with council documents recommending the cost be funded from this year’s capital allocation to parking improvements at the airport.
