THREE businesses have been invited to tender for the lease of the Guilderton café and store after Shire of Gingin councillors amended an officer’s recommendation to exclude the current lessee.
The three businesses now invited to tender are the current lessee the Enright Family Trading Company along with Cardrew Trading and Belgravia Health and Leisure Group.
The officer’s report presented at the ordinary meeting on Tuesday, May 18 said despite the Enright Family Trading Company proposing to pay the highest annual rent the company’s expression of interest had not provided any business plan or proposals for amendments to how the business was currently being run and as such was not the preferred option.
“It is therefore recommended that council invite Cardrew Trading and Belgravia Health and Leisure Group to submit tenders for leasing of the Guilderton café-store for a lease term of seven years plus a further term option of seven years,’’ the report said.
At the meeting councillor Frank Peczka moved an amendment seconded by Cr Frank Johnson to include inviting the Enright Family Trading Company to submit a tender.
Councillors then voted on the amended motion agreeing to conduct a closed tender process for the lease of the café-store with the process to involve the three businesses, which had originally submitted expressions of interest.
The officer’s report said Guilderton café-store was an important business for Guilderton and had the potential to affect tourism in Guilderton for the people who come to the caravan park and the foreshore.
“The lease expiry is seen by council as an opportune time to test the market to see what could be offered to better the tourist experience in Guilderton and maximise the asset return,’’ the report said.
But the report also said as part of the process there was the potential for the rent received to alter for the better or worse and in addition, for the building to be upgraded at the lessee’s expense.
“Improvements to the business into the future should have a positive flow-on effect on the shire’s adjoining caravan park and it is hoped council would see an increase in revenue as a result.’’
In relation to strategic implications the officer’s report noted the Shire of Gingin strategic community plan 2019-2029 with the focus area economic development and the objective of supporting economic development through the shire’s service delivery.
The report listed tourist playground as the outcome and the key service area economic development and tourism infrastructure with the priority of supporting the development of the Shire of Gingin as a premier tourist destination in alignment with the Northern Growth Alliance tourism strategy.