15 year lease for Erica Caravan Park

A 15 year lease has been signed by Baw Baw Shire with the current operator of the Erica caravan park.

The lease arrangement also will offer an additional five year term.

As part of the contract, the lease will be responsible for maintenance of the toilet block.

A report to council said the Walhalla Goldfields Railway wrote to council in April supporting a revised lease for the current caravan park operator.

Council was told both the goldfields railway and Walhalla Tourist Railway Committee of Management both supported continuing the lease.

“The position of both committees now appears to be relatively consistent. If Council wished to negotiate a new lease with the existing leasee this would appear to have support.

“A lease between 15 and 21 years would seem reasonable,” officers said.

The report said council could wait until the current lease expired on June 20, 2012 and then seek expressions of interest.

Officers said it was suggested that the old toilet block in the caravan park lease area would be an advantage. “The leasee would look to renovate this to provide an accessible bathroom facility.

Officers said if a new lease was put in place, the current operator would seek to sell the lease, which was not uncommon for the caravan park industry.

Negotiation of a new lease will enable officers to put in place a more robust lease than the current one and would include regular reporting and provision of financial statements.

“The assumption is that various interest groups would like to see the site retained by Council for future use by the Walhalla Goldfields Railway.

“There is a view that the Mill Park site to the east of the caravan park could be developed by the railway if it was extended to Erica.

The report said with ongoing costs for the contract management, park improvement, asset renewal and the low annual lease return it was difficult to see council making a financial return from this caravan park.

Officers said a new lease would at least improve council’s current position.

The current annual lease is $2244 per annum and the new annual lease will be $5000.