Expressions of interest open for Darch community space

Site information
Site use and lease
Selection criteria
Contact information
Submission information
Privacy statement
Annexure documents

The City of Wanneroo (City) is seeking Expressions of Interest (EOI) from parties interested in developing a community purpose site on a ground lease basis.

The site is located at Reserve 50171, 213 Kingsway, Darch (Lot 19 on Deposited Plan 58321, Crown Land Title Volume 3156 Folio 654) adjacent to the Darch Plaza Shopping Centre and ‘The Kingsway’ tavern.

The City manages the land under a management order for the purpose of ‘community purposes and car park’ (community purpose means the use of premises designed or adapted primarily for the provision of education, social, cultural and recreational facilities and services by organisations involved in activities for community benefit).

Site information

The site is a 2000m² vacant grassed area containing 20 car bays, two mature trees and a driveway area. The lot adjoins part of the Darch Plaza Shopping Centre complex which has a tavern directly to the north, a shopping centre to the east and a child care centre to the north east.

The 20 car bays located on the subject site are overflow parking for the nearby tavern and shopping centre. These bays do not need to be retained as part of any future development, they can also remain.

Access to the site is provided by a public access easement to the east of the subject property, the existing entry can be utilised as part of any future use. Crossover access directly from Kingway is not supported. The existing trees located on site are strongly encouraged to be retained as part of any future development.

Darch expression of interest site location

The City of Wanneroo

The City of Wanneroo’s purpose is to create a strong, vibrant community connected through local opportunities to participate, be active, feel secure, contributing to the vision of a welcoming community.

The City is a growing local government in the northern suburbs of Perth, WA. The City of Wanneroo population forecast for 2022 is 219,788, and is forecast to grow to 370,273 by 2041.

View the City's statistics webpage for additional demographic data.

Darch location

The site is located in close proximity to the Darch Plaza. Darch is located 17 kilometres north of the Perth CBD and the suburb contains several small residential parks as well as Landsdale Park, a bushland reserve with interpretative signage.

Residents are served for shopping needs by the Darch Plaza Shopping Centre, and the larger Kingsway City Shopping Centre in Madeley (to the west).

Site use and lease

The site is currently vacant, aside from a portion used for parking by the adjacent tavern and shopping centre developments.

It is proposed that any successful applicant may be offered a Ground Lease (Lease) for a negotiable term (subject to private treaty negotiations). The existing management order restricts the lease term to be up to five (5) years but the City could seek to have this modified should a longer term be proposed. Management order amendment would be a condition on any proposed lease arrangement.

A ground lease would be in accordance with the terms and conditions that form this EOI, subject to formal Council approval and the approval of the Minister for Lands (under section 18 of the Land Administration Act).

It is proposed that the City will enter into private treaty (ground lease) negotiations with the preferred applicant and, if applicable, would give public notice of the proposed disposition in order to satisfy legislative requirements under the terms of the Local Government Act 1995.

Any structures on site will be built by the applicant at its cost. The City does not have specific requirements or specifications for improvements and is open to different design options. Key services are provided to the adjoining block, but any further services or connections would need to be provided by the applicant.

Depending on the terms of the preferred proposal from this EOI, the existing parking may be retained or modified, and the City can facilitate discussions with the adjacent landowners and occupiers.
Should an applicant wish to submit an interest on a commercial basis, the City would expect that a portion of the use would be used for a community use by some ancillary space.

Subject to the requirements of the Local Government Act 1995 and Council approval or delegation, the following essential terms are proposed:

Lessee
Entity to be identified in the EOI submission
Premises
Address	213 Kingsway, Darch
Area (m²)	2,000m²
DPS2 Zoning	Urban Development
ASP Zoning	Centre, Commercial
Services	Gas, water, power, sewerage (no services are currently connected)
Terms
Lease Commencement Date	The City is willing to be flexible on the timing to commence the new lease.
Rent Commencement Date	Lease Commencement Date.
Term	To be negotiated.
Rent
Commencement Base Rent	To be negotiated, subject to the City's Leasing Policy.
Rent Reviews	To be negotiated, expected to be CPI.
Other Costs
Outgoings	The tenant will be billed direct by the service provider or on-charged by the City.
Security
Security Bond or Bank Guarantee	$15,000, provided by a bank guarantee or by a cash bond to be held in a non-interest bearing account for the duration of the Lease term.
Contract and Risk ('CAR') Insurance	Tenant responsibility to ensure that a CAR policy is in place to ensure that the proposed construction works are insured adequately.

Other Commercial Conditions
Insurances	The Tenant must provide all insurances required under the Lease, including Public Liability Insurance of $20 million, property insurance and glass replacement.
Maintenance	The Tenant will be solely responsible for all maintenance of the building and site, including capital and structural items, and reinstatement in the event of a damage or destruction event (applying insurance proceeds to this).
Compliance	The Tenant must comply with any Act, by-law etc. relating to the use of the building and site.
Council Rates	Council rates are applicable and will be separately assessed and are in addition to the rent. The Tenant would also be responsible for the Emergency Services Levy, usually accounted for on the Council rates notice.
Waste Bins	The operator will be required to arrange for its waste to be collected by a commercial waste provider and not the City.
Further Tenancy Considerations	A formal Council resolution will be required to proceed with the proposed Lease following the completion of the negotiation process; Approval of the Minister for Lands (under section 18 of the Land Administration Act) will be required. Amendment to the Management Order will be required for lease terms of more than five years. The City is required to give public notice of the proposed disposition in order to satisfy legislative requirements under the terms of the Local Government Act 1995. Should any submissions be received, these will be required to be considered by the City; An Agreement for Lease (AFL) will be entered into before the lease is signed. The AFL is a document that precedes the Ground Lease and essentially is an agreement between the parties to outline the development steps and timeframes for the development to be undertaken. Ownership of all improvements erected or constructed on the Land by the Tenant shall at the expiry of the lease (and option period) revert to the City or be removed at Tenant’s cost if the City deems it does not require the improvements at the end of the lease.

Selection criteria

The following criteria have been developed to assist in the assessment of the submissions received. These criteria have been identified as either essential or preferred, with a weighting assigned accordingly.

Note that:

All information relevant to your answers to each criterion are to be contained within your application;
Applicants are to assume that the City has no previous knowledge of your organisation, its activities or experience; and
Applicants are to provide full details for any claims, statements or examples used to address the selection criteria.

Essential Criteria	% Weighting
Community Benefit: Planned services offered offer high community benefit. Outline the potential groups / community that is envisaged to use the site; The proposed use offers inclusivity of services.	40
Capacity: Financial capacity to be able to realise planned use of the site; Past experience delivering a similar use; Outline skills and experience of key personnel.	30
Proposed Use: Does the proposed use fit in with the aesthetics / streetscape of the surrounding area; Does the development make the best use of the site; Have sustainability measures been incorporated in the design; Is the operation designed so it can be used / sub hired by other groups.	30

Essential Criteria

% Weighting

Community Benefit:

Planned services offered offer high community benefit. Outline the potential groups / community that is envisaged to use the site;
The proposed use offers inclusivity of services.

Capacity:

Financial capacity to be able to realise planned use of the site;
Past experience delivering a similar use;
Outline skills and experience of key personnel.

Proposed Use:

Does the proposed use fit in with the aesthetics / streetscape of the surrounding area;
Does the development make the best use of the site;
Have sustainability measures been incorporated in the design;
Is the operation designed so it can be used / sub hired by other groups.

Contact persons

Applicants should not rely on any information provided by any person(s) other than those listed below:

Name: Mark Pritchard
Position: Property & Leasing Advisor
Phone: (08) 9405 5000
Email: mark.pritchard@wanneroo.wa.gov.au or kathryn.hansen@wanneroo.wa.gov.au

Submission

Further information on the submission process is provided in the Expression of Interest document. This includes:

How to make a submission, and the criteria which should be addressed.
How submissions will be assessed.
Estimated timeframes for the evaluation of submissions and the next steps in moving to a lease of the site.

Submissions must be lodged by 5pm on Wednesday 3 July 2024. Refer to the Expression of Interest document for more information.

The Expression of Interest document can be downloaded below:

Expression of Interest document

Privacy statement

The City is not liable to any person or entity for any damage or loss that occurs in relation to that person or entity taking or not taking action in respect of any presentation, statement, opinion or advice referred to in this document.
All prospective operators should take the appropriate steps to ensure that they conduct their own due diligence and validate the information contained in this document before acting upon it and are advised to seek independent advice from qualified professionals where necessary to understand the relevancy of this information to their own situation.