Tender process seeks best outcome for Queens Park Cafe

31 August 2018

Ipswich City Council CEO Sean Madigan said today he is keen to work with those who successfully tender to operate Queens Park Café.

Mr Madigan said the Reynolds family has for six years been the beneficiary of low rent, and has had the opportunity to develop a successful business as a result.

“It’s great that the current lessee at Queens Park Café is keen to renew their lease. And if they are successful in winning the tender process which is now in market, we expect they will continue to grow,” Mr Madigan said.

“This process is about achieving the best outcomes for Ipswich, and we must be fair and lawful in our judgement when looking at all tenders.”

Mr Madigan said an independent market assessment indicated that the Queens Park Café had an ability to annually turn over about $1 million in sales.

Tender documents state: “Council expects that the trustee lessee pay a total rent equivalent to 10% of net turnover per annum. In 2017, Council engaged a certified practising valuer to undertake a rental assessment of the Queens Park Café which reflected a commercial market rent of $80,000 to $100,000 and Council will use this as guide when assessing tender submissions.”

Mr Madigan said: “This rental assessment suggests that the Queens Park Café has the ability to yield rent far higher than the current agreement.

“Historically, it’s been a good deal for the lessee, little doubt,” Mr Madigan said. “And while current council understands why rents were low, the fact of the matter is that they were too low. Now however, we’re searching for the best possible deal. If that happens to be the Reynolds family, we look forward to working with them as their landlord to help them further grow their business.

“We have said in the tender documents that we will consider discounted rents for groups who can offer a social benefit, perhaps even a charitable organisation.

“At this stage, we’ve set the parameters we’d like to see a tenant comply with, and we’re open to thoughts, suggestions and ideas. While there may have been mistakes in the past, we’re looking at an exciting way forward to develop one of the city’s prime assets and attractions.”

Tenders close October 2.

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