Background
Council leases the Boatshed Cafe building at 1A Heron Way, Hallett Cove, to a private commercial operator, Boatshed Hallett Cove Pty Ltd.
While the current lease is not due to expire until 19 December 2028, the tenant has requested a new long-term lease to provide security of tenure and support further investment in the business.
Council has resolved to undertake community consultation in accordance with Section 202 of the Local Government Act 1999 for a new long-term lease of 7 years with a further 5 year right of renewal commencing 1 September 2026.
For lease renewals on Community Land of over five years in length, including rights of renewal, Council is required to enter into a period of community consultation. Further information on the proposal can be accessed in Councils meeting agenda (23 May 2026, pages 215-233).
The engagement will seek to understand the level of stakeholder and community support for the proposed lease renewal.
Have your say
Council values community input in decisions relating to community land.
As part of considering a lease of greater than 5 years, we are undertaking community engagement in accordance with Section 202 of the Local Government Act 1999.
Your feedback will be used by Council Members to assist in their decision making.
Consultation closes at 5pm Wednesday 22 July 2026.
Lease details
| Item | Details | Comment |
| Lessee | Boatshed Hallett Cove Pty Ltd. | New lease entity. |
| Lease Term | 7 years. | |
| Option/s to Renew | A further 5 year option to renew. | Exercisable at lessee’s discretion. |
| Rental | Market Rental as determined by an independent commercial valuation. | In accordance with Council policy. |
| Rent Reviews | Annual CPI (SA All Group) increases and market review at renewal. | Consistent with standard commercial practice. |
| Lease Security | Lessee to provide a bank guarantee equivalent to 3 months gross rental plus GST, and a personal or director’s guarantee. | Consistent with standard commercial practice. |
| Early Termination Clause (Termination without Cause) | No early termination clause is proposed. The lease will include standard default, breach, insolvency, re-entry, building damage and statutory termination provisions. | Consistent with standard commercial practice. |
Next steps
After 22 July 2026, Council will review the feedback to help inform the decision on the lease at the General Council meeting scheduled for 25 August 2026.
