News Alberton Oval Redevelopment

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In the General AFL talk thread Papa G asked me what rent Port pays to the council. I said I didn't know but quoted from the club's 2018 annual report which said -
Operating lease commitments - Group as a lessee
The Group entered into commercial leases on Alberton Oval and the staff car park. These leases have an average life of between 10
to 20 years with renewal options included in the contracts. There are no restrictions placed upon the lessee by entering into these
leases.

I said I didn't know how much but guessed from the more than 5 years total of $492k for all lease payments it was about $20k-$30k per year.

Later I looked at the PAE Council website and it looks like a big jump in lease payments due to the redevelopment. It might include Council Rates which might have been billed separately to the old lease payments and why the old note in the 2018 accounts suggests only $20k to $30k.

Electrical Services upgrade capital funding looks like something to do with AFLW night matches mentioned in the Advertiser article yesterday.

The Proposal

The Port Adelaide Football Club (PAFC) currently lease and license portions of Alberton Oval, Alberton. The current PAFC occupancy agreement commenced on 1 January 2019 and expires on 3 December 2023.

The Development proposal
On 1 April 2021 PAFC submitted a proposal to Council to redevelop facilities on the eastern side of Alberton oval, including expansion of the Alan Scott Headquarters building and the provision of new indoor and outdoor recreation/training facilities for shared Club and community use.
........

There are two council meetings minutes linked at bottom of the right hand page - 9 November 2021 and 12 July 2022. From the minutes of the July 2022 meeting page 7.


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We tried to get if for a peppercorn lease - think just the new big shed area area as the peppercorn proposal related to.
 
The original proposal was to offer the area in Attachment 1 ie the red area below, for a peppercorn lease as part of a land swap. But the council members voted to reject than and to negotiate new lease terms with Port. From pages 8 and 9 of the Council Minutes of the meeting on 9 November 2021




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Below is Attachment 1 from page 658 of 928 pages - Agenda of Ordinary Council Meeting on 9 November 2021 at;


What this document shows is that Port
  • own control the land the old croquet club was on - I was aware of that,
  • they own the land the Quinn stand is built on and the car park area behind it, wasn't 100% sure if that was the case,
  • they own control the bowling club area - I did ask KT if there was any land tenure issue with the 2018 proposal to build the PA Aboriginal Centre of Excellence, the bowling club has had a lease with the PAFC for a long time, and he said no. But the bowling club would have protested.
  • we own the land the original ASHQ was built on and car park plus the 2009-10 extension to the facility.

The club would have had to borrow monies to build the Quinn stand and the ASHQ and then the extension, so I suspect a deal was done with the council at different times to transfer the land to Port, so the banks could have security given the club would have had very few net assets in 1970 and then 1998 when the two buildings were constructed and then in 2009-10 to keep things clean.

So the club gave up part of the land that the indoor training facility was built on to transfer to the council to get a lease to a big chunk of land the big shed will be built on and the new car park area. No peppercorn lease for that but some deal would have been worked out. How much? I can't find anything on PAE Council's website and only found the total new amount, minuted in the 12 July 2022 meeting in the previous post.

Looks like Shaun Rehn's 2013 sand pit behind the southern goals wont be touched. I don't know if we still use it.

I have assumed for a long time the club owns the car park on the western side of Fifth Avenue Queen's Street across the road from the Quinn stand.

Papa G i think this is all the info on what is land owned by the club and what's leased.

A development on the bowling green might be the next big project the club undertakes, but in a few years time.


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Edit below was added on 16th December 2022 after a question in the 2022 Financial Result was asked about the Bowling Club area.


From the 9 June 2020 Council meeting.

9 June 2020 - Ordinary Council Meeting - Notice, Agenda and Reports

https://www.cityofpae.sa.gov.au/__data/assets/pdf_file/0030/685632/Public-Notice-Agenda-and-Reports-Ordinary-Council-Meeting-9-June-2020-updated.pdf

The picture below is from Page 129. Pages 122-129 cover ITEM 12.2.11 LEASE FOR PORT ADELAIDE BOWLING CLUB

12. Council Business
12.1 Acting Director of Community Development Report – Leanne McEwan (Refer Items 12.1.1 to 12.1.2 – pages 20 - 30)
12.2 Director of City Assets Report – Mark Buckerfield (Refer Items 12.2.1 to 12.2.12 – pages 31 - 132)

From page 124 Lease expired on 31st December 2020

1671178477377.png

The council meeting

9 June 2020 - Ordinary Council Meeting - Minutes

https://www.cityofpae.sa.gov.au/__data/assets/pdf_file/0030/689304/Public-Minutes-Ordinary-Council-meeting-9-June-2020.pdf

Page 10 it was agreed to give PAFC the head lease and PABC the sub lease for 5 years ending 31st December 2025.

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Interesting that the piece of land the Alberton Doggers have been most vocal about, the croquet club (or 'dog park' as they call it) is owned by the club. Should send them a large bill to clean up all the dog shit they've left there over the years.
 
Papa G I should have download the Notice of Ordinary Council Agenda and notes document for the meeting on 9 July 2022 from the start.

It gives the answer that the $163,500 proposed for 1st July 2022 covers all leases and licenses and licences associated with Alberton Oval except for the proposed soccer pitch and landscaping on south eastern side of Oval and the club pays approx and there is 14 pages between page 172 and 185 of a 515 page document.

On Page 172 sets out the proposal for council to vote on that I posted in post #1230 above, but on page 173 giving background info it says;



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At the start of page 173 it says:

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On page 177 it says:
Currently PAFC are liable for approximately $65,000 in rates annually for their premises at Alberton Oval as outlined in the table below:
......
On completion of their redevelopment (estimated February 2024) PAFC will be liable for an estimated additional $29,000 in rates annually for their new building (ground lease) as shown below, bringing their total rates liability to approximately $94,000 per annum:

So lease and maintenance fee of $123.6k + council rates of $65k = $188.6k to when all finished it will be $208.6k + $94k = $302.6k

On page 182 it says:

1667990701804.png

This might be why the note to Port's 2018 accounts suggested rent payable of $20k-$30k a year, as that is amount after taking away the component net of maintenance fees that the council are/were paying.

Back to pages 175 and 176 and you can see how the maintenance costs drive the calculation of the lease / rent amount.
Page 175

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Page 176

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Some info from the above document on what the the $29.8m is being spent on, the $220k contribution by the PAE Counil on top of that and the lighting situation which means AFLW night games (so eventually SANFL night games, but not discussed in the proposal, probably to not fire up the residents)

Page 177

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page 178

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page 179

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page 179

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Page 182 under Financial Management heading 1st part reported in previous post re maintenance fees.
New lighting paid for by Port saves the council $800k in 2024-25 for replacing current lights and another $30k
saved by the council in 2023-24 on design costs. That's why council have agreed to contribute $220k to
electrical services upgrade.

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There doesn't need to be anymore community consultation but the lights have a decent impact so the council
will have a process where residents can air their concerns as detailed from my cut and paste above
from page 179. it is further discussed on page 181

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Some stuff on land transfer - land part of existing facility is on will be transfered to the council and the club is giving back the land at Ethelton at EP Nazer Reserve where the Magpies shifted to between 1997-2010.

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page 176

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Page 176

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Page 178

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Page 183

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At the 11th October meeting, the following Motion Without Notice was passed. So whilst yesterday's Advertiser was saying the lights will go ahead, technically they haven't been approved yet.


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I wonder which hack Crows journalist will now pick up REH's work and turn it into a hatchet job on Port in order to justify the Crows.
 

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I wonder which hack Crows journalist will now pick up REH's work and turn it into a hatchet job on Port in order to justify the Crows.
The $302k that REH has outlined in rates/lease to teh Council seems to be significantly more that what is proposed under the the Crows scheme.

Borrowed from REH post on the General thread:

.....A couple of weeks ago I looked at the West Torrens Council's page about the proposal. Thebarton Oval Precinct proposed lease agreement

They had several documents including one about the lease terms. pages 3 and 4 of the first document you can download - Draft key commercial lease terms says

The relevant rate for the Initial Term will be a market competitive rate but will not be a commercial rent rate. Rent rebate:
Years 1 – 10: 80% rebate
Years 11 – 20: 60% rebate
Years 21 – 30: 40% rebate
Years 31 – 42: 20% rebate
........

Approximate Rent & Council Rates for Initial Term calculated on indicative figures only as follows (and based on current values*):
•Years 1 to 10 = $20,250 p.a. (Rent $20,250 + Rates $0)
•Years 11 to 20 = $40,500 p.a. (Rent $40,500 + Rates $0)
•Years 21 to 30 = $141,443 p.a. (Rent $60,750 + Rates $80,693)
•Years 31 to 42 = $161,693 pa (Rent $81,000 + Rates $80,693)

In the first 10 years the Crows look to be paying only $20k to the Council unless I'm missing something?

If anything the Torrensville NIMBY's could use the Port/Alberton example to strengthen their case.
 
The $302k that REH has outlined in rates/lease to teh Council seems to be significantly more that what is proposed under the the Crows scheme.

Borrowed from REH post on the General thread:

.....A couple of weeks ago I looked at the West Torrens Council's page about the proposal. Thebarton Oval Precinct proposed lease agreement

They had several documents including one about the lease terms. pages 3 and 4 of the first document you can download - Draft key commercial lease terms says

The relevant rate for the Initial Term will be a market competitive rate but will not be a commercial rent rate. Rent rebate:
Years 1 – 10: 80% rebate
Years 11 – 20: 60% rebate
Years 21 – 30: 40% rebate
Years 31 – 42: 20% rebate
........

Approximate Rent & Council Rates for Initial Term calculated on indicative figures only as follows (and based on current values*):
•Years 1 to 10 = $20,250 p.a. (Rent $20,250 + Rates $0)
•Years 11 to 20 = $40,500 p.a. (Rent $40,500 + Rates $0)
•Years 21 to 30 = $141,443 p.a. (Rent $60,750 + Rates $80,693)
•Years 31 to 42 = $161,693 pa (Rent $81,000 + Rates $80,693)

In the first 10 years the Crows look to be paying only $20k to the Council unless I'm missing something?

If anything the Torrensville NIMBY's could use the Port/Alberton example to strengthen their case.

Not to mention the decades of contribution that Port have made to the local council and community. The club has an insane amount of goodwill to leverage but still pays a fair share.

Crows want to be parachuted in and treated like gold star residents from the get go. Like with the Aquatic Centre, they're building a state of the art training facility for themselves, with limited areas of access for Joe Public. They should be paying rates just like every other business.

Twenty years of no council rates for a large scale private facility, owned by multi-million dollar business, is mental.
 

If anything the Torrensville NIMBY's could use the Port/Alberton example to strengthen their case.
If they could get equal space in the Advertiser to do so!
 
The $302k that REH has outlined in rates/lease to teh Council seems to be significantly more that what is proposed under the the Crows scheme.

Borrowed from REH post on the General thread:

.....A couple of weeks ago I looked at the West Torrens Council's page about the proposal. Thebarton Oval Precinct proposed lease agreement

They had several documents including one about the lease terms. pages 3 and 4 of the first document you can download - Draft key commercial lease terms says

The relevant rate for the Initial Term will be a market competitive rate but will not be a commercial rent rate. Rent rebate:
Years 1 – 10: 80% rebate
Years 11 – 20: 60% rebate
Years 21 – 30: 40% rebate
Years 31 – 42: 20% rebate
........

Approximate Rent & Council Rates for Initial Term calculated on indicative figures only as follows (and based on current values*):
•Years 1 to 10 = $20,250 p.a. (Rent $20,250 + Rates $0)
•Years 11 to 20 = $40,500 p.a. (Rent $40,500 + Rates $0)
•Years 21 to 30 = $141,443 p.a. (Rent $60,750 + Rates $80,693)
•Years 31 to 42 = $161,693 pa (Rent $81,000 + Rates $80,693)

In the first 10 years the Crows look to be paying only $20k to the Council unless I'm missing something?

If anything the Torrensville NIMBY's could use the Port/Alberton example to strengthen their case.
My understanding is that what evens it out at least partially is the oval upkeep.

It seems the Crows will have to pay for that, Port I believe do not.

It's a 6 figure sum.

I'm sure REH will fill in the details :)



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My understanding is that what evens it out at least partially is the oval upkeep.

It seems the Crows will have to pay for that, Port I believe do not.

It's a 6 figure sum.

I'm sure REH will fill in the details :)



On SM-G975F using BigFooty.com mobile app
The rent the council has charged Port for the last few decades has been a cost recovery model. Its recovering maintenance costs of the full leased area as marked in yellow by the overhead shot in post #1231. Most of those costs are for the grassed oval area and was covered 55% by Port via rent and 45% by the council.

The new rent has been calculated as follows.

1668044018435.png
 
The $302k that REH has outlined in rates/lease to teh Council seems to be significantly more that what is proposed under the the Crows scheme.

Borrowed from REH post on the General thread:

.....A couple of weeks ago I looked at the West Torrens Council's page about the proposal. Thebarton Oval Precinct proposed lease agreement

They had several documents including one about the lease terms. pages 3 and 4 of the first document you can download - Draft key commercial lease terms says

The relevant rate for the Initial Term will be a market competitive rate but will not be a commercial rent rate. Rent rebate:
Years 1 – 10: 80% rebate
Years 11 – 20: 60% rebate
Years 21 – 30: 40% rebate
Years 31 – 42: 20% rebate
........

Approximate Rent & Council Rates for Initial Term calculated on indicative figures only as follows (and based on current values*):
•Years 1 to 10 = $20,250 p.a. (Rent $20,250 + Rates $0)
•Years 11 to 20 = $40,500 p.a. (Rent $40,500 + Rates $0)
•Years 21 to 30 = $141,443 p.a. (Rent $60,750 + Rates $80,693)
•Years 31 to 42 = $161,693 pa (Rent $81,000 + Rates $80,693)

In the first 10 years the Crows look to be paying only $20k to the Council unless I'm missing something?

If anything the Torrensville NIMBY's could use the Port/Alberton example to strengthen their case.
If the crows have to pay maintenance costs, ie keeping the 2 ovals in AFL standard conditions they will be paying a lot more than the above.

We are paying $48k per year to keep the oval at AFLW standard in the rent model from 1st July 2022.

Port's rent is a cost recovery model and has been that way for decades.

The crows are getting oval maintenance costs at West Lakes for $NIL until 2048. So the fact they have to pay for them is consistent with their model as they have never had their oval maintained by a council, but by the SANFL. Wonder if they will have groundsmen and machinery on their books or will do a deal with the council.
 
PORT Adelaide's 140-year home at Alberton is a contrast of well-preserved heritage and an expansive demolition site as the club ramps up construction of a new high-performance centre for its AFL and AFLW teams.

A large section of demolition work was completed this week on the Power's Allan Scott Headquarters, paving the way for work to start on the new facility's foundations, which will be completed by Christmas.

 
PORT Adelaide's 140-year home at Alberton is a contrast of well-preserved heritage and an expansive demolition site as the club ramps up construction of a new high-performance centre for its AFL and AFLW teams.

A large section of demolition work was completed this week on the Power's Allan Scott Headquarters, paving the way for work to start on the new facility's foundations, which will be completed by Christmas.

Is it me (I'm looking at a small pic on my phone) or is the "artist's impression of the Alberton Oval precinct redevelopment" just a photo of the completed precinct?

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Maybe the next step is to revisit getting the ground floodlit so that AFLW and SANFL matches can be played at night? I am not sure the current lighting would meet AFL or telecast standards. The question of lighting Alberton Oval was a bun fight some years back so I would imagine it would not be easy. If the AFLW ever gets to a full schedule of matches the AFL may expect the Port girls to play some night matches in SA. It would also be nice to play Norwood and the Bays at Alberton at night rather than hand them a home ground advantage every time the SANFL want to programme a night game.
 
I like what Adelaide are going to do with a 2nd oval with the same dimensions as the MCG at Thebarton.
Would much prefer this over a soccer ground was there not enough room do do this 🤷.
 
I like what Adelaide are going to do with a 2nd oval with the same dimensions as the MCG at Thebarton.
Would much prefer this over a soccer ground was there not enough room do do this 🤷.
Would have needed to buy some of the resident's properties and got Council to give us the street as well, to acquire the required area to fit a full oval in.
 

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