A DECISION on whether to make an application to the Minister for Local Government for consent to grant a lease for a food and drink premises at Newcastle Ocean Baths is back on the table this week.
City of Newcastle (CN) councillors pushed the decision back in April to wait for new lord mayor Gavin Morris to be sworn in.
If approved, the council will make an application to the minister for consent to grant a lease for five years with a five-year extension option.
Almost all public submissions on a proposed food and drink premises lease at Newcastle Ocean Baths objected to the plan, with concerns centred on commercialisation and alcohol.
The council cannot grant the lease without the minister's consent if objections are received.
A report to councillors states the proposed lease will support the public use and enjoyment of the baths.
"The broader pavilion remains predominantly allocated to public amenities, lifeguard and operational functions, and bookable community space," the report said.
"The proposed lease does not alienate the broader site from public use.
"It would support visitor amenity, activation of the renewed facility and provide a contribution toward the annual cost of maintenance of the baths, while remaining subject to separate planning, procurement, liquor licensing and operational approval processes."
The council estimates maintenance costs of the Newcastle Ocean Baths to be about $830,000 a year over a 30-year period.
The report states the rental income from a future cafe would be determined by the tender process and represents a "small but responsible" contribution to the costs associated with operating the baths.
"The original pavilion design for the Newcastle Ocean Baths included provision for a kiosk, and records indicate that a commercial offering has operated almost continuously since the facility opened in 1922," the report said.
"Prior to the recent closure, the food and beverage tenancy generated a modest $33,004 in annual rental income for CN, comprising a combination of base rent and turnover."
The report states the consequences of not being able to seek or obtain ministerial consent would result in "significant impact" and risk the cafe works falling out of alignment with the broader Stage Two redevelopment.
"This could result in the food and drink premises being completed without a clear leasing pathway, delay activation of the renewed pavilion, reduce visitor amenity at the reopening of the baths, and defer potential rental income that would otherwise contribute toward the ongoing facility costs," the report said.
Last month, Friends of Newcastle Ocean Baths (FONOB) president Peter Wickham said the number of objections from the public showed a clear and consistent community position.
"The community didn't separate this into different processes, they responded to what they saw as one proposal," he said.
The proposed application for ministerial consent does not grant the lease. If consent is granted, the council would then look to undertake an expression of interest process to find a suitable operator.
The council report states no decision about serving alcohol forms part of the proposed application to the minister and that any future operator wanting to serve alcohol would need to apply for a liquor licence through Liquor and Gaming NSW.
Councillors are expected to make a decision on the application on Tuesday.
