DRAFT. Classification: Sensitive. Prepared with corp-executive-brief v1.0.0. Not signed off.
MB26-0412. To the Minister. For decision. Decision needed by 12 December, because the lease option notice period ends on 19 December [S1 cl.14].
Action sought
Agree to exercise the five-year lease option on Pier 3. Agreed / Not agreed / Discuss.
Key points
- If no notice is given by 19 December, the department loses the option and the terminal has no lease from July [S1 cl.14].
- The option rent rises 11 per cent from the current rent [S1 sch.2].
- Legal advises the notice must be signed by the Secretary, not a delegate [S2 para.4].
- The ferry operators' group opposes any closure during works [S3 entry 9].
- The cost of relocating is not known [UNVERIFIED: Finance to confirm by 5 December].
Background
The department leases Pier 3 from the port authority. The current term ends on 30 June [S1 cl.2]. Earlier advice: MB25-0877.
Financial and legal
Rent per S1 sch.2. Funding source: none supplied. Legal view: S2.
Handling risks
The operators' group has asked to be told before any public notice [S3 entry 9].
Consultation and clearance
Legal, 21 November [S2]. Operators' group, 14 November [S3]. Finance: not yet consulted.
Branch Head: ____ Deputy Secretary: ____ Secretary: ____
Contact
Director, Harbour Assets.
Sources. S1 Pier 3 lease. S2 Legal note, 21 November. S3 Stakeholder log.
Unverified. Relocation cost; funding source.