❓ Hon Neil Thomson questions the Minister for Finance regarding additional rent costs for the Landgate building in Midland despite a prior agreement. The Minister clarifies the costs relate to temporary accommodation during refurbishment and the original agreement remains unchanged.
AnsweredQoN 1395Legislative Council
QuestionView source ↗
LANDGATE OFFICES —
SALE
1395. Hon NEIL THOMSON to the Minister for Finance:
I
note the responses to questions without notice 278, asked on 21 March 2023, and
1332, asked on 1 December 2022, relating
to the sale of the Landgate building in Midland; and I refer to pages 89 and
135 of Landgate's Annual report 2022–23 ,
tabled on Tuesday.
(1) Can the
minister explain why an additional $2.88 million was required for rent of the
Landgate building in 2023, when the state had already agreed to fire sale
terms?
(2) Which
agreement negotiation, as described in the annual report, requires this
additional payment?
(3) Is the $2.88 million
required for rent in 2023 the only additional payment required to be made to
the purchaser following negotiations?
(4) Will the
minister table the state's full liability following the sale of the
Landgate building for the life of the negotiated agreement?
SALE
1395. Hon NEIL THOMSON to the Minister for Finance:
I
note the responses to questions without notice 278, asked on 21 March 2023, and
1332, asked on 1 December 2022, relating
to the sale of the Landgate building in Midland; and I refer to pages 89 and
135 of Landgate's Annual report 2022–23 ,
tabled on Tuesday.
(1) Can the
minister explain why an additional $2.88 million was required for rent of the
Landgate building in 2023, when the state had already agreed to fire sale
terms?
(2) Which
agreement negotiation, as described in the annual report, requires this
additional payment?
(3) Is the $2.88 million
required for rent in 2023 the only additional payment required to be made to
the purchaser following negotiations?
(4) Will the
minister table the state's full liability following the sale of the
Landgate building for the life of the negotiated agreement?
AnswerView source ↗
I thank the member for some notice
of the question.
(1)–(4) The value proposition for the 1 Midland Square
transaction under the market-led proposals process remains unchanged,
avoiding costs of $12 million in net present terms over the life of the lease.
Approval of the 1 Midland Square project included funding required for Landgate's
temporary leased accommodation while the building is being refurbished. There
has been no lease renegotiation or change to lease costs since the government's
approval in November 2021. The Department of Finance understands that the lease
agreement referred to in the Landgate annual report is the memorandum of
understanding between Finance and Landgate. As part of standard leasing
procedures, Finance enters into a lease agreement with the landlord and,
subsequently, an MOU with the occupying agency, which in this case is Landgate.
Lease liabilities for all minister for works leases that Finance manages,
including 1 Midland Square, are included in Finance's annual report.
of the question.
(1)–(4) The value proposition for the 1 Midland Square
transaction under the market-led proposals process remains unchanged,
avoiding costs of $12 million in net present terms over the life of the lease.
Approval of the 1 Midland Square project included funding required for Landgate's
temporary leased accommodation while the building is being refurbished. There
has been no lease renegotiation or change to lease costs since the government's
approval in November 2021. The Department of Finance understands that the lease
agreement referred to in the Landgate annual report is the memorandum of
understanding between Finance and Landgate. As part of standard leasing
procedures, Finance enters into a lease agreement with the landlord and,
subsequently, an MOU with the occupying agency, which in this case is Landgate.
Lease liabilities for all minister for works leases that Finance manages,
including 1 Midland Square, are included in Finance's annual report.
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