Expression of Interest - lease 71A Acland Street, St Kilda

Frequently Asked Questions

• Why is Council consulting on a new lease?

  The current tenant has occupied the premises under a 15-year lease signed in 2011, which is set to expire in 2026. There are no further lease renewal options.   

• Will the property be redeveloped?

  We are proposing a new lease that will enable the much-needed long-term redevelopment or renewal of the existing premises.   

  The property has been extensively altered throughout its history and major improvements are required as the property reaches its end of life. This component was required and envisaged as part of the current lease signed in 2011.  

  The Expression of Interest process is open for bidders to put forward their own concepts, which may or may not involve a complete rebuild of the site.   

• Does the property have to be leased to a restaurant/bar premises? Or can it be used as something else?  

  We are proposing a new lease which aligns closely with the existing use of the premises.   

  71A Acland Street St Kilda is Crown Land, for which City of Port Phillip is the Committee of Management, under the Crown Land (Reserves) Act 1978.    

  The potential leased area lies across two Crown Land reserves: the O’Donnell Gardens Reserve and the Shakespeare Grove Reserve.   

  The O’Donnell Gardens reservation is for “public gardens”, while the Shakespeare Grove reservation is for “plantation, gardens, and recreational purposes for elderly people and for underground drainage purposes”.   

  To lease the land will require Crown consent, and the use(s) permitted by the lease cannot be detrimental to the purpose of the reservation.    

  Any lease for a use inconsistent with the purpose of the reservations will require Parliamentary Scrutiny of the Minister’s intention to grant a lease by each House of Victorian Parliament.  

• What will be the licensing conditions under the new lease? 

  The new lease will contain a user clause which stipulates the premises must operate for the service of food and/or beverages. Off-site sales of packaged alcohol are not permitted as part of the user clause.   

  Specific licensing conditions (such as hours of operation) will be subject to a separate licensing process, as with all licensed venues.   

• How are you going to manage the noise coming from the premises once it has been redeveloped?

  Any tenant will be required to comply with the standards set out by the Environment Protection Authority and SPP N2 standards.   

  Specific requirements will also be addressed as part of the development approval process.  

• Will the property be vacant for an extended period? 

  Given the significance of the venue and potential scope for redevelopment, we are opening an Expression of Interest process now to give potential bidders sufficient time to work on making a submission.   

  This will help ensure a smooth transition once the current lease expires, minimising any extended period of closure to the venue.  

  The current tenant has a lease which expires in 2026. Following the process of granting a new lease, there is likely to be a period when significant construction or renewal works will take place, during which the premises will not be operational. This would be the case whether the existing tenant conducted the works, or a new tenant.  

  The expectation is that the venue will continue to operate whilst the current lease remains in place, while the successful bidder prepares their detailed proposals for works and obtains the necessary consents.   

  Council will collaborate with the successful bidder to minimise any closure period during works.   

• How will bids be evaluated?  

  Council will seek the best overall value when evaluating bids.   

  The evaluation criteria are specified in the expression of interest documents and will include:  

  • an assessment of the vision for renewal  

  • the commercial offer  

  • relevant experience including the bidder’s history of successful completion of similar projects  

  • capability and capacity to comply with the lease  

  • social and environmental performance obligations  
    

• What will happen to the existing tenant?    

  The existing tenant of the property (The Vineyard Pty Ltd) is welcome to participate in the Expression of Interest process for a new lease.   

  Any bid from the existing tenant will be assessed on the same basis as any other proposals submitted.  

• When will we know the outcome?  

  The Expression of Interest submission period commenced 15 July 2024 and closed 25 October 2024.  Responses will now be reviewed and evaluated.