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City of hobart

AGENDA

Community, Culture and Events Committee Meeting

 

Open Portion

 

Wednesday, 9 May 2018

 

at 5:00 pm

Lady Osborne Room, Town Hall

 

SUPPLEMENTARY ITEMS

ORDER OF BUSINESS

11.     Tasmanian Writers' Centre - Request for Support. 3


 

Supplementary Agenda (Open Portion)

Community, Culture and Events Committee Meeting

Page 2

 

9/5/2018

 

 

 

 

 

 

 

 

The General Manager reports:

 

“That in accordance with the provisions of Part 2 Regulation 8(6) of the Local Government (Meeting Procedures) Regulations 2015, these supplementary matters are submitted for the consideration of the Committee.

 

Pursuant to Regulation 8(6), I report that:

 

(a)     information in relation to the matter was provided subsequent to the distribution of the agenda;

 

(b)     the matter is regarded as urgent; and

 

(c)     advice is provided pursuant to Section 65 of the Act.”

        


Item No. 11

Supplementary Agenda (Open Portion)

Community, Culture and Events Committee Meeting

Page 3

 

9/5/2018

 

 

11.    Tasmanian Writers' Centre - Request for Support

          File Ref: F18/38881

Report of the Acting Associate Director Community Development of 7 May 2018 and attachments.

Delegation:     Council


Item No. 11

Supplementary Agenda (Open Portion)

Community, Culture and Events Committee Meeting

Page 5

 

9/5/2018

 

 

REPORT TITLE:                  Tasmanian Writers' Centre - Request for Support

REPORT PROVIDED BY:  Acting Associate Director Community Development

 

1.         Report Purpose and Community Benefit

1.1.     The purpose of this report is to seek the Council’s approval for the lease of office space on the fourth floor of the Hobart Council Centre to the Tasmanian Writers’ Centre for a period of 12 months at a nominal rent.

1.2.     This report also responds to a Question Without Notice by the Deputy Lord Mayor, Alderman Dr Peter Sexton at the Community, Culture and Events Committee of 11 April 2018, requesting that the General Manager provide advice on options available to assist the Tasmanian Writers’ Centre in light of their funding shortfall.

1.2.1.     The Tasmanian Writers’ Centre (the TWC) is a valuable creative sector organisation supporting the literary community in Hobart and Tasmania.  The TWC is currently under significant financial pressure and is seeking assistance to continue its operations.

2.         Report Summary

2.1.     The TWC is facing closure if sufficient interim funding is not generated to maintain its operations over the next 18 months.  It is understood that the difficulties facing the TWC, which have been reported in the media, are largely due to a shortfall in government funding.

2.2.     One of the TWC’s key operating costs is rental at a cost of $11,000 per annum, the organisation is currently a tenant of the Salamanca Arts Centre.

2.3.     The TWC held their Annual General Meeting on 4 May 2018 where a new board were selected and it was confirmed that the Centre would continue operating with new funding being sought.

2.3.1.     The members of the new TWC Board are as follows: Sue Kennedy – Chair; Kate Eagles – Secretary; Cary Lenehan; Bethany Nader; Robyn Friend; and Terry Whitebeach.  The Treasurer role is still being finalised.

2.4.     In order to reduce expenditure, the TWC has requested that the City of Hobart provide access to vacant office space on the fourth floor of the Hobart Council Centre, at no cost to TWC for a 12 month period.  This request is detailed in the email dated 30 April 2018, shown as Attachment A to this report.  The area proposed for lease is shown as Lot One in Attachment B.

2.5.     This request has been assessed in accordance with the Council policy ‘Leases to Not for Profit Organisations (NFPO)’, which provides that those organisations eligible for a rental subsidy be charged a nominal rent of $50.00 per annum.

3.         Recommendation

That:

1.    The Tasmanian Writers’ Centre be granted a twelve (12) month lease at a nominal rent for office space on the fourth floor of the Hobart Council Centre.

2.    The General Manager be authorised to finalise the terms and conditions of the lease with the Tasmanian Writers’ Centre and to execute the agreement on the Council’s behalf.

3.    The lease be recorded in the City’s Annual Report in accordance with its policy on ‘Leases to Not for Profit Organisations’.

 

4.         Background

4.1.     The TWC was incorporated in 1997 and is a member-based not-for-profit organisation.  Over its 21 year history the TWC has provided workshops and seminars, employment opportunities, manuscript assessment services, readings and events.

4.2.     The TWC has hosted a variety of residency programs, and has an ongoing exchange program with Prince Edward Island, Canada with visiting writers staying at the Kelly Street Writers’ Cottage in Battery Point.

4.3.     The TWC has also staged the biennial Tasmanian Writers and Readers Festival, the 2017 festival saw the staging of the inaugural Emerging Tasmanian Aboriginal Writers’ Award.

4.4.     The TWC participates in the National Writers Centre Network, bringing Tasmanian writers before audiences in other states, as well as bringing interstate writers to Tasmania to present workshops and masterclasses.

4.5.     A key initiative of the TWC is the Young Writers in the City program, which was first staged in Hobart, with support from the City of Hobart.  This program has since been staged in Launceston, Devonport and Glenorchy.

4.6.     The full scope of the organisation’s recent activity is detailed in the TWC 2017 Annual Report, shown as Attachment C to this report.

4.7.     The TWC recently announced that it faces closure if sufficient interim funding cannot be generated to maintain its operations over the next 18 months.

4.8.     It is understood that this is largely due an unanticipated shortfall in government funding from Arts Tasmania.  The TWC has advised that the quantum of the loss of Arts Tasmania funding was in the order of $100,000 to $120,000, and this decision cannot be reviewed.  Arts Tasmania did however, provide interim funding of $40,000 towards the end of 2017, which allowed for the payment of staff and regular operational expenses.

4.9.     The TWC has further advised however, that this funding was not sufficient to allow for the appointment of a new Director.  The TWC has interviewed and offered a contract to a potential new Director, but this was subject to securing satisfactory funding in the short term.  Without the funding level previously secured, it is unlikely the TWC will be in a position to appoint a Director before the end of 2018.

4.10.   Given this situation, the TWC has advised that the Board is very committed to developing partnerships to establish a more viable financial base for the organisation.  This includes the establishment of a ‘Go Fund Me’ page which seeks to raise funds from the community.

4.11.   One of the organisation’s key operating costs is rental.  The organisation is currently a tenant of the Salamanca Arts Centre.  It is understood that the current rent paid by TWC to the Salamanca Arts Centre is approximately $11,000 per annum.

4.11.1.  It is understood that the Salamanca Arts Centre, like the TWC, was also unsuccessful in its application to Arts Tasmania for ongoing funding.  The loss of the TWC as a tenant will further reduce the Salamanca Arts Centre’s revenue.

4.11.2.  Approval of a lease to the TWC at a nominal rent may also encourage other creative sector organisations to seek the provision of office space at a subsidised rent in Council properties.

4.12.   In order to reduce expenditure, the TWC has requested that the City of Hobart provide access to vacant office space on the fourth floor of the Hobart Council Centre of around 47 square metres, at no cost for a 12 month period.

4.13.   A commercial lease for part of the fourth floor commenced in November 2017.  However there are still some smaller office spaces available and it is considered that office space on the fourth floor can be made available in the short term on a 12 month basis.  The TWC is aware that should a suitable paying tenant be secured for the office space, it would be required to vacate.

4.14.   The TWC is a member based organisation which relies on funding from government funding.  The request from the TWC for office space at no cost can be considered on the basis that it is a not for profit organisation.

4.15.   The Council approved an amended ‘Leases to Not for Profit Organisations (NFPO)’ at its meeting on 7 March 2016.  The policy details a number of requirements to be considered when assessing lease requests to NFPOs and provides that a nominal annual rent of $50 be charged.

4.16.   The request from the TWC for office space at no cost has been assessed against the criteria in the policy and comments relating to the lease are provided at Attachment D to this report.

4.17.   The proposed office space to be leased to the TWC is 47 square metres.  The commercial rent for the office space based the 2016 valuation is between $160 and $200 per metre.  Taking into account electricity use this would equate to $8,320 and $10,400 per annum.  If approved by the Council, the TWC would be responsible for telecommunications charges and all other applicable outgoings.

Other Council Support

4.18.   The City of Hobart has provided a number of grants to the TWC, including past support for the TWC Young Writers in the City program.  Recent City of Hobart grant allocations include:

Date

Description

Value of grant

Grant Stream

April 2015

Tasmanian Writers Festival - Young Writers in the City

$  3,500

Cultural - $2,000

Major Event and Festival - $1,500

August 2015

Tasmanian Writers & Readers Festival

$  1,315
(in-kind)

Request out of grants round

October 2016

The Write Access

$  3,410

Creative Hobart

October 2016

Tasmanian Writers & Readers Festival

$20,000

Events

September 2017

Tasmanian Writers & Readers Festival

$1,100

Quick Response

4.19.   It is open for the TWC to apply for funding through the August 2018 round of the City of Hobart’s grant program, but before doing so the above grants would need to be acquitted.  However, applications would need to be project-specific costs rather than operational, such as subsidised office rental, which are not eligible for City of Hobart funding under the current grant guidelines.

 

5.         Proposal and Implementation

5.1.     Given the importance of the TWC to the Hobart cultural sector, and the Hobart and Tasmanian community more broadly, it is proposed that the Council provide a currently vacant office space on the fourth floor of the Hobart Council Centre, to TWC for a 12 month period, at a nominal cost.

5.2.     If approved the lease will be recorded in the City’s Annual Report in accordance with its policy on ‘Leases to Not for Profit Organisations’.

6.         Strategic Planning and Policy Considerations

6.1.     This proposal supports the Capital City Strategic Plan 2015-2025, Goal 1 - Economic Development, Vibrancy and Culture, "City growth vibrancy and culture comes when everyone participates in city life".

Strategic Objective 1.5 - Cultural and creative activities build community wellbeing and economic viability.

“1.5.1    -    Implement the Council's Creative Hobart Strategy."

Strategic Objective 4.2 - City facilities, infrastructure and open spaces support healthy lifestyles.

"4.2.2    -    Support effective utilisation of city facilities, infrastructure and open space."

7.         Financial Implications

7.1.     Funding Source and Impact on Current Year Operating Result

7.1.1.     There is no financial cost associated with this matter.  Should the Council resolve to grant a lease at a nominal rent, it would represent income foregone.

7.1.2.     Whilst granting a lease with nominal rent would represent income foregone, it is not considered that this would have a material impact on the current year's operating result given the likely quantum involved.

7.2.     Impact on Future Years’ Financial Result

7.2.1.     It is not considered that this would have a material impact on the future years' operating result given the likely quantum involved.

7.3.     Asset Related Implications

7.3.1.     The fourth floor of the Hobart Council Centre will be predominantly tenanted by the commercial tenant.

8.         Legal, Risk and Legislative Considerations

8.1.     If approved the General Manager be authorised to finalise the terms and condition of the lease with the Tasmanian Writers’ Centre and to execute the agreement on the Council’s behalf.

9.         Community and Stakeholder Engagement

9.1.     The Manager Legal and Governance, the Cultural Programs Coordinator and the TWC have been consulted in the preparation of this report.

10.      Delegation

10.1.   This matter is delegated to the Council.

 

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

 

Kimbra Parker

Kimbra Parker

Acting Associate Director Community Development

 

 

Date:                            7 May 2018

File Reference:          F18/38881

 

 

Attachment a:             Request from Tasmanian Writers' Centre dated 30 April 2018

Attachment b:             Proposed Lease Area - 4th Floor Council Centre

Attachment c:            Tasmanian Writers' Centre - Annual Report 2017

Attachment d:            Leases to Non-Profit Organisations Criteria   


Item No. 11

Supplementary Agenda (Open Portion)

Community, Culture and Events Committee Meeting - 9/5/2018

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ATTACHMENT a

 

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ATTACHMENT b

 

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ATTACHMENT c

 

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ATTACHMENT c

 

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ATTACHMENT c

 

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ATTACHMENT d

 

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