Council set to sign ferry lease

Gosford Council is set to sign a lease and other documents with Fast Ships Ltd to enable it to commence a ferry service to the Sydney CBD.

The matter will be considered at the council's meeting on Tuesday, August 23, after having been deferred several times for different reasons, including a presentation on the Ettalong Promenade Development by Live Property.

The presentation on July 26 proposed development of the Ettalong foreshore and the management of the area.

The staff report to council stated that the "proposal for the foreshore will be the subject of a separate agenda item".

The lease by council of the wharf site would terminate in 2048.

Council cannot exercise a sub-lease beyond that date.

Council staff have recommended that the lease be signed for 20 years, with a 20-year option.

The concurrence of the Lands Department, being the owner of the wharf site, is required for the sub-lease.

Council officers have also recommended that part of the sub-lease be reworded so that council may terminate the sub-lease if Fast Ships have not started work on the wharf and terminal buildings within one year, with infrastructure substantially completely within two years of signing the lease.

Council would also have the right to extend the lease.

Council's costs in preparation of the documents and negotiations with Fast Ships Limited, and the Lands Department are expected to be $22,000, which council would seek from Fast Ships upon execution of the documents.

The report to council stated that "the provision of an alternative transport system to Sydney is a high priority because the road and rail systems are reaching capacity."

The report also states that "council is advised that the wharf design suits the ferry that is being considered".

Once the wharf was built any replacement ferry must suit the wharf design or the proponent must be responsible for the cost of altering the wharf.

Council officers have also recommended that an essential term of the lease and sub-lease would be that "no work on the terminal, wharf or associated infrastructure is to commence until council is satisfied that the proponent has secured a vessel that will be ready for use when the terminal and wharf are completed".

Another essential term, according to council officers, would be that Fast Ships Ltd has secured berthing rights at Circular Quay and has a financially viable business plan.

It has also been recommended by officers that the lease fee be the subject of a further report to council.

Part of the report was made confidential on the basis that the commercial information, if disclosed, may prejudice the commercial position of the person who supplied it.

Council agenda COR.13, August 23