Debate about Elfin House Community Childcare Centre continues

Rockhampton Grammar School (RGS) is lobbying the owner of a liquidated early learning service – the local Council – for a longer lease than the one being put forward, saying at least $700,000 needs to be spent. 

The rent for the premises is currently $31,362.36 pa (ex GST) increased annually by CPI.RGS is planning to open the centre early next year with an operating capacity of up to 75 places.

As a provider of early childhood RGS has an established presence in the area, having operated in the early learning space since 2007, when it took on Athelstane Child Care Centre, which has an enrolment capacity of 193 children, and is rated as Exceeding the National Quality Standard. 

While the Council initially offered the provider a five year lease – to expire in 2030 – the school argued that a 20 year lease would be more appropriate given the significant investment being put forward. 

The matter was debated during a Council meeting, with the Council ultimately determining to grant the 20 year lease request owing to the ‘desperate’ need for the centre to be reopened after it was closed in June. 

Deputy Mayor Drew Wickerson spoke in favour of the lease being extended, describing the situation as being “a birth in the hand” situation, the Courier Mail reports. 

“For me it’s about the risk of losing the licence. It’s very hard to get a new player (referring to an approved provider),” he said.

“People are not knocking down our doors to start these things up. We have to be sure we don’t lose an interested party that is sitting there ready to go with it. We have no guarantee that in six years’ time they won’t have changed their minds (regarding possible purchase or lease extension).”

For the Deputy Mayor, the proposal represented, for the Council, “a partnership where we retain the tenure of the land and the property and another party comes in and invests a substantial amount of money in a set time frame in their interests and ours as well.”

Councillor Sherie Rutherford also spoke for the 20-year lease, saying the city desperately needed early childhood education spaces.

“We have an organisation (RGS) that already provides high quality childcare in the region,” she said.

“They’re investing in the facility and it’s a significant amount of money to bring it to standard.”

Fellow Council member Shane Latcham voted against the 20 year lease, saying he was more in favour of the Council’s previous proposal, to grant a lease until 2030, with a view to potentially selling the asset. 

“The sooner we can get this off the books the better,” he said.

“I think kicking the can down the road for 20 years is just too long.”

Councillor Grant Mathers also argued against the extension, saying “I’m really torn with this one. I’m really concerned about the ongoing cost this building would cost ratepayers into the future on a 20-year lease.”

Further information about the future of the service will be shared as it becomes available.  This story was first shared by local news source The Courier Mail. Find the original here.