Blackwood Recreation Centre lease and governance Timeline report 2021 to August 2026

Contents

• Executive summary
• Timeline
• 24 August 2021 — Council contribution to BCRC service provision (Item 9.5)
• 28 September 2021 — Public question on the 24 August decision
• October 2021 — Mitcham Community News reference
• 7 December 2021 — Rescission motion: new lease arrangement (Item 4.3)
• July 2022 — Mitcham Community News update
• 7 May 2024 — Petitions received
• 18 June 2024 — Petitions presented (Item 9.1)
• 9 July 2024 — Petition decision (Item 9.1)
• 25 March 2025 — Future Arrangements decision (Item 5.1)
• 8 April 2025 — Draft 2025/26 Annual Business Plan and Budget consultation
• 12 August 2025 — Public address on inline hockey (Item 7.5/7.6)
• 26 August 2025 — Special Full Council meeting
• 9 September 2025 — Petition on inline hockey (Item 9.1)
• Key findings
• Open questions

Executive summary

The Blackwood Community Recreation Centre (BCRC), operated by the volunteer Blackwood Community Recreation Association (BCRA) in a Department for Education-owned building, has been the subject of a prolonged series of Council decisions concerning its lease, financial support and governance since at least 2021. Council initially resolved in August 2021 to terminate the BCRA's existing lease and move to a fee-for-service contract, before reversing course in December 2021 in favour of pursuing a new lease arrangement with shared structural maintenance costs. Community petitions in 2024 sought continued and increased support, leading Council to raise its annual contribution from $34,000 to $105,000. In March 2025 Council settled substantive "Future Arrangements," authorising a new Headlease/Underlease structure with the Department for Education and BCRA, cost-sharing arrangements, and a KPI-based performance and termination framework. Governance concerns resurfaced in mid-to-late 2025 around discontinuation and reinstatement of inline hockey at the Centre, prompting a further petition and a public commitment from the BCRA Board to improve governance, transparency and communication.

Several aspects of this matter have been discussed in confidence under section 90 of the *Local Government Act 1999*, including legal advice (2021), commercially sensitive negotiation material (2021), and a structural assessment report supplied confidentially by the Department for Education (2025). Some of this confidential material remains undisclosed pending finalisation of the lease or Departmental consent.

Timeline

24 August 2021 — Council contribution to BCRC service provision (Item 9.5)

An agenda decision report, previously brought as a discussion paper, addressed "Blackwood Community Recreation Centre - Support for Community Outcomes" [1]. Before debate, Crs Hockley and Taeuber were granted leave to make personal statements disclosing past involvement with the Centre (Cr Hockley as a former board member, Cr Taeuber as a former proxy member, both having since resigned) and affirmed their intent to comply with the Elected Members Code of Conduct on bias and conflicts of interest [2].

Council moved into confidence to consider Attachment H, containing legal advice, under section 90(3)(h) of the *Local Government Act 1999*; the attachment and discussion were resolved to be kept confidential until no longer commercially or legally sensitive, with the CEO authorised to review or revoke the order [3].

Multiple motions were then debated in open session [3]:

• A first motion moved by Cr Hockley, seconded by Cr McCarthy, sought to renew the existing lease for a further 15 years (preserving further renewal rights) and to initiate discussions on maintenance responsibilities. This motion was lost 6–7 on a division called by Cr McCarthy (for: Bange, Hockley, Kruse, McCarthy, Taeuber, Todd; against: Cheney, Christopoulos, Moss, Munro, Sanderson, Steele, Tilley).
• A substitute motion moved by Cr Tilley, seconded by Cr Cheney, proposed that, subject to execution of a lease between the Department for Education and BCRA, Council terminate the existing BCRA lease and instead pay an annual flat fee of $24,000 (plus CPI) under a 15-year contract, with a decision point on extension at the 7-year anniversary. An amendment moved by Cr Bange, seconded by Cr Kruse, to require staff to report back if a lease could not be agreed within three months, was lost. A formal motion to put the question, moved by Cr Munro, seconded by Cr Moss, was also lost.
• The Tilley/Cheney motion was ultimately declared carried following a division called by Cr Tilley (for: Cheney, Christopoulos, Moss, Munro, Sanderson, Steele, Tilley; against: Bange, Hockley, Kruse, McCarthy, Taeuber, Todd) [3].

28 September 2021 — Public question on the 24 August decision

Mr Fred Littlejohn asked Council whether the facility would be replaced if discontinued and whether it was considered too expensive to renew the lease [4]. Council's written answer confirmed the 24 August resolution: an annual flat payment of $24,000 (plus CPI) to BCRA for community sport and recreation activities, termination of the existing BCRA lease, a 15-year contract with a 7-year review clause, and that the arrangement was conditional on BCRA obtaining a direct lease from the Department for Education (the building's owner) [4].

October 2021 — Mitcham Community News reference

Cr Jane Bange (The Park Ward) referred to "lease negotiations at Blackwood Recreation Centre," alongside Hawthorndene Oval changerooms, as an issue of community concern generating correspondence to Council [24].

7 December 2021 — Rescission motion: new lease arrangement (Item 4.3)

Cr Adriana Christopoulos gave notice of a motion described as a rescission of the 24 August 2021 decision [5]. Her rationale argued that Council should pursue a new lease rather than a fee-for-service arrangement, and raised the unresolved question of actual facility usage by the school versus the community as a basis for apportioning costs with the Department for Education, noting BCRA's claim of 4,000 weekly visitors was not independently verified [5].

Council resolved to go into confidence under section 90(3)(d)(i)&(ii) (commercial confidentiality) to discuss the item; the discussion was ordered kept confidential "until the lease arrangement has been finalised," with the CEO authorised to review or revoke the order annually [6], a status confirmed in the confidentiality register as "Retain" [25].

Following the confidential session, Council resolved in open session, moved by Cr Christopoulos and seconded by Cr Taeuber [6]: 1. To enter into a new lease arrangement with the Department for Education and BCRA rather than pursue a fee-for-service arrangement; 2. That structural and operational maintenance requirements be clearly determined by the Department for Education and Council; 3. That structural maintenance responsibilities be shared 50:50 between the Department for Education and Council; 4. That operational maintenance be the sole responsibility of BCRA to organise, coordinate and fund; 5. That the resolution be presented to the Department for Education without prejudice, with a report back to Council on the outcome.

A division was called by Cr Tilley and the decision was set aside then re-put; the motion was declared carried 12–1 (against: Cr Tilley only) [6].

July 2022 — Mitcham Community News update

Cr Lindy Taeuber (Craigburn Ward) reported that senior staff were in discussions with the State Government and Department for Education regarding the BCRC, and that Council would enter into a Head Lease with the Department for Education followed by an Underlease with the Rec Centre's management [27].

7 May 2024 — Petitions received

Council received two petitions concerning BCRC's lease renewal [7][8][9]:

• A written petition (993 signatures) called for a lease reflecting the Centre's community value, noting BCRA's non-profit status, 4,500 weekly (18,000 monthly) attendance, minimal cost to Council, and more than five years without a lease [7][9].
• An electronic petition (916 signatures) sought a reduction of the annual rent from $27,000 to a peppercorn rent and for Council to cover the building's insurance (a further $2,000 annual saving) [8].

18 June 2024 — Petitions presented (Item 9.1)

The petitions were presented to Council with a recommendation that Council note them, consider them when the substantive BCRC report was brought forward, and send the head petitioner a statement of Council's position (Attachment C) [10].

9 July 2024 — Petition decision (Item 9.1)

Council resolved, moved by Cr Hockley and seconded by Cr Morrison, carried unanimously, to note the petitions, consider them alongside the future substantive report, and send the head petitioner Council's position statement [11]. That position statement recorded Council's continued support for the BCRA's volunteer board and its formal decision to increase financial support to BCRA from $34,000 to $105,000 per annum [12].

25 March 2025 — Future Arrangements decision (Item 5.1)

Council considered the substantive "Blackwood Community Recreation Centre - Future Arrangements" report [13][14]. The meeting moved into confidence at 7:21pm, moved by Cr Hockley and seconded by Cr Greenshields, to receive and discuss Confidential Attachment A (a structural assessment report requested to be treated in confidence by the Department for Education) under section 90(3)(j)(i)&(ii) [16]. Confidential Attachment A was received for information (moved Cr Morrison, seconded Cr McCarthy, carried unanimously), and Council resolved, also unanimously, to keep the attachment and related discussion confidential until the Department for Education consents to release, with the CEO authorised to review or revoke the order [16]. The meeting returned to open session at 7:26pm.

In open session, Council's substantive decision on service provision authorised the CEO to negotiate and execute a new 15-year Headlease with the Department for Education (structured as 5+5+5 years) and a corresponding Underlease with BCRA, with 50:50 cost-sharing between Council and the Department for Education for structural maintenance and building insurance, and BCRA responsible for general (non-structural) maintenance [14]. Council authorised the CEO to develop, in consultation with the Department for Education (allowing BCRA one month for comment), a set of Essential Terms comprising KPIs covering Community Impact/Service Levels, Financial Sustainability, Operational and Maintenance Performance, Financial Transparency and Reporting, and Governance, to be reviewed annually [14]. The CEO was delegated authority to determine whether KPIs are met without further reference to Council, and to terminate the lease if BCRA fails to remediate breaches of Essential Terms within specified timeframes, triggering an open market tender for management; in that event Council and the Department for Education reserve the right to assume operations to ensure continuity of service [14].

Financial terms recorded included: rent to BCRA of $1 per annum, rent to the Department for Education of $1 per annum, Council's ratepayer subsidy of $105,000 per annum (0.16% rate equivalent), and Council's acknowledgment that it was forfeiting approximately $255,000 in annual rental income previously received from BCRA based on an independent market valuation [26]. Unfunded non-structural maintenance was estimated at $65,000 per annum for ten years, with BCRA accepting responsibility to fund these works [26]. A finance report for the Centre covering January–November 2024 accompanied the item, showing year-to-date income of $1,380,401 against expenses of $1,382,893, a deficit of $2,492, and participation figures across fitness, gymsports, rollerskating and related programs [15].

8 April 2025 — Draft 2025/26 Annual Business Plan and Budget consultation

The draft budget consultation options listed the "Blackwood Community Recreation Centre" among new services already committed by prior Council decisions during 2024/25, contributing to a 1.06% rate increase component alongside other committed projects such as the Hawthorndene Oval upgrade and the Pasadena Smart Stormwater Project [17][18]. The list explicitly referenced the 25 March 2025 Item 5.1 decision as the source of this ongoing rates impact [18].

12 August 2025 — Public address on inline hockey (Item 7.5/7.6)

Mr Mitchell Gray of Blackwood Inline Hockey Club was granted permission to address Council regarding "Hockey at Blackwood Recreation Centre" [19][20].

26 August 2025 — Special Full Council meeting

A Special Full Council meeting included a declaration of members' interests [21]. During this meeting, the Blackwood Community Recreation Centre Board made a public commitment to reinstate Inline Hockey and to begin working on improvements in governance, transparency and communication with user groups, as later referenced in a subsequent petition response [22][23].

9 September 2025 — Petition on inline hockey (Item 9.1)

A further petition, totalling 1,668 signatures (1,289 online and 379 hardcopy), was presented to Council [23]. No related correspondence accompanied the petition [23]. The recommendation was that Council receive the petition summary and that the Head Petitioner be advised of the BCRA Board's 26 August 2025 public commitment to reinstate Inline Hockey and improve governance, transparency and communication with user groups [22][23].

Key findings

• Council's position on the BCRC lease reversed between August and December 2021: the 24 August 2021 decision terminated BCRA's existing lease in favour of a fee-for-service contract [3][4], while the 7 December 2021 rescission motion redirected Council toward pursuing a new lease with 50:50 shared structural maintenance costs [6].
• Confidentiality orders have applied at multiple stages: legal advice in August 2021 (Attachment H) [3], commercial discussion in December 2021 (to be released on finalisation of the lease arrangement) [6][25], and a Department for Education-supplied structural assessment report in March 2025 (to be released on Departmental consent) [16].
• Community petitions in 2024 (993 and 916 signatures) sought a lease and reduced/peppercorn rent [7][8], and Council responded by resolving to raise its annual financial support to BCRA from $34,000 to $105,000 [11][12].
• The 25 March 2025 decision established a Headlease (Department for Education to Council, 5+5+5 years) and Underlease (Council to BCRA) structure, nominal $1 rents to both BCRA and the Department for Education, 50:50 structural maintenance/insurance cost-sharing, and a KPI/Essential Terms framework with CEO delegated authority over compliance determinations and termination [14][26].
• Council acknowledged forfeiting approximately $255,000 in annual rental income previously received from BCRA under the new arrangement, based on an independent market valuation [26].
• A further petition with 1,668 signatures was presented in September 2025 concerning discontinuation of inline hockey, following which the BCRA Board publicly committed to reinstating the activity and improving governance, transparency and communication with user groups [22][23].
• Three councillors (Hockley, Taeuber, and Todd) declared past personal or user connections to the Centre during the August 2021 debate and elected to remain and vote, citing their obligations under the Code of Conduct [2].

Open questions

• The record does not show the outcome of the "without prejudice" presentation to the Department for Education following the 7 December 2021 resolution, nor the content of any report back to Council on that outcome [6].
• No officer report, briefing paper or maintenance cost analysis preceding the 7 December 2021 decision is present in the indexed record; the underlying analysis, if any, may be contained in confidential discussion not yet released [5][6].
• The Confidential Attachment A structural assessment report from March 2025 remains undisclosed pending Department for Education consent, so its findings and their bearing on the 50:50 cost-sharing decision are not shown in the public record [16].
• The full content and specific numeric targets of the KPIs/Essential Terms to be developed in consultation with the Department for Education (following BCRA's one-month comment period) are not detailed in the available material beyond the five listed categories [14].
• The record does not show whether or how discussions on maintenance responsibilities envisaged in the (lost) first motion of 24 August 2021 were pursued outside that meeting, nor full detail of the "statement of Council's position" (Attachment C) sent to the 2024 head petitioner [10][12].
• Details of the specific circumstances that led to discontinuation of inline hockey at the Centre, and the substance of the BCRA Board's 26 August 2025 commitments beyond the brief description given, are not elaborated in the available sources [19][20][22][23].