Blue Lake Golf Club Extended Lease

Council has received a request from the Blue Lake Golf Club (the Golf Club) for an extended lease arrangement, for twenty (20) years, commencing from 1 July 2026.

Ordinarily, Council only issues leases (or other occupancy type arrangements) over Council owned or controlled land for up to a maximum of five (5) years. This is because under section 202 of the Local Government Act 1999 (the Act) any agreement for longer than five (5) years in total is considered to be an “alienation” of community land, and requires consultation with the community on the use of the land in such a manner before any agreement can be entered into.

The land is currently leased to the Golf Club for recreational purposes, with the existing lease due to expire on 30 June 2026. As this date is approaching, Council is required to consider the future use and occupancy of the land and determine an appropriate lease arrangement that balances community benefit, effective land management, risk mitigation, and legislative compliance.

Legislative and Policy Context

Section 202 of the LG Act provides that a council may grant a lease or licence over community land, subject to the following requirements:

• Public consultation must be undertaken unless the lease is authorised by an adopted Community Land Management Plan and the total term (including renewals) does not exceed five (5) years.
• A lease must not exceed a total tenure of forty-two (42) years.
• Any lease must remain consistent with the applicable Community Land Management Plan.

Proposed Tenure

The Golf Club has developed a Long‑Term Master Plan for the site that proposes capital investment in course and facility infrastructure. To support implementation of this plan and to meet eligibility requirements for anticipated State and Federal grant funding, they have formally requested a twenty (20) year tenure arrangement, comprising an initial ten (10) year lease with a ten (10) year renewal option.

In considering this request, Council recognises that the Golf Club operates as a large‑scale, quasi‑commercial community asset with a substantial membership base, significant operational revenue, and specialised infrastructure. This operational profile uniquely differs from many of Council’s other recreational tenants and warrants consideration of an alternative tenure approach.

Accordingly, Council recommends a staged tenure arrangement of twenty (20) years, structured as an initial term of five (5) years, with three (3) rights of renewal of five (5) years each. This approach provides a level of longer‑term certainty for the Club while retaining appropriate governance controls and risk management oversight, consistent with Council’s usual leasing practices and sector best-practice requirements.

How Can I Provide My Feedback?

This consultation will be open from 22 April until 22 May 2026. You can contribute your feedback to this consultation by:

• Completing the digital submission form below (requires sign in)
• Providing feeedback in writing addressed with attention to the Property Team at PO Box 56, Mount Gambier SA 5290
• Via email to city@mountgambier.sa.gov.au

To be considered, all feedback must include the name of the author (which will not be published) and be received 5pm 22 May 2026.

Following the conclusion of the consultation period, Council will analyse all submissions received. Key themes and issues identified through community feedback, including any matters requiring amendment or further review, will be presented to Elected Members for consideration in their decision making.