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News > News > Markets and Stallholders are Safe
Markets and Stallholders are Safe
27 Nov 2008
Media Release
November 27, 2008
Markets and Stallholders are Safe
The City of Fremantle has moved to allay the fears of any residents and business people who may be concerned over misleading public comments recently over the Fremantle Markets rents issue.
The City’s corporate services director, Glen Dougall, says of most concern is a comment on television news last night that there is a possibility the property will be demolished for apartments as the case in Subiaco.
He said the property title does not allow the property to be used for anything other than a Market.
“That is a condition imposed on the title by the State Government”, he said
“The City is also committed to spending some $2million in restoration works on the building which is also provided within the Head Lease Agreement.
“The City has worked for more than two years with the Stallholders Association during the development of the Head Lease agreement.
“We wanted to ensure that certain rights and protections were put in place for stallholders, in direct response to concerns raised by the Association.
“To protect stallholders we had the Retail Tenancies Act apply to their tenancy, providing all the rights of appeal, arbitration and commercial legitimacy that every other commercial tenant in Western Australia has.
“The Head Lease provides for stallholders’ rents to be based a ‘fair market rental’ which is a legally recognised term and requires that rents be set by an independent licenced valuer.
“This step was taken specifically because of concerns raised by the Stallholders Association that the market manager may set the rent arbitrarily.
“The Head Lease itself was set at fair market rental by a licenced valuer.
“The rental can then only increase in accordance with the Head Lease for the term of the agreement.
“The Retail Tenancies Act and the Head Lease allow individual stallholders the right to have any dispute heard by the State Administrative Tribunal.
“The SAT is an independent body made up of experts who can determine commercial issues at a very low cost.
“The Stallholders Association also asked that the Markets be managed in accordance with fair commercial principles which is also a requirement of the Retail Tenancies Act and any rules or regulations whether verbal, in writing or any other arrangement would need to comply with these principles.
“From the very start of the new lease process the Stallholders Association wanted their security-of-tenure be protected.
“The City ensured this by allowing stallholders access to Sub-lease or Licence agreements of at least five years, unless otherwise negotiated by the stallholder.
“This was an increase in the current arrangement where many operated on a monthly licence.
Contact Glenn Dougall on 9432 9999
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