Naval Base Shacks draft lease

The City of Cockburn's response to PerthNow Cockburn and ABC Radio Perth about the Naval Base Shacks draft lease

Statement: While the reserve where the Naval Base Shacks are located is owned by the Crown (the State of WA), the reserve is managed by the City of Cockburn.
The lease between the City and the current shack owners expired in August 2022.
The City began consulting with various community stakeholders including shack lessees in August 2022. A report detailing the community consultation and City responses will be included in a report to Cockburn Council at its May 11 Ordinary Council Meeting.
Council will consider the following lease conditions -
  • Term: Five years commencing on Friday 1 September 2023, with an option of a further five years
  • Rent fee: $3,250 per annum
  • Demolition Levy: $330
  • Rent reviews: annually reflecting the Consumer Price Index
Question: Why is there no option for the City other than demolition in regard to ‘non-compliant’  shacks?
Legal advice received by the City has determined that shacks belong to shack owners, not the City. Shacks are not the responsibility of the City to sell or keep.
Question: Can you explain what makes a shack non-compliant?
A ‘non-compliant’ shack is one that is subject to a lease, where the lessee is in breach of that lease. A breach can be based on a number of conditions, i.e. non-payment of rent, failure to provide adequate insurance coverage.
Question: How many shacks are currently non-compliant?
The City cannot disclose specific information regarding non-compliant leases due to privacy considerations.
Question: What process does the City follow before it reaches the point of demolition?
Shacks are demolished by the City if not removed by the shack lessee, at the end of the lease. 
Question: How long does that take?
This process can take a number of months.
Question: Given there is over $1 million in the reserve fund, why do their rates need to increase so steeply?
The rental value of the new lease is based on advice from an independent licensed property valuer which provided the City with a market valuation.
A land valuer determines market value of land which is based on current market evidence, taking into consideration its unique use as private holiday accommodation at this metropolitan location.
The City has only increased the cost of the lease twice in the last 10 years.
The demolition levy has been increased by Consumer Price Index only so that the fee is in line with costs should demolition be required.
The lease fee is used to cover the following costs associated with the Naval Base Shacks:
  • General maintenance to facilities
  • Capital improvements
  • Cleaning
  • Utilities – water and electricity
  • CCTV and security
  • Waste removal
  • Emergency Service Levy
The lease fee does not include Council Rates as shack owners do not pay Council Rates.

For more information contact

Media and Communications Officer
City of Cockburn

Email [email protected]

Phone 08 9411 3551

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Cockburn Nyungar moort Beeliar boodja-k kaadadjiny. Koora, yeyi, benang baalap nidja boodja-k kaaradjiny.
Ngalak kaadatj dayin boodja, kep wer malayin. Ngalak kaadatj koora koora wer yeyi ngalang birdiya.

City of Cockburn acknowledges the Nyungar people of Beeliar boodja. Long ago, now and in the future they care for Country.
We acknowledge a continuing connection to land, waters and culture and pay our respects to the Elders, past and present.