Updated business plan for coastal restaurant and cafe facility in Burns Beach to be advertised to the public

Increased development costs mean a new business plan has to be prepared for a two-storey restaurant and cafe facility on Burns Beach foreshore. While the public has already been consulted on the proposed restaurant cafe, the new business plan will need council approval before it can be advertised to the public. The City of Joondalup had allocated $3.4 million in 2022 for the facility’s construction but the latest valuation has put its capital costs at $5.2 million. The venue will take over part of the current Burns Beach foreshore carpark on a 1000sqm site at 40 Ocean Parade. The facility is set to be constructed by the city and leased to a commercial operator for 21 years, with the option of a further term of 21 years. Agenda documents reveal the total transaction of the site to the vendor following the lease would exceed a $10 million threshold outlined in the Local Government Act, triggering the need for a business plan surrounding the land transaction. The city has estimated it will receive a recurring income of $344,000 per year comprising lease income and new rates income, with a “whole of life” income of $16.5 million to the city over 42 years. Joondalup corporate services director Mat Humfrey said the term business plan in the Act was misleading and more accurately described it as an “impact assessment” on the city’s financial position of the proposed transaction. “I just want to provide council with the reassurance that yes we have consulted on this before and the business plan is only for the proposed lease transaction and not the entire project,” he said. The report said there was a total project budget of $10.7 million listed in the five-year capital works program for both the Burns Beach cafe/kiosks/restaurants and Burns Beach coastal node redevelopment projects. This is up from $6.7 million allocated in 2022 for the projects. A six-week public notice period is currently scheduled from November to December if the business plan is approved by the council on Tuesday.