Council and the former Providore Place Head Lessee have entered into a Deed of
Settlement bringing to an end all outstanding disputes between them.
The Devonport City Council will write off $194,147 in bad debts owed by former Head
Leasee Providore Place Devonport Pty Ltd following advice that it has no realistic
prospect of recouping the money.
Mayor Annette Rockliff said over the last six months Council had exhausted all
avenues to recover it.
Council terminated the Head Lease with Providore Place Devonport Pty Ltd in
December 2019 and claims the debt relates primarily to unpaid rent between
February 2019 and August 2019.
Council has previously acknowledged the initial decision in 2016 to enter into a Head
Lease has not been successful and resumed operational control of the facility on 1
January this year.
“Council has taken all actions it can to recover the debt, but to no avail. It is clear that
no party is happy with current status but, upon legal advice, the resolution was the
most appropriate way forward, and therefore, we have reluctantly chosen not to
pursue this matter any further and risk additional expenses.”
Council had not budgeted to receive the rent, therefore the write off has no impact
on Council’s bottom line.
“The write-off of this bad debt should not lead people to believe that Council tenants
are not expected to pay rent. Council’s expectation is that any business tenant, either
existing or new, will pay commercial rent for any Council premises they occupy.”
“Council recognise both the tourism and food industries are shut-down at present,
however, we are confident both sectors will play a key role in the regions recovery.”
“Providore Place remains a key element of LIVING CITY and the current developments
underway – the Waterfront Park and $40 million hotel project – will help draw more
people to the area over the coming years.”
The food pavilion is currently home to café/restaurant Pinctada, Ben Milbourne’s
restaurant CharlotteJack, Southern Wild Distillery, Redline Coaches, a Drysdale
cooking school and indoor market and function space.
“Council will look to attract additional tenants to the site, although that is understandably a great challenge in the current environment, with the facility effectively in hibernation whilst we see out COVID-19,” Mayor Rockliff said.