Arts NSW Infrastructure Support Policy

Frequently Asked Questions

What is the Arts NSW Infrastructure Support Program? / Arts NSW manages a property portfolio mainly located in the Sydney CBD. As part of its support for the arts sector, Arts NSW offers subsidised accommodation to arts organisations. This initiative is the Infrastructure Support Program.
Why has Arts NSW developed a policy for the Infrastructure Support Program? / Arts NSW has a responsibility to ensure infrastructure support is effective, well-targeted and benefits are maximised. The development of a policy framework is key to achieving this.
How was the policy developed? / Arts NSW engaged LEK Consulting to undertake the development of a policy framework.
This work involved an analysis of the existing operations of the Infrastructure Support Program, consultation with tenant organisations and the development of the Infrastructure Support Policy.
The policy document was jointly developed by LEK Consulting and Arts NSW.
What are the key features of the policy? / The policy establishes a vision for each property. The needs of arts organisations are assessed against the visions to guide the selection of tenants and the allocation of spaces.
The policy establishes a transparent process for allocation of space and standard rent levels and lease terms.
Will there be any changes to rent levels? / There will be rent level changes to almost every tenant organisation. Rent will be set at 30% of market rate.This represents a subsidy on market rent of 70%. In some instances, such as when a tenant makes substantial capital investment to their tenancy, consideration will be given to varying this amount. Storage will be charged at 50% of market rate.
Why has there been a change to rent levels? / A flat rent level has been determined as the most equitable process. The rent level has been determined to ensure that rent revenue from Infrastructure Support Program covers operational and regular maintenance costs and contributes to minor capital works.
When will these changes come into effect? / It is intended to have new leases or transitional arrangements in place by 1 January 2013.
Rent increases will be introduced for existing organisations over a five year transition period. Transitional arrangements will be discussed with each organisation.
Will there be any changes to lease terms? / Yes. Lease terms will be for 5 years. There may be some circumstances where this will be varied such as where a tenant organisation makes substantial capital investment to their tenancy.
When will leases be negotiated? / Leases will be negotiated during 2012.
Will my organisation be relocated as part of the implementation of the policy? / Relocations will be required for some organisations. This is necessary to ensure that the properties are used as efficiently and appropriately as possible. Arrangements will be discussed with each tenant organisation.
When will any re-location take place? / The re-location of organisations is subject to a number of factors including the development of the Walsh Bay Arts Precinct. It is anticipated that re-location will commence from January 2013 and continue until the middle of 2015.
If my organisation is slated for relocation, will Arts NSW pay for this? / Organisations will generally be required to cover their own relocation costs. However, this will be discussed with each organisation.
Will my tenancy be continued? / There may be a small number of organisations whose tenancy may be discontinued. Arrangements will be discussed with each organisation. Any organisation whose tenancy is not continued will be provided with a minimum of 6 months notice.
Will there be an EoI process prior to the start of new lease arrangements in 2013. / No. There will not be an EoI process as part of the implementation of the policy. Wherever possible, it is intended to continue to accommodate most of those organisations that have a direct tenancy relationship with Arts NSW.
Will my organisation be allowed to continue sub-leasing arrangements? / Sub-leasing arrangements are not preferred and require Arts NSW’s consideration and approval.
Will my organisation be allowed to continue hiring out of spaces such as rehearsal rooms? / Hiring arrangements will be considered by Arts NSW on a case by case basis and provided for in leases.
What are the next steps in implementing the policy? / There will be no changes to existing lease arrangements for the remainder of 2012. This will allow time for lease discussions with each organisation to take place. It is intended that new leases or transitional arrangements will be in place by 1 January 2013.