Sunshine Coast Council is set to renew the lease of a Maroochydore property it owns, despite the building already being earmarked for demolition as part of a long-planned corridor upgrade.
A report to the ordinary meeting, to be held tomorrow, recommends council approve a new lease for the property at 71 Sugar Road, which it acquired in October 2023 for the planned Maud Street and Sugar Road Upgrade project.
According to the agenda, the property has been fitted out for use as a commercial office but “will ultimately need to be demolished” to accommodate the future works. Under current planning, it will be required to facilitate the commencement of early works in the 2029 financial year.
The existing tenant originally entered into a commercial tenancy agreement with the former landowner and continued to occupy the premises after council purchased the site. The lease expired on January 3, 2026, and is currently continuing on a month-to-month basis under the same terms and conditions.
Council is seeking approval to grant a new lease to the existing tenant without going to tender or auction, relying on an exception in the Local Government Regulation 2012 that applies when renewing a lease to an existing tenant.
The report states that leaving the property vacant would be “an inefficient use of council assets” and says the purpose of the proposal is to ensure the property remains occupied until it is required for the Maud Street and Sugar Road Upgrade project.
Sunshine Coast News reported in April that demolition of the first properties to make way for the upgrade was in progress, with two buildings removed and another 37 properties along the western side of Maud Street expected to be demolished over the following 12 months. Council has been acquiring properties for the project since 2016.
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The upgrade, extending from Bungama Street to Wises Road and to be delivered in stages, is planned to widen Sugar Road and Maud Street from two lanes to four, while also providing new walking and cycling pathways, signalised crossings and landscaping.
Council has said the project intended to increase traffic capacity, improve traffic flow, reduce “short-cutting” through nearby side streets and address safety concerns.
