The Narrandera Shire Council has agreed to a two year residential tenancy agreement for the property 19 Argyle Street with NGPM Pty Ltd, owners of the Narrandera Medical Centre, effective from December 21 last year.

In November last year, Mrs Elizabeth Romeo from the Narrandera Medical Centre met with the General Manager George Cowan about the doctor shortage in Narrandera.

One of the outcomes of that meeting was that the General Manager offered the residence for lease to NGPM Pty Ltd for $100 per week.

Mrs Romeo decided to proceed with the lease, with access to the property permitted from December 21 2023. The partially signed lease agreement was returned to Council on February 29 2024.

A rental appraisal from McGrath Riverina dated January 10 this year states that the market rental for the property ranges from $380 to $420 per week.

Market rental at $380 per week with an agreed rental of $100 per week means that Council will have to subsidise the rental to the value of $280 per week.

The subsidisation equates to:

• 2023-24 $280 x 27 weeks or $7,560
• 2024-25 $280 x 52 weeks or $14,560
• 2025-26 $280 x 25 weeks or $7,000.

This was not allowed for in the council’s current 2023-24 budget or in future budgets.

Revenue to Council from this lease over the two-year term will be $10,400 and the subsidy from Council $29,120.

For many years, 19 Argyle Street was leased by the University of Wollongong for the accommodation of student doctors gaining practical experience at the Narrandera Medical Centre.

However that arrangement ended in June 2019 and since then the residence has been leased to individual doctors for varying periods of time.

Initially when the general and business communities became aware that Council was leasing 19 Argyle Street to the University of Wollongong for student doctors, many donations were received to furnish the house.

Much of this furniture and whitegoods remains in use at the property.

General Manager Mr George Cowan said doctors who resided at the property since this time were very appreciative of both the residence and the inclusions.

“While there were no perceived risks with the proposed lease agreement, there will be a financial impost to Council,” he said.

The Council has now entered into the lease from December 2023 to December 20 2025 with NGPM Pty Ltd. 

This article appeared in the Narrandera Argus, 23 May 2024.