The Sydney Gay and Lesbian Mardi Gras is relocating its headquarters from Oxford Street to the CBD after the City of Sydney council unanimously approved a plan to offer the organisation free rent, citing its financial difficulties.
The decision by the City of Sydney council was approved in August but was only reported in the media for the first time on Wednesday, by Sydney’s Daily Telegraph newspaper.
In an August 12 meeting of the City of Sydney’s corporate, finance, properties and tenders committee, deputy lord mayor Robert Kok said the council had received a request from Mardi Gras to be provided with 200 square metres of office space at nil cost for two years due to its current financial struggles.
In a report presented to the council meeting, City of Sydney chief operating officer Kim Woodbury and property portfolio manager Howard Chapman said they accepted that Mardi Gras was experiencing “significant financial pressures from broader economic conditions”. This included “increased event production and delivery costs and reduced ticket sales due to the cost-of-living crisis”.
Chapman and Woodbury’s report to councillors said they supported the free rent proposal as Mardi Gras wanted to move “as soon as possible to reduce operating costs”.
The rent for the new headquarters over two years would have totalled $257,730. According to Mardi Gras’ 2023 financial report, its occupancy overheads amounted to $119,824.
After two councillors questioned council staff about how other applications for free rent are processed, all councillors unanimously recommended a 100 per cent subsidy for the new space at Suite 9.02, Level 9, 309 Pitt Street. The recommendation was then approved at a council meeting on August 19.
The lease began on September 1 and will continue until August 31, 2026.
City of Sydney acting chief financial officer Scott McGill emphasised that the free rent was “temporary” in response to a question from councillor Yvonne Weldon.
“They want to have a permanent home back on Oxford Street,” McGill said, referring to Mardi Gras, which has been based at Level 2, 81-83 Oxford Street until now, with the entrance opposite Ziggy’s Barber on Riley Street.
“They don’t want to be in the inner city. They want to be back in Oxford Street. So they’re working very hard to do that, and we’re trying to help them to do that.
“This [move to the CBD] is just because they’ve got … real financial difficulty at the moment and they’ve asked: could we help? If they wanted a renewal [of the lease], it would have to come back to this council.”
The council’s August report stated that the Pitt Street space was vacant at the time and that approving the funds aligned with the city’s strategic vision. The vision outlines 10 directions to guide the city’s future, including a focus on promoting “an equitable and inclusive city” by supporting the operations of Sydney’s diversity and inclusion champions.
The approval of free rent follows a separate $1.1 million rescue package that allowed this year’s festival to go ahead despite major financial challenges. The City of Sydney contributed half of the package, while the NSW government provided the other half.
In a statement, Mardi Gras told Gay Sydney News that it had been impacted by its current financial crisis and had reached out to its partners to ensure longevity.
“Like many festivals over the past year, Sydney Gay and Lesbian Mardi Gras has faced significant financial challenges due to a combination of external factors, including rising costs and a difficult economic climate,” a Mardi Gras spokesperson said.
“To ensure the [Mardi Gras] Festival’s longevity, we have been exploring various cost-saving measures, including seeking subsidised office space through our long-term supporter, the City of Sydney.
“We remain committed to delivering a vibrant and unforgettable celebration in 2025 and beyond, continuing to champion LGBTQIA+ visibility and inclusion. Planning is well underway, and we look forward to sharing details of the 2025 program later this year.”
In a statement to Gay Sydney News, Sydney Lord Mayor Clover Moore said she was proud that council unanimously gave support to the Mardi Gras organisers to help them “get back on their feet”.
“This will allow them to continue producing a world-renowned festival that not only celebrates the LGBTIQA+ communities, but brings thousands of visitors to Sydney and provides an enormous benefit to our economy,” she said.
“I will always stand with the LGBTIQA+ community, because Sydney is a city for everyone irrespective of sexuality or gender orientation.”
Editor’s note: Journalists Eliot Hastie and Ben Grubb are Mardi Gras members for discount purposes only.
Gay Sydney News reporter
Gay Sydney News editor