Both parties announced on Friday they had settled a long-term lease agreement on commercial terms after more than 18 months’ negotiations since the City compulsory acquired Mars Stadium land from the club.

The lease is $440,000 per year and includes the North Ballarat Sports Club and change rooms. The length of the lease was not made clear.

City of Ballarat made a $5.5 million takeover bid in February last year when the then-North Ballarat board was in the midst of turmoil and the City was preparing to host its first AFL premiership season game in a redeveloped Mars Stadium.

North Ballarat chairman John Nevett said the club was satisfied with the outcome, which secured the long-term future of the growing football-netball club, the sports club members and staff.

“When the compulsory acquisition was issued, there was a lot of tension among the board and members about losing their freehold right, was it justified, and there’s a lot of emotion in all that,” Mr Nevett said.

“When I came on as chairman I said it was not going to be an easy time, it could take two or three years to maybe settle...We’ve got to a position where everyone can be confident moving forward.”

The ground and parts of the changerooms were already Crown land but the City acquired the remaining precinct, including the gaming and dining rooms and the car park, which were on the freehold title held by the club. A key sticking point was a separate 970-square-metre plot, including parts of the main building and Mars Stadium, covered by a Crown lease to which North Ballarat has secured in 2014 for 21 years.

In a joint statement, Mr Nevett and Ballarat mayor Samantha McIntosh said the new lease agreement resolves outstanding concerns.

Mr Nevett and Cr McIntosh said both parties had entered a memorandum of understanding to work together to develop community infrastructure in the precinct, including netball, cricket and football.

Mr Nevett said the agreements would have no impact on TAC Cup development program Greater Western Victoria Rebels, who were based at Mars Stadium. He hoped the agreement would serve to improve relations with both the City and Rebels moving forward.

Cr McIntosh said there had been lots of complications in the lengthy lease process but it would help to ensure a bright future for health and activity within the community club. She said it was important for North Ballarat to retain its traditional presence at the venue.

Now the lease was set, Cr McIntosh said the City hoped future investment in Mars Stadium, for elite and community sport, would be attractive to all sides of politics leading into the November state election.

Meanwhile, Mr Nevett flagged now the lease agreement was settled, it could flag the return of a Victorian Football League club in Ballarat. The Roosters program folded last year. Mr Nevett maintained any potential new VFL club in town would not be a North Ballarat team.

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