Another amended press release from City Tattersalls Club

We have been given another amended press release!

The original paragraph said:

All clubs face challenges, especially clubs that have their primary income source as gaming. And there are competitors, with Barangaroo opening. That is a concern for us but that is six years down the track” said Mr Guilfoyle.

The new, improved paragraph says:

All clubs face challenges, especially clubs that have a complete idiot running them. And there are competitors, like the Bowlers Club. That is a concern for us but six years down the track we will have gone broke”, said Tania Guilfoyle.

 

City Tatts Information Desk

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Are the dogs still running at Harold Park?

One of the reasons Mirvac got the nod to build on the City Tattersalls Club site, according to Pat Campion, was that they would “allow the Club to continue trading”. (The real reason was that other developers were not interested)

There are two things about that.

One, every builder tells us that it is nonsense. The safety aspect alone makes it almost impossible. Think about it – how many 40 storey buildings do you know were constructed in the Sydney CBD while a business continued to operate at ground level? 

As for Mirvac allowing that, did the dogs continue to run around Harold Park while Mirvac constructed apartments on the site?

The real reason for this story about the club remaining open is simply to make the whole scheme more acceptable to members so that they will vote in favour. Once the Committee gets the go-ahead from members, they will “discover” that in fact it is “not feasible” to continue trading (just like the idiotic plan to sell the units as leasehold was “not feasible”).

 

City Tatts Information Desk


Amended press release for City Tattersalls Club

A member has given us an amended press release in connection with the publicity campaign to build on the Club’s premises.

The original paragraph said:

“As the future of the gaming industry looks increasingly challenged with continued legislative changes, Mr Guilfoyle said the club had undertaken the redevelopment to lessen it’s dependence on the sector and establish “more reliable income streams” while hoping to attract new members.”

The amended and, in our humble opinion, far more accurate paragraph now says:

“As the future of City Tattersalls Club looks increasingly challenged by woeful mismanagement, Mr Guilfoyle said the club had undertaken the redevelopment as a desperate measure to distract members and establish “more reliable income streams” for the personal benefit of the Committee and management while continuing to lose members”.

 

City Tatts Information Desk


Mirvac beats rivals to be preferred developer?

The publicity campaign around the proposed property development has been truly hilarious. It’s hard to know where to start.

Firstly, Mirvac did not”beat” anyone. Basically everyone who looked at the proposal was not interested. There was really only Mirvac in the end. That, in itself, ought to tell you something about the proposal (and the Colliers publicity campaign).

Next, Pat Campion says that Mirvac were given the nod because of their “experience of CBD projects”. But he didn’t mention one. Very strange – especially in the context of an insane publicity campaign.

Another thing that made us laugh is the references to David Jones in the publicity campaign. If David Jones really build “a tower of about 30 levels above the Market Street store” wouldn’t that be directly in front of the proposed City Tatts tower? Also, we had to laugh when the David Jones spokesman said “The exercise is complex and will take time”. Keep in mind that David Jones have considerable experience in property so this comment makes perfect sense. By way of contrast Guilfoyle and Campion are bungling amateurs who could not run a snack bar – and they are going full steam ahead on a 48 level tower. But, of course, they have to hurry because they know the Club is going downhill rapidly.

There was also a comic reference to “seven extra floors”. Well, let’s see. City Tatts already has six floors (depending on how you count). Does that mean that the Club will have thirteen floors in the completed development? We don’t think so.

As for Colliers, well everything about them is funny. Remember that Colliers is represented by Robert McCuaig – who claims to be the co-founder of a business that was operating in Canada – before he was born! Anyway, they claim to be advising City Tatts. We think they might regret that in the near future.

 

City Tatts Information Desk


Mirvac are the preferred developer?

Nothing is normal at City Tatts.

Patrick Campion told members on 10 December that Mirvac was appointed “preferred developer” for his insane property scheme – a scheme that will surely sink the Club.

But the strange part is that Mirvac has made no announcement about it. Mirvac is listed on the Australian Stock Exchange and has an obligation to keep the market informed. Even for a large business like Mirvac surely a $100 million development would be worth a mention – especially in an industry that jumps at any opportunity for self-promotion.

But they have said nothing.

Why?

We have asked around and there is only explanation – no contract has been signed.

 

City Tatts Information Desk


How much has City Tatts really spent on the property proposal?

It has become standard practice at City Tatts under Tony Guilfoyle and Pat Campion to hold back on telling the full story if they think it might be too much for members – and then release it in dribs and drabs for the next year.

The amount spent on the flawed property development is a perfect example of this. First it was at “no cost” to the Club. Then they had spent $30,000. Next it was $100,000. Now, they say, they have spent $220,000.

Let’s be quite clear about this. It was always going to be at least $200,000. Anyone in the commercial property field could have told you that it would be impossible to design a 40 storey building that meets basic planning requirements, submit it to council, and run a sales campaign to find a developer for less than $200,000. So the Committee would have known this all along but decided that it was too much for members to swallow all at once.

But how much have they really spent on this?

When you know how this Committee spends money, it would be amazing if it was only $220,000. These are just a few examples of their spending:

  • $20,000 (every year) for a weekend away on the Central Coast or the Blue Mountains for the Committee and a few favoured employees
  • $500,000 on mannequins that were later taken to the dump (because they scared older members)
  • $1,000,000 on legal fees since 2004 (mostly to protect Tony Guilfoyle and the Committee from members)
  • $50,000 (every year) to an art gallery for displaying paintings the gallery wants to sell

Now just think about the number of people already involved in this property development:

  • Architects Jennifer Hill, Peter Georgeson and at least one other architect who designed a 48 storey building, submitted it to council for a “Pre DA” approval and met with council. We say at least one other architect because we have been told repeatedly that Hill and Georgeson simply do not have the knowledge or the facilities to design the plan submitted to council.
  • Real Estate agents Jon Chomley and Robert McCuaig from Colliers. They prepared a 40 page brochure and participated in an extensive spruiking campaign.
  • KPMG Real Estate who were going to advise on the tender process.
  • Solicitors Bartier Perry and another legal firm with more experience in property development.
  • Bird Cameron who were going to give some kind of financial advice.
  • And a small army of quantity surveyors, publicity agents and other consultants too numerous to mention.

None of these people work for free. And they know they have found a soft target in City Tatts where the Committee are not spending their own money.

Taking everything into account, we think the bill must be closer to $500,000.

 

City Tatts Information Desk


More Patrick Campion insanity

Here are a few more examples of Patrick Campion’s insanity (as if there were not enough already).

At the information meeting last Tuesday Campion put up a slide from a previous meeting to remind members of the “Guiding Principles” of the property development. When these “guiding principles” were shown for the first time, just a year ago, one of them was that City Tattersalls Club would “retain ownership” of the completed property, which meant that the apartments would be sold as leasehold – probably on a 99 year lease. Obviously principles are not very important to Campion because now he is telling members that selling the apartments as leasehold was “not feasible” and they will in fact be sold as freehold (we think he means strata title – although he didn’t say this).

Now, in case you think that it was a startling discovery that they would not be able to sell the apartments as leasehold, we made a few enquiries last December when the idea was first floated. We were told that they would not be able to sell the apartments as leasehold, that there was no chance of this happening. This was the unanimous opinion of everyone we asked.

At that time Campion already had a full panel of advisers for this scheme. He had solicitors Bartier Perry, architects Jennifer Hill and Peter Georgeson and that twit Robert McCuaig as property salesman. Campion himself is a solicitor.  And not one of them knew what we could find out within two days?

What else have they got wrong?

Speaking of McCuaig, it reminds us of another bit of Campion nonsense. In talking about the publicity campaign Campion told the meeting that “Colliers said it was one of the best starts to a sales campaign they had seen” and that it was a “very successful campaign”.

Really?

This was a publicity campaign for the development of a 48 storey property in Sydney CBD worth many millions. The building will contain mostly apartments – at a time when the market for apartments in Sydnet CBD is red hot. The campaign involved contacting every major property publication in Australia and even some television stations. And the result of all this is – just 3 bids!!

We would hate to see an unsuccessful campaign by Colliers.

 

City Tatts Information Desk