David Jones appoints Colliers as property adviser

As previously noted on this blog, the property scene around City Tatts is hotting up.

Now David Jones has appointed Colliers to advise them about their Market Street property.

A few prople have said that City Tatts would be out of their depth when they dealt with property developers. That is where a good property adviser could protect the club.

But with Colliers already advising City Tatts, the potential for a conflict of interest is enormous. Basically, a tower on City Tatts’ site is a huge negative for DJs, and vice versa. And that’s just for starters. Given the adjoining properties there are many building and planning issues where one party’s interests directly conflict with the other’s.

So members can only hope that Colliers have a procedure to handle any issues that arise.

Although, given the extreme conflicts of interest involved, it is hard to think of any ethical way to handle them. The only honest way would be to stop acting for one of the parties.

 

City Tatts Information Desk

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What about the objects of City Tattersalls Club?

One of the points to come out of the ILGA report on Marrickville RSL was a reminder that clubs are required to pursue their aims and purposes as set out in their own rules.

In the case of Marrickville RSL the purpose of the club as stated in the Memorandum of Association was “to provide for members and guests a social and sporting Club with all the usual facilities of a Club ……. and provision for sporting, musical and educational activities and other social amenities” 

As ILGA noted, once they sold their building, and failed to get another, they failed to comply with the purpose of the club.

But really the same has gone on for years at City Tattersalls Club in a less obvious way. Here are the objects “for which the Club exists” as listed in the Club Rules:

  1. to provide social, sporting, athletic, cultural and other activities for its members
  2. to provide a clubhouse or clubhouses for the entertainment and recreation of its members
  3. to assist any charitable, social, patriotic or philanthropic object
  4. to give assistance to any of its members or their respective families or its employees in case of distress or death
  5. to obtain, maintain and renew the registration of the Club as a registered club in accordance with the provisions of the Liquor Act 1912
  6. to carry out the powers conferred by the CTC Act and amendments thereof, and all such lawful acts or things as will provide for the future usefulness of the Club and the greater comfort and convenience of members
  7. to hold and arrange matches and competitions and offer and grant or contribute towards provision of prizes, awards and/or distinctions and
  8. to establish, conduct or carry out any sports tournaments or amusements, and to cooperate with any person or body in so doing.

Sport is mentioned more than anything else, so taking that as an example how much attention, or effort, or money, does the Committee or management really devote to meeting those objects of the Club. Or, to put it another way, out of the $20 million profit from poker machines each year how much is spent on sports, tournaments or competitions? Would it even be $200,000 (1 per cent) a year ?

Compare this to how money is spent in other areas. The Club spends $2 million on advertising and promotion every year – with little or nothing to show for it. Yet nowhere in the objects of the Club is advertising and promotion mentioned as a priority. The CEO gets $600,000 – yes $600,000, that is not a misprint. Even the chef got $200,000 a year.

The Committee needs to have a fresh look at spending money to achieve the objects for which the Club was founded.

But now that management has become obsessed with a property development, sport will get even less attention (or money) in the future.

 

City Tatts Information Desk


This would be perfect for City Tatts

Members should have a look at paragraph 102 of the Independent Liquor & Gaming Authority report on Marrickville RSL.

In this paragraph ILGA sets out the role of the Administrator. As you read it, keep in mind why ILGA appointed an administrator to Marrickville RSL. Basically. having reviewed how the Club was run for the past few years ILGA were concerned about how the board of the Club would handle their proposed amalgamation with another club.

ILGA asked the administrator to:

  1. review and report to the Authority on the Club’s as yet undetermined application for approval of amalgamation with the Hurstville RSL Club
  2. review and report to the Authority on any and all contracts, arrangements or undertakings made by the Club with any third parties in relation to the proposed amalgamation
  3. review and report to the Authority on the financial prudence, from the Club’s perspective, of the proposed amalgamation, including any third party contracts, arrangements or undertakings in relation to the proposed amalgamation
  4. review and report to the Authority on the Club’s current state of compliance with liquor and gaming legislation, including but not limited to compliance with the Registered Clubs Act 1976, and advise how the Club will comply with that legislation in the future.
  5. administer the Club during the remaining amalgamation process and represent the Club in the current application for amalgamation and
  6. Conduct fresh elections for the Board of the Club, at an appropriate time after the completion of the reports in (1) to (5) above, whether or not the amalgamation is approved

Now, if you just replace “amalgamation” everywhere in the above list with “property development” you have exactly what is needed at City Tattersalls Club.

City Tatts has been badly run for 10 years and is now planning a property development. But if management paid to run a club, and a committee elected to run a club, have failed miserably in running a club, why would they be a success at a property development especially when they will be up against experienced property developers?

City Tatts needs an administrator – not a property development.

 

City Tatts Information Desk


A major turning point for City Tattersalls Club?

The Independent Liquor & Gaming Authority appointed an administrator to Marrickville RSL on February 7.

Some people think that this could have implications for City Tatts and might prove to be a major turning point for the Club. Members who are interested can download the report from the ILGA website.

The ILGA report clearly states that the waste, mismanagement and negligence they found at Marrickville RSL is not acceptable at a registered club, and that was the reason they appointed an administrator. Since it is obvious to everyone that similar waste, mismanagement and negligence has gone on at City Tatts for years, the only logical conclusion is that ILGA would appoint an administrator to City Tatts if they ever looked at it. In fact, many people believe that the problems at City Tatts are far worse. This seems very likely because it has always been a mystery how a club that makes $20 million profit every year from 400 poker machines, and owns a prime Sydney CBD building, could trade so badly.

It will be interesting to see what happens next.

 

City Tatts Information Desk


Now Stockland joins the party

It’s non-stop action around City Tatts at the moment.

First, City Tatts submitted their Pre DA to the council. Then David Jones did the same for their Market Street building. Now Stockland has sold a 50% share in the Piccadilly Centre (which adjoins the other two properties) to Investa.

That is a lot of action for one block.

Alas, given the current management and committee, you have to fear for City Tatts. Let’s be honest, they have a dismal record running the Club to date and have brought it to a sorry state. You wouldn’t give them much chance of safeguarding the Club’s assets against experienced property developers.

The consensus opinion among club watchers is that, if the property development goes ahead, the Club will be left with a few floors in a strata building. Then, because of fit-out costs and strata fees, it will be in financial difficulties within a few years. The next step will be ……  it will have to sell it’s strata floors.

 

City Tatts Information Desk


Katungul Aboriginal Community Corporation – the poor man’s City Tatts

City Tattersall’s members may be interested in the recent Federal Court case involving the Katungul Aboriginal Community Corporation.

It seems that a certain Damien Matcham who was employed there:

  • awarded himself unauthorised bonuses, and
  • abused his position of trust by obtaining payments of large amounts to which he was not entitled

It was also amusing to read that Katungul “had gone from multi-million-dollar organisation to having $2,400 to it’s name”, and “was on the verge of insolvency”

Does any of this sound familiar?

Anyway, he has been ordered to pay $705,905 back to the organisation and pay $500,000 to the Commonwealth.

Having watched City Tatts for a few years we can only conclude that this poor bloke is a complete amateur who has a lot to learn. The amount of money he took is small change compared to the millions looted from City Tatts by employees, friends of employees, builders, solicitors and consultants. In fact this bloke should get a job at City Tatts to learn how it’s really done.

But, all joking aside, the case shows that this kind of behaviour will not be tolerated by courts. There is no doubt that someday soon the sordid details of all that has gone on at City Tatts for the past 10 years will be aired in court. And when they are, similar action will result. And the Committee who turned a blind eye will not escape either.

 

City Tatts Information Desk

 


Parking at City Tattersalls Club

There was a slight hitch at the December 10 meeting called as part of  the publicity campaign to convince members that a property development was the way forward for the Club.

The hitch came when  members asked a few questions about the proposal. Interestingly, the most common concern was the lack of parking in the building for anyone who buys one of the units. John Chomley from Colliers tried to convince the meeting that parking was not necessary but no one was convinced. One gent from the country said that without parking he simply would not buy a unit in the development.

The truth is that Colliers (and Mirvac) would love to have parking but they know the council will not allow it.  So they are trying to put a brave face on the situation. Just have a look at residential developments around the city, or talk to buyers, and you will find out how important parking is. Even Mirvac admit that the lack of parking makes the units less attractive.

The other hitch was when a member reminded the meeting that Patrick Campion had mortgaged the Club’s building to ANZ bank without the approval of members, thereby breaching the City Tattersalls Club Act. Now, this will prove to be a major stumbling block to any development.

 

City Tatts Information Desk