Does Oliver Shtein know anything about commercial property law?

One of reasons why City Tatts is almost broke is because millions of dollars have gone to consultants. Normally they are paid to support whatever management wants to do, with little or no benefit for members. Legal expenses are a prime example – over a million paid to Bartier Perry since Tony Guilfoyle became CEO.

At the latest useless “members briefing” we saw the another example of this.

City Tatts has already paid a fortune to Bartier Perry for legal advice on Campion’s insane property scheme. The Bartiers person handling this is someone called Oliver Shtein, so he has attended the last few “member briefings”.

As a result of questions at previous meetings members became concerned that if the development ever went ahead City Tatts would be doomed from the start because they will be left with a few floors in a large building and will be forced to pay strata levies.

So Campion and Guilfoyle had to come up with something to try and defuse this issue. But instead of getting Oliver Shtein to explain this, they called in someone called Phillippa Russell. She stressed that the Mirvac development would not be a strata title subject to the Strata Titles Act but would be a “Strata Sub Division” with a management agreement to allocate the building expenses. Actually, that would probably be worse for City Tatts because they will be a minor player at the mercy of the larger players – Mirvac with their 40 floors of apartments, and Guilfolye’s 100 room hotel.

Anyway, the presentation by Phillippa Russell took less than 15 minutes and covered what were very basic legal issues in commercial property.

So why didn’t Oliver Shtein do this?

If Shtein does not understand these basic legal matters how could he possibly represent City Tatts in any negotiations with Mirvac about the building?

 

City Tatts Information Desk


Mirvac have lodged a DA !!!

For two years Tweedledee (Patrick Campion) has been saying that nothing would happen to the City Tatts building without the approval of members.

We knew he was lying all along – Himself and Tweedledum were always going ahead with their insane scheme regardless of what members wanted.

And now we have the proof.

Sure enough, Mirvac lodged a DA with Sydney Council last Friday.

The members vote that was supposed to take place by June 30 never happened but that didn’t stop Mirvac – as we have predicted all along.

Even more amazing, Mirvac have still not signed a development agreement with City Tatts, so really they have no authority to do anything with the City Tatts site.

Maybe Mirvac have decided they don’t need City Tatts any longer. Maybe they think the Club will have gone broke by the time they get approval and they can proceed on their own.

It looks like their greed has blinded them to the realities of this project. There will be so many objections to every aspect of how this application came about that there is no chance of them getting any approval in the next year.

 

City Tatts Information Desk


Just proves how dishonest Patrick Campion is

Johny Bineham was suspended from City Tattersalls Club last Thursday afternoon. He wrote “The Destruction of City Tattersalls Club by Tweedledum and Tweedledee”.

Everything about how this was done proves once again how dishonest the chairman, Patrick Campion, is.

For those of you who don’t know him, Patrick Campion (Tweedledee) is a solicitor whose specialises in ….. defamation. He could have taken action against Johny Bineham two months ago but decided to wait until he got his insane property development approved by postal vote. Once it became clear that the vote would not happen according to the original timetable he decided there was no need to wait any longer.

So once he decided to move against Johny Bineham, the obvious course of action was to sue for defamation. But he didn’t. Because Patrick Campion is TERRIFIED of appearing in court.

Campion knows that when all the evidence in this case is heard in court, regardless of the outcome, he will be not be a solicitor any longer. Just think of all the dishonest things he has done, or turned a blind eye to, while on the City Tatts Committee. This is just a small sample:

  • Just happened to be on the Committee when it made a secret $80,000 donation to an eye clinic in Moree – which just happened to be run by his brother
  • Did nothing when he was told that Tony Guilfoyle had taken $200,000 from the Club without the knowledge of the Committee
  • Suspended a member who wrote to the Committee asking for John Kennedy to be stood down while his role in the Bookmakers Superannuation Fund scam was investigated
  • Mortgaged the Club’s property without the approval of members – in contravention of an Act of Parliament
  • Refused to put a motion to members, when required by the rules, which would have prevented mamagement, and Committee, from profiting from a property development

So, in a desperate attempt to keep this out of court Campion has come up with a plan to have the Bineham case heard by an “independent” arbitrator – in the Club’s boardroom!

But he’s wasting his time with this ploy, this is heading to the Supreme Court for sure.

The other amazing thing about this whole case is that even though it has been Tony Guilfoyle (Tweedledum) who has driven City Tatts to the wall, it is looking more likely that Patrick Campion will be the one to go to jail.

And one final thing. At City Tatts no matter how serious things get there is always some comical aspect, usually quite unintended. In the letter Johny Bineham received from the Club, Patrick Campion is referred to as Tweedledee!

 

City Tatts Information Desk


Johny Bineham barred from City Tatts!

Johny Bineham, author of The Destruction of City Tattersalls Club, was suspended from City Tatts yesterday!

The Club was so desperate to prevent him speaking at a meeting in the Club last night that they couldn’t wait to conduct a proper hearing – as required by the Club Rules. Instead they got Jan Ellks to phone him!

In case you are wondering why this is happening now, the explanation is fairly simple. Guilfoyle and Campion wanted to get rid of him the minute his book appeared but it would have looked bad just before the Committee elections. The plan was to wait until they got the property development approved by postal vote and then move on him. But once it was clear that the vote would not happen by 30 June (because Mirvac are stalling for a better deal) there was no reason to delay any longer.

We predict this will be a major turning point in the battle to save City Tatts from Guilfoyle and Campion.

 

City Tatts Information Desk


Mirvac – 6 months and counting!

It is now 6 months since Mirvac were announced as “preferred developer” by Patrick Campion – and still Mirvac have said nothing.

This makes no sense.

It does not take 6 months to negotiate a fairly normal development agreement like this – especially when most of the points in the agreement must have been known last December in order to award it to Mirvac in the first place.

Back in December we were  told by sources in the property industry that there was something very strange about the whole process where Mirvac were appointed.

Yet again at City Tatts, the rumours have proved to be correct.

 

City Tatts Information Desk


More on Tony Guilfoyle’s Hotel Options!

A member pointed out something we had forgotten in the discussion about Guilfoyle’s hotel plan.

This is how he put it.

“I see where that clown Guilfoyle is claiming that a hotel would bring in $1 million to the Club each year. Well with Guilfoyle running it, you have to wonder if it will ever bring in anything. I mean he manages to lose hundreds of thousands running restaurants that have no rent to pay. But that’s not the real issue. The Club already earned over $700,000 in rent from the National Australia Bank and the Lotteries Office on Pitt Street every year – before Guilfoyle pissed them off. And now this clown is going to go through the whole process of building a brand new hotel, that in all probability will bring in less for the Club than the previous rent. And when you think of all that is involved in building a new hotel on a very difficult site in the CBD, from drawing up plans, submitting a DA, handling objections and then actually building it, the whole idea is insane. How does the Committee put up with this imbecile?”

 

City Tatts Information Desk


City Tatts to outsource restaurants!

Restaurants have been one of the real disaster areas in City Tatts since Tony Guilfoyle got the top job in 2004.

Prior to that the Club had thriving restaurants, popular with members and visitors alike, with the International Buffet being the pick of the bunch. Since 2004 it has been one disaster after another. Zest has been the biggest flop by far. It cost at least $2 million to build and fit-out, and members rejected it within a few weeks. Since then it has racked up staggering losses (despite having no rent to pay) so this one failed restaurant has cost the Club at least $5 million to date.

And how has the Commitee dealt with this?

The same way they deal with everything – by doing nothing. The Committee consistently refused to accept that they had got it wrong and rejected all suggestions from members for action.

But hold on!

In the latest “Member Briefing” it seems that the Committee has finally realised that Guilfoyle can not run the restaurants in the Club. If the property development ever happens they say restaurants will be outsourced!

 

City Tatts Information Desk