How should we rate Mirvac’s dealings with City Tattersalls Club in the past year?
In summary, there is good and bad. You really have to make a distinction between the Mirvac New South Wales team, represented by John Carfi and the Mirvac board.
To their credit, the Mirvac board made a good decision to walk away. It was clear to them that the management and Committee of City Tatts was so rotten as to be a serious threat to Mirvac.
On the flip side, some of Mirvac’s actions are, at the very least, questionable.
Firstly, there was the strange official silence about the City Tatts deal. In ten months they never once officially acknowledged that they were even involved with the Club. Remember, this is an industry where insane spruiking of every project is normal. And the City Tatts project provided even more excuses than normal to promote the development – iconic club, hundred year history, the CBD location, etc etc. But Mirvac said nothing – and still haven’t. But, as things turned out, maybe they knew what they were doing.
Then, of course, there was the secret $250,000 payment to be appointed as developer. Now it may not have been their decision to keep this a secret but they must have been aware that it was concealed from members. We are not sure about the legal status of this payment. If they were the only developer to offer this, and that is why they got the contract, then it is probably an illegal bribe. It depends on whether other developers were given the opportunity to offer the same.
And even at the end when they decided to walk away Mirvac are still not being honest with members. Despite many references by them (and Patrick Campion) to the “sticking points” that derailed the deal, they never actually said what those “sticking points” were. City Tatts is a club owned by members who are entitled to know what the “sticking points” were, although really this is something the City Tatts committee should be doing.
As a final point, we predict that the City Tatts deal will remain a black mark against John Carfi within Mirvac, for as long as he is there.
City Tatts Information Desk
Dear Remaining Members,
I advise that Mirvac have decided to discontinue negotiations on the proposed destruction of our Club. After extensive propaganda Mirvac have been unable to hide their respectful objections to our proposal.
It is devastating that the negotiations did not result in an agreement. However the discontinuance will badly affect the proposal and the time frames. The proposal remains a weak and stupid one that will still be taken forward to a donkey vote.
Your Committee and Management has no interest in securing the best possible outcome for members. That contempt has not and will not change.
Very little important work has been undertaken while the negotiations were proceeding, other than the lodgement of a Stage 1 Development Application (Duh) including a bizarre car lift. Mirvac has agreed to assign all benefit of that DA to Tweedledum together with all the rites and benedictions in the reports, works and entanglements of all consultants. These assignments are hardly to our Club’s advantage.
I thank Mirvac for the good sense it demonstrated in walking away and for their perspiration throughout the negotiations and its work in progressing the proposal and leaving it in a far stranger position.
The Stage 1 DA process is very awkward and our Club is in no position to complete it, because it has no money.
Our Club will now wank with property agent Colliers National who will concoct a new Expression of Interest process to find a new development patsy and it is expected that a new patsy will be annointed before the devil-in-the-detail is obtained from the Council.
At the time of appointing Mirvac, there was little interest in the project from experienced developers. Given the problems with the proposal are now well publicised and it is an even more alarming option than before, we expect to receive even less interest from developers now.
ANZ remains a committed mortgage holder and continues to control the funding requirements of the Club now and into the future.
The Club will continue to retain ex-KPMG fraud, James Kennedy, to advise on governance, ensuring that risk is ignored, and badly managed at all times and the Club’s guiding principles (like retaining ownership of the apartments) are ignored too.
The members’ vote on the proposed destruction will now take place in the first half of next century.
We will hold two Member Brief Meetings on Monday 27 October at 12.30pm and Wednesday 29 October at midnight, for our Rookwood voters, where we will lie about the non-existent progress made this year and the pressure of finding a new development patsy. I strongly encourage members to attend one of these briefings if they want to hear more of my lies.
If you have further questions please hesitate to contact us on 02 9267 9421 or go to firstname.lastname@example.org. You can also visit our website Airhead Development (all about us are airheads.com)
Tweedledee (Patrick Campion)
City Tattersalls Club
We already knew that James Kennedy (no relation to John Kennedy BSF) was a fraud.
But it seems that there is no limit to his dishonesty.
Remember that Kennedy’s official role was to ensure that the whole process of finding and dealing with a developer was done in the best interests of members. And at every meeting he told members exactly that.
Now, for the first time, we find out that Mirvac paid $250,000 to City Tatts to be appointed “preferred developer”. This was concealed from members until last Monday.
That means that every one of the previous meetings about the development was a fraud, and Kennedy said nothing all along.
As an aside, we always wondered how Mirvac came to be appointed while most other developers showed little interest. The $250,000 payment does help to explain things. It also means members have to question the whole process that lead to Mirvac being appointed, something that Kennedy was supposed to be doing. He should be in jail.
The secret $250,000 payment is another reason why the Mirvac board wanted nothing to do with the City Tatts committee.
City Tatts Information Desk
Well, we did try to warn you.
Mirvac have walked away from the City Tatts deal. This is despite having agreed to all major City Tatts requirements last December (to be selected as “preferred developer”) and a further ten months of discussions, all of which were positive.
This means that most of what members were told about Mirvac and the negotiations at ten “members briefings” was nonsense. It is also conclusive proof that you can not believe a word Patrick Campion says.
No question, this is a devastating blow to Patrick Campion and Tony Guilfoyle. You could tell that just by looking at the faces on the stage at the meeting. Mirvac’s sales rep, John Carfi, looked like he was at a funeral. Guilfoyle looked like he aged 5 years since last December. Even Jon Chomley from Colliers looked sad. Campion and Guilfoyle had staked everything on the Mirvac deal. You only have to walk through the Club to see they lost all interest in running it for members years ago.
It is devastating for another reason. Their plan was to push through the Mitvac development as fast as possible before members realised it would be the end of the Club. Any delay means more publicity and more scrutiny. And any scrutiny will reveal that the development makes no sense for the Club. Delay also means that their plan to conceal how much the Club has spent on the development will fail.
So why did Mirvac walk away?
Their is only one explanation – Mirvac’s board rejected it because they realised it was more trouble than it was worth.
We know the local Mirvac team led by John Carfi were in favour. And Campion and Guilfoyle were desperate for it. So when the deal is off one day after Mirvac’s board meets we can be sure they rejected it.
Of course it wouldn’t be a City Tatts meeting without spin and hype. Every speaker tried to convince members that losing Mirvac was no big deal and that they would just select another developer who would complete it with almost no delay. Campion, Guilfoyle,, even Jon Chomley all tried this. But a child could tell that any development has been set back at least six months.
And their attempts at bluffing were doomed from the start when they couldn’t even mention what the “sticking points” were.
City Tatts Information Desk
If you need to blot out people or history, first you must blot them from your mind. This way you convince yourself that your actions are moral and necessary. To do this you must also create new terms, new systems of thought and language, designed for people without compassion to be protected and also to blind the people that in the end will lose it all.
The perpetrators of the destruction of City Tattersalls Club must shield themselves from the consequences of their actions. In their own words, the world “continues to put pressure on revenues, amplyifying the need for a change to the business model”. The words are smothering, strangling the logic and the natural need for questions. The “pressure” must be huge as the revenues and membership numbers have been declining for years without a previous need for a change of “business model” or changes in the top officers implementing it.
How people in power think and talk eventually trickles down into the masses as the words of reality and what is to be. “Advanced plans, accountable commitments, possible new developments, solid trade figures, improved member facilities” are mentioned as if they are real, certain, witnessed and true. By looking at the actions of the City Tatts aristocracy, it can only be concluded that all the people below are being managed to accept the decisions and goals set long ago. The members are moulded, their tastes formed and ideas suggested, all in order to achieve the desired goals of the City Tatts elite. In theory all members need to make up their own minds on how their club will function in the future. In practice, members have no time to decipher the convoluted language of the management and legal class. The majority, reading the chairman’s messages or talking to management or the committee find it impossible to come to a conclusion about the future. Most members will accept the evidence from the esteemed City Tatts leaders and will fall into the standardized and previously planned norms of social conduct. There might well be some future event when the leading manager with the inflated personality and strenuously protected by the committee, may proclaim: Your Honour, now why would they pay me so much if I wasn’t doing something right.
Recently, Lord Freud, a minister in the UK Department of Work and Pensions concluded that the department must use a certain system to “cleanse the stock of fraud and error”.
In the same way the City Tatts papacy sees the people below as stock that needs to be cleansed. Cleansed of dissenters, members that may ask questions like Who, What, When, Where and How in order to get to the Why. The “stock” that remains must accept declarative sentences and the language of marketing and legal experts as the official language for the liturgies that double as member meetings or briefings.
How can members belonging to the unwanted “stock” or members that may find it more personally rewarding to know more, stop the planned destruction of the Club? It can only be achieved by stripping away the twisted explanations and the official language of cover-up. Only by asking questions and insisting on clear answers in the English language can their smokescreens be cleared. But be warned, the City Tatts papacy will insist on moral brillancy, but will avoid any verbal clarity. They must be pursued into a corner. But be warned, once there, the words will not be uttered, they will be implemented by the teams of advisors and legal experts. Their words will not explain or answer but will be used as mace.
In order to control and protect the club, members must first control the words. The words define reality. This fact is the precise reason why the City Tatts elite use illogical sentences and fluid definitions. They have something to hide. Questions their: enhancements, dramatically improved improvements, advance plans, flexibilities, priorities, core and non-core promises, commitments, valued customer controls, key performance indicators, key stakeholder options, deadlines, service delivery strategies, moving options, maximising synergies for future developments or their path to becoming an internationally benchmarked friends place. They want to keep members in the dark, with the pompous use of words and definitions they are suggesting that you are stupid if you don’t understand. Their vocabulary is adopted to suit their needs.
They need their words to have a sleep inducing effect so that they can walk away with the loot they didn’t work for.
When you do not clearly understand what they are talking about, be alert. It would also be good to assume that there is a cult operating around you. Hold on to your wallet and arm yourself with questions: Who, What, When, How, and you will understand the Why.
How else can the workings of City Tattersalls Club be explained?
Club Corruption Vigilante
Australia is a “paradise” for white-collar criminals because of its soft punishment of corporate offences, the Australian Securities and Investments Commission chairman, Greg Medcraft, says.
Mr Medcraft said the only realistic response was harsher jail terms and bigger penalties for white-collar crime.
“The thing that scares white-collar criminals is going to jail and that’s what scares them everywhere in the world.”
“The penalties, particularly civil penalties, in Australia for white-collar offences are basically not strong enough. All you’re doing is giving them a slap on the wrist and that is not deterring people.”
Couldn’t agree more.
You only have to look at City Tatts in the past ten years to see how true this is. We hope to live long enough to see ASIC back up these fine words with action.
And no doubt members of the Bookmakers Superannuation Fund (now called Progress Super) would agree.
City Tatts Information Desk
At City Tatts truth is stranger than fiction.
Yes, 10 months have now passed since Mirvac were annointed as “preferred developer” for Tweedledum’s insane property plan – and still Mirvac have said nothing. In that time there has not been one official statement from Mirvac that they are involved with City Tatts. Given that property developers are famous for insane self-promotion, this silence about City Tatts is a sure sign there is something fishy about the deal.
And keep in mind that Mirvac must have already agreed to all the major conditions in the tender last December, to be awarded the contract. So a further 10 months of negotiations makes no sense.
In fact Mirvac have still not signed the Development Management Agreement. Maybe there are waiting for the Club to go broke.
Anyway, the Mirvac board will meet in the next few weeks to review the project.
City Tatts Information Desk