Management are in favour!

It might be the strangest statement ever made to members of a registered club.

MANAGEMENT urge you to vote for both resolutions.

In other clubs the committee makes decisions in the interests of members – and then instructs management to carry them out.

But things are different, very different, at City Tatts.

At City Tatts, yes, management really are in favour of a property development, any property development.

It was management who drooled over the prospect of a property development from the start.

Well, actually just one of the management – Tony Guilfoyle.

It’s been the only item on his agenda for a long time. He gave up running the club for members around 2009, which you can easily tell by just walking around it. Since then he has been obsessed with trying to push the club towards a property development.

In fact, his neglect has meant he has lost over 1000 members every year since he became CEO, while nearby clubs like the Bowlers Club have gained members.

City Tatts Information Desk


City Tatts DA at a standstill

The City Tatts DA has ground to a halt at Sydney Council.

This is not a surprise. The property development being attempted at City Tatts would be a challenge for experienced developers who know what they’re doing. Mirvac, for one, found it too difficult.

So Tony Guilfoyle, with a track of total failure at everything he has touched at City Tatts, whether restaurants, bars or basic club amenities, has no chance.

This was already seen as a problem development by Sydney Council by the time Mirvac dropped it.

So the Council were already wary of anything to do with City Tatts.

And now that they are reading internet blogs they are beginning to realise just how much the whole scheme is riddled with flaws. They’ve also learned that Tony Guilfoyle and Pat Campion are bungling amateurs – which they suspected anyway.

The planners realise that there could be massive fallout from this one. And not just in property circles – this one could hit the front pages.

All of this means that the Council will be very slow to approve anything to do with this development, such as an underground car park with car lift – even slower than they would be on normal planning considerations.

This reminds us of what happened with National Australia Bank a few years ago. For a year before they told City Tatts to take their banking elsewhere, they stopped believing anything coming from Tony Guilfoyle.

They must be laughing now.

City Tatts Information Desk

A Secret DMA – How does that work?

Patrick Campion wants members to vote in favour of the Development Management Agreement Tony Guilfoyle has agreed with the developer.

The only problem is that parts of it are secret!

Yes, you read that correctly. Patrick Campion wants the members of City Tatts to approve a Development Management Agreement without knowing what’s in it.

And what parts do you think are likely to be kept secret?

If you’ve followed the trials and tribulations of City Tatts since Tony Guilfoyle became CEO, you know that any bad news (for members) is always concealed.

And this proposed property development is shaping up as the ultimate bad news – the certain destruction of the Club.

Even more amazing, Patrick Campion wants members to give him the power to amend the DMA anytime in the future, at his discretion – which defeats the purpose of approving even the parts of the DMA that have been disclosed!

Is this Campion strategy even legally valid?

City Tatts Information Desk

How one member views the Pat Campion property development plan

Here is how one member summarised Pat Campion’s development proposal.

“Let’s say you own a house worth about $1 million and have no mortgage.”

“One day a developer knocks on your door and tells you about a fantastic deal he has for your site.”

“First, he will demolish your house.”

“Then he wants to use your site to build a block of 200 apartments, which he will sell and keep all the profits”

“As part of the development, you will get a ground floor unit in the new block, with the same space you had before – only it will be a bare concrete shell.”

“The developer tells you that he values this ground floor concrete shell unit at $10 million.”

“Next, he tells you that he will arrange to finish the interior of your unit to the same standard that your house was before, so that you can live in it.”

“This will cost you $2 million”

“In three years you will be able to move in to your new (old?) ground floor unit – owing $1 million to ANZ Bank.”

Yes, that’s just about the Campion plan in a nutshell.

The only difference at City Tattersalls Club is that Pat Campion went looking for a developer to get this deal.

City Tatts Information Desk

Special Members Meeting to be postponed

As you know, Pat Campion and Tony Guilfoyle were hoping to have a meeting on the 8th of December to rubber stamp the Club going ahead with their property scheme.

That is despite having no builder, no money to build and no planning permission.

Really, there is no proposal for members to vote on.

But we can understand their haste.

Basically, everything that could go wrong with their plan has gone wrong.

And it’s not getting any better.

Every new delay risks more bad news that could turn members against it.

The latest example is the wannabe developer being linked to the Chinese Communist Party on Four Corners.

So Campion and Guilfoyle would love to get it past members as soon as possible, before something else goes wrong.

But there’s a problem.

This meeting requires one month’s notice to members under the Club rules.

Which means the Club had to send the notice to each member by last Friday, November 6.

But they didn’t.

So the meeting will have to be postponed.

City Tatts Information Desk

How come they didn’t subcontract restaurants before now?

The latest fantasy from Tony Guilfoyle is that the dismal performance of restaurants in City Tatts will be much better after building a 48 storey block of units, by being “externally operated”.

His projections show a massive improvement from losing $900,000 a year to making a profit of $700,000 a year!

It’s amazing how often he promises better results in the future – while explaining why things are going so badly now.

But that aside, if it’s such a great idea how come he didn’t do it before?

Just look at the current state of the Club’s eateries:

  • Zest has been a failure in every way from the day it opened, with accumulated losses now running into millions
  • Cafe 2 is just an embarrassment
  • The Esperanto used to be a unique attraction but opening Zest in direct competition was madness – in fact it almost looks like a deliberate plan to diminish the Esperanto

The problem for Guilfoyle is that if the restaurant operation was subcontracted now the inevitable improvement would expose the present mismanagement.

That’s why they he can only promise better results after a redevelopment, hoping to claim that the new situation is the reason. Remember this is the same Tony Guilfoyle who in 2006 talked up the benefits of a new centralised kitchen. We can see, from the above, how that promise worked out.

Besides, every year he is CEO he loses more and more members, so how exactly restaurants would perform better in the future is a mystery.

City Tatts Information Desk

This must be the weakest building proposal in Sydney right now

Now is a good time to repeat something posted on this blog last month.

The Campion/Guilfoyle scheme to exploit the City Tattersalls site has to be the weakest building proposal in Sydney right now.

They have no builder, no money to build and no planning permission (not even Stage 1 DA approval).

Since they started in 2013 everything they attempted, or promised members, has failed.

Already they are one to two years behind on their own timetable.

Keep in mind that Campion and Guilfoyle have failed at everything else they tried in the Club.

You only have to walk around to realise the Club is a shambles.

If this half-baked building proposal goes ahead it will be the end of the Club.

City Tatts Information Desk