Airhead Development – Tweedledee December 15

Airhead Development

Dear Remaining Members,

I’m delirious to inform you that last night City Tattersalls Club members voted in fever for the proposed airhead development above the Club’s Pitt Street premises, officially giving the Club the two fingers and clearing the way for the Chinese developer to add whatever he wants to the Development Management Agreement (DMA). The resolutions were passed with a 93.6% majority voting in fear for the development which will see $56 million in value flow to the developer.

I’d like to thank the Club’s Rookwood voters for voting by postal vote and coming out at midnight to overwhelmingly support the destruction project. The majority in favour of the project was phoney and, as far as we know, the end of the club’s 120 year history. Members who have actually looked at it see no long-term value in the project, which destroys the Club’s future and will trample our existing facilities and venues and deliver an array of new fees and expenses. I’d also like to thank the sleeping Committee, Tweedledum, Mrs Tweedledum and our advisors for many years of bad advice that has gone into destroying the Club and I’m delirious that we are now able to proceed at a snails pace. I would also like to thank RSM Bird Cameron for their fraudulent profit projections.

The Club has made no progress with the project this year. We have no builder, no money to build and no planning permission. Today, Tweedledum signed a DMA with the Chinese developer. We have submitted another stage 1 development application (Duh) and we have received rejection from City of Sydney Council to which we have yet to respond. This latest DA is way better than the one Mirvac submitted even though, at the time, we told you that the Mirvac one was really good. Council have been through the process of analysing ┬áthe Club’s application for six months and are not even close to approving it. Following approval from council, in about two years, the Club will embark on an Expression of Incest (EOI) campaign for Tony Guilfoyle to part own and/or operate the 100 room hotel and the Design Excrement competition will also be officially judged by Kirsty Assad.

The $56 million total value to the developer will be allocated as follows: $56 million (excluding CGT) to the developer, nothing to the Club.

Let me repeat, Rookwood members have voted for chaos and in favour of no future. Members have failed to recognise the long-term damage of the project, they shafted the Club and they don’t understand that the project will destroy the Club’s future with no benefit for members.

With the development project now stalled at Council, City Tattersalls Club has no future and no sustainable business. With your vote of approval, City Tattersalls Club will vanish from Sydney’s CBD for generations to come.

Yours Dishonestly

Tweedledee (Patrick Campion)

Chief Liar

City Tattersalls Club


One Supreme Court action is all it will take

It will only take one action in the NSW Supreme Court to blow the whole City Tatts property fraud wide open.

This is what a hearing in the Supreme Court will expose:

  • That Pat Campion placed an illegal mortgage on the Club’s property, without the approval of members
  • That Pat Campion refused to put a motion to members which would have prevented Tony Guilfoyle gaining a benefit from the property development
  • That the meeting to approve the property development was not valid because the required notice was not given
  • That the so-called Explanatory Memorandum was so one-sided any decision based on it would be struck down by any court
  • That the whole development was Tony Guilfoyle’s idea and the Committee knew little or nothing about it

Once all this, and much more, is aired in the Supreme Court the developer will probably walk away. Mirvac had far more resources in every way to stick it out, and they dropped it.

The developer is already very nervous, despite the brave face. He knew when he started that the City Tatts deal was rotten, because none of the reputable developers would touch it. But he didn’t fully realise how much of the details would be exposed on internet blogs. Then the Four Corners report, linking him to the Chinese Communist Party, didn’t go the way he expected. Further revelations about Tony Guilfoyle being kicked out by his wife worried him even more.

One of the reasons why Campion and Guilfoyle have survived so long is that they can use the Club’s money on legal action to suppress dissent from members.

They spent over $100,000 a few years ago just to keep out one member and legal expenses since Tony Guilfoyle became CEO now total well over $1 million – with the majority spent on fighting members.

So all it will take is one solicitor to take it on and see it through, and one barrister to present it, and every rort in the Club will be exposed.

In fact, it would be a very easy case to win.

City Tatts Information Desk


HOPELESS & CLUELESS

You’ve probably seen the posters around town.

They’re done in a kind of mural style. One shows a picture of Tony Abbott with a single word at the bottom: HOPELESS.

The other has a picture of Joe Hockey and the word: CLUELESS.

City Tatts has it’s own Hopeless and Clueless.

Hopeless is a perfect description for Patrick Campion. He is the direct City Tatts equivalent of Tony Abbott, hopelessly out of touch as the end approaches.

Clueless is a perfect description for Jimmy Chen. As Treasurer he started out with good intentions, but as time went on it was clear he had no idea what was happening.

It’s a pity there wasn’t a picture of these two in the recent Explanatory Memorandum, with their respective titles.

It would have been the most honest part of it.

City Tatts Information Desk

 


Will this developer EVER build at City Tatts? (3)

If the current developer ever gets planning permission and raises the money to get started, the next job will be to find a builder.

This will not be easy.

The problem of finding a builder was covered in a previous blog titled “Who will build at City Tatts?” and it’s worth having another look at.

The number of builders in Australia who have experience in building a 48 storey tower, in the centre of the CBD, is quite small.

Even among those, not all will have the resources to take on another project right now.

Then, if you find one that has the ability and the resources, the next question is: Would they want to do it?

Just from a construction point of view this is a difficult project.

But it is the Club itself that is the real problem. Every potential builder will be fully aware that something is terribly wrong with City Tatts, and the property development.

Most of them won’t touch it.

Basically, the better they are the less likely they’ll be interested, partly because they can do other jobs that have less risk.

So if the Club wants a builder, they will have to move down, well down, on the quality scale.

Just like they did to find another developer after Mirvac walked away

City Tatts Information Desk


Will this developer EVER build at City Tatts? (2)

Another hurdle for the current developer is finance.

The simple truth is that he may never raise the money to build at City Tatts.

He may have told the Club he can raise the money in China, and really believe that himself, but a lot can go wrong before it happens.

For one thing, the Sydney apartment boom is ending. This is not a huge blow to raising money in China but it doesn’t help.

But the real problems will start when potential backers take a close look at the whole City Tatts situation.

Apart from all the obvious mismanagement, fraud and corruption in the Club, they will soon realise that there are so many building problems involved it could be years before it gets off the ground.

So even a Chinese financial backer who might be willing to take it on could simply decide to move on to another project that will happen a lot sooner, because it has less problems.

And you never know when one of your potential backers in China might be arrested as part of the crackdown on corruption.

Remember, this is why Mirvac were selected in the first place – they could tackle the project without having to find external finance.

City Tatts Information Desk


Will this developer EVER build at City Tatts?

A member made a strange prediction last week.

He said “You know, this developer will probably never build anything at City Tatts”.

That sounds very strange the first time you hear it, but a lot of very strange predictions about City Tatts have turned out to be right.

About four years ago there was a truly bizarre report that Tony Guilfoyle was planning to build a hotel at City Tatts. Even members who were fully aware of all the rorts at the Club thought that prediction was way off.

Well guess what, Tony Guilfoyle is now planning to build a hotel at City Tatts.

Anyway, this member was quite definite in his view that the developer will probably never build anything at City Tatts.

He based this on a few reasons but, first and foremost, that IT COULD BE YEARS BEFORE THIS DEVELOPER GETS PLANNING PERMISSION TO BUILD, IF HE EVER GETS IT.

He has a point. Mirvac couldn’t get planning permission so why would a developer who has never built anything in Sydney be more successful?

City Tatts Information Desk


What about the David Jones tower?

In all the talk about what is going to happen on the City Tatts site, one thing seems to have been forgotten:

What about the David Jones tower?

David Jones plan to build a tower on their site at the corner of Market and Castlereagh streets, backing on to the City Tatts site.

This means the David Jones tower will directly face the City Tatts tower – and be built around the same time.

Common sense tells you that neither of these towers can be built without taking the other into account.

And Sydney Council could not make any decision on either building without regard to the other.

So far, David Jones have told City Tatts they were not interested in any deal.

After the postal vote in favour of proceeding, David Jones just might be tempted by another approach from City Tatts.

But the stigma around the whole City Tatts scheme is so strong, especially since Mirvac dropped it, that they will probably decline and wait to see what happens to the Club.

City Tatts Information Desk