COUNCIL ADMINISTRATION ADVISE ‘KILL THE LEASE’
RA STEWART: ‘COMPANY’S LACK OF DUE DILIGENCE SHOULD NOT BE COUNCIL’S PROBLEM’
Tomorrow night (Wednesday, 28th June) Fremantle council will consider what to do with the troubled Sunset Venues’ lease.
As a result of financial issues the company’s request for a 12 month period of grace before their lease is implemented will be decided by the full council.
SUNSET ‘LOOK LIKE MOBSTERS OF ROCK – THEY’RE ON THE NOSE, FROZEN FREO’S LIVE MUSIC SCENE’
A critic of the Sunset companies, Robby Lang, said in a comment to Fremantle Backchat: “Sunset have frozen the live music scene in Freo for the past 3 years with their inaction on the old Fly by Nite site and J shed.
“These sites should be given to people whose actions will benefit the community. Sunset is on the nose and for council to prop them up is bullshit. Unfortunately they are looking like the Mobsters of Rock, Not paying their sub contractors etc.”
Sunset have admitted to financial problems in settling outstanding debts and now wish to implement the J Shed lease on 1st July 2018. However Sunset Events are a different company from Sunset Venues but it appears that Sunset Venues, who have a lease on the old Drill Hall in central Fremantle, are not in a position to activate plans for the former location of the ‘Fly By Nite’, a popular music venue.
COUNCIL ADMIN ADVISE CONDITIONS MUST BE MET OR KILL THE LEASE
The lease is due to be activated this Saturday, 1st July. Sunset Venues have said they hope a 12 month extension before activation may trigger investment. They offer no guarantee that granting extra time will succeed in attracting investors.
Council administration have recommended an alternative suggestion to councillors which includes granting additional time but concluding that if conditions are not met : “ [by] the deadline of 1 December 2018 … the lease is terminated”.
Councillor Doug Thompson who voted against the company’s request for an extension at Council’s Finance, Policy, Operations and Legislation Committee meeting on 14th June feels the administration’s alternative proposal is preferable. He said: “This would also mean that Sunset Venues must show they have the financial capacity to deliver the Lessee works to Council’s satisfaction. Subject to hearing the debate I have a view that an earlier date than December 2018 for conditions to be met has merit. Of course Sunset Venues would have to agree to any condition precedent being included in the lease.”
$105,000 SUBSIDY ISSUES
The issue of a $105,000 subsidy has been raised and compared to the withdrawal of $97,000 funding from the Wirrawee Woman’s Refuge. The term ‘subsidy’ was challenged by a reader on the Freo Massive Facebook page.
Whichever way this reduction in rent is considered it is a subsidy. It is designed to assist Sunset Venues establish a brewery. The term ‘assist’ is a direct translation of the Latin ‘subsidium’ from which our language gets the word ‘subsidy’.
City Ward Councillor Rachel Pemberton explained there is no comparison between the withdrawal of Council funding from a womens’ refuge in 2015 and the funding of Sunset’s project.
She said: “The State Government significantly cut funding for Warrawee and so we decided not to tender to run the service and allow a specialist service provider take over. The operator that won the tender has taken over the management [Warrawee still exists and operates in Fremantle] and has other refuges so can provide a better service more efficiently than we could”.
Ms Pemberton continued, “Council was committed to direct its previous funding to Warrawee to provide specialist legal advice at the Fremantle Community Legal Centre to help people, including women fleeing domestic violence, avoid becoming homeless”.
RA STEWART: ‘PRIORITY IS TO SUPPORT THE VULNERABLE : NOT IN COUNCIL’S BEST INTERESTS TO SUPPLY CONCESSIONS ON LEASES’
Mayoral candidate Ra Stewart commented: “The Warrawee Women’s Refuge provides safe, affordable and supported crisis care accommodation for women and children subjected to domestic and family violence. This service was managed by the City of Fremantle until 2015, after which time Council decided not to reapply to run the service thereby saving approximately $100,000 per annum. Given the recent focus on domestic violence at both State and Federal levels of government, and its social impact on our community, my priority would most certainly have been to continue to support these vulnerable members of our community”.
Commenting on the J Shed brewery proposal Ra Stewart said: “It is important to attract interesting and viable businesses to the City of Fremantle for the enjoyment of all, it is not in Council’s best interests, nor the ratepayers it represents, to provide concessions on lease agreements, or absorb the costs of a company’s oversight in regards to the due diligence around its commercial arrangements”.
Roger Garwood : Editor