SUNSET  SHAMBLES

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

editorbackchat@gmail.com

Advertisements

AUSTRALIA DAY CHANGE: NO 79%, YES 17%, DUNNO 3%

 

Australian Associated Press have reported that the Australian Local Governments Association (ALGA), gathering in Canberra, has today (Tuesday) voted 64-62  for councils to consider efforts they could take to lobby the government for a date change for Australia Day.

A statement issued by ALGA said: “The ALGA board noted the level of debate and the closeness of the result of the debate and will take these matters into consideration when determining a course of action.”

Of 560 local councils represented by ALGA only 126 were at the Canberra meeting. This leaves room for doubt as to an overall opinion of councils’ for a change of date for Australia Day.

VOTE COULD BECOME AN ELECTION BATTLE GROUND

The vote by the local councils represented by ALGA at the meeting was close but an online poll published today shows nearly 78.87% of the population do not want change, 18.44% do and 2.69% are undecided.

Fremantle Council initiated a change and the national debate this year. With local council elections due in October the issue of a change of date could become a campaign point for voters to consider.

Roger Garwood
editorbackchat@gmail.com

SUNSET’S J SHED SUBSIDY

SUNSET HAVE GAINED RATEPAYERS’  $105,000 ‘SUBSIDY’

In a lease approved by  Fremantle Council  for  Sunset Events ratepayers will fund a  $105,000 subsidy to help the financially troubled company to establish their micro brewery and 400 seat bar in J shed.

 

An extension of 12 months for the time in which Sunset implement the lease has been applied for and will be considered by council tomorrow, Wednesday 14th June.

In an application lodged with Fremantle Council   (7th July 2017) Benson Studio for Sunset outline a proposal which reveals a rent reduction of $105,000 in the first two years of the Sunset lease.

The rent for the lease  of the J Shed studio, situated on Arthur Head below the Round House and site for Sunset’s proposed micro brewery, is $83.950 per year. Over the first two years rent would have totalled  $167,900. Sunset are requesting they pay only $62,962 in that period. This represents a shortfall of $105,000 which effectively forces ratepayers to subsidise a private company’s startup. Several observers have commented that even without the subsidy the  rent is very cheap.

Buried deep in the 62 page lease the relevant clause states:

Item 8.       Rent: (clause 3.1)

$83,950.00 per annum plus GST

14.6     Rent Reduction

The Parties acknowledge and agree that during the period commencing from the Commencement Date and ending 24 months after the Commencement Date, the Lessee will pay Rent at a reduced rate and in the following manner

(a)        for the first year of the Term, the Lessee will pay 25% of the Rent; and

b)         for the second year of the Term, the Lessee will pay 50% of the Rent.

FINANCIAL CLOUD OVER SUNSET : ONLY ‘HOPEFUL’ THEY CAN PAY RENT

A number of  media outlets  have outlined some members of the events industry in Western Australia have had trouble paying creditors. Those businesses include Sunset who have been arranging financial settlements with their creditors.

Sunset are only ‘hopeful’ that extra time will help. The Application says: “Sunset has advised that it would be difficult in current circumstances for them to pay rent from July 2017 without the approvals they require to trade effectively. Sunset are hopeful that once approvals are gained, it will trigger investment and the ability to cover the rent and finalise the “Lessee Works”.

COUNCILLORS ADVISED  ‘REJECT EXTENSION ‘

The application for the extension also says: “Sunset Venues have had ample time to gain required approvals and that the lease considers the scenario in which approvals have not been granted by the lease commencement date. Therefore, it is recommended that the request for an extension until 1 July 2018 be rejected.”

Council officers state the proposed leasing arrangements may continue in a state of ‘frustration’. They say “In the event that the approvals are not granted, the lease will continue in a state of ‘frustration’ where no outcome is achieved other than activation …”

WHY SHOULD WE SUBSIDISE THEM?

Sunset’s management admit they are financially frustrated. Is it reasonable for ratepayers to subsidise them?

There has been considerable  angst among residents in the area of J Shed.  The issue of this lease and the request for a $105,000 ‘startup subsidy’ may have a strong influence on the outcome of council elections in October this year.

A number of councillors and organisations have been asked by Fremantle Backchat to comment.

North Ward  councillor Doug Thompson explained his considerations. He said: “Councillors are required to take into account a range of information before making a decision and to have an open mind  about decisions. My general approach to decision making is to give primacy to the information contained in the report and to the officers’ recommendation”

He continued:  “I keep an open mind ( as I am required to) in relation to information provided during a meeting and the issues raised in debate. In relation to your specific questions the decision in relation to the lease arrangements has already been made and is not being reconsidered. What I think about specific elements of the lease is irrelevant. The good governance recommendation by the Department of Local Government, and the Local Government Act,  requires me to support decisions made by Council, regardless of whether I, as an individual Councillor supported those decisions at the time.”

Ra Stewart, a mayoral candidate in the City’s October electoral said: “I am supportive of the officer’s recommendation to reject the extension of the lease commencement date. It would appear that Council has been fairly generous up to this point in time.”

‘KICKING THE CAN AROUND’

The Mayor and City Ward Councillor Rachel  Pemberton have declared a conflict of interest and feel in that circumstance they are not in a position to comment.

Maryrose  Baker and Robert Mehan of Fremantle Inner City Residents Association declined to comment saying:  “FICRA is currently preparing a formal response for Council re the latest Sunset Events J Shed proposal.  We don’t intend to issue any statements on the matter as an Association nor as individuals right now”.

John Dowson was asked to comment as  President of the newly amalgamated Fremantle Society and the Fremantle Residents’ & Ratepayers’ Association but chose to make a personal observation: “In terms of the J Shed lease Sunset may have a lot on their plate financially. Sunset and the Mayor may not want the lease to be a major election issue, raising again the question of the $5000 election donation from Chitty’s brother, and kick the can down the road until the October election is over”.

ELEPHANT IN THE ROOM A MAJOR ELECTION ISSUE?

If council approve the application for a delay the controversial elephant in the room may  be given a lease of life.  If they do not Sunset will need to implement the lease from 1st July this year, complete with the already agreed $105,000 rent reduction but still under their admitted financial difficulties.

It does seem likely that the J Shed lease and Sunset Events will become an election issue which will need to be addressed by all candidates, particularly those for City Ward and for the position of mayor.

 

‘No Broken Promise to Green’ : DOWSON

Fremantle Society President John Dowson denies breaking a promise to support Claudia Green, former chair person of  FRRA, the Fremantle ratepayers association.

 

In a statement emailed to Fremantle Backchat he said: “The Fremantle Society did not renege on any agreement about supporting Claudia Green for city ward because it never made a decision to do so”. He continues, “I gladly applauded Claudia Green running for council, and I applaud anyone else who does so too.”

He explained that in a Fremantle Society monthly committee meeting the committee voted to “endorse and support” two Fremantle Society committee members who wanted to run for council. They are Michael Finn for City Ward and Catherine Hammond for Hilton. He continued, “There was discussion about FRRA folding and the Fremantle Society taking on their members and their website. There was no decision to agree about Claudia Green coming on the committee.”

Mr Dowson has not confirmed whether  he received a copy of minutes of the FRRA meeting at which he is said to have made an undertaking to Ms Green to support her as a council candidate for City Ward.

LEAKED EMAIL

Fremantle Backchat has received a leaked copy of a letter, dated 7th June, written by Claudia Green to members of the Fremantle Residents and Ratepayers Association (FRRA). It also contained  a copy  of minutes of the FRRA meeting related to  the amalgamation with the Fremantle Society.

‘I HAVE A SOLID TRACK RECORD’ : GREEN

In her letter Ms Green confirmed her decision to stand for City Ward was the reason for resigning from FRRA  saying she has been a resident of Fremantle for 25 years. “I have a solid track record of community activism, through FRRA and other activities.

“After years of membership of the FS, I considered I warranted some consideration if there was to be FS endorsement of any member, as I am more than competitive, and I am the only local candidate so far that lives in City Ward.”

Ms Green outlined that the Fremantle Society’s decision to endorse ‘two of its own’  “… has excluded both me and Fidele Camarda, who put our hands up months ago, from consideration. This should be of concern to FRRA members (and FS members), as we entered the merger in good faith, expecting good governance.”

FS MEMBERS ‘NOT INFORMED’

She continued: “Unusually, for an Incorporated Association, the FS didn’t notify its membership that an item and motions to endorse their Committee members was on a FS Committee Agenda either.

“ …in conversation over the merger, early in February/March, when I announced my candidacy and the necessity to resign from FRRA, that support was offered by the President to me, and at the Special General Meeting of Members on 27 April 2017.

“Although the President now disputes this, a debate of ‘he said, she said’ won’t occur, as that commitment for support appears to be the least of the problems with these outcomes.”

Ms Green’s statement is contradicted in an email to FS members, dated 3rd June.  John Dowson said: “The Fremantle Society is very pleased that two of its committee members have volunteered for the daunting challenge of running for council in the October elections. Catherine Hammond and Michael Finn are both outstanding committee members with deep and long standing commitments to Fremantle, and the committee voted to endorse them both.
“The merger with FRRA had no conditions attached. The Fremantle Society and FRRA have always worked closely, and generally on similar issues.
“Claudia Green, in stepping down as Chair of FRRA announced that she was running for council and the Fremantle Society President made it clear he thought she was a very good candidate”.

‘A CAPACITY TO DISCRIMINATE AGAINST RATEPAYERS’

In her letter Claudia Green added:  “It is also, interesting that as the FS is also a Council Precinct and as such receives rate payer monies, that there is the capacity to discriminate against ratepayers, who put their hands up. Normally, Council Precincts, as a principle of equity, simply notify their members as to who is standing, rather than have a preference of ratepayers, without an apparent proper due process, equity or accountability and transparency”.

‘FUNDS CANNOT BE USED FOR ELECTIONEERING’ : CITY GUIDELINES

Precinct guidelines state: “City funds are for precinct purposes only and cannot be used for electioneering in local government elections.  The City acknowledges the role of the precincts in encouraging community interest in council elections.    The Local Government Act does not allow candidates to use council resources to assist in election activities. The City is also responsible for being objective, non-political and unbiased. As such, the City has specific guidelines relating to the use of City resources by precincts who wish to promote council elections”.

The guidelines do not appear to preclude precincts from using their own funds to support candidates.

SO WHY RELINQUISH FRRA?

Would Claudia Green have been better off not to have  relinquished FRRA? The organisation is not a precinct and it may have been possible for her to resign the chair and have the Association membership support her election campaign with no constraints related to council guidelines. She has not yet confirmed she will stand for council.

Roger Garwood : Editor : fremantlebackchat.org

editorbackchat@gmail.com

0418 921 735 

Fremantle Society Reneges on Pledge to Support Election Candidate

 

John Dowson, President of the Fremantle Society, has blamed The  Society’s committee for a change in support related to a potential candidates for City Ward in forthcoming elections. He describes himself as ‘A servant to the committee’.

The Society have reneged on a promise to support Claudia Green, the founder and former chairperson of the Fremantle Ratepayers’ and Residents’ Association (FRRA), in her campaign for a seat in City Ward at Fremantle’s October elections.

From February of this year Ms Green and John Dowson negotiated to amalgamate their respective organisations.

A Special General Meeting which included members of both organisations was held on April 27th. There was overwhelming support for the amalgamation.

The minutes of the meeting state:”John Dowson President of the Fremantle Society spoke to the group about the activity of the FS. He was sure that the merger would result in benefit to the community. He wished Claudia Green well and offered her support in her campaign for a seat in City Ward”.

NEGOTIATIONS ENSURED A PLACE ON COMMITTEE

Ms Green said: “In negotiations with John I am to be given a position on the committees of the amalgamated organisations and also be supported in my campaign for City Ward”.

Claudia Green is experienced in the processes under which governments and local governments have to operate. She is a critic of Fremantle Council’s apparent lack of correct process.

In 2012 she established FRRA, the ratepayers’ association, to gain support for and to represent Fremantle citizens.

A major exposé was made by FRRA, initially in WA Business News in 2014 and widely reported in the general media. Martin Lee, a financial analyst, had been alerted to the Council’s 2012 business plan for the development of King’s Square and new council offices. His analysis of the plan exposed  financial flaws in the council’s estimates which may result in a debt to ratepayers of between $30m and $50m .

Those figures were supported by the Fremantle Society. A financial analyst contracted by The Society concluded the City is ‘technically insolvent’.

Claudia Green resigned from the chair of the FRRA in order to run her election campaign for a City Ward seat. Her platform will include issues related to the King’s Square Business Plan.

DOWSON PROMISE TAKEN ON FACE VALUE

Last week it was revealed that Dowson and the Fremantle  Society Committee had ignored the undertaking  made to Claudia Green, who has been a City Ward resident for 25 years,  and will instead support Catherine Hammond in Hilton and Mike Finn in City Ward.

Mike Finn is a resident of Cottesloe and proprietor of Kakulas’ Sister, a popular grocery store in Market Street.

The minutes of the special general meeting have been confirmed by FRRA secretary, Dr Elena Monaco, who said in an email to Fremantle Backchat:”With regard to the minutes of the FRRA meeting of 27 April, I took the minutes and they reflect what happened. John made his statement and those present took it at face value”.

‘THIS IS APPALLING’ – CITY WARD RESIDENT

Suzanne John, a long time resident of City Ward, was at the general meeting and agreed with the version of events which outlined John Dowson’s promise.

She said: “I am appalled by this”, explaining that she is not a member of the Fremantle Society. “We have little hope with this mysterious Mike Finn, I’m told he is a businessman. So is Nabor and look what happened there. No one had ever heard of him before the election, or for that matter, since!!!! I am supporting Claudia Green.”

“I AM A SERVANT OF THE COMMITTEE” – DOWSON

The Fremantle Society has not made an official announcement related to support for Hammond and Finn. John Dowson was asked if the report of the broken undertaking was true. He was asked: “…a point which has emerged, related to the elections and City Ward in particular, is that the FS/FRRA plan to support Michael Finn (Kakulas’s Sister) as a City Ward candidate.

“Does it mean they may be supporting two candidates? The joint press release from FS & FRRA said the combined organisations would be supporting Claudia Green.

“The amalgamation was given as her reason for letting go of FRRA, to give her the time and space to run a campaign. Could you clarify that situation?”

A copy of the relevant minute, related to Dowson’s undertaking of support for Green was attached with the question.

Mr Dowson replied:”There is a surfeit of good talent having Claudia and Mike running but there is a lot going on behind the scenes. The FS committee is fortunate in having two members of its committee running and the committee has voted to endorse and support Catherine Hammond for Hilton and Mike Finn for City. I am obviously a servant of the committee.”

SO WHO APPROACHED WHOM? WHAT’S THE RELEVANCE?

Mr Dowson was also asked: “One point made is that you approached Mike Finn to sit on the FS committee. Is that accurate or did he approach you?”

He replied: “Not sure [of] the relevance of what might have happened months ago.”

The relevance is that if Dowson approached Finn (or vice versa) ‘months ago’ that approach may predate the negotiations held with Green in relation to an amalgamation. The FS President may already have made a commitment to Finn to support him in his run for a seat in City Ward. If that is the case the commitment by Dowson to include Green on the committee of the combined organisation, as well as his statement of support at the special meeting only a month ago, may have been misleading.

PRESIDENT ON LEAVE

The Fremantle Society President is reported to have left Australia for two months travel. Vice President Robert Bodkin has been asked, in Mr Dowson’s absence: “John Dowson has described himself as a ‘slave of his committee’. Would that be an accurate description and does it reflect the meeting at which the decision to support Finn was made? Who proposed and seconded Finn? Who asked Finn to join the FS committee? He was not elected.

At the time of publishing no answer had been received.