SUNSET PAY LESS THAN SMALL HOUSE RENTAL IN FREMANTLE
Sunset Venues received the keys to J shed’s number 1 studio today (Thursday 6th July) and will pay only $402 per week on the prime property, representing a lower rent than many families pay for a small home or apartment in Fremantle.
The rent, described by Fremantle Council as a ‘startup’ figure, is granted under a scheme designed to help companies establish new businesses in the city.
Sunset’s 21 year lease over no.1 J Shed was activated last Saturday morning, the rent will not increase until 1st July 2018. They will then pay $800 per week and will not pay the full rental figure, $1616 a week, until July 2019. The rent has been described as ‘too low’ and a ‘peppercorn rent’ by critics of the plan.
Had council insisted the site was activated, with full rent, in 2015 ratepayers would have been better off by about $255,000.
The council will only receive approximately $60,000 over two years.
Mayoral candidate Ra Stewart, has mentioned that council should not be responsible for Sunset’s poor management.
ARE THEY SUITABLE TENANTS? – NUMEROUS COMPLAINTS
At a public information meeting in the Council Chamber two years ago David Chitty, a director and principle spokesperson for a number of related companies, was asked, ‘What will you do with regard to public behaviour after your concert events?’
He replied, “I have no responsibility for the behaviour of people when they leave the venue”. In fact he does but seems to be blissfully unaware of laws related to licensed premises.
There have been numerous complaints in relation to concerts held in Fremantle, including those held by Sunset at the J Shed venue. Fremantle residents spoke of people vomitting, defecating and urinating in the streets and doorways after the concerts. There were also complaints of vandalism and excessive noise. Anecdotal evidence suggests that immediately Sunset’s concerts finished security guards, who searched concert patrons before entry to venues, were stood down.
Chitty was also asked what he would do in relation to people listening to concerts from public spaces. He replied that he would ‘call on the police’ to remove people from those locations. That is an indication he may only be interested in guarding profit margins at the expense of legal considerations for public behaviour.
FUTURE CONCERTS ARE POSSIBLE
A licensed bar of 400 people is not likely to be trouble free. There is also an underlying opinion that there will be concerts. The application for the site’s activities says there will be no ‘paid’ music. This could mean that unpaid musicians may be used and the potential remains to apply for professional concerts later.
The Sunset companies are struggling to pay their suppliers and have failed to reactivate the Drill Hall where Fly by Nite operated. Could this lack of activation be because the Sunset companies have a reputation for not paying their suppliers and artists and musicians are not prepared to work for them? Sunset had applied for a delay of lease activation for 12 months. A principle reason was related to financial instability.
COUNCIL APPLY PRESSURE: FICRA SAY ‘SUNSET IN BREACH OF LEASE’
Council placed Sunset under pressure to perform following a unanimous vote to refuse an additional 12 months grace before the lease’s activation.
The Fremantle Inner City Residents Association (FICRA), in a submission to Council, outlined a number of issues related to Sunset’s inability to manage the site successfully. They say Sunset is already in fundamental breach of the lease by failing to “use its best endeavours” to secure necessary approvals by the required time. They also say, “Given that Sunset have known since the lease was signed in 2015 that they have had no financial success in the interim period it is unlikely they will gain large investment funding”.
It now rests with Fremantle Council to ensure the lease is implemented and, in the event of default, take rapid action, possibly to evict the company and revoke the lease.
CONTINUING FAILURE ‘ALMOST CERTAIN’
FICRA outline, ‘There will almost certainly be a continuing failure by the lessee to meet fundamental obligations saying, ‘The unwillingness or incapacity of [Sunset] to pay the already reduced rent (25%) does not suggest willingness or capacity in the future to provide substantial investment as the lease contemplates’.
HAVE YOUR SAY
A few days remain to contact council and express your opinion in relation to the revised plans for J Shed.
This link will take you to the web site.
Roger Garwood : Editor