RSL Clubs could be the next victim of Sydney property boom

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media
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Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

South Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

Hurstville RSL Club in Hurstville Photo: Dominic Lorrimer/Fairfax Media

The RSL Club used to be part of the social fabric, a place to go for a special occasion or a cheap meal when mum or dad couldn’t be bothered cooking or for a few quick drinks after work.

Many are now fighting for their financial futures due to a combination of falling patronage, outdated facilities, demographic changes and competition from modern alternative entertainment options.

But where many see an outdated and tired business model and board members heavy with age property developers see large, well-located freehold sites, ideal for residential redevelopment.

Take the current saga surrounding South Hurstville RSL and Hurstville RSL.

South Hurstville RSL is a financially strong club with an upward trajectory.

Hurstville RSL on the other hand been in the red for the past few years, with growing losses, declining revenues and dwindling net assets.

As a result, both have voted in favour of an amalgamation . However those decisions are being challenged by a group called “The Friends of Hurstville”, who prefer a plan for a mixed use redevelopment being put forward by property developer Will McDonald of Skye Pacific Properties Pty Ltd.

Mr McDonald  leads a consortium that includes Parkview Constructions and Dickson Rothschild Architects.

The chairman of the pro-development Friends of Hurstville group, Ed Mason, said a meeting held at Hursville RSL on August 10 (to vote on the decision to amalgamate) was a “farce” and that some members of Chinese background were unhappy.

When asked specifically about the vote, Mr Mason couldn’t confirm any actual numbers as he is not a member of Hurstville RSL. He was issued a membership card when he applied but said he then had his application refused at the board level.

Mr Mason did confirm there were about 120 people, all of which he said wanted to vote at the meeting, at a lunch meeting of the Friends of Hurstville group which was paid for by the property group led by Mr McDonald.

Hurstville RSL general manager Rod Bell, and the CEO of South Hurstville RSL, Simon Mikkelsen, refute Mr Mason’s and Mr McDonald’s claims and say that all votes have been conducted correctly and have been validated by a separate NSW Office of Liquor Gaming and Racing (OLGR) investigation.

“Everything has been done by the book to allow both clubs’ members’ wishes to proceed,” Mr Mikkelsen said.

Mr Bell said Hurstville RSL has looked over and rejected a number of property development proposals submitted for their site because the board considered they did not have the members’ best interests at heart and risked rendering the RSL insolvent.

“Our only and best chance of surviving as a community club is by joining with South Hurstville RSL,” Mr Bell said. “Club members should realise that if the developer gets control of this club it will be closed for up to two years and may never reopen.”

The NSW Independent Liquor and Gaming Authority has adjourned their decision on the amalgamation to assess the claims made by the warring factions. Mr Bell feels this gives the development proposal an unfair advantage.

“We now need the Minister Troy Grant to instruct ILGA to support the wishes of both clubs’ real members and not a bunch that are more than happy to see another RSL disappear in this Anzac centenary year,” he said.

The ILGA said it deferred its decision on December 17 “so it could receive further detailed submissions about claims it received questioning whether the correct steps had been followed in the merger process”.

A final decision is expected by March.

Two highly publicised  property development deals where financially stricken clubs have been “rescued”  by property developers are the proposed Balmain / Rozelle Village development deal and the Souths on Chalmers development deal.

Souths on Chalmers was put into administration and then closed, with significant debts, and Balmain Leagues have borrowed millions for lead time costs (to continue operating at a temporary venue) and still have no formal resolution.

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