Archive for December 2015

How many members does City Tatts have?

The most basic piece of information any club can offer about itself is how many members it has.

Well, in a normal club.

But City Tatts is not normal.

Around 2010 Tony Guilfoyle decided to stop revealing member numbers in the Club magazine, or in anything else that members might read.

So, for example, in the recent 80 page “Explanatory Memorandum” it is not mentioned once!

His move was not a complete surprise – he started with 34,000 members and had already lost over 14,000 by then. (Yes, 14,000, that is not a misprint.)

Since then he has continued to lose members at the same rate.

Around 2012 it got so bad he started to give $150 in vouchers to attract new members. By then, membership had fallen to 16,000.

The $150 voucher scheme was more window-dressing than a genuine attempt to attract members. It was done mainly to reassure the banks that the fall in membership had stabilised.

But there is no long term benefit to the Club, and it is really quite a stupid promotion. National Australia Bank were not fooled.

The other stunt to prop up member numbers was to award more Life Memberships. There are now 2,000 Life Members. (Yes, at City Tatts one in seven is a Life Member! )

So how many members are there at December 2015?

If you took out the spurious Life Members, and the $150 new “voucher members” (most of whom will leave as soon as they use the vouchers) we might be down to 10,000 members.

Save City Tatts Committee

Posted December 26, 2015 by savecitytatts in Uncategorized

City Tatts on the Gold Coast!

Gold Coast property developer Phil Sullivan and a former colleague have been fined $65 million by the Federal Court for corporate law breaches.

The action was launched by investors in the City Pacific Mortgage Fund, which lent millions of dollars to property developers mainly on the Gold Coast.

The court found several former executives, including Mr Sullivan, had breached the Corporations Act.

But Mr Sullivan told the ABC he did not think he had done anything wrong.

“Not at all, not at all. I am very, very proud of what I’ve achieved.” Mr Sullivan said.

Mr Sullivan, one of four original directors, blamed the banks for the fund’s problems.

“It all went wrong when the CBA ┬ájumped in and decided to call their $240 million in in a matter of 92 days, we just couldn’t manage it and …. that was the beginning of the end.” Mr Sullivan said.

But at the judgement, Federal Court Justice Michael Wigney was scathing about Mr Sullivan.

“This is a tale of a rapacious Gold Coast property developer with grandiose plans.” the judgement said.

“He was a man prepared to lie about his involvement in key events so as to extricate himself from blame or responsibility.”

THIS IS CITY TATTS ON THE GOLD COAST!

And the key point is that the events happened in 2009. That’s how long it took to be examined in court.

It’s important to point out that City Pacific did not set out to cheat anyone. They were just a property developer and lender that was over-extended during the GFC.

Any wrongdoing at City Pacific would be very minor compared to the fraud and corruption that has gone on at City Tattersalls Club for 10 years now.

And if any court ever looks at the Bookmakers Superannuation Fund …. well, John Kennedy and the other three amigos could be behind bars.

Save City Tatts Committee

 

Posted December 18, 2015 by savecitytatts in Uncategorized

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Colliers fee will be the next bad news drip

The next bad news drip could well be Colliers fee.

Real estate agents Colliers ran the Expressions of Interest campaign to find Mirvac.

When Mirvac walked away, they ran a second Expressions of Interest campaign and this time awarded it to a developer who has never built anything in Sydney, who happens to be already in partnership with Colliers.

Yes, Colliers sort of awarded the contract to themselves.

You can imagine how that would look in the Supreme Court.

But that’s a story for another day.

The real question is how much Colliers were paid for all this.

Property industry sources say their fee would be at least $500,000 and could top $1 million.

According to the City Tatts accounts, no fees of this size have ever been paid to Colliers.

Which means that they will have to be paid now, or more likely, in early January (to avoid disclosing it in the 2015 financial  statements).

But the real point about the Colliers fee is what it does to the total spent by the Club on the property development to date. In the “Explanatory Memorandum” members were told this was $1,950,000.

Once you add in the Colliers fee to the other fees already paid the total is well over $2,500,000.

Which means the $1,950,000 quoted in the “Explanatory Memorandum” is pure fraud.

Save City Tatts Committee

 

Posted December 16, 2015 by savecitytatts in Uncategorized

What will be the next bad news drip?

Since 2012 Tweedledum and Tweedledee have conspired to conceal anything that would expose their property scheme, until the last possible moment.

The plan was to push the project so far that members couldn’t stop it, and then drip-feed out the bad news.

Here is a quick sample of the bad news drip so far:

LEASEHOLD APARTMENTS

At first the apartments would be sold as leasehold only, with the Club retaining the freehold title. Six months later Pat Campion “discovered” that the leasehold sale plan was “not feasible” – but he went ahead anyway with the project even though the main reason for doing it had gone.

MIRVAC’S DEVELOPMENT APPLICATION

Mirvac’s DA was going really well and Sydney Council were “very happy” with it. Yes, until ten months later when Sydney Council told them to withdraw it!

THE AMOUNT SPENT BY CITY TATTS ON THE PROPOSED DEVELOPMENT

First it was “at no cost” to the Club. Then it was $50,000. Then $100,000. Then $290,000. Then $1 million and finally, in the “Explanatory Memorandum”, $1,950,000 !!!

This is all fees, by the way – there is no actual construction to show for any of this.

So what is the next bit of bad news likely to be?

Some suggestions:

INTERIM CLUB?

Is it just possible that the plan to stay open during construction may turn out to be “not feasible”?

FIT-OUT COSTS?

At the very last “information” meeting Pat Campion admitted for the first time that the Club would have to borrow at least $7 million to complete the fit-out of it’s own floors in the new club. What are the odds that this rises to $8 million, then $10 million and then $14 million?

Any other suggestions?

Save City Tatts Committee

 

93% in favour? Impossible!

Patrick Campion claims that 93% of members voted in favour of his insane property development.

Well, at least now you know the postal vote is rigged.

If you have any experience with elections you will know it is almost impossible to get over 90% in favour of ANYTHING.

And if you talked to members around the Club in the last few months half were either against the scheme, or at least very worried about it (which nearly always means they vote against it).

Even allowing for an “information” campaign that was corrupt from the start and ended with the most dishonest “Explanatory Memorandum” ever seen in Sydney, it is unlikely this conned enough members to explain the vote.

And Carl Melvey and the Ski Club (long-time stooges for Tony Guilfoyle) could not have rounded enough votes to get past 90%.

So 93% in favour?

Impossible.

Save City Tatts Committee

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.

Save City Tatts Committee