Stamford Grand threatens Holdfast Bay council with legal action over Jetty Rd upgrades
The war between the Stamford Grand and the local council over the Jetty Rd upgrade has escalated, with the hotel threatening court action over “damaging” statements.
Glenelg’s Stamford Grand hotel is threatening legal action against the Holdfast Bay Council over “false and damaging” statements about the hotel’s request for financial compensation following months of disruption caused by upgrades to the Jetty Rd precinct.
A $30m upgrade of the landmark property is also in doubt as the war of words between one of the area’s largest employers and the local council escalates.
The hotel has been seeking a public apology from the council for the “reputational harm” caused by comments suggesting Stamford had cancelled a meeting to discuss the Jetty Rd project, and a letter circulated to councillors that suggested the council had only heard from the Stamford about its request following media reports about its financial plight.
In a letter sent to the hotel on Monday, Holdfast Bay Mayor Amanda Wilson says a clarification was issued to Channel 7 reporter Hannah Foord explaining that a meeting had not been cancelled by the Stamford Grand, and that an “error” had taken place within council administration.
But the hotel says the letter fails to address “several critical inaccuracies”, including the fact that the Stamford had contacted the council with a request for a meeting on several occasions, via email and telephone, before it approached the media with details of its request for financial compensation.
It is seeking a formal written retraction and apology to all media outlets that received or reported on the council’s statements and all councillors who were provided with the “false information”.
“This letter serves as a formal notice that the statements complained of remain false and that Stamford reserves all legal and equitable rights, including the right to pursue damages and injunctive relief without further notice,” Stamford’s southern region vice president of operations Andrew Donadel says in a letter sent to Ms Wilson on Monday.
Holdfast Bay Council has previously rejected Stamford Grand’s plea for rates relief despite the Jetty Rd construction chaos forcing the hotel to partially close during peak season and cut hours for staff.
Hotel management will meet with Holdfast Bay Council chief executive Pamela Jackson and council staff on Thursday to thrash out a solution to the financial chaos caused by the upgrade works, which have left many traders on the strip in a fight for survival and others shutting their doors altogether. Mrs Wilson will visit the hotel for separate talks on Friday.
Mr Donadel said he would be seeking financial assistance for traders affected by the roadworks at Thursday’s meeting.
“We’re after some relief and compensation for the businesses of Jetty Rd. It was reported yesterday that another business (Yiros Shack Cafe) has closed down after 30 years. How many businesses will need to close before the council realises they need to step in and throw a lifeline? They need to take some action because there’s going to be no one left,” he told The Advertiser on Tuesday.
“We’re also going to ask for continued consultation. On Thursday we were sent an email saying the main street leading to Stamford Grand would be closed for two weeks from Monday. They’ve proposed another route to get to the hotel, but that other road is a very narrow street, and buses, coaches and all of the vehicles that deliver our linen, food supplies, etc. would not fit on that street.
“They (council) need to understand who is impacted by the decisions that they make. Don’t just send an email out saying that this is happening in two days’ time.”
It has also emerged that a $30m upgrade of the hotel, including upgrades to the lobby, hospitality venues and rooms, has been put on hold due to the Jetty Rd upgrade. It was previously scheduled to start in April or May of next year.
“In recent conversation with C K Ow, chairman of Stamford Land Corporation, the parent company of Stamford Hotels & Resorts, he mentioned that due to the shabby treatment the council has shown toward Stamford Grand Adelaide, he has no basis on which to recommend to the board that this refurbishment proceeds,” Mr Donadel said.
Holdfast Bay Council has been contacted for comment.
Originally published as Stamford Grand threatens Holdfast Bay council with legal action over Jetty Rd upgrades
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