RMS pulls pin on support for doomed Mosman Rowers Club
MOSMAN Rowers faces being sold off after the RMS shut the door on a new long-term lease agreement after years of being burnt at the hip pocket by the embattled club.
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MOSMAN Rowers faces being sold off after its landlord, the Roads and Maritime Services, this week shut the door on a new long-term lease agreement after years of being burnt at the hip pocket by the embattled club.
The club, a feature of Mosman Bay since 1911, went into administration in May with debts of more than $500,000 — including thousands of dollars in rent arrears to the RMS — and the property falling into disrepair.
A creditors meeting last month saw it granted a stay of execution as it fell $50,000 short of the $150,000 it needed to stay afloat.
Administrators Ferrier Hodgson were also calling for a new 20-year lease with the RMS which would include substantial concessions including a rent-free period of up to three years.
In response, the RMS has ruled out any further support as the club’s battle to keep liquidators from the door appears over.
“This is not a decision we have taken lightly,” RMS executive director Angus Mitchell said.
“Roads and Maritime has done all it can to help this venture be successful, including providing financial concessions over many years and offered very generous terms in relation to an ongoing tenure.
“In a further show of good faith, Roads and Maritime offered the administrator a new 10-year lease with a further five-year option. The offer was made despite Roads and Maritime being owed rental arrears and the club not previously having met lease obligations in relation to maintaining the property, which have fallen into disrepair.
“In the event the club is placed into liquidation, Roads and Maritime would take the property to the market either via an open leasing or Expression of Interest basis.”
The Daily can also reveal that since 2011 the club has failed to take advantage of tens of thousands of dollars in grants approved by the State Government.
Documents show that Mosman Rowers has been awarded $142,000 in community grants, but that only $30,000 has been claimed by the club.
In 2014, the club was awarded $30,000 for a kayak excavation project. But, according to the grants approval document, “they withdrew after being told they were successful for the grant”.
Last year it was awarded a $45,000 grant for building upgrades, but it failed to respond to a “compliance issue”.
“The money is still sitting there if they can provide the information,” the government document says.
Mosman Rowers’ acting president, Tim James, yesterday hit out at the RMS over its “blunt and bureaucratic decision”.
“This is commercialisation of an iconic, heritage, community asset,” he said.
“This local icon is precious and irreplaceable. It’s a very sad day for community.”
Mr James said the club would continue the fight to raise the $150,000 before an extended September 28 deadline. He said “we’re now at about $110,000”.