Fortis director Charles Mellick’s purchase of council-owned Point Piper land raises questions

The pending sale of a patch of unused council land to an eastern suburbs developer risks the perception council has a conflict of interest in its multiple business dealings, one councillor claims.

Plans by Woollahra Council to sell a patch of land to the director of a prolific eastern suburbs development company has triggered fears of a perceived conflict of interest.

Charles Mellick, director of Fortis Development Group, requested to buy 154sqm of road reserve land next to his Wyuna Rd, Point Piper home three years ago.

However, since then his professional dealings with council have complicated things. Mr Mellick is the executive director of commercial real estate investment company Pallas Capital and development group Fortis. Fortis is involved in Woollahra Council-led plans to transform Double Bay’s Cross Street car park into a boutique cinemas, with retail and commercial space.

At a recent council meeting where the sale of council land was discussed, a number of councillors raised concerns about the complicated crossover of Mr Mellick’s professional and private life.

Residents First councillor Luise Elsing said council should seek legal advice on how to best manage the perceived conflict of interest in its dealings with Mr Mellick.

Artist’s impression of proposed Cross Street carpark redevelopment at Double Bay. Picture: Woollahra Council

“There is a perception in the community that we have entered into quite a complex, irreversible, negotiated position with Fortis over the Cross Street car park,” she said.

“Now we’re having a transaction that may be perceived – and I’m not talking about whether it’s actual – there’s a perception that there could be a personal benefit to the director. And I think that that puts us in a position where perhaps we need to get some advice about that.

View from 30 Wyuna Rd, Point Piper. Photo: RealEstate.com.au

“I would much rather that we’ve had clear advice about managing conflict before we make decisions that could be perceived as benefiting individuals.”

Council’s senior property officer had recommended council move ahead with the sale of the land for $2,993,636 excluding GST.

Woollahra Council’s general manager Craig Swift-McNair said the two property dealings - being the Wyuna Rd sale and Cross Street car park - were “very separate”.

Several councillors argued concerns over the perceived legal issues represented a “furphy”, when in fact the sale was the best possible solution for the unusable council-owned land.

30 Wyuna Rd Point Piper. Photo: RealEstate.com.au

Charles Mellick. Photo: supplied.

Greens councillor Nicola Grieve said it was a rare occasion where she agreed with the sale of council land, noting the verge was on a steep hill.

Liberal councillor Toni Zeltzer said the option to purchase the patch of land was open to any member of the public, with council records showing Mr Mellick paid top dollar without any discount and with community consultation that supported the sale.

Mr Mellick told the Wentworth Courier the two matters were completely unrelated.

“The price paid by me ($3.2 million) does not reflect the limitations on usability of this small land parcel,” Mr Mellick said.

“Until recently, Woollahra Council discounted the sales price of small, unusable land pockets to reflect the limited potential of the land and I believe I am the first person to not receive any discount in the sales price.

Mr Mellick said Fortis and its partner Assembly Funds Management were working closely with Council and the community to continue to develop the Cross Street car park. Fortis was appointed to this project after a long and intensive review process run by Woollahra Council, which attracted over 20 proposals for the site.

Council amended the motion nine votes to five to reflect that all processes had been followed in relation to managing potential, perceived, or actual conflicts of interest.

The motion for the sale to move ahead was carried nine votes to five.