City of Melbourne was determined to shut floating Docklands nightclub ATET, whistleblower claims

The City of Melbourne was determined to shut down controversial floating nightclub ATET and ignored reasonable suggestions by its owner to deal with noise issues, a council whistleblower has claimed.

The City of Melbourne was determined to shut down controversial floating nightclub ATET and ignored reasonable attempts by the small business to stay open, a whistleblower from within council has revealed.

ATET had its license terminated by Melbourne council due to what former Lord Mayor Sally Capp described as “record” numbers of complaints from residents in Docklands, where the club was moored.

The club’s owners have long maintained the council ignored several good faith proposals to allow it to operate in compliance with noise restrictions, including an offer to entirely enclose the venue in soundproof glass.

A source from within the council alleged ATET’s owners’ claims were correct.

“The council had no desire, at all, to find a resolution,” the internal council source familiar with the shutdown of the ATET business alleged.

“This wasn’t about negotiation; it was about shutting down a small business.”

ATET owner Jake Hughes is suing City of Melbourne. Picture: Jake Nowakowski

City of Melbourne said it had a record number of complaints about the club. Picture: David Caird

The owners of ATET sued the City of Melbourne and state government body Development Victoria after their license was terminated, having lost an estimated $7m in earnings.

“We have done everything the council has ever asked of us and have been repeatedly blindsided by their actions not matching their words,” owner Jake Hughes said at the time.

“We are shocked at how unprofessional some of their behaviour has been.”

These protests have now been legitimised by a source from within the council.

“Even when multiple stakeholders queried why the situation wasn’t being resolved by a mutual agreement, there was no interest from the council,” they claimed.

“It felt like a co-ordinated effort by those in council to avoid finding a solution.”

Additionally, the source from within the City of Melbourne alleged Ms Capp and others involved in the decision-making process overstated the number of complaints from residents.

“The council states there were hundreds of complaints against the business, but no data has ever been provided or verified internally to support this claim.

“Publicly, only a handful of complaints were ever brought up in council meetings.

“There were no local rallies, petitions or protests against ATET, where were these hundreds of angry people? Nobody can answer that question.”

ATET nightclub Docklands.

The case between ATET and the City of Melbourne returns to court in February.

The source from within the council alleged they had needlessly allowed themselves to be drawn into costly, lengthy legal action at ratepayers’ expense.

“The council was explicitly warned this shutdown could lead to court action, they knew and intentionally bet on the business not having the resources to fight back against their decisions,” the source said.

“It’s a modern-day David and Goliath.”

“It was the opposite of behaving as a model litigant. I can’t see how the council could possibly survive the court case.”

The City of Melbourne and Development Victoria declined to comment, citing the ongoing court case.

Originally published as City of Melbourne was determined to shut floating Docklands nightclub ATET, whistleblower claims