Frankston Yacht Club: ratepayers to pay $890k for lease fit out
RATEPAYERS appear set to fork out almost $900,000 for more works at the troubled Frankston Yacht Club building.
South East
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RATEPAYERS appear set to fork out almost $900,000 for more works at the troubled Frankston Yacht Club building.
Confidential documents seen by the Leader indicate the council is close to signing leases for the upstairs restaurant/function and downstairs cafe areas.
But the documents also stated ratepayers would have to kick in $890,000 for fit out costs as part of the lease deal.
“Officers have attracted several proponents to the Frankston Yacht Club tenancies,” the documents stated.
“While the initial council contribution towards fit out costs was expected at approximately $1.5 to $2 million, officers have negotiated this down to a maximum $890,000.”
COUNCIL TO SPEND ANOTHER $345K ON FRANKSTON YACHT CLUB
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COUNCIL EMBARKS ON ANOTHER EXPRESSION OF INTEREST PROCESS
The Leader understands that a burger business is slated to take over the downstairs area, while a function centre operator is set to run upstairs.
Council “finished” the $10.7 million building in 2016, but did not install airconditioning or complete the flooring or ceiling upstairs.
Restaurateurs repeatedly baulked due to the huge fit out costs.
The report also stated it was vital to find a tenant as a third summer vacant would cause “significant reputational damage”.
Frankston Leader reported last August that a closed council meeting had voted to spend $345,000 on modifications including alterations to windows on the lower level.
Veteran council watchdog Hilary Poad described the situation as ridiculous and said those responsible should be held accountable.
“They are over a barrel and they have to offer incentives. The whole thing is a shemozzle,” she said.
Ms Poad said the debacle involving the yacht club building was one of the worst she had seen in the two decades she’d been actively involved in local government issues.
FACTBOX
* 2016: Frankston Yacht Club building completed and only yacht club moves in. Council says restaurant will be established upstairs and cafe downstairs.
* August, 2016: Leader reports negotiations break down between council and its preferred operator for the restaurant and cafe due to fit out costs.
* August, 2017: Council CEO Dennis Hovenden says fit out costs for unused restaurant and cafe areas could be as much as $1.5 million.
* August, 2017: Councillors vote to spend $345,000 on modifications including alterations to windows on the lower level.
* September, 2017: Auditor’s report reveals yacht club building hampered by multiple changes to the project and the lead consultant not being contracted to do anything other than the concept drawings.
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