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Owner of ATET sues council after being shut down within a year of opening

The owner of ATET has written to the Local Government Minister to request a review into Town Hall’s actions after the Docklands bar was controversially shut down by the City of Melbourne due to noise complaints.

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The owner of the floating bar in Docklands that was controversially shut down by the City of Melbourne has written to the Local Government Minister to request a review into the legality of Town Hall’s actions and a broader inquiry into unfair local government practices.

ATET was shut down by the City of Melbourne in June 2023 – after launching with Town Hall support in October 2022 – after receiving noise complaints from nearby Docklands residents.

In a letter to Local Government Minister Nick Staikos, seen by the Herald Sun, ATET owner Jake Hughes claims that the council “unlawfully terminated” the venue’s licence to operate “in inexplicable circumstances”.

“I formally request your urgent intervention regarding this unjust decision, which has resulted in the forced closure of a venue that quickly became an integral part of Melbourne’s cultural landscape,” he said.

Jake Hughes, owner of Atet, is suing the council over the closure. Picture: Jake Nowakowski
Jake Hughes, owner of Atet, is suing the council over the closure. Picture: Jake Nowakowski
ATET nightclub Docklands was open for less than a year. Picture: Supplied
ATET nightclub Docklands was open for less than a year. Picture: Supplied

“The actions of the Council represent a severe overreach of power, setting an alarming precedent that could have devastating implications for business confidence and fairness across Victoria.”

Mr Hughes said the council terminating the venue’s licence to operate had “resulted in devastating financial and emotional consequences” for the business and his family.

“If local councils can arbitrarily shut down a legally compliant business without accountability, it undermines the rights of businesses to operate freely and fairly, erodes confidence in Victoria’s regulatory framework and creates an unpredictable, hostile environment for all business owners,” he said.

The letter calls for Mr Staikos and his department to review “the lawfulness and procedural integrity” of the council’s decision and to “initiate a broader review of the powers afforded to local councils to ensure such overreach cannot occur again in Victoria”.

Mr Hughes has launched legal action against the City of Melbourne in the Supreme Court to settle the dispute over ATET’s closure. It’s understood that both parties will enter court-ordered mediation in coming months.

Hughes is locked in a legal battle with the City of Melbourne after they cancelled the nightclub's licence. Picture: David Caird
Hughes is locked in a legal battle with the City of Melbourne after they cancelled the nightclub's licence. Picture: David Caird

Council Watch president Dean Hurlston said he would welcome a review into council powers and practices that impact small businesses in Victoria.

“We are inundated with examples and complaints from the members of the public that show councils have failed to give procedural fairness and natural justice in a particular matter,” he said.

“There have been other examples sent to us where it is clear that councils have been biased in their decision making and targeted individual people or businesses.”

“The local government sector may no longer be fit for purpose and any review that examines these issues in depth is something that we would welcome and many local businesses would support.”

The City of Melbourne and the Victorian Government declined to comment when contacted by the Herald Sun.

Originally published as Owner of ATET sues council after being shut down within a year of opening

Original URL: https://www.themercury.com.au/news/victoria/owner-of-atet-sues-council-after-being-shut-down-within-a-year-of-opening/news-story/e92865b3b6c5cb13a74dccace35bc648