By Bridget Cook
THE Tooradin Sports Club fears its future is in jeopardy if the City of Casey Council does not grant it an extended 50-year lease.
The sports club, which is home to five local sporting clubs, currently has 16 years left on its lease with Casey Council for the land that it currently operates from.
Manager Mark Griffiths said while that seemed like a long time, the club needed a longer-term certainty because of the amount of money the club is set to invest in gaming machines.
The extension of the lease is a matter which will be considered by the council at tonight’s (Thursday) council meeting.
However, Mr Griffiths said that the club had already received a letter from a council officer stating that the council’s management group had decided not to advocate for the extension of the lease – something he thought was still under discussion.
“The State Government recently changed legislation in regards to gaming machines,” Mr Griffiths said.
“We’ve now entered into a contract with the State Government worth $1.7 million for purchase entitlements to gaming machines, that will be paid over the next four and a half years.
“We then need to finance the gaming machines and continue to invest in facilities for the club.
“A brand new gaming machine is worth $25,000 and second-hand about $5000, and we are going to have to buy 42 machines.
“The banks won’t let us borrow that without some long-term guarantee.”
He said the reinvesting in the clubhouse and major renovation anticipated within the next three years was another reason for the requirement of an extension to the lease.
“The renovation is anticipated to cost between $1.5 to 2 million,” he said.
Mr Griffiths said the contract with the State Government was only for 10 years, and presumably after that is up, they will have to buy another 10-year licence at a similar price again.
“If we can’t get the council to renew our lease, then we can’t plan for longer than 10 years,” he said.
“Given that, the club will trade for the next 10 years and then be forced to wind up.”
Mr Griffiths said they were seeking a 50-year lease as that’s what the council had granted for the social club at Casey Fields, with a $1 a year term.
“We believe council set a precedent to sports clubs on council-owned land for a 50-year lease at $1 a year,” he said.
Mr Griffiths said he believed the council had even more reason to grant them the extended lease over Casey Fields.
“Casey Fields has no track record of it benefiting the community,” he said.
“Presumably, at Casey Fields it will be built to finance the football club and not the community in general.
“We are a not-for-profit organisation and return every dollar back to the community.
“We contribute to a broad range of local activities from schools to churches, pony clubs and not-for-profit activities in the region.”
Councillor Geoff Ablett will raise a motion at tonight’s council meeting that the sports club be granted a 50-year lease.
City of Casey chief executive Mike Tyler said the social club at Casey Fields obtained a planning permit in October 2005 and Gaming Commission approval in February 2007 and both approvals were still current.
“A longer-term lease was necessary for the site for the Casey Fields social club because the leasehold is required to provide security for a mortgage to secure finance for the construction of a facility likely to cost approximately $8-9 million,” he said.
