MAGEE: outlined the leases – $45,000 for ‘head lease’; Neerim Road stables ‘$10,000 a year’. Explained how much properties near the racecourse pay and noted a McDonald’s store pays $180,000 rent per annum and Hungry Jacks pays $271,000 per annum in rent. All the racecourse is paying is ‘around $80,000’.
DELAHUNTY: said that ‘there’s much that we don’t know’ and she certainly didn’t know as much as Magee but she does know some things by ‘virtue of having met with people from the MRC’. Said that she knows that leases are currently being ‘negotiated’ and that they’ve ‘expired’ but been ‘extended’ to give more time to the negotiations. Stated that there had been 2 separate valuations – by two sections of the trust. These two valuations are so vastly different that ‘they can’t come to agreement’ about how much to charge. As a result an ‘independent body must be involved’ and that’s the valuer general. Also said that to get this done then council has to ‘take the steps’ that Magee proposes. Stated that council’s position was that it wasn’t getting the ‘commercial returns’ from crown land and therefore it was an ‘inappropriate situation’ for residents everywhere. Even though this might be a little ‘late’ given the current lease negotiations when both valuations from the trust are ‘so different’ it’s still important to ‘take a stand right now’. (time extnesion at this point). Stated that council thought the reserve should be ‘governed by a committee of management’ and the money from the rents go back to the governing body which will ‘disperse that’ for the 3 purposes that were in the original grant – ie public park and recreation. This would be very ‘timely’ when considered against the need for ‘how much public open space in that part of Caulfield’ given population increase and that these people shouldn’t be ‘looking out the window at horses training and nothing else’ on the racecourse.’ Essential that all commercial activities on the land be ‘valued properly’. What ‘really’ makes ‘me sick’ is the ‘pokies on crown land’ and therefore ‘government subsidised gambling’. Didn’t want to ‘put up with’ this and it was ‘an absolute disgrace’.
PILLING THEN ASKED IF MAGEE AND DELAHUNTY WOULD BE PREPARED TO REMOVE PART 2A OF THEIR MOTION. BOTH REFUSED TO ACCEPT THIS PROPOSAL. Pilling then asked for speakers against the motion.
OKOTEL: said that she wasn’t against the entire motion just part 2A. Thought it was ‘important’ that there is an independent ‘watch dog’ to see exactly what the land’s worth and she ‘endorses’ the comments on that. She was against 2A because the negotiations had been ongoing for some time and were ‘about to conclude’ so to ask the Minister now ‘to step in’ is poor because ‘my understanding is that the minister would be reluctant to step in’. Also if council asked him then the outcome might only be to ‘frustrate the negotiations’ and could only damage the ‘relationships’ that council has with the MRC and therefore ‘not be to the benefit of residents’. Didn’t think that having both 2A and 2B ‘doesn’t make sense’ since it should be ‘either/or’. She thought that the ‘best for the public interest’ would only be the motion about the valuer general coming in to ‘review the lease when it is finalised’. At that stage council would be ‘informed as to what is in the lease’ and therefore that’s preferable to the current situation where ‘we’re in the dark’. Said that once the lease is signed then ‘it will be brought to light’ and then council may ‘have input into it’.
SOUNNESS: realised that council has got ‘representatives’ (ie councillor reps) and that they’re trying to represent council ‘as best as possible’ but they’re ‘only 3 voices’. Said he ‘recognised’ that the trust was an ‘opaque body’ and a lot of ‘questionable decisions’ in its history. Thought that this was ‘a bit of a risky manoeuvre’ when one set of decisions are replaced with another and ‘that may not necessarily produce a good outcome’. He’d ‘heard’ a lot about the racecourse and it was a major issue and would ‘always be messy’. His ‘experience’ of such bodies is that they ‘do occasionally go rogue’ but they can be brought back ‘into line’ with ‘political will’. Gave the example of Fox and the sea front land. So he thought this was a ‘risky scenario’ but overall ‘still a worthwhile one’.
LOBO: judging by what Magee has outlined it ‘looks like Mickey Mouse’ is ‘handling the place’. Asked if this was ‘democracy in Australia and Glen Eira in particular’. Claimed that there’s no democracy but ‘soft dictatorship’ . Pilling then interrupted and said that the comments were ‘unwarranted’. Lobo responded with ‘okay’. Thought that the 8500 sq metres was ‘daylight robbery’ and that council didn’t get ‘a cent’ from any of the money collected. Crown land he claimed was given to the people but it’s ‘only council’ who are fighting and that ‘the people of Glen Eira have to get together’ and ‘not only write on blogs’ or ‘letters’. Urged people to ‘make yourself known’ and to ‘shake them up’. Said that the motion ‘may be a bit late’ but it’s like a ‘child being born at the last moment’ and decisions have to be made. Stated that the councillor trustees ‘should work’ towards getting the best for residents because it’s residents ‘who have put us in’ and the trustees ‘don’t tell us anything confidential’. People can’t go to meetings. Everyone has to ‘take the bull by the horn’ and if not this will continue ‘for another 150 years’.
DELAHUNTY THEN ASKED OKOTEL THAT SINCE SHE SAID SHE HAD ‘FURTHER INFORMATION’ IN THAT THE LEASES NEGOTIATIONS WERE ‘ABOUT TO CONCLUDE’ whether Okotel could ‘elaborate on her understanding of that’ and ‘how she’s come to that understanding’.
OKOTEL: said that her ‘understanding comes from confidential discussions’. Wanted ‘advice’ then about what she could say. Pilling then said that she could clarify what she meant and whether ‘she meant to say those words’.DELAHUNTY THEN INTERVENED AND SAID THAT IF OKOTEL IS CLAIMING TO HAVE ‘CONFIDENTIAL DISCUSSIONS WITH PEOPLE’ WHO HAVE ALREADY DECLARED A CONFLICT OF INTEREST THEN SHE SHOULD ALSO LEAVE THE ROOM AND NOT BE PART OF THE DEBATE. Pilling said that ‘it’s up to her to clarify’. OKOTEL THEN AGAIN WANTED TO ‘TAKE ADVICE’. At this point major confusion with Burke muttering in Pilling’s ear. He then basically ‘adjourned’ whilst Okotel and Newton left the chamber. They returned in about 2 to 3 minutes.
People in the gallery then complained that they couldn’t hear what she was saying – ‘not a word’.
OKOTEL: said that she had this question ‘in my mind’ in the ‘pre-meeting’ and that the 3 councillors weren’t in that meeting. Said that in this meeting she asked ‘how far away’ are the negotiations from being completed and that she thought this was ‘pertinent’ as to whether there would ‘be time’ for the ‘minister to get involved’ and that Magee told her ‘that we don’t have much time’. Reiterated that Magee said this whilst the others weren’t in the room.
Pilling then asked Delahunty if this ‘satisfied’ her.
DELAHUNTY: ‘it does’ but it confirms that it’s ‘conjecture and not actual knowledge’. Then asked if ‘any councillor’ has spoken to or ‘been lobbied by any of the three councillors who have declared a conflict of interest and left the room’. All councillors said ‘no’.
PILLING: agreed with Okotel on 2A because it was ‘pretty late in the piece’ and it’s a ‘blunt instrument’. Said that 2A in its second part ‘doesn’t achieve what we want’ . It’s got ‘limited value’ . Said he ‘acknowledge the general passion’ but wasn’t ‘sure this is the best way to go’. thought 2A was ‘counter-productive’ and that blame should be laid on ‘successive state governments’.
MAGEE: one of the valuations was ‘just on one million dollars a year’. Said that he’s got ‘no issues’ the MRC ‘as an entity’. They do a ‘great job in administering the racecourse’ and they do what ‘they’re allowed to do’. Nor does he have issues with ‘our three council trustees’. claimed that they’ve been ‘very generous’ to him ‘with their information’ and they’ve ‘told council what they’re allowed to discuss’ and he ‘respects how they’re conducting themselves’. Said that in July 2012 he wrote a letter to the Premier asking for appropriate ‘governance arrangements’ relating to leases. Said that ‘shortly after that I was removed’ and that’s the first time in 150 that a trustee hasn’t been reappointed. The only response he got from the Premier was that the matter was in the hands of Minister Smith and he hasn’t heard from Smith. Went on and referred to the Select Committee on crown lands emphasising that this committee represented all political parties. Since 2008 ‘not one action has taken place’ since the report. (an extension of one minute). Read from the report regarding lack of minutes,meetings closed to public and lack of public park. Ended up by saying that the Trustees weren’t the right body ‘to administer’ the leases or the land and it ‘should be a committee of management’.
MOTION PUT AND CARRIED. VOTING FOR: MAGEE, DELAHUNTY, LOBO, SOUNNESS. VOTING AGAINST: PILLING AND OKOTEL
PS: we are in error. It has been pointed out to us that when Delahunty asked each councillor if they had been lobbied by any of Hyams, Lipshutz or Esakoff that Pilling did not answer the question. We wonder why!
March 20, 2014 at 11:38 AM
Okotel’s statements are a disgrace. Even more disgraceful is that they have the tell tale fingerprints of Newton, Hyams, Lipshutz and Esakoff all over them. The same old false arguments are put forward that this group always puts forward. With the C60 there was the fear tactic of the minister will intervene so we have to compromise. Same story goes for planning applications and no point in sticking to our rules because vcat will override them so let’s give developers nearly all they want. Now there’s the same tactic that the outcomes for residents will not be favourable and that it’s too late to do anything. Maybe this last point has some value because I keep asking myself why wasn’t this done years ago and in the public way it’s being done now. I’m also offended by Lobo’s comments on the role of residents. What does he think he was put there for. It’s his job to represent residents and they haven’t done that.
Full marks though to Delahunty and Magee. Good to see that she’s pulled Okotel up and you can bet that Newton told her to keep saying that the gang weren’t in the room and haven’t said a word to her. I will never ever ever believe a word of that.
Pilling is just a puppet and says whatever he’s been told to say. Okotel might be a disgrace and pretty dumb to boot but Pilling is an out and out disaster.
March 20, 2014 at 1:14 PM
If Okotel truly believes that relations with the mrc are satisfactory then she is living on another planet. The relations are very definitely satisfactory for the Melbourne Racing Club since they have achieved everything they want and have not been forced to abide by the agreement. It would also be satisfactory to Hyams and his mob but absolutely not for residents and a handful of councillors.
Okotel has only been there a short time but she must know something of what’s gone on. To then say that only after the leases are signed will council have the opportunity for some input is plain dumb. Council hasn’t had any input on anything. They’ve only signed on the dotted line where they were told to sign. Any astute negotiator knows that influencing an agreement isn’t done after the fact but before any final decision is made. Every word she uttered is scraping the bottom of the barrel to try and find anything that might sound like its justifying her position in doing exactly as she’s told. It doesn’t and for me reveals how much of a stooge she really is. The same goes for Pilling.
Magee should have gone further and demanded an inquiry into the whole council on this issue.
March 20, 2014 at 12:35 PM
It’s very good to have this issue reported in detail. The tragedy is that I do not think anything substantial will come out of this. Out of the three issues – lease payments, conflict of interest and 3 sport grounds in the middle of the racecourse – we will only see the last one being resolved outside the racecourse. Here is what is likely to happen. Lease extended for the next 12 years at a minimum charge to MRC and perhaps a small change in trustees composition, but no change in policy. As for the sports grounds, there is the Booran Rd reserve to have one, then Glen Eira College to have another and the received swapped land a third sport ground. After all we can’t have horses being disturbed by loud junior sport participants, can we?
March 20, 2014 at 1:10 PM
yes except horses can be disturbed by model aeroplanes. The MRC support them. Have you seen the land from the swap. Might fit a couple of tennis courts with no parking or clubhouse. Not exactly going to solve the sports ground shortage.
March 20, 2014 at 2:07 PM
There is no way the gang would not have talked to Okotel, about that she needed to do to stop Magee,and Delahunty. To say she did not talk to them is of great concern to me, I don’t believe her. Well done Cr Delahunty .
March 20, 2014 at 2:33 PM
I’m inclined to this point of view as well. There is no logical reason for Okotel and Pilling to try and abort the motion unless they want to protect the Caulfield Village proposal and ensure that there are no late minute snags that might delay or even derail the entire thing. No amount of repetition will convince anyone that the centre of the racecourse and the development proposals are not symbiotic. They are Siamese twins and can never be separated. That is what I believe is really going on here as well as the attempt to protect some pretty important and powerful people.
March 20, 2014 at 2:35 PM
Yep, governance is the critical issue in Glen Eira that has been a problem since Glen Eira was formed in 1996. What the Tuesday vote shows is that there are only three or four Councillors that would support changes in governance. So until there is a change of the ‘gang’ of 5 Councillors at the next election of 2016 there is no likelihood of improvement in governance for the benefit of residents. Anyway, by this stage the racecourse and MRC issues will be set in concrete.
March 20, 2014 at 3:15 PM
Can someone please tell me what is Lobo is on? I can’t follow his contribution to the debate.
March 20, 2014 at 11:00 PM
soft dictatorship – was his words
March 20, 2014 at 7:36 PM
Anon 5 – How many Council meetings have you attended? Lobo has spoken sense. If the State government is encouraging MRC what can Council do? Even the Councillors are recommended by the State government. People need to say enough is enough. Lay off Lobo unless you do not like the contributions from multicultural community. Judge people not on some pre conceived thoughts. Ok?
March 21, 2014 at 3:43 PM
This post makes no sense it’s as though Lobo has written it himself. ??????
March 20, 2014 at 10:19 PM
Off topic, but we thought readers might find the following extract from the Bayside agenda (24th March) of interest. In stark contrast to the governance that exists in Glen Eira, here we have a full public announcement rather than a hidden away in camera decision.
“In regards to Mr John Thomson, given Mr Thomson has served 8 years and 3 months on the Audit Committee which exceeds the term outlined in the Charter, it is proposed to not re-appoint Mr Thomson and publicly seeking an external appointment of a new member for a shorter period of 1 year and 9 months. The shorter term appointment will enable an orderly rotation of members annually which provides greater continuity to the Committee.”
March 21, 2014 at 7:52 AM
Lets see now – the figures mentioned at the Council Meeting place a preliminary value on the Racecourse Reserve of over $2bn, the MRC pay, in total a nominal $100,000K pa rent for the land. I say nominal because from all accounts the Trustees don’t know if it is paid and even if it is the Trustees return it to them for maintenance purposes (for obvious reasons, I’m not even going down path of what oversight given to “maintenance expenditure”).
This is supposedly for the good the community. Sounds good until you question the word “community” and you realise the community is the MRC Members which even the MRC admits are dwindling and that the Crown Land is being used for commercial activities to augment MRC funds (with the MRC accounts showing less that $1000 pa goes to the non MRC community).
So what are you left with, is a club, with dwindling membership and a significant investment in gambling and alcohol establishments, being effectively in charge of $2bn of prime public assets at no cost all so that club can survive.
March 21, 2014 at 12:24 PM
Why was Magee given almost 20 minutes to deliver his speech. Lobo and Delahunty are to be blamed?
March 21, 2014 at 1:12 PM
If after 5 minutes, the mayor gave him another 2 minutes, how does this =20 minutes?
March 21, 2014 at 12:56 PM
have a look who has a like on this! What is going on?
https://www.facebook.com/CaulfieldGlenEiraLeader
Holy racetrack wars!! Glen Eira Council calls for the State Government to take over land negotiations at Caulfield Racecourse! http://www.heraldsun.com.au/leader/central/glen-eira-council-decides-trust-should-be-turfed-off-caulfield-racecourse-lease-talks/story-fngnvlpt-1226859230661
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Thomas Sounness likes this.
March 21, 2014 at 4:21 PM
At the heart of the ongoing problems with the Racecourse Reserve is the unsatisfactory management regime that applies to it. The Trustees don’t consider themselves to be subject to DSE’s Committee Of Management Guidelines, and have spectacularly failed to maintain the land for the three purposes it has been reserved for—only “racing” has been catered for. It is a matter of public record that in a rare show of bipartisanship, Coalition and Labor rejected completely all recommendations of the Legislative Council Select Committee Report into Public Land Development concerning Caulfield Racecourse Reserve. This means there are no mechanisms for dealing with conflict of interest, and no guidelines about managing the land for public benefit, and no revenue streams from leasing of parts of the land to support improvements of the land generally for its 3 purposes. The Trustees as an institution really needs to be brought into the 21st century and it may take considerable pressure on politicians to act in the public interest.
I also disagree with Cr Okotel and Cr Pilling’s approach of relying on unofficial statements concerning “imminent” lease-signing and their desire not to involve Ministers in the lease agreement. This goes against the philosophy in Crown Lands Reserve Act of leases being subject to Ministerial approval. There *should* be pressure on a Minister if a commercial return is not delivered by a commercial lease without a clear public benefit reason.
There has been some criticism of Cr Pilling raising time limits in the Meeting, but I support him in that. It is for Council to decide how much time to give to each item in its Agenda and he was following Council’s rules. The weakness in the proceedings is that much of the detail that Cr Magee wanted to raise should really be in some sort of report in the Agenda, but there doesn’t appear to be a mechanism to publish a report written by a Councillor.
March 21, 2014 at 7:23 PM
…. but there doesn’t appear to be a mechanism to publish a report written by a Councillor.
No there isn’t and I don’t think that there should be either. What there has to be is a notice of motion so that Magee wouldn’t have had to wait for a report which could have come in months and months off, and then move an amendment to change the recommendation.
The rules are pretty clear too. 5 minutes for a mover of a motion and 3 for a seconder. But, and a huge but, when there’s something as big as the racecourse issue and this has been ongoing for a century or so, then time shouldn’t be a factor. I’d rather much less time on trivia such as foxes and other vermin and more on the things that matter. Pilling was not correct and one needs to consider his motives. Was he simply sticking blindly to the rules or trying to gag Magee to prevent any more collateral damage?
March 21, 2014 at 10:06 PM
A Notice of Motion isn’t necessary to move a motion: it can be done as Urgent Business for example [if Council resolves to accept it as Urgent Business—under the current Council it doesn’t actually have to be urgent]. My comment was about the detail in support of a motion: it is ridiculous to speak for 10 or 15 minutes when the target audience has an attention span of 2 minutes. The detail needs to be in the Agenda and Minutes somehow. All that appears in the Minutes is a copy of the Select Committee Report, not all the other information about the disfunctional management regime of Caulfield Racecourse Reserve. To lose one document may be regarded as a misfortune, to lose more looks like carelessness.
March 21, 2014 at 11:00 PM
Reprobate and Macca are considerate and correct, but in reality as long as we have this Council and State government composition very little is likely to change. Because it is a political issue not a regulatory or community issue. When Libs got into power David Southwick and Georgie Crozier promised to do something about the Racecourse Reserve. The first thing they said should be to change composition of Trustees to be more representative. Indeed if they would reduce to 9 the number of Trustees with 3 from MRC, 3 from Council and 3 from State gov’t may be we would be in a different situation. Instead we have 3 Libs from the Council negotiating with 8 MRC members. Two of those Councillors are lawyers with Michael Lipshutz being a very experienced negotiator and arbitrator. Here is his CV from LinkedIn
“I have been a Solicitor since 1975 practising in the areas of commercial litigation and Family Law.
I am an accredited Mediator and Arbitrator. I am an an Associate member of the Institute of Arbitrators and Mediators Australia, a member of the Australian Institute of Family Law Arbitrators and Mediators and a member of the Family Law section of the Law Council of Australia.
I am a senior member of the firm of Berry Family Law, Australia’s leading family law firm consisting of 14 Family Lawyers. In that role I am often in Court appearing for clients on every stage of their case up to the Trial which is invariably conducted by specialist barristers of my choice.
I am the Deputy Mayor of the City of Glen Eira serving my third term as an elected Councillor. I am Chairman of the Local Laws Committee and a member of the Roads Committee, Sports & Recreation Committee, Citizen of the Year Committee and the Audit Committee. As Chairman of the Local Laws Committee I was responsible for a complete and exhaustive revision of the municipality’s Local Laws. I was Chairman of the Pool Steering Committee from inception overseeing the construction of the Glen Eira Sports & Aquatic Centre being the premier Sports and Aquatic centre in Victoria. I am a Trustee of the Caulfield Racecourse Reserve Trust appointed by the Victorian State Government. I am one of 3 members of the Trust’s working committee. .
Specialties: Family Law, De facto Law, Commercial Litigation, Arbitration, Mediation, Commercial Agreements, Negotiation, Leasing, Property Law, Administrative Law”
Impressive, but last time Council negotiated a deal was for the swap of crown land and Lipshutz said that was the best we could do. Can he do it better now? I doubt it.
Another example of this Council governance problems is this extract of the 10th anniversary of ‘brawling in Glen Eira’ involving Jamie Hyams http://www.crikey.com.au/2004/03/23/brawling-in-the-glen-eira-council
Enjoy and weep.
March 22, 2014 at 11:14 AM
CVs are designed to be impressive and to enhance the chances of employment or self promotion. They are also authored by the individual himself. The test of anything as you imply is the past record and the achievements. Glen Eira needs fewer lawyers and more candidates totally committed to serving residents.
March 22, 2014 at 9:58 PM
If Lipshutz is good at anything other than repeating much the same sentences for almost everything, I’ll eat my hat.
March 22, 2014 at 11:56 AM
MODERATORS – comment deleted