An alert reader has notified us of a Statement from the CCR Trustees. Please note several things that we regard as essential:
- missing totally is any discussion on governance/conflicts of interest issues
- ironic that only now is an ‘independent’ review of the valuation taking place, plus much much more that we invite residents to comment upon.
- whatever the reason (ie Jon Faine, Magee, 7.30 Report) there is finally some ‘movement at the station’. That we applaud but still a long, long, long way to go.
Notices
The purpose of this Statement is to set out the current position in relation to negotiations between the Caulfield Racecourse Reserve Trustee (CRRT) and the Melbourne Racing Club (MRC).
Background
The MRC held a lease over parts of the course including the Grandstand complex, including the Administration office site, Tabaret building site, Eastern car park site for a period of 21years concluding on 22 October 2012.
In addition, the MRC have a lease for the Neerim Road & Western stables for a 21 year period concluding on 15 March 2019 & 27 April 2029 respectively.
The rental received by the Trust under these previously agreed leases (Grandstand and Stables) amounts to $83,946[1] per annum. Additionally, there is a ‘Deed of Maintenance and Development’ between the Trust and the MRC which commits the MRC to do maintenance work on behalf of the Trust to the value of $280,000[2] in the 2012/13 year. The Deed of Maintenance and Development was agreed to in February 1997 and concludes on 16 February 2018.
In late 2011, the Trustee established a ‘Working Group’ to put together a proposal for the Trust in relation to the renegotiation of leases at Caulfield. The ‘Working Group’ comprised three members, one from each of the Trusts constituent parts: MRC, Glen Eira Council and Government appointments.
The starting point for the working group was to establish an understanding of the requirements of Government Policy, and the view of the Department of Environment and Primary Industries. We also sought guidance from the Victorian Government Solicitor’s Office [VGSO] and the Valuer General – Victoria [VG-V].
Advice received from the Victorian Government Solicitor’s Office, recommended the Trustee seek a restructure of the existing arrangements. The Trustee came to the view that all leases should be brought into line and that there needed to be a Licence agreed between the Trustee and the MRC in respect of the use of Crown Land, by MRC, not covered under the Lease.
In February 2012 the Trustee also commissioned Charter Keck Cramer [CKC] to prepare a preliminary valuation that was consistent with current government policy. That is, where crown land was being used for commercial activity, a retail rental was to be applied and where there was non-exclusive use, a community rate should apply. This estimated ground rental valuation put the rental (Grandstand and Stables) at $822,000 per annum.
In late 2012, the Trustee and the MRC came to the view that negotiations could not be concluded in time to arrange a new lease prior to the expiration of the existing lease. Agreement was reached, with the Minister’s approval, to put in place a 12 month interim lease on existing conditions to give additional time for negotiations.
Accordingly, an interim lease of 12 months was granted on 23 January 2013 concluding on 22 January 2014
On 4 April 2013 a comprehensive proposal setting out the terms the Trustee sought from the MRC for a new lease was put to a meeting of the Trustee for approval. The meeting voted by majority to endorse the proposal.
On 7 May 2013 a letter from the Chairman was sent to the MRC setting out the Trust’s proposal for the renewal of the lease.
The club did not respond formally, but in meetings between the Chairman of the Trust and the MRC Chairman, the Club advised that it would not agree to the proposal; that this would be a significant and deleterious precedent for all racecourses in Victoria and that this was a matter the Government needed to resolve.
On 19 June 2013 the Trust by majority resolution commissioned CKC to complete a full valuation on the same basis, that is, to be consistent with Government policy on the lease of Crown Land and to include these terms in the valuation.
The final valuation put the rental at $1,054,000 per annum. In September 2013 the Trustee wrote to the MRC advising the valuation and providing the MRC with a copy of the CKC final valuation.
The MRC responded to Trustees on 23 December 2013. At the same time they commissioned their own document prepared by m3property strategists that put the market ground rental at $100 per annum.
Current position
On 17 December 2013 the Trustee proposed to the MRC the matter be settled by arbitration through the Valuer General – Victoria.
As the current lease was about to expire (22 April 2014) and the Trustee was concerned at the possible impacts, the trustee wrote to the Minister & the MRC on 25 March 2014 proposing the following course:
That the Minister approve the Trust entering into a short term lease (6 months) on condition that if agreement is not reached, the matter be determined by the VG -V and both parties will be bound by the VG- V determination.
The MRC responded on 28 March 2014 declining to go to arbitration, but indicated it would be prepared to have the matter determined by the Minister for Environment & Climate Change on advice from the Valuer General – Victoria.
The Chairman responded on 31 March 2014 indicating that there may be some governance issues with this approach, but if the VG-V determination was made available to both the Trust and the MRC prior to the Minister making a final determination, the Trust would take advice from the Minister and the Department of Primary Industries [DEPI] on this matter.
The Trustee separately wrote to the VG- V requesting an independent review of the CKC valuation.
Representatives had a meeting with the Minister for Environment & Climate Change senior adviser Mr Matthew Berry on 8 April 2014. At that meeting the Trust was advised the Minister’s view was to approve a 3 month lease on existing conditions in order to provide a further opportunity for the Trust and MRC to continue discussions, but that both parties were to make a submission to the VG-V to enable the VG -V to make a determination.
The Trust subsequently received a letter from the Minister for Environment & Climate Change on 14 April 2014 setting out the Minister’s position.
The Chairman responded to the Minister by letter on 29 April 2014.
Currently, the Trust is now working with the Valuer- General Victoria towards a Determination and there are meetings arranged with the MRC to discuss the overall governance arrangements and the conditions under which the MRC will have access to Crown Land that is not covered under the proposed leased areas.
Greg Sword
Chairman
Caulfield Racecourse Reserve Trust
[1] Annual rental in 2013
[2] Amount of $183,000 in 1996 indexed annually by CPI
Meetings
The last meeting of the Trustees of the Caulfield Racecourse Reserve [CRR] was held on Tuesday, 18 February 2014.
Trustee meetings are not open to the General Public; however the Trustees have resolved that any Glen Eira resident wishing to address a specific Agenda Item as listed by the Trustees, must first submit their request in writing to the Chairman in advance of the CRR Trustees meeting. The Trustees will then consider the request and, if appropriate, invite the resident to attend for that specific agenda item only.
Correspondence should be addressed to:
The Chairman
Caulfield Racecourse Reserve
Level 1
25 Flinders Lane
Melbourne
VIC 3000
Or emailed to: CRRTrustees@bigpond.com
The date of the second meeting of 2014 of Trustees of the Caulfield Racecourse Reserve [CRR] is yet to be finalised, however it is anticipated this will be held in August 2014.
PS – WE’VE DONE A LITTLE MORE HOMEWORK AND DIRECT READERS’ ATTENTION TO THE FOLLOWING:
At the VEAC Select committee investigation of 2008, the MRC submission included these statements:
The leasing process is managed by the Department of Sustainability and Environment and leases are subject to Governor in Council approval and involve rental payments to the Trustees on commercial terms.
Porkie No 1. it would seem! Next there was the MRC’s attempt to portray itself as the local community’s saviour in its benevolence in excising some of its land to the general public. Here’s what was stated –
In 1922 however, the Minister for Lands made fourteen acres of the Reserve available for nonracing use. It is this area – Glenhuntly Park – which remains a public park to this day. In the 1960s, for operational reasons Glenhuntly Park was excised from the Caulfield Racecourse Reserve. It remains Crown Land and is maintained by the City of Glen Eira. The allocation of this specific section of the Reserve for parkland in 1922 was commended by the Caulfield Citizens’ Defence League and was said to satisfy their concerns that until then the Reserve was only used for Racing.
Porkie No.2 perhaps since this is only half the truth! The land was NOT given up freely as the above would suggest and only came about after months and months of community protest. The following extracts are taken directly from The Argus of the time (1922) and paint an entirely different version of events. It also shows how very little has changed in the decades since!
The Argus – Page 16:Wednesday 1st March, 1922
CAULFIELD RACECOURSE.
Members of the CaulfieldCitizens’ Defence League protested to the Minister for Lands (Mr.Oman) yesterday that the Caulfield racecourse was not being used for the purpose for which it reserved. Although it was intended that the area should be used for recreation, horse racing had now practically a monopoly. They asked that the iron fence enclosing the reserve be re moved, and the area improved in the same way as the Fitzroy gardens. Mr. Oman promised to meet the league on the ground, and discuss the matter with them. He wanted to see the interests of the general public safeguarded.
The Argue – Page 14 – Saturday 28th October 1922
CAULFIELD RACECOURSE.
In a decision of the Minister for Lands (Air. Oman) on the demand , for greater public use of the Caulfield racecourse reserve an area of 14 acres will be made available to the gcneral public.
“Mr. Omans decision provides for-an area of 10 acres to be permanently reserved on the Neerim road side for use -as a public park and gardens. The high fence at present enclosing-this area will be removed and re-erected on a line to be defined by the Minister, adjoining the racecourse. The new outer- fence adjoining the public road will be sufficient only to protect the hedges and ornamental shrubs. The-cost of this work will be borne by the race course trustees from the grant given by the Victoria Amateur Turf Club for the maintenance of the ground. An area of approximately four acres on the south of the new park area will be made available for recreation purposes.
It is also stipulated that additional openings be made in the fence, enclosing the racecourse to give access to the ground. These gates are to be made available to the public in accordance with the terms of the Crown grant. _ – The gates on the inner side of the stands are to be open daily from 10 o’clock in the morning until 6 o’clock at night, with the exception of 15 days of the year on which racing is held and charges made for admittance. The Victoria Amateur Turf Club will increase its contribution for the maintenance of the Reserve from 600 (pound) to 1000 (pound).
Mr. Oman is confident that the new arrangement will give satisfaction to the Caulfield Citizens’ Defence -League, which asked for greater public facilities in the reserve and to the Victoria Amateur Turf Club, owners, trainers, and others who desired the retention of the reserve for horse racing.
Glen Eira Debates 
May 16, 2014 at 2:46 PM
Watch Cr Magee on U-tube
May 16, 2014 at 2:59 PM
Six trustees are still voting on the trust for a lease for themselves. This will sound OK to Dr Napthine, as he has very little time for conflict-of-interest
May 16, 2014 at 3:42 PM
Yup, minister for racing or minister for conflict of interest?
http://www.theage.com.au/victoria/napthine-failed-to-reveal-stake-in-numerous-horses-20140515-38cyc.html
May 16, 2014 at 5:03 PM
The trust is chaired by former ALP national president. Current ALP contender for the seat of Bentleigh, Mr. Staikos is on the trust. You seem to leave out these people in your comments. If you think Naphine has a conflict of interest because he owns a 10% share in a horse you are displaying your absolute envy. He could have put the share in his wife’s name just like the ALP former ministers.
May 19, 2014 at 9:43 AM
This audit will finish Staikos. Elizabeth Miller will be hoping for a damning report.
May 16, 2014 at 4:09 PM
A victory for people power, well done everyone. Their on the run.
May 16, 2014 at 4:17 PM
The trustees might be on the run but council is still holding hands with the mrc and giving them everything they want. Disgusting. I’ll be reading the results of Tuesday night really closely to see if any councillor has the guts to tell Newton to stick it up his jumper together with the mrc and vote against the c60. That’s when I’ll know that people come first and not shady deals that are made in secret all the time to the cost of residents.
May 16, 2014 at 5:05 PM
You and your ideas are in the vast minority. That is why C60 is going ahead,full steam. You need to get on board and put aside your self interest.
May 17, 2014 at 9:59 AM
For sure I’m self interested or interested in what it’s meant to my family. The mrc self interest is disgusting when their millions are made on the ruin of other peoples lives.
May 17, 2014 at 1:41 PM
C60 is going ahead because it is only opposed by a handful of people. I know a bloke that had a real good typewriter shop. That went down hill very fast. Had an effect on his family for a while but he got over it. I never heard him talk about the disgusting Microsoft or Epson people.
C’est la vie
May 16, 2014 at 9:12 PM
There is an almighty sense of entitlement when land is valued at over a million dollars and the Melbourne Racing Club has the cheek to up its lease price from $90000 to only $150000.
May 17, 2014 at 8:55 AM
Think you mean billion!. 5% of 1 billion would be 50 million. That would be a fair rent
May 20, 2014 at 2:27 PM
The MRC responded to Trustees on 23 December 2013. At the same time they commissioned their own document prepared by m3property strategists that put the market ground rental at $100 per annum.
May 17, 2014 at 7:40 AM
The Caulfield Racecourse Reserve was created in 1858 to serve three separate yet equal purposes; that of racecourse, public park and public recreation ground. A Board of Trustees was appointed to manage this land and ensure that land usage was in accordance with the three purposes listed in the Trust Deed.
For the past 156 years the Trustees have failed to provide the necessary oversight to ensure that the 3 purposes have been met and have allowed the racing industry to dominate at the expense, and exclusion, of the other two purposes. All operations related to the Racecourse Reserve have been, and are assigned, to the racing industry (originally the VATC, now the MRC) and the Trustees (whose membership is heavily weighted in favour of the racing industry) meet twice per year and are devoid of public scrutiny or accountability.
This has culminated in the situation that exists today – Crown Land which is valued at over $2 billion serves the racing industry very well and the public very little. Unless an independent public inquiry is undertaken and results in a total over haul of the Reserve’s management this will continue.
May 17, 2014 at 10:37 AM
Well said Elliot,
I can confirm that the Victorian Auditor-General has commenced a Financial & Performance audit of the CRR Board of Trustees.
I along with many people eagerly await their report to Parliament in the near future.
Jim Magee
May 17, 2014 at 10:59 AM
We can confirm Cr Magee’s comments and also add that the Auditor General has written to a number of community groups (including GE DEBATES) and invited representatives to meet with him and his officers.
May 18, 2014 at 9:52 AM
Is this Audit to include Council’s performance – they are as complicit as the MRC is.
For example
. 3 Councillors are appointed as Trustees, their eligibility for appointment being dependent on their election as Councillor and therefore community representatives. Yet they maintain that their appointment as Trustees prevents them from providing any report on the management of the racecourse reserve to the community that elected them and suffers from the dominance of the racing. To describe this as a conflict of interest (Trustee appointment over rides the community appointment) is unpalatable.
. Council has an agreement with the MRC re use of the racecourse centre which the MRC regularly ignores and Council doesn’t enforce. Sections of the centre of the racecourse are to be available for parkland use on all but 3 racing days (the 3 exclusions being during the Spring Racing Carnival) yet the entire centre is used as a carpark on all racedays. And also when is the MRC planning to hold the agreed 3 annual community days?
. In 2011 Council had an agreement with the MRC undertake landscaping works on Queens Avenue (to be completed in 3 years) and improvements to pedestrian and cyclists safety. Council did it’s part by errecting “temporary” barriers to prevent pedestrian access to the Racecourse side of Queens Ave. and installing a bicycle lane. As for the landscaping, 2011 + 3 = 2014 and nothing!!!!
. According to the rules related to the appointment of Trustees, Council nominates their representatives and submits them to the Minister for formal appointment. In the past Council has always submitted 3 nominees however after the last election Council submitted a list of 8 names (Pilling excluded) and allowed the Minister to select. It’s no surprise that he selected the three that approved the C60 2011 Incorporated Plan that had never been formally presented to residents. Is this Council so dysfunctional that it can’t designate 3?
May 18, 2014 at 11:13 AM
You forgot to mention Council consistent refusal to allow the residents to talk of the centre of the racecourse in any discussion related to either Glen Eira’s open space strategy or the C60 development.
May 18, 2014 at 11:23 AM
Nothing to do with dysfunctional. Nominating the full clan is good camouflage for the choice that was decided well before.
May 19, 2014 at 9:12 AM
Southwick orchestrated the Trustee selection of Councillors. The MRC wanted their three yes men and Southwick made sure they got their way.
May 17, 2014 at 2:19 PM
Well Done Glen Eira Debates
May 17, 2014 at 2:53 PM
The documents which the trustees have released show clearly what the Melbourne Racing Club thinks is their inalienable rights to the entire racecourse, to do with as they wish and to pay a pittance for that privilege. The continual language used by the Melbourne Racing Club in terms of leases is “long term arrangement”. That is a concern because it bodes ill for the eventual removal of training and opening up the racecourse to the community.
May 18, 2014 at 2:04 PM
I think they have plans for a new stand. They are not going anywhere.
May 20, 2014 at 2:57 AM
From personal experience all/any statements by CRT are false advertising as in the majprity of times when one attempts to meet with this secret society the invitation is not honoured or if one actually contributes to the meeting or has other suggestions they are always ignored completely. Interesting reading Mike Symons total “horsey business”
May 20, 2014 at 2:55 PM
Whiteside and Magee have been outspoken about the Trust and the MRC, yet we have never heard a word from Tang and Staikos.? I think it is the Independent Broad-based Anti-corruption Commission (IBAC) that needs to be having a good look at this lot.
May 20, 2014 at 5:47 PM
Cr Tang could not have spoken about Trust as his law articles with Maddox was too important for him to be absent from work even though there were only two meetings one hour long each year.