Magazine - The Links Shell Cove Golf Club is Evicted

By Editor in Golf on 2nd May 2008 6:00

Shellharbour City Council has kicked out its long-term lessee at The Links Shell Cove golf club in a dispute over unpaid rent.

Shellharbour Links Pty Ltd had failed to pay rent for about six months the council said, and did not carry out required maintenance at the $18 million asset. Lessee Brad Cannen said he deliberately withheld about $60,000 in rent after the council refused to make improvements promised in the lease.

Mr Cannen said legal action would be taken, but he was unsure last night what that would entail. The landlord and lessee have been at odds since the site, which boasts million-dollar views, a championship golf course, hotel, restaurant and function room, opened in 2004.

When staff turned up to work yesterday they found a notice on the door announcing the lessee's immediate eviction for failing to pay rent within 14 days. The hotel was filled with lawyers, accountants, consultants, council officers and media representatives. Two years ago, the council's operations and services director Arthur Webster said the council had engaged consultants to assess the course and draw up a hit list of improvements and required maintenance.

He said the council had done its bit to attract more members, but the lessee had not done enough to look after the greens. Bills were mounting and the council had no choice but to act. "I feel very disappointed that we were not able to work with them and I guess at the end of the day they're reluctant to work with us," he said.

Mr Webster said the council had engaged Wollongong lawyer Malcolm Heard and letters had been sent to the tenants. However, Mr Cannen and general manager Robbie Stevenson were caught off guard - on the Sunshine Coast at a conference - when their Warilla accountant, who received the eviction notice, contacted them.

Mr Cannen predicted his hard work to attract players would now be undone. "Business has been booming in the last few months and that's not by accident ... I could pay the rent tomorrow." The club had 600 members, and had grown significantly, he said. "Do they expect the tenant will just walk away, after sinking millions of dollars into the facility?"

Mr Webster said a quality championship golf course should have 1200 members, and the council had been trying to meet Mr Cannen for months.

Source: http://illawarra.yourguide.com.au

Read more articles in Golf, by Editor or from May 2008.