The Western Bulldogs has pulled the plug on its much vaunted Club Edgewater development.
The trouble-plagued $30 million hospitality and gaming development has endured a rocky five-year history, including a costly stoush against Maribyrnong Council in the Victorian Civil and Administrative Tribunal.
The club had a long-standing agreement with developer Prizac to lease the building and run it as a gaming, restaurant, sports bar and entertainment venue.
But in a statement Western Bulldogs president Peter Gordon said it has become clear that Prizac would not, and perhaps could not, meet its obligations in completing the Edgewater project.
“As a consequence, the Western Bulldogs Football Club has recently terminated the agreement to lease the Edgewater premises upon completion.
“While the Club has expended money in acquiring gaming licences and professional fees in connection with the project we are confident of being able to successfully minimise the financial impact of the project not proceeding.”
Mr Gordon said this includes the prospect of a successful damages claim against Prizac and the potential value of the gaming licences.
“While this is a disappointing outcome we have taken a strong stand in the best interests of our members and stakeholders.”
Detail relating to the project’s woes are being kept confidential, but Mr Gordon said the Club’s viability and liquidity is in no way threatened by the terminating the agreement.
“We believe that taking this action is the prudent and responsible course which best protects the interests of the Club.
“If an opportunity arose to continue a similar project with a new developer or owner, we would consider it in good faith.”
Star Weekly reported in June that Prizac had amended its development to incorporate a dozen apartments in what would have been Australia’s first residential development above a pokies venue.
Maribyrnong Council called on the state government to change planning laws after legal advice showed it was powerless to stop a fifth storey of 12 split-level apartments being added to the project.
Norman Waterhouse Lawyers partner Stephen Williams, representing Prizac, confirmed that the Western Bulldogs had served notice of termination of the agreement with the developer.
“This agreement has been terminated. What our client is planning to do is subject to much discussion and thought but it’s too soon to be making any announcement on that.”
Mr Williams would not rule out Prizac seeking damages against the Western Bulldogs.
