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Newcastle Herald
Newcastle Herald
Business
Madeline Link

$83k rent rise: club almost bowled over by 'enormous' hike

Club Lambton venue manager Bec Taylor. Picture by Simone De Peak

CLUB Lambton chief executive Michael Gray has been absolutely bowled over by an almost 700 per cent rent increase from Crown Lands.

The old school local bowlo "where good friends meet" is a cornerstone of the community, serving up a crisp cold one and friendly competition since 1912.

Now, a rent hike of $83,000 in 18 months threatens to close the club's doors, Mr Gray said.

"Realistically the club isn't in a very strong financial position," he said.

"We want to keep it open but if we're losing money we have to pull the pin.

"All clubs are designed, if they do make a profit, to return it to the members with better pricing or upgrades to the facility, so it goes back to the community by default."

Formerly known as Lambton Bowling Club, it amalgamated with the much bigger and busier Club Charlestown in April 2021.

The merger means the club is no longer eligible for a Crown Lands rebate.

A Department of Planning and Environment (DPE) spokesman told the Newcastle Herald the merged entity had a much higher revenue base.

"The club can elect to object to the redetermined rent if it does not agree with the valuation," he said.

"Tenure holders who are experiencing financial stress may apply for financial hardship in the form of waivers, billing frequency changes, postponements of payments and instalment plans."

Crown Lands redetermines rents every five years, the spokesman said, to make sure they are in line with current market rates - unless tenure holders are eligible for concessions under the department's financial concessions policy.

Club Lambton merged with Club Charlestown in April 2021. Picture by Simone De Peak

Clubs on Crown land are entitled to rent rebate concessions if they earn less than $1 million in revenue each year.

Mr Gray said Club Lambton's rent went from $12,000 to $55,000 about 12 months ago, and they were recently told it would be raised to $95,000 annually.

"We understand we have to pay rent, but we think the way they calculate rent isn't fair and it doesn't help the club survive - this is a community bowlo," he said.

"That's the reality, unless we can increase revenue to match the increase, but it's not only our lease payment we have to cover, it's insurance, electricity and other fixed costs that are increasing as well.

"This increase is just too much, too quick. This is just an enormous jump."

He said the club was a community asset, a haven for the elderly and meeting headquarters for a number of groups.

The club had a few poker machines but Mr Gray said Club Lambton did not generate a lot of income from them.

"I think they need to review the way they calculate rent and increase it by CPI, rather than an enormous hike every few years," he said.

"Clubs have traditionally been a safe haven for older people, it's where they feel safe and comfortable, if you don't have the little clubs around the place for the community you lose an opportunity for people to have somewhere to go to.

"We don't want to lose a community asset but we can't continue to lose money."

The most recent NSW Liquor and Gaming data shows Club Charlestown ranked 177 in the state for gaming machine net profit between June and November 2022, while Club Lambton ranked 693rd out of 1019.

The club has appealed to locals to write to Wallsend MP Sonia Hornery and Minister for Lands and Property Steve Kamper urging them to help.

The Herald contacted Ms Hornery's office, which confirmed it had made two separate representations on the matter and was awaiting a response from the minister.

Club Lambton venue manager Bec Taylor. Picture by Simone De Peak

Club Lambton, at Karoola Road, is holding a community information night on Friday at 5pm and venue manager Bec Taylor said anyone was welcome to come along.

"We're hoping to get the community involved considering it's a local club, to help us get a subsidy on our rent increase," she said.

"We've had a lot of our local members ask what they can do to help and we're asking them to send letters to the local MP.

"A lot of them are very surprised that there's such a massive increase, like all of us."

According to Mr Gray, the new rate will apply from October, he said he would like to see the rent decreased to $55,000 or only increased each year by CPI.

"I think they way they do it is flawed, that's my take on it," he said.

"The more support we have puts pressure on our politicians to take a look at it and maybe change things."

According to a DPE spokesman, Club Lambton has until August 30 to lodge an objection to the rent increase.

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