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Securing our future

Kogarah Golf Club – Securing our future 3

For many years Kogarah Golf Club has been working to secure its long term future.

As part of our planning we have been considering the Cooks Cove Project and how this might benefit our Members and provide long term security for our Club.

Shortly, an extraordinary General Meeting of Members will be held and Members will be asked to vote on an ordinary resolution to permit the Board to continue to negotiate an agreement for the transfer of the Club’s core property in return for components of the Cooks Cove Project.

The details of the proposal are outlined in this information booklet. Over the coming weeks information sessions will be held to provide Members with the opportunity to ask questions, discuss the proposal and review the plans.

These are very important issues and ultimately our decision will be vital in determining the Club’s future. The Club’s Board is keen to hear your views and answer any queries you have.

If you would like to discuss any aspect of the proposal or the content of this booklet please contact either Tony Rodgers (General Manager) or John Brown (Assistant Manager) via the office.

For more than a decade opportunities for the creation of what is known as “Cooks Cove” have been explored.

First discussions commenced in 1996 when the Club was approached by a delegation which included Sydney Airport, Rockdale City Council (RCC), and the Local Member for Rockdale. The idea was to better use airport terminal space by relocating “back of house” operations to an adjacent precinct. The site of Kogarah Golf Club, immediately across the river was the logical choice and an opportunity to relocate the course to the south was proposed.

Thinking then shifted to the need to provide a precinct for technology related industries. In 2004, the State Government gazetted Sydney Regional Environmental Plan No.33 – Cooks Cove (SREP 33). Under this plan Cooks Cove was to become a Trade and Technology Zone with the plan providing a framework for the ecologically sustainable development and management of the Cooks Cove site.

Most recently the Department of Planning and Environment has confirmed that the site and in particular the current golf course, will be investigated as a potential Priority Precinct.

The Club has been involved in the ongoing discussions about the future of the site to protect the interests of our Club and our Members.

The Kogarah Golf course and the Cooks Cove Project

Introduction

4 Kogarah Golf Club – Securing our future

Land owner Land size

Kogarah Golf Club 18.49 Ha

Rockdale City Council

14.9Ha occupied under lease (expired 1988 and on holdover ever since), held under trust for RMS for future road needs

Sydney Water Corporation

2.7Ha occupied under an annual licence

Roads & Maritime Services

1.8Ha (occupied under licence since the three year lease was terminated in advance of WestConnex works)

Sydney Airport

1.14Ha (occupied under licence)

Total area 39.03 Ha

Kogarah Golf Club lands The Club owns approximately half of the land on which our course sits, while the balance is occupied under lease or licence from RCC, Sydney Water Corporation, Roads and Maritime Services (RMS) and Sydney Airport.

Figure 1 – Land ownership

Existing Kogarah Golf Course

Rockdale Council 12.0 Ha

Rockdale Council 2.9 Ha

K.G.C17.9 Ha

K.G.C0.59 Ha

Airport1.14 Ha

Sydney Water Land

2.7 Ha

RMS1.8 Ha

Clubhouse

Green Shed Cooks

River

Cooks River


The Club has long held concerns about our ability to retain the entire site as a golf course. Attempts to renew the main RCC lease have been made contingent upon the routing of the Bay to Bay cycleway along the foreshore through the golf course and more recently upon resolution of the Cooks Cove Project.

The proposed widening of Marsh Street, not to mention the presence of the F6 corridor through the site (now being realised under the WestConnex and WestConnex enabling works) are also jeopardising our security of tenure.

Cooks Cove – Who is involved?There are a number of organisations involved in the Cooks Cove Project. They include:

� Kogarah Golf Club: Comprising approximately 800 Members, the Club owns 18.5Ha of the 39.03Ha course, with the remainder of the land occupied under short term leases or licences.

� John Boyd Properties: John Boyd Properties is a privately owned development company. The John Boyd team advanced the project through the successful negotiation of development agreements with the Club and State Government, as well as successfully achieving Master Plan and Open Space Development Approvals between 2006 and 2008. Despite the enormous setback of the withdrawal of funding for the project by Bank of Scotland International (BOSI) and Westpac, effectively placing

the Development into administration in 2009 at the height of the Global Financial Crisis, John Boyd has remained steadfastly supportive of the Club and the project, investing millions of dollars in re-negotiation with RCC and the State Government to recommence the project. John Boyd’s involvement includes preparation of an Unsolicited Proposal to the NSW State Government for Cooks Cove. Although unsuccessful, it has become the basis of the current Cooks Cove concept. The Board has entered into an Exclusive Agency and Authorisation Agreement with John Boyd to deliver the project for the Club. John Boyd’s support of the Club has been unfailing, having met every obligation to the Club over more than 10 years of involvement.

� NSW Government: The State Government is both a major land owner in the precinct and responsible for the planning protocols presently attached to the land under SREP 33 and in turn for amending it under the Priority Precinct process. State authorities including RMS and Sydney Water will also have significant input throughout the process.

� Rockdale City Council (RCC): RCC is also a land owner in the precinct and will be the consent authority and ultimate landlord of the relocated golf course. In early 2015, the Cooks Cove site was nominated by Rockdale City Council as a Priority Precinct. In


September 2015, the Department of Planning and Environment confirmed that the site, in particular, the current golf course site, will be investigated as a potential Priority Precinct. The ultimate outcome of the Priority Precinct process will be to deliver a new Master Plan to enable a new mixed use development zone to replace the former Trade and Technology Zone.

� Golf By Design: Led by James Wilcher, has been involved in the project since 1999. James continues to provide design input to the Club with the new 5th green and the new 11th holes as examples of his work.

A critical enhancement to the overall course design is the consolidation of the course to lands entirely to the south of the M5 and the Southern and Western Suburbs Ocean Outfall Sewer (SWSOOS).

� FJMT Architects: International award winning architects, led by Richard Francis-Jones, have

re-visited and reinvigorated earlier clubhouse designs. Critical to the overall package, the clubhouse has been designed to be functional, flexible and iconic ensuring it becomes a land mark in its own right. There is a considerable amount of work remaining to refine the scale and form of the building. An expansion of the proposed facilities now includes a gymnasium and pool, as well as tennis courts and a small bowling green to enhance the offerings available to Club members.

� Consultants: The Club continues to take advice from a number of consultants and industry experts to provide professional advice. This team of experts includes: Barry Barker (former partner Freehills), Herbert Smith Freehills and Pigott Stinson lawyers, in addition to those mentioned above.


In 2002 the Club held an Extraordinary General Meeting about the Cooks Cove Project. More than 600 Members attended a meeting at the adjacent Mercure Hotel (formerly Hilton) and voted to approve the Club’s participation, with 86% in favour. Since then there have been a great many hurdles to overcome.

Many of the threats to the Club’s future, identified in the lead up to the 2002 vote, either remain or have actually been realised. Before Members are asked to vote again on the relocation of Kogarah Golf Club, you are asked to consider the following issues.

LAND TENURE The most significant issue for the Club remains a lack of security of tenure for the land comprising the golf course as we know it.

� As outlined earlier, the Club owns only 18.5Ha of the 39.03 Ha site and can only control its destiny within these confines. Members will be very aware that the fears held by successive Boards have now been realised with the impending widening of Marsh Street and the occupation of the course for between four and six years during the construction of the WestConnex roadway. The impacts of the WestConnex occupation and the reduction of our course to less than eighteen holes are shown in Figure 2.

These roads works have now brought the Club to a position where we have few options. Quite simply the Club cannot hope to maintain a viable membership

on such a reduced course for the duration of WestConnex works.

� It is not certain that all of the land presently occupied by the course will be returned for use as a golf course. It is now known that permanent road related infrastructure including major exhaust and ventilation facilities will remain onsite, located on RMS owned land around the present 4th hole.

� Sydney Water have said that works to maintain and augment the performance of the SWSOOS will be undertaken at a time when the necessary funding is available. When this happens, land comprising the 6th fairway and 7th hole will be lost for an extended period of time and perhaps permanently.

� There is also no guarantee that RCC will return that portion of the present course owned by it to the Club for the continued use as a golf course. The Club also uses land controlled by Sydney Airport which includes the existing 6th green, 7th tee, 8th tee and 13th green. This occupation is held on a month to month basis.

� The Clubhouse requires major and essential maintenance which will extend beyond refurbishment to include disabled access and fire safety upgrades. This will be a costly exercise without providing any substantive improvements in amenities. The extension of current facilities such as the River Room, required to deliver trading outcomes, will add a significant cost layer, over and above that of the refurbishment.

Considering the issues


Figure 2 – 9 hole layout with WestConnex occupation


Leasehold or Freehold: Ideally the Club would like to maintain land on which the course, clubhouse and the club facilities will be located on freehold terms. However the State Government and Council are simply not prepared to provide this land on a better arrangement than a 99 year lease.

However, a seamless arrangement of tenure over 100% of the new site provides better security than the present arrangement.

Rent Increases: Since the initial vote to approve the Club’s participation in the Cooks Cove Project there have been some changes to our rent status, but fortunately they have not yet increased to levels that can reasonably be anticipated to apply in the future, should the land be made available. RMS did increase the rent on approximately 2Ha, the present 4th hole, from $572 per year to $8257.70 (increasing by 5% annually), while Sydney Water and RCC rents have remained at 2002 costs.

RCC have advised that a lease on commercial terms will be required. This is currently on hold while Cooks Cove negotiations and the consequences of the WestConnex occupation are being considered. The suggested rental is $35,000 per year (indexed). The present rental being paid to RCC is $2 per year.

RMS Road Corridor (F6): The future of the F6 corridor remains uncertain on both the current and proposed site but the advent of the WestConnex

Figure 3 – Indicative 99 year lease land plan

99 Year Lease Land


and proposed southern extension would suggest this road would no longer occur in its historic alignment. Current plans are understood to propose a tunnel from the WestConnex to President Avenue, Kogarah.

AIRPORT ISSUES Noise: It remains the case that the Club would be affected by a smaller number of planes on the new course than on the existing course. This is because we would be further from the influences of the main north-south runway. However, when the east-west runway is in use the new course would be affected and therefore experience louder noise.

Independent noise experts have confirmed that aircraft noise levels on the new course are well under the maximum levels set down by the Work Health and Safety Act.

They have also assessed aircraft movements and have concluded that, in the worst case, when the east-west runway is in use, on average, the longest exposure to aircraft noise over an eight hour period would be three minutes.

A significant advantage of the new site is the dramatically reduced exposure to the ever present noise from Marsh Street traffic.

CONSTRUCTION AND MAINTENANCE Staged relocation: Originally the Club had negotiated a continuation of play over 18 holes throughout the staged construction of the new course. Under the circumstances of a four to six year WestConnex occupation of a significant portion of the existing course the Board is proposing that the new construction program would consist of two stages:

� Stage 1 - construction of the new clubhouse and a loop of 9 holes (Figure 4)

� Stage 2 - construction of the remaining 9 holes (Figure 5)

In order to minimise our exposure to WestConnex and to facilitate a quicker relocation, it is proposed that Members will relocate to the new site at the completion of Stage 1. From the time of development consent, construction of Stage 1 is expected to take 24 months, with Stage 2 completed 18 months later.

The newly constructed holes will need two growing seasons to be ready for play and so it is important to secure a winter commencement of bulk earthworks to minimise this timeframe. In the meantime, our existing course will be maintained as normal, although subject to WestConnex affectation.

MAINTENANCE COSTS ON THE NEW COURSE The new course will be designed and built to take advantage of: natural features, appropriate levels for drainage, consistent and quality growing mediums (soils), USGA construction specifications, hybrid-turf types that require less water, enhanced irrigation system and a reliable water supply. These features help reduce maintenance costs.

WATER SUPPLY Until quite recently, when the installation of the bore was completed, water supply was one of the most vexing problems for the Club. Potable or town supply, continues to increase in price and so alternatives must be sought.


A 29 megalitre per annum supply from the bore provides great security, so too will an increased capacity to store water. A minimum storage capacity of 40 megalitres has been specified with a supply of up to 500 kilolitres per day during the peak of summer to be made available. Our current storage capacity is 15 megalitres.

The course design will seek to catch and keep rainwater. Our negotiations with WestConnex suggest that a supply of filtered reuse water from the tunnel and surrounds may be made available.

Figure 4 – Stage 1 Figure 5 – Stage 2

WestConnex CompoundNew Golf Course Site

KGC Freehold Land

LegendWestConnex CompoundNew Golf Course Site

KGC Freehold Land

Legend


SOIL CONTAMINATION As many will be aware, the site of the new golf course is subject to some contamination issues as a result of its former use as a tip for putrescible and construction waste. Hundreds of test boreholes have been drilled on the site during the preparation for the original open space/golf course Development Application. This rigorous testing regime has been the basis of a remediation strategy which will see the site capped and new topsoil imported to provide a consistent growing medium across the site.

ENVIRONMENTAL ISSUES Market gardens: The heritage listed market gardens are not part of the Cooks Cove site and will remain unaffected.

Wetlands: Two significant wetlands exist on the site that are presently considered to be in a poor state of repair by project environmentalist, Cumberland Ecology. It is intended that these wetlands will be rehabilitated and in the long term maintained in accordance with a Plan of Management to be approved as part of the New Golf Course DA. The Club will facilitate access for the public and local ornithological groups to visit the wetlands to view migratory birds.

REVENUE OPPORTUNITIES Driving range: A driving range which provides Members an opportunity to hit their longest clubs will be constructed. There will of course be the opportunity to run this range commercially, providing another revenue stream, should the Board elect to do so.

Tournaments: Whilst the course will be designed to a standard that certainly would be suitable to host high level

professional and amateur events that is not the primary focus, as the objective is to create a high quality golf course which caters for members of all standards of play.

Membership fees: There is more chance of keeping annual subscriptions stabilised if we move to the new course where the cost base will significantly be lower and the capacity to generate income will be higher.

Function Revenue: A modern contemporary Clubhouse with enhanced function and recreation facilities will better position the Club to attract special event and corporate functions and diversify our revenue base.

SECURITY AND SAFETY Boundary fences: The new course will be fenced for security and safety screens put in place where any perceived danger could exist, for example Riverine Park on West Botany Street. The driving range will also be netted to protect the driveway into the clubhouse and to stop any balls entering the course or leaving the site to Bestic Street.

Cycle path: This will run along the Cooks River boundary, between the course, the M5 Motorway and the northwest boundary of the course to Riverine Park. The course has been designed with appropriate buffer zones to maintain a set back from the river within which the cycle and pedestrian path will be situated.


SOCIAL IMPACTS Sporting Clubs: Part of the works completed to date for the Cooks Cove Project includes the John Boyd Properties relocation of the many sporting clubs which historically used fields within Barton Park, to other fields in the Rockdale area complete with improved playing surfaces, grand stands and amenities, in order to facilitate the relocation of our golf course. The cost of this relocation was approximately $12 million.

St George Stadium: Under the new plan for Cooks Cove, the dilapidated St George Stadium will be replaced by John Boyd Properties in an alternative location to Football NSW Premier League standards, including a FIFA approved synthetic surface, with 3 associated training fields on the northern portion of the site, being the existing golf course land. The exact location of these new community facilities is yet to be resolved.

THE CLUBHOUSE Location: The new clubhouse will be located on the highest point of the golf course in the area adjacent to where the St George Stadium is currently situated. The site affords wonderful views over the course, airport and to the city.

Access: Will be via a two lane road along Muddy Creek from Bestic Street.

Parking: The new carpark will provide 220 car spaces as well as provision for coaches, representing an increase of 75 spaces on the existing carpark.

Facilities: The new clubhouse is still in design phase and an opportunity for Members to have input will be provided. The concept plan presented within this document (Figures 12 and 13) represents a floor plan that addresses the many issues of flow in and around the building, lines of sight to the tee for starting and the course in general for Members. The plan will also deliver a high level of operational efficiency.

Features include:

� New locker rooms and player amenities

� Members lounge and bar areas

� Dedicated Bistro

� Function room for 200

� Function/meeting/pre-function room and reception space

� Crèche

� Committee and Board rooms

� Indoor/outdoor gaming

� Proshop within the main building

� Cart and club storage

� Terrace

The Members’ area is able to remain separated from function needs, as dedicated function spaces are provided including independent bar and food service facilities.


Figure 6 – Example of indicative interior look and feel


Figure 7 – Example of indicative interior look and feel


Under the new requirements of the Registered Clubs Act 1976 and Registered Club Regulations 2015 the Board is required to seek the approval of the Members via the passing of an ordinary resolution (simple majority) to sell or exchange the Club’s core property.

Core Property is defined as: any real property owned or occupied by the club that comprises:

(a) the premises of the club, or

(b) any facility provided by the club for the use of its members and their guests, or

(c) any other property declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, to be core property of the club,

but does not include any property referred to in paragraphs (a)-(c) that is declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, not to be core property of the club.

In order to put a resolution to the Members it is a requirement of Section 41J (Registered Clubs Act 1976) Disposal by club of real property, that a valuation of the land is provided and the details of the transaction or exchange made available to the Members.

Accordingly a valuation report has been commissioned which will assess the value under the present SREP 33 Trade & Technology/Open Space Zoning. An assessment will also be made on the basis of a mixed use zoning.

Whlist the Board is unanimously in favour of pursuing a new golf course at Barton Park, before deciding to recommend this to Members a number of alternatives were considered but ultimately rejected. A summary of these alternatives and issues relating to them is set out below.

Sale of the Club’s Freehold Land to fund the Purchase/Development of a New Site

Issues:

1. The process will take considerable time and almost certainly would mean a loss of the opportunity to relocate to Barton Park.

2. If we were able to locate an alternative site to build a new course in all probability it would not be within an acceptable distance from the current site, or even in the current Sydney metropolitan area.

3. Any developer would only offer a premium price if the land came with a development consent attached, or at least rezoning approval.

4. The Club is not equipped to manage the rezoning application process or prepared to accept the development risk attached thereto.

Resolution of Members


Or

Using Sale Proceeds to Transfer Members to other Clubs

Issues:

1. It will require the engagement of independent expert advice to determine an appropriate equitable basis for allocating the net sale proceeds between Members.

2. Even after advice is received it may require an application to Court to avoid potential claims of bias or lack of fairness in the methodology.

3. There is no certainty other golf clubs would be willing and able to absorb our current membership on acceptable terms.

4. Under an equitable scenario Members would ideally be placed with one Club. The likelihood of an appropriately located Club capable of integrating five to six hundred members is considered improbable.

These issues are of an extremely practical nature and the Board has considered them in light of the Club’s governing documents, the Constitution and By-laws. The objects of the Club include:

(a) To promote the playing of golf as a sport by establishing a non-profit organisation as a golf club for that purpose and to promote participation in other sports games and recreational activities.

(b) To establish, operate, maintain, alter and improve a Clubhouse, golf course, associated facilities and other sports games and recreational facilities as determined by the Club on the Club’s premises for the convenience, comfort and well-being of Members and for the promotion of the purposes of the Club.

(c) To do all things that are usual and necessary for operating a golf club including, but not limited to, joining and maintaining membership of Golf Unions, Associations and the like and other bodies and organisations which govern the game of golf and the operation of golf clubs in Australia, and to do all things that may be necessary if the Club undertakes to operate any other sporting activities

In summary, the recommended pathway is to pursue the realisation of Cooks Cove. This would ensure the continuation of Kogarah Golf Club, with membership intact and in a location which facilitates this process.


The Cooks Cove Project provides the Club with a legitimate opportunity to secure the future of the Club for current and future Members.

The Board of Directors will be asking you to approve the exchange of 18.5Ha of freehold land for the following benefits:

� A new 18 hole championship golf course purpose built to USGA standards, on a new site;

� A new clubhouse constructed to meet the diverse needs of modern golf club membership and capable of sustaining itself via the flexibility to cater for: functions, restaurant, gymnasium, social and community activities, tennis, swimming and bowling facilities;

� Security of tenure under a 99 year lease of the entirety of the new golf course and clubhouse land; and

� All of the above to be provided at no cost to Club Members and secured by bank guarantee.

The new course, designed by James Wilcher, will be built to internationally recognised USGA standards with the benefit of the latest technology in agronomy, irrigation and environmental controls. The new course is now to be located entirely to the south of the M5 and SWSOOS. This removes the significant risk associated with the original plan which saw the course straddle the M5 and SWSOOS and subject to the needs of Sydney Water to conduct repairs, both planned and emergency that potentially

would have denied the Club access to holes constructed to the north of the M5 and SWSOOS.

Please refer to Figure 8 for the latest course design.

� The new course will enjoy enhanced safety setbacks not only between adjacent holes but also to residents and roads;

� The course will be par 72 with minimum length of 6200m using risk and reward design influences;

� Turf grass surfaces will be modern cultivars bred to deliver a year round quality playing surface, with pest and disease resistance;

� Guaranteed delivery of a quality and reliable water source to ensure irrigations needs are satisfied year round;

� Practice facilities including approximately 1500m2 of chipping and putting along with a driving range of over 200m (netted for safety);

� Course facilities such as tee box furnishings, seats, bridges, paths, toilets and shelters; and

� Protection for local wetlands, migratory birds and Green and Golden Bell Frogs.

How does the Cooks Cove Project help the Club?


Figure 8 – New Kogarah Golf Club Concept Masterplan


The new Clubhouse will offer Members unprecedented standards of amenity within an iconic building designed to the Club’s specifications. The clubhouse will deliver:

� A unique Club environment maintaining exceptional levels of Member comfort in bar, restaurant, locker room and fitness facilities;

� Modern and versatile function/conference spaces with audio visual, Wi-Fi, indoor/outdoor gaming facilities and air-conditioned comfort;

� Ability to cater for a group of a few (boardroom style) to seminars for 200 participants;

� Fitness facilities including gym, lap pool, tennis courts and synthetic bowls rink; and

� Space for 220 cars. This is an increase of 75 spaces ensuring Members and guests could park comfortably and securely. Access to the Clubhouse will be via Bestic Street.

Plans are still in preliminary form due to the recent repositioning of the Clubhouse on the proposed site. Indicative floor plans are presented in Figure 12 and 13 along with various photographs at Figures 9 to 11 to present an understanding of the quality of finish and amenity. To further assist your thinking, consider clubhouses such as; The Lakes and Elanora in Sydney and Metropolitan and Huntingdale in Melbourne which are to be used as benchmarks for the new clubhouse.

Figure 9 – Site plan with course orientation Figure 10 – Model of the proposed clubhouse and car park


Figure 11 - Artist’s Impression of clubhouse from the course (top) and the clubhouse enterance from the car park (bottom)


Figure 12 - Lower level floor plan of new clubhouse

Figure 13 – Level one of new clubhouse


Continuing Member consultationNEXT STEPS � Come along to information sessions which will be

held in the coming weeks to provide Members the opportunity to ask questions, discuss and review the proposal.

� Attend the extraordinary General Meeting of Members to be held within the next two months. Here you will be asked to vote on an ordinary resolution to permit the Board to continue to negotiate an agreement for a transfer of the Club’s core property in return for the outlined components of the Cooks Cove Project.

� This is a vital issue for the future of our Club and the Board is keen to hear your feedback about the proposal, the proposed course and preliminary Clubhouse plans.

� If you would like to discuss any aspect of the project or the content of this booklet please contact either Tony Rodgers (General Manager) or John Brown (Assistant Manager) via the office.

19 Marsh St, Arncliffe NSW 2205 (02) 9567 0334

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