Council takes over Eastern Pride GroundCouncil today took possession of Mobil Park after Eastern Pride failed to meet the deadline for payment of outstanding monies By Latrobe City Council - 9th July 2001 - Back to News Council today took possession of Mobil Park after Eastern Pride failed to meet the deadline for payment of outstanding monies. Latrobe City Mayor, Councillor Brendan Jenkins, said that it was disappointing that the situation had come to this, but there was no point in continuing to extend deadlines.
"Council has been extremely patient and supportive of the club’s endeavours to raise the necessary finance, but given that it has been almost twelve months since any payment was made, Council had no option but to take possession of the property and try to recover the outstanding monies owed. This is public money that has been advanced to the club and Council has a responsibility to do everything within its power to recover that money," Cr Jenkins said.
Acting Chief Executive Officer, Paul Buckley, said that an assessment of the various options for recovery of the money through the sale and/or lease of the property would be carried out over the next few weeks.
"Council will seek the best outcome for the community, and if that means the property should be put up for auction, then that is what will happen. In the meantime, the Falcons 2000 Soccer Club, which is a separate entity and runs a number of junior teams and a senior team in the local competition, will be allowed to use the grounds and changerooms, at least for the balance of this season whilst Council determines the future of the property," Mr Buckley said.
Council is owed a total of approximately $530,000 of which $330,000 is secured by a first mortgage over the property. The balance of $200,000 is subject to series of other securities including a fixed and floating charge over all other club assets and personal guarantees of members. The action to take possession of the property has been taken under the terms of the first mortgage.
Source: www.gippsland.com Published by: latrobecity@gippslander.com
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