Review of the Registered Clubs Industry in NSW - Clubs NSW

12 Making it easier for new clubs to be established
commented that councils and State government agencies are increasingly seeking
commercial rents for existing Crown land leases. 235
Given that clubs must be incorporated, any attempt to raise capital to cover the costs
of establishing a club would require a prospectus under the Corporations Act. For
many start-up clubs, preparing a prospectus would be onerous. This leaves clubs
with few methods to raise the capital they need.
ClubsNSW submitted that planning for land release and residential development
should include clubs and that the NSW Department of Lands should look favourably
on club requests to purchase the Crown Land they occupy. 236 The Leagues Clubs’
Association also suggested that planning for urban growth include club locations. 237
IPART considered these suggestions, and concluded that a club should only be
established if there is demand from the local community. Developments over time
may make the generic offerings of a club available in another way or from other
providers, so establishment of a registered club should be related to the unique
attributes of a club. However, where there is demand for a club, obtaining a suitable
location is an important issue.
IPART understands that the two options for clubs to obtain land in new release areas
are:
1. A club can approach the NSW Department of Planning or the Growth Centres
Commission at the stage of precinct planning to put forward a case for an
allowance of land in the master plan. This is more likely to suit clubs looking to
set up a satellite premises (and seeking a large tract of land).
2. Master plans for greenfield sites include land zoned for commercial uses, which
clubs are free to purchase. This is more likely the option for clubs that develop
over time from a group of people in the local community who want to set up a
club. The risk here is that the size and location of the land may not be suitable,
depending on how the area develops.
Under both of the above options, the club would have to raise capital to purchase the
land.
IPART considers that clubs looking to set up a satellite premises need to become
more familiar with the processes and policies of the NSW Department of Planning
and the Growth Centres Commission and engage in discussions at the early stages
when the precinct is being planned. Clubs should also consider the design of the
premises and its compatibility with the plans for that precinct.
235 ClubsNSW submission, 31 July 2007, p 95.
236 ClubsNSW submission, 31 July 2007, pp 122-123, and ClubsNSW submission, 4 April 2008, p 33.
Government policy currently requires that Crown Land should not be sold for less than its market
value.
237 Leagues Clubs’ Association submission, 27 July 2007, p 30.
Review of the Registered Clubs Industry in NSW IPART 203