THE Crescent Head Country Club will fight a decision by the Department of Lands to increase its rent to $54,555 - up from $14,650 in 2000.
The club received an invoice a few weeks ago from the Department of Lands stating the new amount for the club’s rent of crown land.
Crescent Head Country Club manager Colan Ryan said the club had not yet paid the bill.
Several other clubs in the north of the State have also been hit with huge rent increases.
Mr Ryan believes all clubs on crown land in the State will eventually be hit.
Some of the clubs have said they would have to close if the new regime was enforced.
The new rents affect clubs on crown land which have poker machine revenue of more than $1 million.
The State Government has decided to scrap a rebate scheme for clubs on crown land.
Mr Ryan said the Crescent Head Country Club’s poker machine turnover is just over the $1 million mark - and there is no sliding scale for clubs.
“We’re in the same category as a club that has poker machine revenue of $20 million,” he said.
In the past three years the club’s poker machine revenue has been about $1.1 million - but most is returned to players or used to cover costs.
“$1million may seem like a lot of money but when you have a golf course, bowling greens and tennis courts with about 50 employees there isn’t much left over,” he said.
The club has yet to pay the new amount and does not plan to until it hears from Lands Minister Tony Kelly.
Mr Ryan believes if Mr Kelly knew about the club’s situation he would intervene and do something.
“When Mr Kelly opened the surf reserve he commented on the golf course backing on to a surf reserve,” he said.
Local MP Andrew Stoner has rallied behind the club by telling them not to pay.
“He thinks it’s unfair and that we shouldn’t pay it,” Mr Ryan said.
Last financial year the Crescent Head Country Club made just $40,000 in profit, and $30,000 was donated back to the community.
The club donates about $30,000 a year in community grants.
Last financial year 21 organisations such as the Malibu Club ($5000) and Kempsey PCYC ($2250) received grants.
If the club is made to pay the new land rent, Mr Ryan believes the community would be affected greatly by major cutbacks on community contributions.
“Our club board would have to strongly look at cutting back support for local sporting and community organisations,” he said.
“There are so many local organisations that rely on the Country Club and they would have no other means of sponsorship.”
Crescent Head Country Club is a member of Clubs NSW, which has been in talks with the Department of Lands without success.
The Country Club offered to purchase the land in 2006 from the Department of Lands, but the offer was refused.
A letter from the Department of Lands says in part:
“Crescent Head Country Club is the dominant entertainment-sporting service provider in the locality with strong historical cultural links with the past.
“The department is keen for the club to continue on with its current community based operations.
“This can be best guaranteed if the department retains control over development of the site and has direct input into any future zoning issues.”
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