Commodore wary over new lease proposal

A MEETING to discuss the future of Durban watersports clubs was held at Point Yacht Club recently.

The clubs were issued with notices to vacate their premises to make way for the proposed Point development. Speaking at the meeting, where the issue of signing the new leases offered by the Durban Point Development Company (DPDC) for temporary premises was discussed, Commodore of Point Yacht Club (PYC), Craig Millar, said the situation was extremely complex and what was important was how to cut through the smoke and mirrors and get down to what was going on and make the right decision.

READ RELATED: Point development project gives sports clubs notice to vacate

He said PYC was committeed to working together with Durban Undersea Club, Durban Ski Boat Club and Durban Paddle Ski Club, and the intention was to negotiate the very best result for all clubs.

“We can’t accept anything less than the best end solution. We can’t just take what’s on the table,” he said.
Millar said the starting point was the 2008 Memorandum of Agreement which is still in effect today, between the three clubs PYC, Durban Ski Boat Club and Durban Undersea Club (DUC) and the DPDC, and is referred to in the notice to vacate the premises.

“In the agreement significant things are set down: we have the right to a freehold piece of land at R880 000; the formation of an entity called the Point Watersport Clubs, which would act as an umbrella body representative of the three clubs who would operate under their own constitutions, their own structures, commodores and members.”

“In 2012, the Durban Paddle Ski Club was included in this agreement. There’s no question a few things have changed but at no point have we ever given up the right to the freehold land in that agreement, it is still on the table,” he said.

Background to dispute

Millar said in 2013 six individuals decided to establish a not for profit company – the Point Watersports Club – which resembled the proposed Point Watersport Clubs. They launched it as a new ‘super club entity’ and looked to absorb all the affected clubs under its administration.

“A Memorandum of Incorporation for the newly formed club describes it as an organisation having six directors who will select incoming directors and has a elected members to be included in a number of categories.”
However, this contradicted a previous decision where individual clubs would retain their individuality under the umbrella club.

READ RELATED: Water sports clubs clash over amalgamation

“The members of the Point Watersports Club are individuals, not clubs, and our clubs as they currently stand, do not exist or have a say under this new administration,” he said.

Millar said PYC had to try ensure the umbrella body reverted back to what had originally been set out in the 2008 agreement to form a company which operated in the best interests of the four clubs rather than six directors in a brand new club with new members.

“We are at the point where we have been given eviction notices to leave the premises at the beach site, but the problem is that right now, if we sign those agreements it could be argued this would replace the 2008 agreement – and we would accept something that is not freehold land, but has a 15 year lease at R108 000 a month,” he said.

Point Yacht Club raises issues of contention

POINT Yacht Club is currently in arbitration, challenging the Memorandum of Incorporation of the Point Watersports Club on a number of points.

He said the club was questioning how the agreement went from a piece of freehold land which would cost R880 000 to a lease which will cost R108 000 a month, something the PYC was not willing to accept as it had rights to land as set out in the 2008 agreement.

“We are also challenging the structure of the Point Watersports Club, which no longer represents the clubs’ interests, but is a new company. We are challenging the Point Watersports Club on why the Durban Paddle Ski Club has not been included in any of the discussions and decision-making that will affect the future of all the clubs affected by the proposed development. There is no fair or logical reason when the Durban Paddle Ski Club spent a massive amount of money to defend Vetch’s beach for all the clubs. They are not being dealt a fair hand,” he said.

Millar said the proposed leases could not be placed in front of a board for approval as there couldn’t be a lease agreement for land not yet approved by the developers.

“There are also no time lines on the leases which means it could take forever to build and we would be sitting with no club. There is also no assurance the club will be incorporated into the permanent building and could end up being a temporary club for the rest of our lives in the corner of the harbour. We won’t rush into signing this agreement and PYC will not vacate its premises until an agreement has been reached with the developers and fellow clubs on land which is equitable to the 2008 agreement,” said Millar.

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Since the notices to vacate were served, Durban Undersea Club (DUC) is reportedly the only club to vote in favour of signing the new leases for temporary premises. According to reports, the Durban Ski Boat Club, after a special general meeting where members refused to sign the leases, the chairman was instructed to go back to the developers and negotiate a better deal. Instead, he sent out an electronic message advising members to vote by electronic means by Friday 7 July. This practice, according to the club’s constitution, is not legal.
The chairman then went a step further stating that a non-vote would be regarded as a yes-vote, which, according to the club’s constitution is also illegal.

This sparked off a tsunami of protest by members who formed an action group that prevented the electronic process from taking place.
“We will not do anything until we arrive at the point where it’s the will of the members of the clubs to act, and we hope members of the other clubs make the right decision, this should not be rushed,” said Millar.