The original motion was moved by Councillor
Ellsmore, seconded by Councillor Scott.
It is
resolved that:
(A) Council note that:
(i)
The
Star casino in Pyrmont continues to operate, under a special manager, with a
suspended licence, following the 2022 inquiry into money laundering and
counter-terrorism issues;
(ii)
after
failing to adequately address the problems identified by the 2022 inquiry, The
Star casino is now subject to a second inquiry by the NSW Independent Casino
Commission into its operations;
(iii)
in the
last month, The Star casino’s Chief Executive Officer, Chief Financial Officer,
Head of Customer Service, and Chief of Staff have resigned;
(iv)
the
City of Sydney has granted funding to the Western Harbour Business Improvement
District (now renamed to the New Sydney Waterfront Co) including:
(a)
$40,000
for a knowledge exchange grant in 2021 to explore and develop the Business
Improvement District model; and
(b)
$50,000
for an Innovation and Ideas Grant in 20223 to undertake a “Research and
Feasibility project to develop an Environmental, Social and Governance (ESG)
vision for the Western Sydney Harbourfront Precinct; and
(v) the New Sydney Waterfront Co’s current board members are ICC Sydney, Lendlease, Markham, Mirvac, Sydney Fish Market, The GPT Group, The Star, UTS, Accor, Business Sydney, Crown and Powerhouse. Many other businesses and organisations are members including Business in the Peninsula (Pyrmont, Ultimo and Darling Harbour) (formerly Pyrmont Ultimo Chamber of Commerce) and Walsh Bay Precinct Association;
(B) Council also note:
(i)
the
Western Harbour Business Improvement District / New Sydney Waterfront Co was
the first ‘Business Improvement District’ (or BID) in NSW;
(ii)
it was
established in January 2021 with $450,000 in seed funding from the NSW
Government and $40,000 from the City of Sydney;
(iii)
the NSW
Government has recently renamed the Business Improvement District program the
Community Improvement District (or CID) program, although the model remains
essentially the same;
(iv)
the NSW
Government is currently undertaking consultation on legislation to formalise
Community Improvement Districts (CIDs);
(v)
the
City of Sydney has made a submission objecting to the NSW Government’s draft
exposure bill on CIDs. The bill proposes that businesses and other
organisations who form a CID will be able to compulsorily tax or levy other
businesses in a local area, to deliver ‘improvements’ or ‘services’, including
some activities which would otherwise be the responsibility of the local or
State Government;
(vi)
issues
with the bill outlined in the City of Sydney’s submission include a lack of
transparency on resourcing and governance of the proposed CID Regulatory
Authority, insufficient level of detail required for a proposal to set up a
CID, incorrect assumptions on responsibility for ballot process and property
owner lists, a flawed model based on additional compulsory taxes (the CID
levy); exclusion of non-landowning businesses or residents in a CID entity; and
the misleading renaming of the program; and
(vii)
the
City of Sydney’s submission opposes the bill in its current form, and
recommends it does not go ahead, noting that … “the legislation presents too
many pragmatic challenges that have not been considered, with the likely
outcome being that the legislation will either not deliver on the intent and/or
will have unintended negative consequences”;
(C) Council agree that:
(i)
given
the findings of the NSW Independent Casino Commission’s Inquiry and the failure
to implement changes in a timely manner, The Star casino is not an appropriate
organisation to receive or benefit from Council funding;
(ii)
the
City’s existing Corporate Sponsorship Policy, Investment Policy and Grants and
Sponsorship Policy, ensure the City does not support entities who entice people
into financial over-commitment, derive their principal source of revenue from
gambling activities, and produce, promote or distribute products or services
likely to be harmful to the community;
(iii)
local
community groups, organisations and events, including Christmas in Pyrmont, Sustainable
Destination Partnership, Business in the Peninsula and the Pyrmont Food and
Wine Festival are supported by The Star, many of which the City is also
involved in. Should the City withdraw its involvement or support of these
groups, it could put their operation and events at risk;
(iv)
the
City’s Chief Executive Officer is currently a member of the New Sydney
Waterfront Co’s Government Liaison Group, alongside Placemaking NSW, and NSW
Department of Enterprise, Investment and Trade. The City also participates in
various working groups associated with the New Sydney Waterfront Co including
the Precinct Liaison Group, Data Analytics Group and Precinct marketing group;
and
(v)
should
the City withdraw its involvement in the New Sydney Waterfront Co, we will lose
the ability to help shape the future of an important part of our local area.
Importantly, we will also miss the opportunity to support our local business
community and ensure that community issues are considered during these
processes; and
(D) the Chief Executive Officer be requested to:
(i) provide
advice to Council:
(a)
detailing
any grants and other Council funding allocations (including program support) to
The Star casino;
(b)
outlining
any other governance groups the City of Sydney is involved in alongside The
Star casino other than the New Sydney Waterfront Co; and
(c)
outlining
amendments that could be made to Council policies, program and grant guidelines
to bring this decision into effect; and
(ii)
write
to the Chair of the New Sydney Waterfront Co expressing Council’s concerns
about The Star casino’s membership on the Board while a second independent
inquiry is underway into the operations of the casino.
The amended
motion was carried on the following show of hands –
Ayes (7) The Chair (the Lord Mayor), Councillors
Chan, Davis, Kok, Scott, Weldon and Worling
Noes (3) Councillors Ellsmore, Gannon and Jarrett.
Amended
motion carried.
X086659