Elizabeth Bay’s Gazebo apartments a ‘basket-case’ wracked with legal threats
Domain
Sue Williams
23 February 2018
It’s one of Sydney’s best known apartment buildings, but behind the
scenes Gazebo, the former 1960s hotel in Elizabeth Bay, has become
wracked with arguments, accusations and legal threats.
The round tower block regularly used as a setting for film and TV
productions and converted into apartments in 2005, is in uproar after
the failure of a bid to cancel a $5 million special levy to start work
on fixing fire defects that could run to $7.4 million.
In the latest slew of legal actions, the NSW Civil and Administrative
Tribunal (NCAT) awarded costs against a rebel band of owners who had
sought to have the special levy suspended and remove the compulsory
managing agent (court-appointed administrator) appointed by NCAT just last year.
NCAT principal Kim Rosser said in the decision that, “I have concluded
that the applicants did not act reasonably in commencing proceedings”.
interest-free loans in return for proxies
But shortly after that issue was settled, another long-term resident,
TV commercial producer Paul Meredith, on Saturday wrote to other
owners saying he’s personally putting $100,000 towards fresh legal
action. In addition, he says in his note that he is happy to discuss
giving out interest-free loans to any owners who have outstanding
strata levies – which mean they’re not entitled to vote in future
meetings – in exchange for them giving their proxy to vote to ‘a
mutually agreed owner’.
When contacted by Domain, he declined to comment, saying: “I’m not
interested as I do not believe it will benefit the Gazebo Owners
Corporation.”
One owner, however, who spoke under the condition of anonymity, said
the building had “become a basket-case. We’re sick and tired of all the
legal actions, but it seems they’re never going to stop. And now it’s
incredible to think an interest-free loan is being offered to buy
votes!”
The trouble-torn building, once an icon of Sydney’s skyline, has rarely
been without the dark cloud of legal action since its 89 apartments in
the tower, and 60-plus units in the adjacent court building, were first
occupied in late 2005.
Originally, much of the anger and many of the court battles were
directed at colourful developer, businessman and decorated sailor Syd
Fischer, whose development company 2EBR was fighting actions over
claims for about $4.5 million in alleged defects, including fire
problems, leaking windows and balconies, in the building.
Another issue was the private use, by the penthouses built on the
tower’s roof space, of a third lift – which everyone else was paying
for. In 2014 the Supreme Court overturned the penthouse residents’
right to use that lift exclusively. The same year 2EBR sold the main
penthouse it retained ownership of, at the top of the 18-storey tower,
for $8 million.
Finally, after a lengthy series of hearings, the Supreme and Appeal
Courts ordered 2EBR to pay owners $135,000 in legal costs but in June
2015 it went into liquidation, so the bill was never paid, and the
defects action was effectively cancelled.
Six months later came more agony when the City of Sydney Council issued
a fire safety order against the building, requiring it to carry out
extensive works. A special levy of $1.1 million was struck in August
2016 to fund stage one of the program.
After a number of rows among owners, a compulsory strata manager was
appointed to run the building. Some appealed against the decision to
appoint the firm Strata Choice, but their action was later withdrawn.
The compulsory management order runs out on midnight this Friday, and
an Extraordinary General Meeting has been set for Monday, at which all
owners who are not in arrears with their levies will be entitled to
vote.
Strata manager Daniel Cockerell, when contacted by Domain, declined to
make any statement. “Because we are in compulsory management, we are
not at liberty to comment,” he said.
It seems only one thing is certain at the Gazebo: even with the end of
compulsory management, and owners taking their affairs back into their
own hands, the arguments, and legal actions, are unlikely to stop any
time soon.
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