Ipswich greyhound track set to close over showground stalemate
The Ipswich Greyhound Racing Club, a standing tenant of the Ipswich Show Society, has requested a 12-month extension to their lease, which is due to expire on January 31, 2024.
However, despite the Ipswich Club running greyhound races at the Ipswich Showgrounds for over forty years, the Show Society has asked for an extraordinary $12 million ‘make'good' payment at the end of the 12-month extension.
The existing ‘make good' payment over the current lease is only $400,000.
Neither Racing Queensland (RQ), the Ipswich Show Society, nor the Ipswich Greyhound Racing Club have been able to provide any information that would justify the thirty-fold increase in the end-of-lease payment.
With greyhound racing activities set to begin at The Q in 2024, the Ipswich Club and RQ only sought to extend the existing lease to bridge the gap.
RQ only became involved in negotiations when Ipswich Greyhound Racing Club (the current leaseholders) were not able to negotiate the 12-month extension themselves.
According to a RQ spokesperson, “the Show Society formally wrote to RQ and asked it to consider entering into a new lease arrangement at the Showgrounds, as distinct to the Club, under new commercial terms”.
The proposed terms include an increase in rent and a one-time payment (‘make good') of $12 million for redeveloping the Showgrounds after the lease ends.
RQ has already said that it “is in favour of granting the club's request for a lease extension and prefers that lease arrangements continue between the club and the Show Society”.
RQ has “urged the Show Society to resume negotiations with the club regarding their lease”.
RQ has requested the Show Society resume lease negotiations with the Club, and if an appropriate agreement cannot be reached, it will explore alternate programming options throughout 2024, including reallocating race meetings to other venues.
Speaking earlier in the week, RQ CEO Jason Scott said, “Essentially what they've asked for is a 40 per cent rise in rent and a $12 million make good payment upon exit”
“The current make-good payment on the existing lease is $400,000 and the club actually has that quarantined away.
“So they're (Show Society) saying the previous lease required a $400k make-good while the new one will need $12 million.
“We are hoping that some common sense prevails but we won't be entertaining the $12m make good demand.
“I could live with the rent hike for a year but the fact is even if RQ had the $12m we couldn't pay it even if we wanted to.
“It's clearly very disappointing”, said Scott.