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30/04/2010
MCC no regard for Small Business

Bourke St cafe tenancy dispute boils over

MELBOURNE Council faces a compensation claim after it ignored thousands of petitioners and booted a popular cafe from its Bourke St home.

Sweet Mama’s Cafe closed its doors for good last week after it was evicted from its council-owned premises of eight years.

The eviction has enraged co-owner George Mantizanidis, who said he and a business partner had lost about $200,000 in set-up costs and that four people had lost their jobs.

“I’m angry and disappointed because you establish a relationship with literally thousands of people,” he said.

“I know what coffee people want just by looking at their face and now it’s all gone - and that’s the saddest part.”

Nearly 2000 customers signed a petition pleading with the council to reconsider its decision.

Talks to move the 25sq m cafe to a different part of the building failed last month when the council issued its eviction order.

Mr Mantzanidis recently hired tenants advocacy service The Lease Police, which last week released a statement detailing plans to seek compensation from the council.

“This matter will proceed to (Victorian Civil and Administrative Tribunal) for damages and it is clear there are separate agendas and directions for the (council) that affect people and business with little or no regard,” the statement said.

But council released its own statement, saying it had fulfilled all of its obligations as the building’s landlord.

“The decision not to offer Sweet Mama’s a further lease was a commercial decision and does not reflect council’s view of the success or quality of Sweet Mama’s Cafe,” council chief executive Kathy Alexander said.

The cafe’s tenancy has been under a cloud since late 2008 when the Commonwealth Bank, which occupied the majority of the ground floor at 225 Bourke St, vacated the building.

Councillors are expected to grant a 10-year lease on the property, for $355,000 a year, to youth fashion company Globalize at a confidential meeting tonight.




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