AMF – The Full Story
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Discussions commence
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In November of 2007, with construction for ONE55 health & fitness well underway, the club was considering its options for the old gym space when a telephone conversation between the CEO of Macquarie Leisure and the Club CEO prompted the idea of an AMF Bowling centre.
Macquarie had taken over the AMF business in 2005 and saw the potential to refresh a tired brand with new centres and a reinvigorated proposition. The Mt Druitt centre, although one of the oldest and most in need of repair, was also one of the most profitable, but as the lease was expiring at the end of 2009 it gave Macquarie the opportunity to look for a bigger premise, in a more suitable location that could cater for a modernised product and the addition of the M9 Laser Skirmish area.
At the same time the Club was undergoing its own need for change with its reliance on gaming being impacted by new legislation and taxes, diversification was top of mind when the first discussions began. Having already reviewed a number of opportunities including a cinema, entertainment centre, larger sporting facilities and aged care the club knew it needed to find a product that would deliver a continuous revenue stream as well as add value to the existing business.
The Club received a preliminary financial plan in December 2007 and began the due diligence, market research, financial viability and product assessment required. On Tuesday 15 April, 2008 the Board endorsed the plan and provided management with the approval to move to a full costing and design plan.
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Where to build
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AMF’s initial concept was to look underneath the existing building, however with this now marked for the new Sports Bar, it left two other locations as potential sites; the vacant land on North Parade adjacent to the car park or the sports field.
As the vacant land offered significant traffic appeal, with 220,000 people a week passing the location, the sports field was considered the second choice especially given the emotional attachment the Club community had to its use by children. The commercial realities of building traffic flow into the Club became more apparent. When the two designs were put forward as placing the AMF centre on the sports field created a tangible connection between the properties and only a short walk to the Club, Hotel or Gym. It would also leave the higher valued vacant land as a flexible future asset for the Club to develop.
Over the period to September 08 the financial and commercial negotiations took place and nearly one year later, on the 7th of October the Board approved the cost to build the AMF centre on the sports field, as it was clear by this time that its only use was for Carols by Glow Light.
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The deal is done
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The challenge to finalise multiple lease and fit out agreements with Macquarie Bank through respective legal teams was a long process. Due to the length of the lease we were particularly cautious in detailing and defining the terms and conditions to ensure the best interests of the Club were protected. On Tuesday 3rd February 2009 the Board approved and Chairman Ray Johns and Vice Chairman Colin Herman executed multiple agreements between Macquarie Bank and the Club, finally the deal was done and the reality of an AMF Centre at Rooty Hill RSL was assured.
Since the initial Board approval, our architects had completed the design, prepared and submitted a Development Application with Blacktown Council and prepared documentation ready for tender to seven construction companies on Thursday 16th July 2009.
Our timing to tender was perfect as the effects of the global financial crisis had caused a severe decline in construction throughout Australia making the pricing for our AMF Bowling Centre very competitive. Six companies responded and Kell & Rigby were appointed at a price some 25% less than our original financial forecast, which was welcoming news.
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Ready for business
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Opened on Friday 28th May 2010 it has been a 31 month journey from concept to completion and we welcome AMF Bowling into our Rooty Hill RSL family along with Novotel and ONE55 health & fitness.
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