Hepburn Shire Mayor Cr Don Henderson, councillors and CEO have issued an apology for the failed Hepburn Hub at The Rex project.

“On behalf of the council the current elected councillor group would like to express our regret to our community of Hepburn Shire for the negative  impact that the Hepburn Hub at The Rex project has had on us all.  

“We recognise that some actions during the project have led to feelings  of mistrust, and we regret the distress this caused. We acknowledge that certain actions taken in the past did not align with the values of our council and needs of our community.

“The Hepburn Hub at The Rex project did not deliver the outcomes promised, and we are sorry for the harm this caused.  

“We acknowledge the impact of past decisions, including the on going impact this has had on the organisation and community. Council has taken active steps to address past shortcomings and has implemented numerous measures that prevent poor project management and improved our  governance and transparency.  

“We recognise that restoring the trust that has been damaged with our  community will take time, but we are dedicated to listening to the concerns  of our community and working to create positive partnerships.”  

The apology, issued on the council’s Facebook page on March 25 after the monthly  council meeting, did not take long to blow up on social media.  

“Congratulations to Hepburn for having the guts to say this. It has only happened because  Council Watch went public with the report the State tried to hide. We accept many were  bound by confidentiality unfairly for far too long.”  

“Unfortunately for council, it’s too little too late! The damage is done, trust cannot be repaired so  easily!”  

“It’s a polished PR statement that gestures at apology without fully embracing it. A real  apology would be more specific, more direct, and include a genuine plan for restitution and  reconnection with the community, and accountability taken by those involved by stepping  down.”  

“Interesting how the comments are turned off on their post. Too scared to hear what the residents  have to say.”  

“You don’t restore trust by applying to raise rates by 10%.”

“It wasn’t hopeless project management, it was hopeless valuation practice, most projects first  start by knowing what they wanted to achieve and then valuing what that would be worth on the  market. The removal of in-house valuers at councils by the state revenue office changes (that put all  GOVT valuers in SRO) destroyed that ability of councils to get excellent opinions.”  

“I will be following council watch with great fervour – keep up the great work.”

“My goodness, a council pretty much apologising for something and saying they’ll do better. It  shouldn’t be as hard or as rare as this. Because it certainly is refreshing.”  

Meanwhile, the council last Thursday issued a media release saying it was aware of harmful  commentary and misinformation being circulated on social media.

“Recently, both commentary on social media along with emails directed to council have  escalated in volume and offensive and threatening language,” the release said.  “These attacks on council as a whole, and attacks on staff personally are nothing short of  intimidating, abusive and unacceptable.”  

Mayor Cr Don Henderson said he and the councillor group “are incredibly disheartened by the baseless rumours circulating in our communities, both online and offline”.  

“We welcome frank, fearless and respectful conversations. We do not expect everyone to  agree all the time. However, we do expect a healthy level of debate and respectful conversations to ensure that everyone is and feels safe.  

“Threats made to staff will not be taken lightly.”  

Words and file image: Donna Kelly  

The previously confidential Local Government Inspectorate report  into Hepburn Shire Council and The Rex/Hepburn Hub has been published by Council Watch on its Facebook page.  

It has since been widely shared around the community with comments  across social media scathing.  

The report into the failed creation of the Hepburn Hub in Vincent  Street, Daylesford was started in 2019 but last September the LGI said  the investigation had been finalised and there was “insufficient evidence to  prove to the requisite standard of proof the commission of any disciplinary  breaches or criminal offences contrary to the 1989 Act”.  

“Accordingly, the LGI will not be taking any further action in respect of  the investigation. Nor will the LGI be publishing any report.”  

The LGI also requested all draft copies of the report be destroyed or  returned. It is believed all were watermarked with the name of the recipient.  

The Local was sent a copy of the report in 2021 but was told by the LGI  it was illegal to publish it in any form and to do so could lead to hefty fines.  

As a small publisher keen to continue to produce a free newspaper for its  community, and which cannot afford to be fined or stage a legal battle, The  Local decided not to publish the report .

The report released by Council Watch is dated June 2022 but is believed to be different to the April 2021 draft given to councillors and others  involved.  

The Local wrote to the LGI last week asking if any action would be taken against Council Watch, and now parts of the report had been published in metropolitan newspapers, was it no longer confidential, and would it be  formally released.

The LGI wrote back saying last September’s media release  had not changed but did not answer other questions.  

On its website, Council Watch has a piece titled The Rex – What  Happened? “What began as a well-intentioned initiative to create a  community hub in Daylesford, Victoria, spiralled into a financial disaster,  resulting in a cash loss of $5.6 million, reputational damage, and a failure to  deliver on community expectations.”  

In a media release issued last week, Hepburn Shire Council  acknowledged the apparently unauthorised release of the Local Government Inspectorate draft report on the Hepburn Hub at The Rex project.  

“Council also acknowledges that due to the report’s release, our  community will be feeling a range of emotions; frustration, anger, sadness,  discontent and discomfort. Council has been calling for the finalisation and  release of the LGI report for many years, to bring closure to the situation  and allow our community to move forward.  

“The way the confidential draft report has been made public is  concerning and council has formally written to the LGI to request a  thorough review of the situation.  

“As far as council’s awareness of the matters raised in the report, in 2021 a number of councillors and officers were provided with an earlier draft  for comment. However, they were under a legal obligation not to reference  receipt of the report or disclose its contents.

“This 2022 version of the report,  though, is unfamiliar to our organisation and councillors and council cannot  comment on its origins or accuracy.”  

Mayor Cr Don Henderson said the current council leadership (post-  2018) had implemented important improvements to governance, service  delivery, community engagement, and transparency.  

“The financial loss associated with the Hepburn Hub at The Rex project  was $5.65 million. This included the purchase of The Rex in 2016 for  $6.345 million, additional expenditure of $3.04 million, and proceeds from  the sale amounting to $3.74 million.  

“The $5.65 million is significant, however, it is important to be clear  to the community that the current rate cap variation and savings associated  with the implementation of our Financial Vision would still be required  even without it.

“The Financial Vision notes an annual shortfall of $4 million  per year across the 10 years so, had the loss associated with The Rex project  not been incurred, the shortfall would still have amounted to $3.5 million  annually.

“The community has every right to be disappointed, but any anger, attacks or threats are inappropriate and will not be tolerated. Over recent  weeks we have seen an increase in poor behaviour by community members  towards staff and councillors who continue to work hard to deliver services  and projects for the benefit of the community.”

 Community anger with release of Rex report  

On its website Council Watch calls itself “a team  of volunteers with a keen interest and history in local  government”.

“We seek to advocate on behalf of all  residents and ratepayers in Victoria. Local government has  very little oversight and makes its own rules. This leads to  consumers’ rights being removed or restricted.  

“We seek to help people know their rights and to  challenge council where they have acted inappropriately.  We seek to educate Victorians about local government and  create a fairer system for all.”  

Council Watch president Dean Hurlston, pictured above says “council bureaucracy is strangling the goodwill  in our communities, rates are ever increasing and service  standards are lower than ever, there are far more of us than  them”.  

Words & Rex image: Donna Kelly | Profile shot: Contributed  

The Hepburn Shire Council has acknowledged an apparently unauthorised release of the Local Government Inspectorate (LGI) draft report on the Hepburn Hub at The Rex project.

The draft report concerns an investigation of the management of the project which proposed to convert an art deco shopping arcade (Rex Theatre) on the main street of Daylesford into a community facility, including library and council offices.

The council also acknowledges that due to the report’s release, the community will be feeling a range of emotions; frustration, anger, sadness, discontent and discomfort.

The council has been calling for the finalisation and release of the LGI report for many years, to bring closure to the situation.    

In a media release issued this week the council has stated that: “The way the confidential draft report has been made public is concerning and Council has formally written to the LGI to request a thorough review of the situation.”

The council’s media release also states that:

“As far as Council’s awareness of the matters raised in the report, in 2021 a number of Councillors and Officers were provided with an earlier draft for comment.

“However, they were under a legal obligation not to reference receipt of the report or disclose its contents. This 2022 version of the report, though, is unfamiliar to our organisation and Councillors and Council cannot comment on its origins or accuracy.

“The report obviously highlights significant areas for improvement, and a media release issued by the LGI in September 2024 noted that they were ‘satisfied that the Council has taken remedial action to put in place measures to avoid future complaints of a similar nature, including the creation of a new governance and policy framework’.”

Hepburn shire mayor Cr Don Henderson, said: “The current leadership (post-2018) at Council has implemented important improvements to governance, service delivery, community engagement, and transparency.

“These vital improvements have occurred while we have responded to the pandemic and the impact of three major storm events (costing Council $3.5 million), and delivered key projects including Djuwang Baring, The Mechanics Trentham, Future Hepburn and our Financial Vision”.

Chief Executive Officer, Bradley Thomas said he was proud of the organisation’s willingness and ability to ensure that the failings identified in the report do not occur again.

“Our organisation and community deserved better, so over the last six years we have put in place countless improvements to systems, processes and governance; the implementation of Project Control Groups, creation of a Major Projects Unit and an increased oversight by the Audit and Risk Committee and Councillors.

“This has resulted in improved project delivery, governance and financial oversight,” Mr Thomas said.

The financial loss associated with the Hepburn Hub at The Rex project was $5.65 million. This included the purchase of The Rex in 2016 for $6.345 million, additional expenditure of $3.04 million, and proceeds from the sale amounting to $3.74 million.

“The $5.65 million is significant, however, it is important to be clear to the community that the current rate cap variation and savings associated with the implementation of our Financial Vision would still be required even without it,” mayor Cr Henderson said.

“The Financial Vision notes an annual shortfall of $4 million per year across the 10 years so, had the loss associated with The Rex project not been incurred the shortfall, would still have amounted to $3.5 million annually.

The council is working with the relevant stakeholders to bring closure to and recover from this incident and will continue to advocate for the community and their interests now and into the future.

This story based on a Hepburn shire Council media release. Image: File

A sumptuous feast coupled with an unusual opportunity to hear from one of Australia’s most celebrated producer, Daylesford’s Richard Keddie is the latest fundraiser for Daylesford Cinema in The Rex. 

Richard will be guest speaker at a fundraising banquet on Saturday, March 22 at the Victoria Park Pavilion, Ballan-Daylesford Road. 

Two of Richard’s films, Little Fish and Ride Like A Girl are among Australia’s highest grossing box office successes. 

Richard also found success in TV dramas, and in campaign and documentary work as a writer-director, making more than 300 social justice, environmental and political TV commercials. 

A sumptuous seven-course Indian banquet is on offer, as well as a “not-so-silent auction,” and raffles. 

The chef is Raman Richards who quickly made an impact after arriving here 16 months ago. His mother, Puja Kumari, has decades of experience running award-winning restaurants. Guests are asked to arrive at 6.45pm for the banquet at 7.15pm.

Soft drinks, beer and wine may be bought. Tickets are $70 per head. Bookings: www.events.humanitix.com/phoenix-at- the-rex-indian-banquet  

Words & image: Contributed 

Answering a query from The Local, after a widely circulated report from Council Watch Victoria about alleged issues with the Local Government Inspectorate investigation into Hepburn Shire Council and The Rex, the Inspectorate says it does not intend to take any further action.

Instead, it resent a media release from last September saying the LGI received a complaint in 2019 relating to the Hepburn Shire Council’s involvement with the Rex Theatre redevelopment.

The release said it had since undertaken a rigorous investigation, found insufficient evidence to uphold the complaint and would not be taking any action or publishing any report.

The Council Watch Victoria report says the LGI lacked the legal authority to release any findings and reports from its investigations.

Who are the people behind the redevelopment of Phoenix Cinema at The Rex?  

For Jules McDonald this all began when she was a small child. She saw Bambi  with her parents in their hometown, Meeniyan, near Fish Creek in South Gippsland.  

“It was very exciting going to see a movie,” she remembers. “There was a huge  screen and the kids sat down the front. As I was quite little, I had to have a sleep in  the afternoon before going.”  

Then there was boarding school where films were the Saturday night  entertainment, everyone looked forward to. Classics such as The Importance of Being  Earnest, helped form her enthusiasm which was furthered by frequenting Carlton’s  storied ‘Bughouse’ cinema and the Australian Film Festival at the Longford cinema in  South Yarra.

Since moving to Daylesford 35 years ago, Jules looks forward to trips to  Melbourne which usually include a movie at Westgarth or Nova cinemas.  

More for young people  

While working as a social worker with Child and Family Services Daylesford  she became aware of the lack of social and cultural opportunities for young people  in town.

Then as a youth development officer with the Hepburn Shire Council  around 2003, Jules gathered some young people together and they spent a weekend  imagining what they would like Daylesford to be for young people.

 “The young people wanted to transform The Rex from being a bargain basement  shop back to being a cinema with associated activities.

They envisaged a bowling alley,  shops and a restaurant that would also offer hospitality training. There were also to be  spaces available to lease as shops.  

“The owner of the building was interested and wanted to make a sizeable  donation.” During school holidays 10 students went to see cinemas around Victoria  and New South Wales, returning inspired.  

New designs  

Student Michael Huggard drew up a plan for the cinema building, bowling alley, hospitality hub and shops. Richard Spence, a local businessman, helped the group  develop a business plan.  

Council support was needed for the plan as funding was to be sought for the education and training opportunities envisaged. But the council did not provide this  support, which was a devastating blow to the group and the plans could not go ahead.  

The skatepark that was envisaged and designed by young people went ahead together  with several successful “Small Day Out” youth festivals.  The cinema development plan came to life again in 2015 when Loretta Little, a  local community activist, decided to get a group together and raise money to kick it  off.

Linda Carroll became the first president of the community-run cinema and later Gina Lyons took over. Gina, described by Jules as a “powerhouse,” did a fantastic job of running the  cinema helped by a wonderful committee and great group of volunteers, from 2015  to 2018. While paying a commercial rent the cinema was able to make a respectable  profit.  

Down the drain  

All went well until the fateful council decision to buy the property for its offices  and a public lavatory (readers may know of Clochemerle, the satirical French novel about the furore when a mayor wants to put a public urinal in the middle of town, next to the church).

In Daylesford 1000 people signed a petition calling for the return  of the cinema.  The council realised its mistake and committed to building a new cinema upstairs  in The Rex.

The council demolished the old cinema and built the shell of a new  cinema upstairs. But this work stopped when costs blew out and the council then  decided to sell the building.  

As the cinema had no home in the foreseeable future, the committee sold  equipment that was likely to be outdated and kept what could be safely stored at  no cost.

The seats were sold because storage would have been expensive. Because  many seats had been bought by community members their name plaques have been  retained so that they can go on new seats when the cinema reopens. Money from sale  of property went to the cinema bank account.  

The future  

That was then. Now, heading the Daylesford Cinema Group, Jules is energetically  leading the campaign to bring back the much-loved cinema in The Rex.

A public  meeting led to community consultation and the formation of a new committee to  restore cinema to Daylesford. The committee explored potential sites for the cinema but concluded that  the only appropriate site and the natural home for the cinema is The Rex.

The Comelli and Bromley families, as new owners of the building, are open to a cinema  development using the cinema shell built upstairs by the council. The committee  encouraged several commercial cinema developers to submit expressions of interest,  but the size of the population meant that this was not commercially viable.  

Chris Jones, a Ballarat cinema enthusiast who has developed several commercial  cinemas, encouraged the committee to pursue the project on a community-run basis  and has provided generous help and support.

Following a successful negotiation with the new owners of the building, a  campaign began, seeking volunteers and funding. “There has been a great response  from a wide range of highly skilled people, with different teams now hard at it.”  

This is the first in a contributed series on people behind the campaign to bring back The Rex.  

Fundraising for the new Rex Cinema has kicked off, fittingly enough, with a film. 

Radius Gallery in Hepburn Springs hosted a Flicks and Feast evening with an impromptu boost. Keen movie-goer and Rex supporter Dr Charlie Qi, of Qi Wellness in Daylesford, was involved in planning the Radius event and laid on a spectacular vegetarian Asian feast beforehand. 

The film was a delightful, animated fairy tale about the Clocks’, a family of “little people” living in a doll’s house who steal (or borrow) goods from the humans’ home. All is well until humans discover the family’s daughter and they flee for their lives. 

The message of the movie is about living together with nature in peace and harmony, a concept close to Dr Charlie’s heart. 

After this start, a host of other fundraising and promotional moves are in the works. They include raffles, a Christmas event, patron packages, business sponsorship, merchandise sales, such as vintage movie posters, t-shirts and badges, and a dinner. 

The Rex has a remarkable history of money raising, as recorded at the Daylesford Museum. The cinema’s founder, Aubrey Moulden Christie, began with weekly then twice weekly plus “weekly occasions” pictures at the old Drill Hall in Bridport Street, now the Daylesford Fire Station.

Next he bought an old hotel in Vincent Street and began building the Rex, securing more than 10,000 pounds, a massive amount for the time, to build a “Spanish colonial theatrical” style cinema. 

More money was needed to strengthen the foundations and flooring after old mining works caused some cave-ins. 

The Rex opened on Boxing Day 1929, showing an early version of The Student Prince, dubbed with synchronised sound before the modern integrated soundtrack, and before Mario Lanza.

One of the first small theatres, beyond Ballarat, Bendigo and Melbourne, to have CinemaScope in 1954, the Rex was badly hit by the local advent of television in 1960-61.

After 34 years’ operation the Rex was shut by Aubrey Moulton Christie’s son Max in May 1963, only to start again on a small scale, being run by dedicated volunteers between 2012 and 2016. 

To get involved contact Daylesford Cinema Group president Jules McDonald on 0400 455 993 

The Local Government Inspectorate will not take any further action into the  investigation of Hepburn Shire Council and The Rex Theatre development –  and its report will never be released.  

The Inspectorate issued a media release last week which said it found there was  insufficient evidence to prove to the requisite standard of proof of the commission of  any disciplinary breaches or criminal offences contrary to the 1989 Act.  

“Further, the Chief Municipal Officer is satisfied that the council has taken  remedial action to put in place measures to avoid future complaints of a similar  nature, including the creation of a new governance and policy framework.”  

The release said in 2019, the LGI received a complaint that made allegations  relating to the council’s involvement with The Rex Theatre redevelopment.  

“Since receipt of the complaint, the LGI has undertaken a rigorous investigation  of the allegations. Throughout, Hepburn Shire Council and its councillors have co operated. The LGI’s investigation has now been finalised.”  

The release says the Local Government Inspectorate is the dedicated integrity  agency for local government in Victoria.  

“The Chief Municipal Inspector leads the LGI and has functions and powers,  including those set out in the Local Government Act 2020, to enable the LGI to  examine, investigate and prosecute any matter relating to a council’s operations and  any potential breaches of the 2020 Act and its predecessor the Local Government Act  1989 (1989 Act).”

Hepburn Shire Council response  

Mayor Cr Brian Hood said that it was extremely disappointing that it had taken so long for the Inspectorate to arrive at its conclusion and no report would be issued.  

“We are frustrated and very disappointed that a comprehensive, detailed  report won’t be released. The failure to issue a report into The Rex project denies  transparency and accountability and lets down the community, councillors and  council officers,” he said.  

Cr Hood said ensuring the appropriate checks and balances were in place meant  failures of the past would not be repeated and emphasised the importance of “having  a culture where officers of all levels feel able to raise concerns about governance”.  

“The same applies to councillors. The LGI media release acknowledges the current  officer and councillor group had improved governance oversight.”  

Cr Hood said he had other concerns including that the LGI undertook a  “rigorous investigation” yet has provided no reason why it will not issue any report.  

“The failure to report denies an explanation the community is owed. It prevents  accountability and transparency.”  

He added that the LGI concluded there was “insufficient evidence” to warrant  any disciplinary or legal action.  

“For any organisation to self-report to a regulatory authority is a significant  step. Council management of the day were obviously of the view that some matters  warranted investigation by an independent regulator.  

“It would seem there is a significant disparity between the council management  who self-reported to IBAC and the Inspectorate’s unexplained conclusion.”  

Cr Hood said The Rex saga highlighted what can go badly wrong in any  organisation if the culture isn’t right or if there is a light-handed approach to  governance.  

“The purchase of The Rex, contrary to community consultation, led to a  substantial financial loss – a waste of ratepayers’ money – and tarnished the council’s  reputation.  

“And let’s not forget while all the attention was on The Rex, the Daylesford Town  Hall was shamefully neglected and is only now getting its much-need new roof and  replacement electrical systems.”  

History

Hepburn Shire Council bought the Vincent Street, Daylesford former theatre in  2016 for $6 million – a move prompted after its toilets were closed to the public.  The council then spent $3 million on the building which was to house a cinema,  staff offices, a library and public toilets, with another $6 million needed to complete  the project.

Interim CEO Bruce Lucas paused the Hepburn Hub at The Rex project in June  2018, becoming concerned about governance failures, also reporting the issue to the  Audit and Risk Committee. Incoming CEO Evan King reported concerns to the  Independent Broad-based Anti-corruption Commission (IBAC), and ultimately the  Inspectorate commenced an investigation.  

In December 2021, council officers recommended that the council continue with  the project. However, four councillors voted against the project – Cr Lesley Hewitt,  Cr Don Henderson, Cr Juliet Simpson and Cr Brian Hood. In favour of continuing  with the hub were Cr Jen Bray, Cr Tessa Halliday and Mayor Cr Tim Drylie.  

Present day  The Rex was bought from the council in December 2022 by entrepreneurs and  businesspeople Eddy and Malinka Comelli, and David and Yuge Bromley, for $3.75  million.

Words & image: Donna Kelly  

In October last year The Local received a leaked document, via a USB drive, regarding the report by the Local Government Inspectorate into Hepburn Shire Council and dealings with The Rex. And a few other things.

The document arrived a week after The Local had emailed the Inspectorate to ask why the report had not been released and received an email back saying the Inspectorate was unable to share any information at that time.

The Local also contacted Hepburn Shire Council at the time with CEO Bradley Thomas saying the council had been in regular contact with the Local Government Inspectorate regarding the release of the report and “we have been calling for the release for some time – we can’t speculate on the reasons for the delay, but encourage you to contact the LGI directly”.

After a column by Donna Kelly on the receipt of the leaked document, The Local was asked to deliver the drive and any associated paperwork to the Inspectorate.

Last Wednesday, May 1, after receiving a media release … stating the state government has introduced new legislation to improve council governance and integrity standards, The Local wrote again to the Local Government Inspectorate asking when the report would be released.

It also wrote the same day to the media advisor of Local Government Department Minister Melissa Horne, who sent out the release, asking how the new legislation would help the people of Hepburn Shire uncover what had happened with their ratepayer dollars.

No reply was received from either department before press time.

The Local Government Inspectorate’s charter is “Encouraging higher standards of integrity, accountability and transparency in local government”.

And the state government continues to release media releases about legislation which will “elevate governance and integrity standards in Victoria’s 79 councils” and that “since the last council elections in 2020, 56 councillors have resigned and 11 councils have had municipal monitors appointed as a result of governance issues”.

That is all fine and dandy for those councils, but every Hepburn Shire ratepayer has the right to know what happened to their rates – and how long it will impact the delivery of services to the region. Until then, where is the integrity? And most of all, where did our rates go?

Words: Donna Kelly

Your thoughts? Email news@tlnews.com.au

By Donna Kelly
I received some mail late last week. Snail mail. A padded envelope. Small. I opened it and inside was a blank piece of A4 paper. Nothing written on it, just a USB stick taped on. Hmmm, I thought. That’s going to be interesting.
And it would have been. But when I opened the document it was marked “confidential” so, of course, I quickly shut it down.
It was a leaked report by the Local Government Inspectorate. Yep, the one on Hepburn Shire Council and dealings with The Rex. And a few other things. The one that the Inspectorate refuses to release but never says why. As in the email I received last week after asking again why the report had not been released.
“Good morning Donna, Again, thank you for your enquiry. Unfortunately, as I mentioned in my previous email two weeks ago, we are unable to share any information at this time.” They are nothing if not polite.
I also talked to Hepburn Shire Council to see if they had asked again for the report to be released – just to clear up a few things. That would be nice, after all this time. CEO Bradley Thomas said the council had been in regular contact with the Local Government Inspectorate regarding the release of the report and “we have been calling for the release for some time – we can’t speculate on the reasons for the delay, but encourage you to contact the LGI directly”.
Now, I don’t know if I can share this document. I feel like it is in the public interest for ratepayers to know what happened with the purchase of The Rex. After all, councils don’t have money, it is our money. And there is the truth defence.
But The Local is not a big newspaper with lots of lawyers and money to back it up. Actually things got a little tight over the past few years. So if I publish it, or excerpts because it is pretty long, and I/The Local get sued, it would probably be the end of your free read. Even if I/The Local eventually won, because the court costs would kill us off. Which is really unfair because the report is probably the best story I have ever had the chance to publish. I reckon it would be a real page-turner. But I will ask people who are smarter than me about that, so watch this space.
But in the meantime, I don’t get why the Local Government Inspectorate is being so cagey. Surely they carried out a report for a reason and if they found something right, or wrong, they would publish that and enforce more regulation if necessary to stop it happening again. I think we all pretty much agree, in hindsight, and maybe in foresight, buying The Rex was not the best idea.
The Local Government Inspectorate has as its motto or charter that it is “Encouraging higher standards of integrity, accountability and transparency in local government”. But where are all of those in the Inspectorate? No one has been held accountable, there is a lack of transparency and until the report is published we don’t know how the integrity went down.
I think the current Hepburn Shire Council and its ratepayers, or shall we call them shareholders, deserve more than this. If the council was a company and it ran a business like this, the shareholders would be up in arms and there would be all sorts of people involved in the integrity, accountability and transparency of those making the business decisions.
The whole Rex debacle was a huge waste of money and has caused financial ripples across the shire and is not over yet. Bleakley Street units anyone? But if the report is never released isn’t that just another huge waste of money? Again, our money. (Oh, full disclosure, I may have taken a little peek.) Just sayin’…

The buying and selling of The Rex building in Daylesford resulted in a cash loss for the project of $5.647 million, Hepburn Shire Council reports show.
The building was bought in 2016 for $6.345 million and sold for $3.735 million in 2021. The total expenditure on the project was $9.382 million. The sale proceeds were used to repay the $1.5 million
loan associated with the purchase, and the remaining balance of $2.1 million was used to create a reserve to assist with funding Birch Ward community facilities and council staff accommodation.
The Local has contacted the Local Government Inspectorate to ask if the report into the Hepburn Shire Council and the purchase of The Rex building in Daylesford was going to be released soon.
A spokesperson replied via email. “Thank you for your enquiry. Unfortunately, we are unable to share any information at this time.” The investigation into the issue started over four years ago.

CHRISTMAS ’22 came a few days early for two of Daylesford’s best known families who discovered they’d just become the proud new owners of The Rex.

Following a unanimous councillor decision at Hepburn Shire Council’s December 20 meeting, Eddy and Malinka Comelli and David and Yuge Bromley were delighted to discover their $3.75 million bid to purchase The Rex had been successful – from among the six EOIs formally submitted.
David Bromley said a clinching factor in their decision to submit their joint EOI together with the Comellis was a mutual love of the town and a wish to see The Rex become a vibrant contributor to showcasing its main street.
“Our mutual love of the town, our belief that the main street is one of the figureheads that you get to see when you come to town.
“We’re really keen to see it come alive and stop the blockage in the street and, ideally, to become the complete opposite – a resounding symbol for how stunning the street is. We all have a similar feeling about it. Between us we think we’ve got what it takes.”
Both the Comelli and Bromley families live in Daylesford, have strong connections in the community and say they’re now keen to make the most of The Rex’s considerable potential. They would not be drawn on whether the cinema will stay – or not – at this stage.
“We want to make it a really culturally rich hub, whether it’s retail, hospitality, art, entertainment. It’s going to be a real combination,” Yuge Bromley said.
“I think being part of the community, we are the consumers of those things ourselves so we feel like we do have a heartbeat connected with it.
“With both of our families local to the Daylesford community, the honour of purchasing and developing this iconic building into a thriving destination spot for both locals and visitors alike was our key driver,” Yuge said.
“We will take time to regroup and plan but our intention is to tap into our combined passions, connections and resources to transform the building into an evolving dining, retail and entertainment destination with a diversity of culture, food, art, music and entertainment.
“We have some initial plans regarding the arcade and atrium, making it a place where visitors local and from afar can frequent time and time again.”
Malinka Comelli said “honouring” the heritage-protected building was part of their plans for the future.
“Let’s see what we can do with it. It’s like a blank canvas but we’re going to honour the building for what it is,” she said.
And the new owners are also not closed to creative ideas and input from the community either, Eddy Comelli says.
“I’m excited to work with someone as creative as the Bromleys. I think we can turn this into something,” Eddy said. “We’ll give it our best shot.”
The price paid for the building – that’s sited next door to the Bromley&Co Daylesford gallery – was just above the reserve price of $3.7 million set in accordance with an independent property valuation and the Local Government Act 2020.
Hepburn Shire mayor Cr Brian Hood said the sale proceeds would be used to repay the loan linked to the council’s 2016 purchase of the site with remaining funds allocated to a financial reserve for future expenditure on staff accommodation and community facilities.
We bought The Rex – Bromley/Comelli coup
“We have begun our planning, and we will progress our investigation into options for staff accommodation and community facilities throughout 2023. This will include community consultation,” Cr Hood said.
He also acknowledged the challenging history of the building since the council bought it in 2016.
The council’s original purchase of The Rex building and other matters relating to the Hepburn at The Hub project remain under investigation by the Local Government Inspectorate.
Cr Hood was keen to point out that the council had cooperated fully with the investigation and called for the release of the inspectorate report.
“We’ve repeatedly asked for it to be released and we would welcome the release of the report as soon as possible,” he said.
He also emphasised that the decision to endorse the Comelli-Bromley bid was unanimous among councillors and followed careful consideration of each of the EOIs against multiple criteria, of which price was just one factor.
Cr Hood said the sale of the landmark building enabled the council and community to “move on to the next chapter of what’s been a long and problematic saga”.
“The saga has brought damage to council’s reputation and one thing I want to stress is that there is a huge difference between the 2016 councillors and management team and the current council and management team.
“It should never have been bought by council. This was a legacy issue, an inherited problem that we’ve had to fix.This is a decent outcome out of a very tricky and problematic situation.”
As to what the future now holds in store for The Rex, Cr Hood admits he personally would like to see the cinema within the building retained but says that decision rests with the new owners.
“It would be lovely to see that retained. I suspect most, if not all, of the councillors would be keen to see the cinema survive and thrive. It would be a shame to lose it but that’s now up to the new owners.”
Mr Bromley says the path ahead for The Rex will not be rushed.
“I think we’ll give ourselves a good three to four months if not longer to really make sure that we get it right,” he said.
“We’re going to be getting a lot of advice and really making sure that this time it is a big success. We’re open to the challenges.
“We’ll be making a lot of commercial decisions about its wellbeing. We’ll have to weigh up everything with a common-sense approach.”

Words & image: Eve Lamb

Hepburn Shire Council has named local entrepreneurs and businesspeople Eddy and Malinka Comelli and David and Yuge Bromley as the successful bidders in the purchase of The Rex building in Vincent Street, Daylesford, following a public expression of interest process.

The building sold for $3.75 million. This was above the reserve price of $3.7 million, which was set in accordance with an independent property valuation and the requirements of the Local Government Act 2020.

There was substantial interest in the purchase, and Council received six formal submissions during the Expression of Interest (EOI) process.

Mayor, Cr Brian Hood, said the sale of the building marks the beginning of a new chapter for this unique heritage property. 

“The Comelli and Bromley submission was very strong. Their unconditional offer was clearly the preferred bid, and their submission outlined a strong desire to redevelop this property in a way that will benefit our community,” he said.

Both the Comelli and Bromley families live in Daylesford and have strong connections in the local community. They said they are looking forward to working to making the most of The Rex’s potential.

“With both of our families local to the Daylesford community, the honour of purchasing and developing this iconic building into a thriving destination spot for both locals and visitors alike was our key driver,” said Yuge Bromley on behalf of the group.

“We are truly honoured to have the privilege of purchasing this building.  We will take time to regroup and plan but our intention is to tap into our combined passions, connections and resources to transform the building into an evolving dining, retail and entertainment destination with a diversity of culture, food, art, music and entertainment,” said Ms Bromley.

“We have some initial plans regarding the arcade and atrium, making it a place where visitors local and from afar can frequent time and time again.

“Our driving goal is to create a space that our children and grandchildren can look to with pride for what the combined energies of the Comelli and Bromley families can bring to fruition.”

Cr Hood noted that any works that fall outside the existing planning permit would require planning approvals including heritage, which is separate to the sale process.

“The sale proceeds will be used to repay the loan linked to the purchase of the site and remaining funds will be allocated into a financial reserve for future expenditure on staff accommodation and community facilities,” said Cr Hood.

“We have already begun our planning, and we will progress our investigation into options for staff accommodation and community facilities throughout 2023. This will include community consultation,” he said.

Council’s principal objectives of the sale process were to identify a proponent with the financial capacity to purchase the land and develop the property; identify a proposal which provides an economic and social benefit for the local community; respond to the Council Plan; and achieve an optimal financial return to Council.

“This was a complex decision-making process and these four criteria were always priorities for Council,” said Cr Hood.

Councillors accepted the officers’ recommendation and voted unanimously in favour of selling The Rex to the Comelli and Bromley families.

The EOI and sale process was overseen by an independent probity advisor to ensure the transparency and integrity of the sale process. The marketing and sale campaign was managed by Fitzroys Real Estate Agent.

Cr Hood acknowledged the challenging history of the building since Council purchased it in 2016.

“The decision to sell The Rex was a complex one and we appreciate there has been considerable interest in the building, its legacy and the sale process. We are optimistic that the Comelli and Bromley families will breathe new life into this historic building in the heart of Daylesford,” he said.

Council’s original purchase of The Rex building in 2016 and other matters relating to the Hepburn at The Hub project remain under investigation by the Local Government Inspectorate. Council has cooperated fully with the investigation, repeatedly called for the release of the report and will welcome the release of the inspectorate report.