The future of the Italo Australian Club in Canberra is looking brighter following the ACT government's approval of its application to remove the concessional status of its lease.
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The decision by the ACT Planning and Land Authority allows the club to plan the redevelopment of the land into its vision of a vibrant Italian precinct with a new club.
In late 2013 the club lodged a development application along with the Council of Italo-Australian Organisations to remove the concessional status of the existing crown leases on two blocks of land in Forrest.
The government has approved both applications, but some technical issues need to be resolved for the block next to the club, which is home to the Italian community centre.
The club's board president Claudio Ciuffetelli said the approval represented a major milestone for the board members, who had worked to make the club stable and compliant over the past couple of years.
"In a sense, that gives us a real opportunity to reposition and reinvent this club," he said.
Mr Ciuffetelli said it meant the club had several options available, which would provide the opportunity "to realise the Italian cultural hub that is going to be the custodian of the heritage of the foundation members".
This included the possibility of a residential as well as commercial development on the site.
The combined area of the two blocks on Franklin Street would be about 7540 square metres.
Mr Ciuffetelli said whatever plans the board decided to proceed with, a new club would be integral and it would trade successfully without relying on the revenue of poker machines.
"Our five-year plan does not have poker machine revenue as a centrepiece of its financial strategy or its forward budget planning and that's as simple as that," he said.
He said clubs were doing it tough in the ACT.
"The poker machine revenues are sliding, even the bar revenues are sliding – people aren't drinking as much," he said.
"There are some economic issues about that, with the change of government and everything else, but it's undeniable that the trend is falling away and you need to react."
The Planning and Land Authority's notice of decision for each of the blocks notes that approving the application would not cause any disadvantage to the community because the current approved uses would continue.
"The proposed variation to deconcessionalise the lease will ensure the club's long-term financial viability and provide opportunities and flexibility for future use and development of the site," it said.
The document says any further change to the leases – such as consolidating the two blocks – or building works would require additional development applications to be lodged.
The club, which celebrated its 50th anniversary in 2013, had 7000 members at its peak, but this had dropped to about 3000.
The Italo Australian Club was one of nine small clubs in 2012 to get an ACT government grant to investigate the redevelopment of land in order to establish alternative revenues to poker machines.
Several other clubs have recently applied to the ACT government for removal of the concession status of their leases. They include the Canberra Raiders for the now-closed Braddon Club.
The ACT Civil and Administrative Tribunal blocked a community challenge to the de-concession of the lease in late July that was lodged following the Planning and Land Authority's approval of the lease change.
The Raiders' proposed $80 million redevelopment of the site hinged on the removal of the lease.
