Friday, September 23, 2011
Former mining pool emits noxious gas
Friday, July 1, 2011
Report on PJ Palms to be handed to state
http://www.selangortimes.com/index.php?section=news&permalink=report-on-pj-palms-to-be-handed-to-state
PETALING JAYA: The mayor will present a detailed report on the operations of PJ Palms Sports Centre to the Selangor Economic Action Council.
The report by the Petaling Jaya City Council (MBPJ) will include the refurbishment work and operations at the former Kelab Syabas.
“We will present the report to the Menteri Besar and state executive councillors soon,” Roslan Sakiman said on Wednesday after the council’s full board meeting
The move follows complaints from Bukit Gasing assemblyperson Edward Lee that the private operator, Sepang Mekar, has been given a lease of RM15,000 per month for the 60,000 sq ft area.
Lee said it was unfair for Sepang Mekar to make its sub-tenants fork out triple the rent they used to pay to the previous operator.
PJ Palms is within Lee’s state constituency, and sub-tenants have complained to him that they are paying high rental rates.
Two traders, Waikiki Bar, a pub, and a barbershop called Barber Joe claim that the new management’s policy of charging RM4.50 per sq ft rental space has caused a threefold increase in rental.
Waikiki Bar has to pay over RM19,000 instead of the usual RM5,000, and Barber Joe, which used to pay RM500 monthly, now has to pay RM1,800.
Roslan said MBPJ would review the lease rates to Sepang Mekar every three years.
“We will likely increase the monthly rates then,” he said at a press conference.
He pointed out that Sepang Mekar had given the sub-tenants rental discounts.
Roslan said Sepang Mekar was spending RM4.2 million to renovate and refurbish PJ Palms.
He said the previous operator operated a slot-machine gambling business and neglected the olympic-sized swimming pool.
A comprehensive audit report on the finances and work carried out by Sepang Mekar will be presented at a later date, he said.
Councillor Derek Fernandez said the club was in disrepair, adding that MBPJ had at one point planned to demolish the 30-year-old club, which was turning into an eyesore in New Town.
Wednesday, June 29, 2011
Friday, June 24, 2011
Kelab Syabas: Rental rates not high
http://www.selangortimes.com/index.php?section=news&permalink=kelab-syabas-rental-rates-not-high
PETALING JAYA: The private operator of PJ Palms Sports Centre has refuted claims it charges high rental rates.
The new management of former Kelab Syabas said the rental is to recoup the RM4.2 million investment that was spent to refurbish the iconic club.
“We created a new look for the place to make it more family-oriented. We’ve placed new signages, installed new canopies and laid new flooring for our tenants,” said co-director David Solomon.
Solomon was clearing the air over allegations that his company, Sepang Mekar, is charging his tenants high rental since it took over PJ Palms early this year.
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| The swimming pool that was upgraded by Sepang Mekar at a cost of RM1.2 million. |
Solomon pointed out that he had offered to renegotiate a lower amount after hearing their complaints.
Two tenants, Waikiki Bar, a pub, and a barbershop called Barber Joe, have complained that the new management’s policy to charge RM4.50 per sq ft rental space has caused a threefold increase in rental.
Waikiki Bar has to pay over RM19,000 instead of the usual RM5,000, and Joe, which used to pay RM500 monthly rent, now has to pay RM1,800.
They brought up the matter to Bukit Gasing assemblyperson Edward Lee, who says rental at PJ Palms is too high.
Lee also claimed that MBPJ was leasing the 30-year-old club to Sepang Mekar at 11 sen per sq foot.
Solomon said he had offered to lower Barber Joe’s rental to RM1,500 a month.
“He asked for 24 hours to consider it. But he never responded to the offer after that,” said Solomon.
He said Waikiki currently occupies the largest floor space in PJ Palms, and after consideration, was given a discount over non-rent generating space.
Solomon said he did not charge rent for some 1,000 sq ft as a result.
“I measured the storage room area and other utility spaces and did not charge them for the area,” he said.
Solomon said he still wants to extend the olive branch to Waikiki and Barber Joe by offering instalment plans for them to pay their rental.
“We can still sit down and discuss terms,” he said.
Meanwhile, MBPJ councillor Richard Yeoh said Sepang Mekar is guaranteed a tenancy of 12 years made up of four three-year terms based on the council’s appraisal of Sepang Mekar’s performance.
Yeoh also said the rent was based on a set figure of RM15,000 per month and not at “11 sen per sq ft” as alleged.
He also said Sepang Mekar investors had to recoup the capital investment of RM4.2 million.
Yeoh explained that MBPJ would get to keep the upgraded facilities consisting of a swimming pool, squash courts, indoor cricket hall and other amenities at the end of the tenancy agreement period.
He said it is not feasible for the sub-tenants to pay the same rental as it had done in the past as rental prices in the city had increased.
He further said that the terms and conditions of the tenancy agreements had been recommended by the city council’s committee on privatisation and investment.
He pointed out that out of six bids for the open tender, Sepang Mekar was chosen as it offered to turn the club into a “family-friendly” club.
“The tender process was carried out in an open and transparent process. It was also vetted by councillors during the full board meetings here at MBPJ,” he said.
He said previous operators had failed to maintain the eight-lane Olympic-size swimming pool, and also turned the premises into a gambling den.
Tuesday, June 21, 2011
Happy ending for Barber Joe
Councillors blast Lee for incorrect statement
http://thestar.com.my/metro/story.asp?file=/2011/6/21/central/8923503&sec=central
TWO Petaling Jaya City councillors hit out at Bukit Gasing assemblyman Edward Lee for issuing statements on the rent hike at the PJ Palms Sports Centre without fully understanding the tenancy agreement details.
Richard Yeoh and Derek Fernandez were responding to the story “Proprietors cry foul over higher rent under new agreement” published in Friday’s StarMetro.
The proprietors of Joe’s Unisex Salon and Waikiki Bar had claimed harassment by the building’s main tenant to sign a new tenancy agreement or leave the premises.
The proprietors also complained of a four-fold increase in their rental rate under the new agreement with Sepang Mekar Sdn Bhd, the main tenant of the centre formerly known as Kelab Syabas.
The agreement was signed between the Petaling Jaya City Council (MBPJ) and Sepang Mekar, who are the landlord and main tenant respectively.
Yeoh stressed that it was incorrect and misleading for anyone to say that the premises was let out at “11 sen per sq ft”.
“That calculation was evidently derived based on the total land area of the title that PJ Palms sits on of 136,500sq ft (12,681sq m) and the RM15,000 monthly rental paid by the head tenant, Sepang Mekar to the MBPJ,” he said.
“For the record, the area under the tenancy is less than half of the total land area, that is about 60,000sq ft.
“We must also take into account the RM4.2mil that Sepang Mekar is legally bound to spend within the first two years to rebuild and upgrade the facilities at the centre,” said Yeoh.
“The 136,500sq ft (12,681sq m) refers to the entire land area held under the title, including the Complex C carpark, which is not included in the tenancy.
“The fictitious ‘11 sen per sq ft’ rate is irrelevant as the agreement is not even based on per square footage, but on a lump sum of RM15,000 monthly rental.”
The tenancy agreement was signed on May 21, 2010.
Yeoh said if there was no breach of the agreement and both sides agreed on the subsequent rental reviews, Sepang Mekar was guaranteed a tenancy of 12 years made up of four three-year terms.
“Sepang Mekar will be paying a monthly rental of RM15,000 to the council for the first six years,” he said.
“Sepang Mekar will be given a rent-free period for PJ Palms for the first year, which is an international industry practice to help them cope with the revamp and upgrade period.”
After the first two terms, Yeoh said renewal of the agreement is subject to rental rate review with the increment cap at 10% for each renewal.
“Sub-tenancy agreement details are negotiated between Sepang Mekar and the sub-tenants. The MBPJ will not interfere in that unless there is a breach of the agreement by Sepang Mekar,” he said.
“The main terms and conditions of the tenancy had been recommended by the MBPJ PJ Palms Sports Centre Project sub-committee, and approved by the MBPJ Committee for Economic Development, Privatisation, Industry and Investment, and endorsed by the MBPJ Full Board.
“The entire exercise in handling the PJ Palms project was done in an open and transparent manner,” said Yeoh.
“Proposals were called for via open bidding. Of the half dozen or so proposals, Sepang Mekar’s was the most advantageous to the MBPJ and it offered only family-friendly facilities.”
Yeoh said the detailed negotiations and drafting work were carried out over a period of many months and the MBPJ was advised by the legal firm of Messrs Chooi & Co.
“The terms obtained for this tenancy are far superior to the terms in the demised tenancy which we had refused to renew as the level of maintenance of the premises was considered not up to the mark and our firm conviction that council premises should no longer be used for any form of gaming,” he said.
Yeoh added that as part of the agreement, the swimming pool rates at the club must be approved by the MBPJ.
In the agreement, the proposed rates are as follows: RM4 and RM5 for adults on weekdays and weekends respectively, RM2 and RM3 for senior citizens above 55 and children below 12 on weekdays and weekends respectively, and RM1 for people with disabilities on both weekdays and weekends.
“One of the issues raised recently was the distribution of some leaflets advertising a RM8 rate for using the pool during peak hours at night, which is a matter that the council will check on,” said Yeoh.
“The MBPJ will ask the PJ Palms management to update the committee on the progress of the project.
“We will mediate and act if the head tenant acts unfairly or does not adhere to the agreement.”
Fernandez said the MBPJ was getting a good deal because the community would be getting first class facilities costing RM4.2mil and the MBPJ was collecting RM15,000 in monthly rental.
“If the tenancy is terminated or expires, the RM4.2mil capital renovation will belong to the MBPJ without any compensation,” he said.
“The whole idea is to bring back facilities to the public. The previous tenant was operating a gambling den in a public facility. Sepang Mekar is restoring the centre with a first-class pool and several sports facilities.”
Noting the controlled swimming pool rates, zero gambling element and RM4.2mil investment, All-Petaling Jaya Residents Association Coalition (Apac) chairman Johan Tung Abdullah said: “As far as Apac is concerned, the swimming rates are reasonable and the rental for sub-tenants is strictly a commercial decision issue that must be left to market forces without interferences from any politicians.
“APAC is happy that the MBPJ now collects three times more rental from the new operators, and at the same time has new and better facilities for PJ ratepayers.”
Friday, June 17, 2011
Proprietors cry foul over higher rent under new agreement
THE proprietors of Joe’s Unisex Salon and Waikiki Bar are being harassed by the building’s main tenant to sign a new tenancy agreement or leave the premises.

