After four years of negotiations, City of Greater Shepparton councillors have agreed to a controversial plan that would provide only partial support to restore the Shepparton Italian Social Club building.
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The building was constructed by Italian migrants in the 1950s, with the final stage completed in 1975.
The plan was put forward after significant opposition to a proposal from council officers, which would have seen the SISC move to The Connection at KidsTown, with council ceasing support of the club and decommissioning the original social club structure.
The approved plan will see council contribute $500,000 to the building restoration, with the club funding the remaining costs.
For the works to go ahead, the club must agree with council on a final design, sign a deed by December 31, 2026 and provide all funds by December 31, 2027.
SISC vice president Vince Tassoni said the Italian community felt insulted, and while the club has had a respectful relationship with council, its members were disappointed with this outcome.
“We’ve had a lot of people approach us whose fathers built this building,” Mr Tassoni said.
“The building has cultural significance to us.”
Mr Tassoni said that although raising the remainder of the funds would be nearly impossible, especially during current cost-of-living pressures, the club would do what it could.
“The Italian community doesn’t give up,” he said.
The building stands on crown land in the Princess Park precinct, which is council’s responsibility; however, the SISC has always believed that the building itself belonged to it.
Council took over insurance payments in 2021 after it determined that it was responsible for insuring all community assets on crown land.
The entire facility was constructed using funds and workers from the Italian community.
The only money the club has ever received from council was a loan in 1975 that was paid back in full with interest.
After the October 2022 floods, about $1.2 million was paid out to council for damage to the SISC building.
The SISC has not yet received any of this money, and some was redirected by council to a new multipurpose building in Princess Park.
SISC had not signed a lease with council for use of the site because it believed that the licence agreement it signed in 1975 already guaranteed its occupancy for 99 years.
Council said the agreement was verified as expired by legal advice that has been shared with SISC.
SISC president Vince Sagoleo said the document did not have a listed end date or valid period.
Mr Tassoni said the club had repaired the site after previous floods and that aside from first floor appliances and plaster walls, everything else would have been usable after it was cleaned.
After the flood receded, the club was denied access to the site, and a builder contracted by council was sent in to strip the interior due to flood damage.
The SISC has requested that council provide documentation of the damage, which it claims it has not received.
Council said it denied access due to a high level of contamination, which posed severe health risks due to the presence of mould and sewage.
Council claims that the qualified contractors that were sent in determined that the site needed to be fully stripped and were unable to identify any salvageable items.
Mr Tassoni said the club was not given an opportunity to recover items that may have been of sentimental value from the upper floor, which would not have been submerged.
A hygienist report has confirmed that the site is no longer contaminated.
A structural report and condition assessment found that while the building was sound, settlement had occurred and stabilisation works would be required.
The site is currently unsecured and has been vandalised.
Council has said that the site has been boarded up since the vandalism occurred and public access is not permitted.
The News found that the site was still accessible as of Thursday, May 7, and had signs of rough sleepers.
In the wake of the 2022 floods, council now has reduced insurance coverage for all its assets, which has exposed it to increased financial risk.
Council said that the decision to put forward the partial restoration plan was made to ensure long-term financial sustainability and mitigate flood risk.
Council said it had frequently engaged with the SISC to discuss future options, including the use of the new Princess Park Pavilion or alternative relocation arrangements.
There was no mention made of other attempts to find a way to restore the site.
City of Greater Shepparton Mayor Shane Sali said “councillors were not prepared to invest a significantly larger sum into a building that carries significant flood risk and would be uninsured should another major flood occur”.
“As always, council remains committed to working respectfully with the Shepparton Italian Social Club to reach an outcome that balances community benefit with responsible financial management now and into the future,” he said.
If the planned restoration cannot be completed, council will proceed with demolition and pay the SISC the $500,000 promised for the restoration, minus any costs that have been incurred.