54 Fitzgerald Pty Ltd: Batavia Motor Inne owners claim they were as frustrated as council with demo delays

The owners of the notorious Batavia Motor Inne site face a compensation bill of up to $175,000 for failing to comply with a demolition order, a Geraldton court has been told. New details have emerged in court over the saga, including that the City of Greater Geraldton was considering purchasing the site from the owners before pressing charges. Legal action launched by the city against 54 Fitzgerald Pty Ltd — the company which owns the site formerly housing a derelict motel that attracted squatters and crime for years — has progressed, with sentencing submissions heard in Geraldton Magistrates Court on Thursday. One of three directors, property developer Joe Scaffidi — the husband of former Perth lord mayor Lisa Scaffidi — appeared in court with company defence counsel John Hammond, ready to progress to sentencing for failure to comply with a demolition order. The company endorsed a plea of guilty in August but relevant paperwork was required before lodging a formal plea of guilty as a corporation. Prosecution representing the city told the court the property, bought by 54 Fitzgerald Pty Ltd in 2021, had been uninhabitable for over a decade and occupied by squatters and other undesirable persons. The spokesperson said the company failed to meaningfully action concerns raised by the city and was served a demolition order in September 2023 with a 12-month end date, to demolish the entire site. Demolition took place last year, with contractors knocking down all but one building and leaving the rubble piled up at the site. The court heard 54 Fitzgerald Pty Ltd informed the city it planned to redevelop the remaining building into a short-stay accommodation facility, however no development application was submitted. Mr Hammond said significant efforts had been made to comply, including keeping the city updated when setbacks arose, including the lack of available demolition contractors available to undertake the works. “Yes, the property has been occupied by squatters and the homeless, but my client has done a lot about that,” he said. “There is a fence, there is security in place to ensure no one goes onto the site.” Mr Hammond told the court the directors had “come to terms very quickly with what needed to be done”, explaining that Mr Scaffidi had “used buckets to pick up all the sewerage left behind by squatters”. “My client was as frustrated at the delay as the city was,” he said. “My client became so frustrated because of the lack of demolition contractors, Western Power delays and the COVID crisis.” The court heard Mr Scaffidi had spent $1.5 million getting the site to where it is now, and at one point, negotiations were afoot for the City of Greater Geraldton to purchase the site. The court heard the council has since approved the development application and the site is now compliant with the order. Prosecution sought a minimum daily penalty of $250 for 351 days the matter was in the prosecution period — totalling $87,750 — while the defence argued for a one-time fine instead of daily penalties, given the co-operative efforts between the company and the city. The maximum daily penalty is $500 a day, which over 351 days would total $175,500. Magistrate Kelly Thompson adjourned her decision to February 5.