After a legendary gig comes the encore.
So too in the campaign to save Melbourne’s The Tote hotel, as its current owners declare the $3 million raised by a history-making crowdfunding campaign may not be enough to protect the live music venue from redevelopment.
The Tote’s co-owners Jon Perring and Sam Crupi said on Saturday that an attempt to take over the venue remains under discussion, just hours after the completion of a crowdfunding campaign pledging to preserve one of the nation’s most notable live music venues.
The Tote, a decades-old home to local and touring acts, went up for sale in March, with owners Perring and Crupi saying the financial and personal toll of COVID-19 restrictions left them with “no petrol left in the tank.”
Its sale stoked fears the Collingwood site, a haven for artists spanning mainstream rock to the extreme and experimental, would be repurposed as a housing development.
Shane Hilton and Leanne Chance, owners of Melbourne’s The Last Chance Rock & Roll Bar, offered to stump up half the venue’s estimated $6 million to $6.6 million valuation and turned to crowdfunding to secure the remaining half.
The campaign promised to take ownership of The Tote and preserve its use as a live music venue.
“Going up against developers with deep pockets is no joke but we’re confident we can pull it off,” they said, promising the help of “lawyers, caveats, red tape, trusts” to ensure its preservation.
With backing from The Tote’s current ownership, the campaign offered backers perks like t-shirts through to board memberships at the next-generation Tote.
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The campaign reached its target on Saturday, becoming not just one of the most successful crowdfunding attempts in Australia’s live music industry, but one of the most significant in the small business sector.
“For us this is just half the battle,” the Last Chance’s owners said.
“We hope that we can be the custodians that the Tote deserves.”
As rockdogs nationwide celebrated the win, Perring and Crupi issued their own statement: the asking price is $6.65 million, at least $50,000 above what the Pozible campaign listed as the Tote’s valuation.
Its owners will wait to see if the crowdfunding campaign and The Last Chance can meet that figure before signing off on the sale, they added.
Part of the asking price is comprised of the site’s land value, and allows for “all liabilities and the current owners to be paid out fairly”, they said.
“As there is a shortfall between the community pledges, the Last Chance equity and the sale price, Governments and possibly private philanthropy would need to come on board to bridge the current gap,” the owners added.
“The other alternative is to go back to the music community again.”
Despite the campaign, the Tote’s preservation as a live music venue is no sure thing, they added.
“In the meantime, by necessity, The Tote remains For Sale until an agreement can be reached,” with “good faith” discussions between the venue and The Last Chance ongoing.
The precise shape of that agreement — and whether the Tote’s prospective owners will organise a final push — is yet to be determined.
SmartCompany has contacted The Last Chance for comment.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
