Charity moves to close cafe as premises grow in value

As property deals go, it was a pretty sweet one.

When the charity House With No Steps acquired the cafe and catering business Upper Crust from its original owners in 2006, they also bought the building for the cost of its $74,000 mortgage, despite the property being valued at $740,000.

Now, thanks to changes in local planning, the Normanhurst premises which employs nine people with disabilities has been rezoned to allow a five-storey development, doubling its value.

Last month House With No Steps advised the original owners, a parent-run charity called Werrigal, that Upper Crust would have to be closed on August 9 due to unsustainable losses, and its nine workers made redundant.

And that has left a sour taste in the mouths of the Werrigal members, who started the business in 1986, renting the building, as a means of providing employment for their disabled children.

In 2000 they bought the building on a $600,000 mortgage, which they paid down to $74,000 when they sold to House With No Steps.

In return for the bargain price, Werrigal says it had an agreement that House With No Steps would continue to employ their children. They have proposed that House With No Steps returns the business and building for the original sale price of $74,000.

Lindsay Showyin, whose 39-year-old son Damian has worked at the cafe for the past 20 years, was devastated to learn of the proposed closure, which comes two years after the cafe won its first battle to stay open.

''When the House With No Steps took over the business, they said they were going to not only keep the premises but expand,'' he said. ''Now they are walking away from it and putting nine people out on the street.''

Mr Showyin said the business was financially viable when it was transferred to House With No Steps at the suggestion of the federal government, which advised Werrigal to merge with a larger charity.

He concedes that the 2006 agreement was ''not done well''.

Hornsby Shire Council Mayor Steve Russell said the rezoning of the land during the 2008-12 council term was ''very opportune'' for House With No Steps. He estimates the property to now be worth about $1.5 million.

''They should do the decent thing,'' he said. ''That cafe gives the kids a reason to get out of bed and go to work and feel part of the community. If it's too hard for the House With No Steps to run it, they should give the property back, take the $74,000 and call it quits.'' State member for Hornsby Matt Kean, along with federal politicians Paul Fletcher and Philip Ruddock, have thrown their support behind Werrigal's proposal to have the business and building returned to them.

House With No Steps insists it was unaware of the rezoning until two weeks ago, saying in a statement that the business is unsustainable, losing $100,000 a year. The charity, which supports 3000 people with disabilities, will consider Werrigal's proposal but says it is too early to comment on whether the building will be sold.

In the meantime, Damian Showyin, who has Down syndrome, will continue going to his job as a kitchen hand, as he has done for the past two decades.

''It's the only place he's ever worked,'' Mr Showyin said. ''It's more than just a job. That place means everything to him.''