Darwin Cycling Club Darwin Velodrome Feasibility Study Darwin Cycling Club Darwin Velodrome Feasibility Study

Darwin Cycling Club

Darwin Velodrome Feasibility Study

Prepared by:

Collins Anderson Management Suite G1, Level 1, Paspalis Centrepoint 48-50 Smith Street Mall Darwin NT 0800

Telephone: 08 89430 0600 Facsimile: 08 8941 0848 www.collinsanderson.com.au

February 2008 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

DISCLAIMER

This report, prepared by Collins Anderson Management, whilst representing the best effort on their behalf, is based on certain unverified information. Subject to the contract with the client, Collins Anderson Management has not: -

§ expressed any opinion (nor should any such opinion be inferred) as to the accuracy, reliability or completeness of this review or the information contained in any documentation; § accepted any responsibility for any events or changes in any conditions affecting this consultancy after the date of this report or any responsibility to revise the report to reflect any such events or changes in conditions; or § accepted any responsibility or liability for any loss or damage suffered or incurred (whether directly or indirectly) by any person howsoever caused (whether directly or indirectly) by virtue or relying (whether in whole or in part) on the review of the information contained in any documentation or otherwise.

This Project is an initiative of the Darwin Cycling Club with the support of the Northern Territory Department of Housing, Local Government and Sport.

Report Prepared By: Collins Anderson Management © 2008 Telephone: (08) 8943 0600 Fax: (08) 8941 0848 Suite G1, Level 1, Paspalis Centrepoint 48-50 Smith St Mall, Darwin NT 0800 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

TABLE OF CONTENTS DISCLAIMER ...... 3 TABLE OF CONTENTS ...... 4 FIGURES ...... 5 TABLES ...... 5 1. EXECUTIVE SUMMARY ...... 6 2. INTRODUCTION ...... 8 3. PROJECT OBJECTIVES ...... 8 4. CURRENT SITUATION ...... 9

4.1 EXISTING FACILITY ...... 9 4.2 ENVIRONMENTAL ANALYSIS...... 10 4.3 ENVIRONMENTAL ANALYSIS SUMMARY ...... 11 4.4 ENVIRONMENTAL ANALYSIS CONCLUSION ...... 11 5. MARKET ANALYSIS ...... 12

5.1 AUSTRALIAN VELODROMES ...... 12 5.2 TOURISM AND EVENTS ...... 21 5.3 MULTI USE ...... 21 5.4 GEOGRAPHY AND CLIMATIC CONDITIONS ...... 22 5.5 PARTICIPATION IN CYCLING...... 22 5.6 MARKET ANALYSIS SUMMARY ...... 22 5.7 MARKET ANALYSIS CONCLUSIONS ...... 23 6. VELODROME STANDARDS AND GUIDELINES ...... 24

6.1 VELODROME STANDARDS AND GUIDELINES SUMMARY ...... 26 6.2 VELODROME STANDARDS AND GUIDELINES CONCLUSION ...... 26 7. OPTION ANALYSIS ...... 27

7.1 OPTION 1: RESURFACING CURRENT VELODROME ...... 27 7.2 OPTION 2: NEW OUTDOOR CONCRETE TRACK FACILITY ...... 27 7.3 OPTION 3: INDOOR WOODEN TRACK FACILITY ...... 28 7.4 OPTION ANALYSIS SUMMARY ...... 29 7.5 OPTION ANALYSIS CONCLUSION ...... 29 8. THE CONCEPT ...... 30

8.1 CONCEPT DESIGNS ...... 31 9. SITE ASSESSMENT ...... 35

9.1 OPTION 1: EXISTING SITE ± PORTION 1676 ...... 35 9.2 OPTION 2: CHARLES DARWIN UNIVERSITY ...... 36 9.3 MARRARA SPORTS COMPLEX...... 36 9.4 OPTION 3: PORTION 2209 - MARRARA SPORTS COMPLEX: CNR ABALA ROAD AND HENRY WRIGLEY DRIVE (SOUTH OF NEW SOCCER COMPLEX) ...... 39 9.5 OPTION 4: EASTERN PART OF PORTION 4109 - MARRARA SPORTS COMPLEX: ABALA ROAD ...... 39 9.6 OPTION 5: PORTION 4294 ± WESTERN CORNER OF MCMILLANS ROAD AND HENRY WRIGLEY DRIVE ...... 40 9.7 OPTION 7: PORTION 4295 ± MARRARA SPORTING COMPLEX, BETWEEN HENRY WRIGLEY DRIVE AND CHARLES EASTON DRIVE ...... 41 9.8 OPTION 6: PORTION 4483 ± MARRARA SPORTING COMPLEX (WESTERN CORNER), ABALA RD ...... 42 9.9 SITE ANALYSIS SUMMARY ...... 42 9.10 SITE ANALYSIS RECOMMENDATION ...... 42 10. GOVERNANCE AND MANAGEMENT ...... 43

10.1 GOVERNANCE STRUCTURE ...... 43 10.2 MANAGEMENT STRUCTURE ...... 45 11. FINANCIAL ANALYSIS...... 47 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

11.2 KEY FINDINGS FROM FINANCIAL ANALYSIS ...... 55 11.3 FINANCIAL CONCLUSIONS ...... 56 12. CONCLUSIONS ...... 57 13. RECOMMENDATIONS ...... 58 14. APPENDICES ...... 59

14.1 APPENDIX 1: FUNDING OPPORTUNITIES ...... 59 14.2 APPENDIX 2: SPONSORSHIP ...... 61 14.3 APPENDIX 3: EVENTS HELD AT VODAFONE ARENA IN 2006/07(MULTI PURPOSE VELODROME FACILITY IN MELBOURNE) ...... 62 14.4 APPENDIX 4: UCI REGULATIONS 2006 ...... 62 14.5 APPENDIX 5: VELODROMES AROUND THE WORLD ...... 69

FIGURES FIGURE 1 DARWIN CYCLING CLUB VELODROME...... 9 FIGURE 2 DAREBIN VELODROME ...... 12 FIGURE 3 DUNC GREY VELODROME ...... 14 FIGURE 4 ADELAIDE SUPERDROME...... 15 FIGURE 5 PERTH SPEED DOME ...... 17 FIGURE 6: CHANDLER VELODROME ± FLOOR PLAN ...... 19 FIGURE 7 OVERHEAD VIEW OF MARRARA SPORTS COMPLEX VELODROME ± GROUND FLOOR ...... 32 FIGURE 8 OVERHEAD VIEW OF MARRARA SPORTS COMPLEX VELODROME ± GROUND FLOOR ...... 33 FIGURE 9 STRUCTURAL OVERVIEW OF VELODROME FACILITY ...... 34 FIGURE 10 EXISTING DARWIN VELODROME SITE ...... 35 FIGURE 11 MARRARA SPORTING COMPLEX ...... 37 FIGURE 12 AERIAL VIEW OF MARRARA SPORTING COMPLEX ...... 37 FIGURE 13 MARRARA SPORTING COMPLEX ² SITE PLAN ...... 38 FIGURE 14: PROPOSED MANAGEMENT STRUCTURE ...... 45

TABLES TABLE 1 PROJECT SWOT ANALYSIS ...... 10 TABLE 2 HOMOLOGATION OF VELODROMES ...... 25 TABLE 3 CATEGORY 1 AND 2 TRACK CRITERIA ...... 25 TABLE 4: FINANCIAL ASSUMPTIONS ...... 47 TABLE 5: ESTIMATED CASH FLOW FROM OPERATING ACTIVITIES...... 50 TABLE 6: CASH FLOW FROM INVESTMENT ACTIVITIES ...... 51 TABLE 7: CASH FLOW FROM FINANCING ACTIVITIES...... 52 TABLE 8: ESTIMATED PROFIT AND LOSS ...... 53 TABLE 9: ESTIMATED PROFIT AND LOSS CONTINUED ...... 54 TABLE 10: CASH FLOWS FROM OPERATING ACTIVITIES ± CEMENT VELODROME ...... 56 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

1. EXECUTIVE SUMMARY

The existing velodrome operated by the Darwin Cycling Club currently does not meet the Union Cyclist International (UCI) standards for holding international or national events such as the Arafura Games. Nor does the current facility support the development of Territory, national and international cyclists in Darwin.

The Darwin Cycling Club is aiming to meet several objectives through the development of a velodrome facility in particular: · Establish a tropical training facility for national cycling teams · Enable track cycling events for the Arafura Games · Attract and maintain events in Darwin including but not limited to the Visually Handicapped National Games, University Games, the State Cycling Championships, the Blind Association Games, Oceanic Games, Commonwealth Games and the Masters Games · Provide a suitable learning environment for the sport of cycling · Support the development of elite level cyclists in the Northern Territory · Develop a velodrome that can be used as a multiple purposes venue possibly including but not limited to; basketball, volleyball, seven-a-side soccer, tennis, concerts, events and meetings · Compliment Darwin’s existing high level sporting facilities

If has been found that the majority of Capital Cities in Australia have indoor wooden track velodromes. These facilities are used to conduct elite level training and generate revenue though their ability to be multi-use facilities. Regardless of the material used for the track (i.e. wood or cement) a velodrome must meet UCI ratings in order to conduct national and international events, such as the Arafura Games and the Oceania Paralympic Championships.

Market research and analysis undertaken identified the following: · A new velodrome can not rely on the patronage of a few key events in Darwin (i.e. Arafura Games) and will need to be marketed to sporting and tourism event organisers · There will be competition from other Capital Cities however Darwin can differentiate itself due to its geographical location and climatic conditions · Darwin is ideally located to market a velodrome to the South East Asian region · Darwin’s proposed velodrome will need to be a multi-purpose venue · Considerable funding will be required for initial construction, ongoing maintenance and capital improvements

Financial analysis undertaken has shown that the preferred recommendation of a wooden indoor track would cost approximately $22.8 million. Provided funding is sourced to cover the upfront capital costs, it is possible to achieve a positive operating cash flow, based on assumptions concerning estimated income and expenditure streams. The new facility would be able to achieve a positive cash flow in the vicinity of $15,000, however operational profits would not enable Darwin Cycling Club to finance a loan for the facility. Depreciation of the initial capital expenditure has not been included in the analysis which would be over $900,000 per annum. Thus, operating activities of the facility would be insufficient to fund depreciation. The new facility is expected to have a useful life of 20-25 years before requiring replacement. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

A cement velodrome would have less opportunity to attract events and less potential of hiring the venue to customers, thus reducing the possible sources of income. A cement velodrome when compared to a wooden enclosed velodrome would also have reduced expenses, particularly in relation to salaries and utilities. A cement velodrome would require an estimated $5 million to finance. Despite a cement velodrome having comparatively less running costs, it does not have the facilities or capabilities to generate sufficient revenue, and therefore a negative net cash flow is estimated.

A new velodrome facility would have significant potential to attract a variety of events, concerts and national and international training camps. It would also enhance participation in the sport of cycling in the Northern Territory. A new velodrome would ensure that Darwin has sufficient facilities to host a variety of international and national events including the Arafura Games and the Oceania Paralympic Championships.

It is recommended that the existing site and surrounding land (portion 1676) is the logical location for the new facility. Should this project proceed it is recommended that:

Ź That discussions be held with potential funding bodies to ascertain potential levels of support for the preliminary velodrome concept

Ź That subject to discussions with potential funding bodies the design and costings be reviewed

Ź That funding applications be completed and lodged with the appropriate bodies seeking funding for the construction of a new facility

Ź That negotiation of leasing arrangements for the preferred site commence immediately

Ź That an advisory board be established to govern the facility with the support of management

Ź That an appropriate legal structure be established to operate the facility

Ź That capped ongoing support be provided by Government for the operation of the facility

Ź That discussions commence with potential co-tenants and shared use organisations

Ź That a UCI consultant be engaged to provide advice during the planing and construction DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

2. INTRODUCTION

The Darwin Cycling Club has recognised the need to review the existing velodrome facility in Darwin and determine the feasibility of constructing and operating a new facility. A new facility would need to meet several identified project objectives including the ability to host track cycling events for the Arafura games.

The Darwin Cycling Club (DCC) has engaged Collins Anderson Management (CAM) to investigate the feasibility of a new velodrome facility and to provide recommendations in regard to the type of facility, suitable location and potential funding options.

3. PROJECT OBJECTIVES

The Darwin Cycling Club is aiming to meet several objectives through the development of a velodrome facility in particular: · Establish a tropical training facility for national cycling teams · Enable track cycling events for the Arafura Games · Attract and maintain events in Darwin including but not limited to the Visually Handicapped National Games, University Games, the State Cycling Championships, the Blind Association Games, Oceanic Games, Commonwealth Games and the Masters Games · Provide a suitable learning environment for the sport of cycling · Support the development of elite level cyclists in the Northern Territory · Develop a velodrome that can be used for multiple purposes possibly including but not limited to basketball, volleyball, seven-a-side soccer and tennis. The facility can also be used for but not limited to concerts, events and meetings · Compliment Darwin’s existing high level sporting facilities DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

4. CURRENT SITUATION

4.1 EXISTING FACILITY

The existing Darwin velodrome facility is located at Bagot Park, McMillans Road, Millner. The facility is operated by the Darwin Cycling Club on land that is leased from the Darwin City Council.

The velodrome has the following relevant characteristics: · Bitumen track surface · Shallow banking · Open air facility · Grassed infield area · Limited viewing facilities · Lighting

Figure 1 Darwin Cycling Club Velodrome DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

4.2 ENVIRONMENTAL ANALYSIS

The following SWOT analysis has been developed to outline the issues associated with the velodrome facility in Darwin.

Table 1 Project SWOT Analysis

STRENGTHS (Internal) WEAKNESSES (Internal) ¨ Support from various sporting clubs/ ¨ Existing cycling membership within Darwin associations ¨ The current facility does not meet State, National ¨ Current expertise on board to conduct high level or International Standards competition within a new facility ¨ The facility can not hold events at State, ¨ Existing cyclists are performing well in road track National or International level events where facilities are better ¨ The facility is not appropriate to use as a training facility ¨ The current users of the facility are limited to current members of the Darwin Cycling Club, as the velodrome is a relatively unsafe facility and international and national cyclists are not willing to risk injury on the course. ¨ The existing track may be structurally unsound ¨ Limitations on conduct of cycling events due to weather ¨ The lack of amenity is negatively impacting utilisation ¨ Does not meet UCI standards OPPORTUNITIES (External) THREATS (External) ¨ The venue could become a part of major ¨ Other indoor sporting facilities. sporting events within the territory including ¨ Funding availability Arafura Games ¨ No current sponsorship for the facility ¨ Would complete Darwin’s suite of high standard ¨ Profile of the sport in Australia sporting venues ¨ Generation of revenue to support income for a ¨ Multi-use of facility with other sports including velodrome facility triathlon and indoor sports ¨ Link in with the NTIS ¨ Opportunity to draw tourism into the territory/ city ¨ Opportunity to develop the sport of cycling within the Northern Territory and Australia through increased participation. Injecting capital into the Northern Territory economy. ¨ Gain funding through federal, state and local government, by way of grants. ¨ Sponsorship opportunities ¨ Potential for the facility to accommodate multiple sports played. ¨ Training centre for junior and senior competitors DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

4.3 ENVIRONMENTAL ANALYSIS SUMMARY

The current facility is unsuitable for high level cycling to be conducted in Darwin and is restricting the Darwin Cycling Clubs ability to host the Arafura games and attract potential new events. The facility does not support the development of elite level cyclists in Darwin and therefore impacts upon the success of the Northern Territory in track cycling on a national and international stage.

There are significant opportunities that a new facility would provide in terms of attracting new events, attracting new membership, attracting more visitors and increasing Darwin’s ability to host track events.

A major threat affecting the proposed velodrome is the current number of sporting facilities in Darwin, in particular in the Marrara Sporting Complex. There is also the issue concerning the financing of a new velodrome. Considerable financial support will be required to upgrade or construct a new velodrome.

4.4 ENVIRONMENTAL ANALYSIS CONCLUSION

Current situation research and analysis has produced the following conclusions: · The current facility has limited useability and does not support the development of elite level cyclists in Darwin · A new facility would provide opportunities to grow the sport of cycling and attract additional State, National and International events · Darwin’s current number and quality of facilities may attract potential customers away from a new velodrome · Considerable funding is needed to develop a new velodrome DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5. MARKET ANALYSIS

5.1 AUSTRALIAN VELODROMES

The following section outlines some examples of existing velodromes within Australia. These include both indoor and outdoor venues located in other capital cities and regional centres.

5.1.1 DAREBIN VELODROME

The Darebin Velodrome is a part of the Darebin International Sports Centre a multi purpose facility which encompasses state lawn bowls, function bar and bistro facilities and state football centres. The facility was host to the 2006 Commonwealth Games Lawn Bowls and the Asia Pacific Games. The Facility was opened in October 2005, and has since run as a self sufficient facility, which contributes $50,000 to the Darebin Council each year. The facility was initially funded by the federal and state government who contributed equally to the sports complexes development.

The Darebin International Sports Centre is owned by the Darebin City Council, they lease it to CycleSport Victoria, Football Federation Victoria and Darebin City Bowls, who in turn undertake all the management and operational duties of the facility.

CycleSport Victoria, Victoria’s peak cycling body, manage the velodrome and report directly to council. There is an advisory committee that maintain the strategic direction for the entire facility, with 8-10 members, with representatives from: · Football Federation Victoria · CycleSport Victoria · Darebin City Bowls · State Lawn Bowls (Men’s and Women’s) · Bowls Australia, and · Darebin Council

The Darebin Velodrome currently has no official UCI rating, with Oceania Track titles being the highest level of competition hosted at the velodrome. CycleSport Victoria is adamant that membership numbers for cycling have increased since the completion of the velodrome, in particular for track cycling.

Figure 2 Darebin Velodrome DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Specifications/Amenities

· 250m indoor timber cycling track · 500 permanent standing room on the back straight · Dedicated cycling change rooms · Cycling reception · Storage cages · Multipurpose facility · Utilises natural light (lower costs) · 2 struts

The estimated total cost of the Darebin Velodrome was $9 Million Dollars (Velodrome) ($19 Million for entire complex) DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.1.2 DUNC GRAY VELODROME

In November 1999, the Dunc Gray Velodrome was opened and named after a former Olympic Gold Medallist, Edgar Dunc Gray. The facility is managed by the Bankstown District Sports Club on behalf of the Bankstown City Council and the NSW State Government. The facility is most well known for its inclusion in the Sydney 2000 Olympic Games.

The Dunc Gray would have been built according to a UCI rating of 1 to enable it to host the Olympic Games. The Dunc Gray Velodrome has also hosted the World Cup and World Masters in cycling. The infield of the complex is semi-permanently occupied by the Youth Club, a gymnastics organisation that uses the facility 5-6 days a week. The Dunc Gray Velodrome has previously hosted wedding expos, inline skating competitions (which required installation of a special floor) and will host a baton twirling competition in early 2009.

Figure 3 Dunc Grey Velodrome

Specifications/Amenities

· 200 hardstand car parking spots · 3,100 seats · Electronic Scoreboard · 250 meter Baltic Pine Track · Change and Meeting Rooms · 800 meter Criterium circuit · Single span facility (no struts)

Estimated Total Cost of Dunc Grey Velodrome: $41 Million Dollars DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.1.3 ADELAIDE SUPERDROME

The Adelaide Superdrome which opened in 1993 is the home of the Australian Institute of Sports cycling program. The facility is a fully-accredited, international-standard training and competition facility, which on average hosts six major cycling events per year as well as acts as the Australian hub for cyclist training and development programs. The Superdrome is UCI approved.

The Superdrome diversifies its income by hosting a range of events including dinner functions, dog and cat shows, highland dancing and marching national championships. The Superdrome is managed by the Manager Venues Unit, who coordinates approximately 170 casual staff. The Manager Venues Unit reports to the Director Venues Infrastructure and Funding Services who reports to the Executive Director, Office for Recreation and Sport who ultimately reports to the Minister for Sport.

Anecdotal evidence suggests memberships would have increased on completion of construction but may have dropped away now, with the resultant trend more an indication of the sport rather than the venue. The venue continues to be used on a regular basis for cycling training, and if anything this has increased over the last couple of years. It has been noted that it is very important to have a proactive association that can filter the cycling users to the venue.

Figure 4 Adelaide Superdrome

Specifications/Amenities

· Track: 250m softwood, 43° banked · Track lighting: 400 lux · Timing: international-standard electronic · Pits: recessed infield area · Scoreboard: electronic multi-purpose · Seating: 2000 spectators and 1000 standing · VIP areas - 4 corporate boxes and 1 VIP lounge · Warm-up areas: adjacent to track · Infield flooring: Regupol Multi-Sports (2067m2) DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

· Change rooms: 2 · Specialised training equipment · Trainers room with massage table · Lockable storage space available · Opening times: as required · On site parking for up to 1500 cars

Estimated total cost of Adelaide Superdrome: $15 Million Dollars (1993) DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.1.4 PERTH SPEED DOME

The Perth Speed Dome was officially open to the public in 1989 and hosted the UCI World Track Cycling championships in the Year 1997. The venue was the result of a joint project between the City of Swan and the State Government. The venue can accommodate up to 2,300, with seated spectators of 1,500. The venue is a multipurpose facility, which hosts activities such as hockey, speed skating and also has an underground kick boxing gymnasium facility.

The Perth Speed Dome currently has a borderline rating between UCI category 3 and 4. This is due in part to changes in UCI regulations as the Perth Speed Dome has previously hosted world junior championships. They are in the process of making changes to become UCI category 1 standard.

Patronage to the Perth Speed Dome has remained fairly constant over the last 10 years, with an average of 25,000 visitors per year. Although membership to cycling has remained fairly constant, road racing is where the growth in numbers has been.

The Perth Speed Dome took approximately 18 months from initial construction to opening. The long timeframe was due to the fact that a lot of initial ground works needed to be undertaken to make the site suitable for construction. The current facility and amenities stretches over 6 hectares, with the building itself covering 9496 square meters.

Figure 5 Perth Speed Dome

Specifications/Amenities

· 250m international standard timber cycling track · Multipurpose concrete floor used for inline hockey · Kick boxing gymnasium is located underneath the cycling track · 1,500 spectator seating, 2300 spectator capability · Serviced bar and canteen facility · Three media boxes · Tenant and administration offices · Competitors reception area DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

· Competitor and officials change rooms. · 700m criterium track which passes through the building is located on the eastern side of the facilities. · Single span facility (no struts)

Estimated Total Cost of $5.8 Million (1989) for the Perth Speed Dome DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.1.5 CHANDLER VELODROME - BRISBANE

The Chandler Velodrome is located in Brisbane and hosts a wide variety of events including cycling, rock concerts, rallies, motorcross and speedway championships. In 2001 it hosted the cycling events for the 2001 Goodwill Games. The 1982 Commonwealth Games were also held here.

The Chandler Velodrome is owned by the Queensland government and was built for the 1982 Commonwealth Games. The day to day operations of the velodrome are managed by Cycling Queensland, Queensland’s peak cycling body, who lease the property from the government. Decisions of a strategic nature are done in conjunction with the Queensland department of Sport and Recreation.

The Chandler Velodrome is a part of the Sleeman Sporting Complex which boasts an aquatic centre, sports arena, gymnastics training hall, gymnasium and auditorium. Although the Chandler Velodrome did host the cycling events for the 1982 Commonwealth games, it no longer has a UCI category 1 rating, and it is not often used for national titles because it is seen as too big (333.3 m as opposed to 220 or 230). When it was constructed it was a state of the art facility and attracted many new participants to cycling.

Figure 6: Chandler Velodrome ² Floor Plan

Specifications/Amenities

· 333.3m steep bank concrete track · Multipurpose inner track area · 3,500 spectator seating · Lighting

Initial construction costs not available. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.1.6 KENRICK TUCKER VELODROME - ROCKHAMPTON

The Kenrick Tucker Velodrome was constructed in 1980 and officially opened in 1983. It has played host to training camps for the Australian National Track Team prior to the 2004 and 2000 Olympic Games and the 1997 Queensland Open Track Titles.

Specification / Amenities

· 333.3m steep bank concrete velodrome · Fully enclosed track · Floodlighting · Grassed inside track area · On site warm up area · Tiered spectator seating · Bike racks

Initial construction costs not available. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.2 TOURISM AND EVENTS

A new velodrome has the potential to increase tourism within the Darwin area as it could attract a greater variety of cycling events to Darwin. There are a portion of sporting events which Darwin could potentially host if there was a higher standard of velodrome.

· The University Games (6,700 plus participants) · The Australian Visually Handicapped Games · The Veteran Games · The State Cycling Championships · And the National Cycling Championships

Unfortunately the track component of cycling for the masters games is currently hosted at the Alice Springs velodrome and will continue to be into the foreseeable future.

This facility, once constructed, would be eligible to be a part of the Arafura games. Currently the Arafura games, a sporting event held every two years, does not include track racing, it only encompasses road cycling including: · the Road Race · the Time Trial · the Criterium · and the Top End Tour A new velodrome would enable inclusion of track events in the Ararfura and Ararfura Paralympic games. A new velodrome would have the potential to be used by games organisers as a location for other events as part of the games program. Whilst a major event the Arafura games is a biennial event, this alone will not provide adequate patronage for the proposed new velodrome.

5.3 MULTI USE

The sustainability of large facilities like velodromes is inextricably linked to utilisation. For this reason other indoor activities are commonly catered for within a velodrome facility. One example of this is the Vodafone Arena in Melbourne1. This facility is used extensively for other activities including tennis, concerts, dance sports, gymnastics, basketball, netball and other functions. There are significant opportunities for holding events

1 See Appendices for list of events held at Vodafone Arena in 2006/07 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.4 GEOGRAPHY AND CLIMATIC CONDITIONS

The proximity of Darwin to the Asian region, its tropical climate, existing sporting venues and modern services and facilities make it an ideal location for training camps and major event preparation. A similar example is the current influx of international athletes to Singapore ahead of the Beijing Olympics.

The location and climatic conditions of Darwin will be key selling points for attracting national and international athletes to the proposed velodrome as a training and preparation facility. As a key strategy the velodrome manager would have to actively market its offerings to this segment and build strong relationships with sporting organisations in nearby locations.

5.5 PARTICIPATION IN CYCLING

According to Ron Bonham, Coaching Director of Cycling Australia, due to increased standards of the velodromes across Australia, “cycling overall has seen double digit growth every year for the past 5 years” Velodrome managers concur that development of velodromes in their areas have had a direct impact on the number of participants. The growth in cycling is also due to the increasing profile with the Australian Institute of Sport identifying cycling as one of its leading sports.

5.6 MARKET ANALYSIS SUMMARY

The majority of Capital Cities in Australia have indoor, wooden track velodromes. These facilities are used to conduct elite level training and competition and are multi-use facilities that can be used for a range of different indoor sports, therefore sharing management responsibilities

Brisbane and the regional centre of Rockhampton have concrete velodromes that were established prior to the Brisbane Commonwealth Games in 1982. Whether concrete or wooden, velodromes constructed in Australia have required considerable funds. The majority of funding has come from government (local, state and/or federal funding).

Continual maintenance and capital improvement of a velodrome is required to maintain adequate UCI ratings.

Investigation into Australian facilities also identified the need for a velodrome to be multi-purpose in order to generate additional revenue streams (i.e. the ability to hold rock concerts and other sporting events).

A new velodrome built in Darwin would be used by Arafura Games and Oceania Paralympic Championships participants and would enable track cycling to be included in the program. There are also a number of other events that the Darwin velodrome would have the ability to attract.

Development of a velodrome in other states has seen considerable growth in participant numbers and it is inferred this trend will continue in Darwin

Darwin is ideally located to market a multi-purpose velodrome to the South East Asian region for events and training camps. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

5.7 MARKET ANALYSIS CONCLUSIONS

The above market research and analysis has identified the following conclusions:

· A new velodrome can not rely on the patronage of a few key events in Darwin (i.e. Arafura Games) and will need to be marketed to sporting and tourism event organisers · There will be competition from other Capital Cities however Darwin can differentiate itself due to its geographical location and climatic conditions · Darwin is ideally located to market a velodrome to the South East Asian region · Darwin’s proposed velodrome will need to be a multi-purpose venue · Considerable funding will be required for initial construction, ongoing maintenance and capital improvements DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

6. VELODROME STANDARDS AND GUIDELINES

The Union Cyclist International (UCI) is the international cycling body which not only governs the sport of cycling and also the facilities in which cycling events are held but also produce standards and guidelines accordingly.

There are certain guidelines, standards and rules that must be met when a velodrome is being planned. These standards are put in place to make sure facilities are safe, accessible and of a certain benchmark to hold elite level events. This process of assessing a velodrome is usually conducted by the UCI and is called Homologation (Refer to Appendix 3: UCI Velodrome Regulations 2006).

”Homologation of the velodrome by the UCI rests not on the technical and structural characteristics of the velodrome, but solely on the compliance of its external features with the provisions of the present paragraph at the time of inspections”.

Homologation is concerned with the following areas of velodrome characteristics: · Form · Length · Width · Blue Band · Safety Zone · Profile · Surface · Marking · Measuring line · Sprinters Line · Stayers Line · Finish Line · 200metre Line · Pursuit Lines line · Access Tunnel · Riders area · Fencing · Lighting · Finish Judges Podium · Box for the Commissaries Panel · Box for the referee · Centre podium for the starter

When homologation occurs a velodrome is then classified into four categories which determine the level of event that can be held at that facility: DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Table 2 Homologation of Velodromes

CATEGORY HOMOLOGATION LEVEL OF EVENTS 1 UCI Elite World Championships and Olympic Games. 2 UCI World Cups Continental Championships World Junior Championships 3 UCI Other international events 4 NATIONAL FEDERATION National events

In order to host World Championship level events the Darwin Velodrome would need to achieve a UCI rating of 1. To host track cycling events for the Arafura games, a UCI rating of 3 would be required. In either case the Homologation would be required from the UCI.

Any velodrome can attain a UCI category rating of 1 provided it meets with other local building standards; the material used in developing the track is irrelevant. Therefore a cement outdoors track can therefore officially conduct international events except for Olympic and Commonwealth games and Worlds Championships for Elite divisions. Times recorded on the facility are eligible for world records and commonwealth records provided they are recorded with electronic timing equipment. An example of this is the Junior U19 World Championships were held on an outdoor 250 metre concrete track in Mexico.

Developing a track to meet category 1 of the UCI regulations would appear to be superfluous. Whilst it would be advantageous, it is unlikely that Darwin would need to host Olympic and Commonwealth game events and/ or Elite World Championships in the foreseeable future.

The UCI were categorically clear in their message in relation to construction of a velodrome. Twice in recent years in Australia, appropriate planning and design advice was not sought for the development of velodromes, with the resulting velodromes having to be destroyed. The UCI only recommend two consultants who consult to UCI on an almost full time basis.

All category 1and 2 tracks must meet the criteria contained in table 3, this is calculated for maximum safe speeds in the range of 85km/h up to 110km/h as set out in the UCI Regulations (2004). ³All other tracks must be designed to guarantee a minimum safe speed of at least 75 km/h”.

Table 3 Category 1 and 2 Track Criteria

TRACK LENGTH 250m 285.714m 333.333m 400m Radius of Bends 19-25m 22-28m 25-35m 28-50m Width 7-8m 7-8m 7-9m 7-10m

Standards and regulations that do not come under the guidelines of the UCI are governed by the country in which the velodrome is being built and local legislation. The UCI regulations state:

“The stability and resistance of the materials and fixings which make up the structure of the velodrome shall meet the legislation regarding construction and safety of the country in which it is being built and shall take DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY account of specific geological and climatic conditions…These elements, along with general compliance of the construction and construction materials with technical standards… in accordance with local legislation or regulations”

Along with the Guidelines of the UCI it is important that the proposed Darwin velodrome gets support from the Australian Cycling Federation. The Australian Cycling Federation is a National Body which supports and governs the sport of cycling within Australia.

6.1 VELODROME STANDARDS AND GUIDELINES SUMMARY

The UCI category required for the Darwin velodrome would be level 3. This would enable Darwin to host the Arafura games, World Championships, Continental Championships, other International events and National events. This category can be achieved with either a concrete or wooden track. Research also indicated expert advice would need to be sought to ensure UCI regulations can be met, to prevent costly mistakes.

6.2 VELODROME STANDARDS AND GUIDELINES CONCLUSION

The above velodrome standard and guidelines analysis has resulted in the following conclusions: · Darwin will require a velodrome compliant with UCI category 3 at a minimum · The material used in construction (i.e. wood, concrete) will not affect the UCI rating · Homologation of the track by UCI officials will be required · Expert external advice will be required to prevent costly mistakes in development of the track DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

7. OPTION ANALYSIS

The following options have been identified and assessed based on their ability to meet project objectives.

7.1 OPTION 1: RESURFACING CURRENT VELODROME

In order to upgrade the existing track, the track would firstly need to be deemed structurally sound, from an architectural and construction perspective. Independent consultants would need to be engaged in order to evaluate the track. If deemed structurally sound, the track itself would be able to be resurfaced. The cost associated with this would be in the vicinity of $90,000-150,000.

For: · Low capital expenditure cost · Facility would not need to be moved · Low maintenance costs

Against: · Will not receive appropriate UCI rating (category 1) to host international events (highest level of events is likely to be State Championships) · Facility will not be safe for high speed racing unless banking is adjusted · Length of track does not comply with modern standards (it is in imperial measurements) · Other amenities are unsatisfactory in relation to seating etc. · Track is not fully enclosed and therefore subject to vandalism and misuse · Track cannot be used year round due to weather · Limitations on multiple uses of facility · It is unlikely that the existing site will be structurally sound and therefore require further construction work · Imperial measurements of current track

Recommendation:

This option is not recommended as it will not meet the key objective for hosting of the Arafura Games.

7.2 OPTION 2: NEW OUTDOOR CONCRETE TRACK FACILITY

A new outdoor concrete track is estimated to cost between $1.5 million and $6 million dependent on how extensive the facility was required to be developed in regards to seating capacity, amenities and additional facilities. The extent of architectural design and complexity of construction would be the determining cost factors. An example of a venue of this standard is the Coffs Harbour Velodrome (not UCI rated) which cost in the order of $1.8million. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

For: · Lower capital expenditure cost · Concrete track is more durable · Would not require roof covering · Provide a safe facility for professional and amateur riders · Able to achieve UCI rating 1 · Would be suitable for national and international competitions including the Arafura games

Against: · Achievement of desired UCI rating may be impacted · Track cannot be used year round due to weather (This would prove problematic as cycling is a primarily summer sport with most events held between October and April) · Limitations on multiple uses of facility

Recommendation:

This option is recommended if funding for the preferred option cannot be obtained and provided that design specifications are consistent with achieving appropriate UCI homologation rating.

7.3 OPTION 3: INDOOR WOODEN TRACK FACILITY

A higher standard of facility would incorporate an indoor wooden track facility. This type of facility would incorporate equipment and facilities for sports and events other than cycling. The facility would be likely to obtain a Category 1 or 2 rating by the UCI through a process of homologation, provided it was able to meet the criteria in relation to track dimensions and UCI requirements (refer to Appendix 3: UCI regulations 2006).

For: · Track can be used year round · Track is consistent with elite level sporting venues around the world and within Australia · Facility can provide clubrooms and other facilities that can be shared with other sports · Provide a safe facility for professional and amateur riders · More marketable facility in terms of attracting events to Darwin · Consistent with Darwin’s other high quality sporting facilities · More attractive venue for spectators · Economic benefit for Darwin DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Against: · Higher capital expenditure and maintenance costs · Track is less durable than concrete track facilities · Would require additional management and maintenance resources

Recommendation:

This option is recommended

7.4 OPTION ANALYSIS SUMMARY

Although the cheapest option, resurfacing of the current velodrome will not meet Darwin Cycling Clubs needs. A re-surfaced velodrome will also be unable to have year round utilisation particularly in the wet season. Resurfacing the track will not achieve the appropriate UCI accreditation, therefore unable to host the desired events, such as the Arafura Games.

A new cement velodrome is a credible option. It requires less capital outlay and is able to achieve an appropriate UCI rating. An outdoor cement track is therefore able to host the events that Darwin Cycling Club is aiming to attract. The major draw back of this option is the fact that there is less ability to use it in the summer months (wet season) which is also the cycling season and there are fewer opportunities for mutli- purpose events.

An enclosed velodrome with wooden track is the most attractive option. It enables year round use and has greater potential to be a multi-use facility, thus enabling revenue diversification. A wooden track can attain a high UCI rating, thus enabling the venue to host National and International events. An enclosed velodrome however, requires considerable capital expenditure to construct.

7.5 OPTION ANALYSIS CONCLUSION

The above research as part of the options analysis has resulted in the following conclusions:

· Re-surfacing of the current track will not meet Darwin Cycling Club’s needs · A cement velodrome can attain UCI ratings and host high calibre events but has less capability of being used as a multi-purpose facility · An enclosed velodrome with wooden track will achieve UCI ratings, attract high calibre events and is able to be used year round and as a multi purpose venue DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

8. THE CONCEPT

The concept for the Darwin Velodrome has been developed to meet project objectives identified by the Darwin Cycling Club and other stakeholders. To this end the following considerations have been included:

· Capable of meeting Category 3 standard in the UCI regulations · Ability to attract high level sporting events to Darwin · Ability to cater for multiple sporting activities · Ability to hold clubroom facilities

The following items are included in the concept:

· 250m length wooden track (measured at the zero line) · 7 – 8 metre in width · radius of bends 19—25m, · incline of track 12—42 degrees · 5m duck-board · entry ramps to track level at both ends · The centre of the track is of a size suitable for the staging of international-level tennis, volleyball, badminton, basketball and netball. Nets suspended from overhead access and lighting gantries can separate and contain play within the courts. · Seating for 500 people, with a further 500 standing · Timing equipment · cyclist wet areas including showers and lockers · car parking for 30 cars to main entry · car parking for 20 cars to cyclist entry · outdoor criterium track DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

8.1 CONCEPT DESIGNS

Concept designs, engineering work and quantity surveying have been prepared by Wilde and Woollard, Hardy Millazo architects and Combe, Pearson, Reynolds.

The key elements of the concept designs and images are outlined below:

8.1.1 FACILITIES

The spectator, club and competitor facilities are arranged about the long sides of the buildings, to make use of the regular geometry. The radial ends (accommodating taller spaces under the track) are used for arena access and storage. All available space under the track is utilized in an efficient manner, reducing the building size to a minimum.

More formal club and spectator spaces, (ticketing, merchandise, refreshment, committee rooms, toilets) are situated at the entry side of the building, in a double-level lean-to arrangement, tucked under the seating tiers, (arranged along one side). Competitor facilities, (change rooms, maintenance, drug testing) are on the opposite side, with direct access to bike stores and the centre of the track.

The centre of the track is recessed 1 m, and is of a size suitable for the staging of international- level tennis, volleyball, badminton, basketball and netball. Nets suspended from overhead access and lighting gantries can separate and contain play within the courts.

8.1.2 STRUCTURE

The structure has been arranged very simply and economically as a repeated geometry truss, rotating around columns at each bend centre, supporting a central ridge truss. The ridge truss also acts as an open skylight and ridge vent, to encourage natural ventilation of and light to the space.

The trusses are supported on a combination linear/radial arrangement of pre-cast concrete buttressed piers, which also provide lateral stability to the walls and appended spectator and competitor facilities, which are framed in steel.

8.1.3 ENVIRONMENTAL

Internal environment control has been a determining factor in configuring the shape of the arena and the surrounding spaces: · The perimeter is louvred, permitting air through the space to the ridge vent in a thermal chimney- type action. Similarly, cooler air from under the track and concourse is channelled into this space. · Earth is banked against the sides of the building where the ancillary lean-to buildings are absent) further moderating the internal air temperatures · The roof shape contains recessed areas which provide further opportunity for cross- venting, hot air relief and light. · Venting at lower levels of the ancillary spaces encourages airflow through these spaces and into the arena. This would supplement any air-conditioning needed. · Large overhangs have been employed at all perimeters, controlling the effect of wind- driven rain, and ensuring that venting can be maintained in these circumstances. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

· Glass is used extensively but appropriately, shaded where necessary to reduce heat loading, but large enough to emit significant amounts of natural light and reduce the need for artificial lighting.

8.1.4 ICONOGRAPHY

The building is a combination of curved forms and stadia composition suggestive of a velodrome and large overhanging structures tied via significant structure to the ground, suggestive of a ‘top end’ aesthetic responding to tropical conditions. The overall design approach is one of reduction, allowing the pure forms of the structure and roof to determine the visual effect, combined with the evidence of sustainable design and operation.

Figure 7 Overhead View of Marrara Sports Complex Velodrome ² Ground Floor DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Figure 8 Overhead View of Marrara Sports Complex Velodrome ² Ground Floor

8.1.5 STRUCTURE

It was considered appropriate to introduce 2 prop columns to support a main central truss, in turn to support the regular trusses for the roof. The trusses are supported on framed columns which cantilever from a stiff pile cap and bored piers at each column location.

Steel roof bracing, wall cross bracing and steel purlins were assessed and input into the early costings.

The wind load assessment was based on Wind Terrain category 2 in Wind Region C for Darwin for an annual probability of accedence of 1/500.

Geotechnical information was not available for this specific site and some assumptions were made in regard to bearing pressures. Founding depths of bored piers have been assumed at l0m deep below ground level. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Figure 9 Structural Overview of Velodrome Facility

8.1.6 LAND REQUIREMENTS

The land required to hold the velodrome alone would require at least and area of 60,000 square meters (6 hectares, approximately 240m X 250m), this does not make allowance for the external criterium track. If the criterium track, buffer zones, walkways and car parking were to be included in the land estimation requirements it is likely that closer to 80,000 square meters (8 hectares) of land would be required. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9. SITE ASSESSMENT

The following site assessment has been conducted in order to evaluate potential locations for the construction of a new velodrome facility in Darwin. Options have been evaluated based on discussions with the Darwin Cycling Club, Department of Local Government, Housing and Sport, Lands Administration and Australian Lands Valuation.

9.1 OPTION 1: EXISTING SITE ² PORTION 1676

For · Existing location is highly visible due to passing traffic along McMillans Road between the city centre and the airport · Darwin Cycling Club already have an existing lease with the Council · Ability to negotiate use of additional surrounding land · Land size is adequate (Current track occupies approximately 2.4 hectares of Portion 1679 which has a total size of 9.69 hectares.) · This site is already know as the location for the velodrome

Against · Not located with Darwin’s other premium sporting facilities which are located at Marrara Sporting Complex · Status of current lease (lease expired 2005) · Other demands for use of site

Figure 10 Existing Darwin Velodrome Site

Recommendation:

This option is recommended due to its location, size and current ownership. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9.2 OPTION 2: CHARLES DARWIN UNIVERSITY

For · Adequate land area for velodrome, criterium track and additional parking · Additional surrounding facilities/ amenities · Ability to raise awareness with university students and possible formation of a university club

Against · Federally owned land, for which Charles Darwin University (CDU) current have a long term lease. In order to use the land, negotiations would have to begin with CDU · Not located in the Marrara complex, therefore lack of sporting “traffic” · Location; not located on a main road, only exposure to local traffic · Located in Palmerston rather than Darwin itself

Recommendation:

This option is not recommended due to its current ownership and location.

9.3 MARRARA SPORTS COMPLEX

All other options are based in and around the Marrara Sports Complex. The Marrara Sports complex is located 11 kilometres from the city of Darwin and 1 kilometre from the Darwin Airport.

This sporting complex caters to an array of sports within the Northern Territory, it hosts the Northern Territory’s AFL matches and test cricket. The complex also hosts a variety of Arafura games competitions.

The facility’s included as a part of the Marrara Sporting Complex are: · the Marrara Oval · Arafura Stadium · An international Hockey Stadium · An Air-conditioned Basketball stadium · Marrara Indoor Stadium · And Dedicated grounds for various other sports DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Figure 11 Marrara Sporting Complex

The Marrara Sporting Complex offers a range of benefits for sporting facilities: · It has been specifically planned as a site for sporting venues · It is within an active business area · In an area with high population density · In an area of good public transport that is easily accessible · Potential to attract new members/ visitors attending other sports within the Marrara Complex

Figure 12 Aerial View of Marrara Sporting Complex DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Figure 13 Marrara Sporting Complex ² Site Plan

Sec. Sec. 4109 4294

Sec. 4295

38 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9.4 OPTION 3: PORTION 2209 - MARRARA SPORTS COMPLEX: CNR ABALA ROAD AND HENRY WRIGLEY DRIVE (SOUTH OF NEW SOCCER COMPLEX)

The portion 2209 is adjacent to the recently constructed football stadium, fire brigade and toy library facilities. This section is now part of Section 5826 which is a total of 12.3 hectares.

For: · Located with Darwin’s other premium sporting facilities at Marrara · Close proximity to Northern Territory Institute of Sport · Can utilise parking facilities of the football stadium

Against: · Less visible due to passing traffic along McMillans Road between the city centre and the airport · Construction may impact upon the existing car park · Land availability for the construction of a criterium track is limited · Crown land, owned by NT government

Recommendation:

This option is not recommended due to potential space constraints and ownership.

9.5 OPTION 4: EASTERN PART OF PORTION 4109 - MARRARA SPORTS COMPLEX: ABALA ROAD

For: · Located with Darwin’s other premium sporting facilities at Marrara · Close proximity to Northern Territory Institute of Sport · Next to baseball club which is looking for clubroom facilities · Land availability for criterium and other facilities is good (7.26 hectares)

Against: · Slightly less passing traffic along McMillans Road than the existing site · A perpetual lease for the land is currently owned by the South Darwin Sporting League

Recommendation:

This option is not recommended due to the current ownership of the land. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9.6 OPTION 5: PORTION 4294 ² WESTERN CORNER OF MCMILLANS ROAD AND HENRY WRIGLEY DRIVE

For · Location is highly visible due to passing traffic along McMillans Road between the city centre and the airport · Close proximity to Marrara Sporting Complex, thus amongst the through traffic for the sporting precinct · Adequate land for track and other facilities (covers approximately 9.5 hectares of land)

Against · Not located within the Marrara Sporting Complex · Leasing of the land will need to be negotiated · Planning regulations may restrict facility from being built, the latest development application for this land was unsuccessful · The area is prone to flooding

Recommendation:

This option is not recommended. This site should be considered if the preferred option cannot be achieved. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9.7 OPTION 7: PORTION 4295 ² MARRARA SPORTING COMPLEX, BETWEEN HENRY WRIGLEY DRIVE AND CHARLES EASTON DRIVE

For

· Owned by the Darwin City Council · Land size, at 19.9 hectares it has sufficient area for criterium track and parking

Against · Location, not located within the Marrara sporting complex · Road access not currently established · Land contains access/ service roads that may need to be kept · Uneven terrain may prove problematic · Watercourses running across the land may make it unsuitable for building

Recommendation:

This site is not recommended. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

9.8 OPTION 6: PORTION 4483 ² MARRARA SPORTING COMPLEX (WESTERN CORNER), ABALA RD

For · Located within the Marrara Sporting Complex · Land size and orientation. The block is 6.8 hectares, with the dimensions being favourable for planning

Against · Development application currently in place over this land. · Prospective use for other sporting activities

Recommendation:

This site is not recommended due to current plans for its development.

9.9 SITE ANALYSIS SUMMARY

Due to the size of the proposed development, finding a suitable location in the vicinity of other sporting facilities is difficult. Most of the sites assessed would be sufficient in size for the velodrome, but could not accommodate extra facilities, including criterium track, car parking and buffer zones.

Another major issue determining site selection is the current ownership of the proposed sites. As Darwin Cycling Club do not own any land and there is no land set aside for a new velodrome, negotiations for use will need to be entered into with the owner of the site selected.

9.10 SITE ANALYSIS RECOMMENDATION

Ź Overall, option 1: Existing Site - portion 1676 is the recommended site for development of the new velodrome, due to its size, location and ownership. DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

10. GOVERNANCE AND MANAGEMENT

The construction of a new velodrome facility in Darwin will require appropriate Governance and Management structures to oversee its ongoing operation.

Research undertaken strongly indicates a trend towards more corporate board structures with regards to sporting facilities, in place of the existing representative based structures. The Australian Sports Commission advocates that governance structures need to reflect both the constituency it represents and complex and changing environment in which organisations now operate.

The following governance structure is recommended as appropriate for the organisation and the facility it administers. The new structure will: · Clearly define roles and responsibilities · Ensure efficient decision making efficiency · Ensure appropriate skills and knowledge on the board · Have a strong focus on strategy and policy development · Provide an appropriate level for debate on operational issues

10.1 GOVERNANCE STRUCTURE

10.1.1 ADVISORY BOARD

Board members will require careful selection, induction and training and will need to know how to operate effectively as a team.

Every Board must have a constitution that they act within. The constitution lays out the specific roles and responsibilities including the powers within which the Board is permitted to act. The constitution is an enforceable contract between the members of the Association and its Board. There are also certain duties and responsibilities that are imposed upon the Board by the legislation under which the Board is formed (i.e. Associated Incorporations Act).

The following outlines the recommendations for an advisory board:

Membership · Darwin Cycling Club (2) · Cycling NT (1) · Independent Board Members (3) · Territory Government Nominee (1)

Eligibility · Financial member of respective associations/ organisations DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Skills and Knowledge Requirements · Business management · Sport administration · Strategic Planning · Financial Management · Marketing · Communication and public relations · Policy/ Legal Knowledge · Cycling Knowledge

Roles and Responsibilities

Governance · Policy and procedures · Internal Audit · Compliance Corporate Management · Management guidance · Risk management strategy Financial Management · Financial control and monitoring · Financial compliance · Sponsorship, levies and grant Strategic Planning · Development and review Performance Management · Performance measurement · Evaluation and monitoring · Annual report External and Internal Communications · Communication strategy · Public relations and marketing Stakeholder Relationships · Sponsorship and grants · Stakeholder interaction

Length of Tenure · 2 years on a rotational basis; 50 in 50 % out

Quorum · 50% plus one

Meeting Frequency · Monthly meetings with additional meetings as required DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

10.2 MANAGEMENT STRUCTURE

To support the governance structure; implement organisational management changes; effectively implement the decisions of the Advisory Board; provide administrative support to the Advisory Board; adequate resources need to be put in place. The following management structure is therefore proposed.

Figure 14: Proposed Management Structure

Facility Manager (1 FTE)

Cleaner Stadium Staff Security (Contract) (1 FTE) (Contract)

10.2.1 FACILITIES MANAGER

The board will need to offer a salary in the order of $45 - $50,000 to attract and retain a suitable candidate for the position of Facilities Manager.

Appointment · 1 FTE · Performance based contract

Skills and Knowledge Desired · Sports administration · Marketing · Strategic management and leadership · Commercial acumen · Financial Management · Policy Development DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Roles and Responsibilities

Governance Support · High level policy and program advice Corporate Management · Administration processes and procedures · IT systems Financial Management · Budget preparation · Budget control · Financial reporting · Financial compliance Strategic/ Business Planning · Development and review External and Internal Communications · Communication strategy · Oversee public relations, marketing and promotions Stakeholder Relationships · Oversee sponsorship and grants Evaluation and Monitoring · Performance measurement and assessment

Reporting Relationship · Reports to Advisory Committee DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

11. FINANCIAL ANALYSIS

The velodrome has the opportunity to raise revenue by many means; these include the establishment of regular racing events and hire out opportunities for conferences, meetings and concerts. The facility could charge for memberships, bike and track rentals, and offer riding lessons.

A new facility has the opportunity to be designed to cater for the sport of cycling as well many other indoor sporting activities such as tennis, volley ball, basketball, netball that can be played in the centre of the velodrome.

The financial analysis undertaken has assumed development of a $22.8million enclosed wooden velodrome. It is assumed that this velodrome will be marketed as a multi-purpose facility, thus have diversified revenue streams.

11.1.1 KEY ASSUMPTIONS

The following table outlines the financial assumptions used in the preparation of the cash flow and the profit and loss statement.

Table 4: Financial Assumptions Unit Cost Assumption INCOMING Sales Hire Fees - Stadium, Schools and $ 66.00 One 3 hour event, every weekend community sporting groups Hire Fees - Stadium, Schools and $ 1,320.00 1 Major function per month community sporting groups Sales- Stadium, Commercial, $ 99.00 One 3 hour event, every weekend Sales- Stadium, Commercial, Major Events $ 1,980.00 1 major function per month Sales - Advertising $ 3,000.00 10 businesses placing adds in stadium, annually Sales - Catering, functions $ 50.00 2 functions of 1,200 persons Sales - Catering, game days $ 30.00 6 hours of catering per weekend, plus 8 hours on event days Funding - DLGHS $ 10,000.00 Annual grant received from DLGHS Equipment Hire Hire- Indoor/outdoor carpet $ 27.50 4 events per year requiring carpet Hire- Sebel Integra loose chairs $ 1.10 30 chairs required at 12 events Hire- Portable stage $ 11.00 16 panels required for 12 events Hire- Portable boxing ring $ 550.00 2 boxing events per year DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Unit Cost Assumption OUTGOING Salaries Salaries- Manager $ 45,000.00 1 FTE Stadium Manager Salaries- Cleaners $ 32,000.00 0.5 FTE Cleaner Salaries- Security $ 70.00 2 staff doing eight hours for 24 events, plus 1 staff doing 6 hours for 52 weeks Salaries- Stadium Staff $ 32,000.00 2 part-time (0.5 FTE) staff Utilities Electricity $ 2,000.00 Invoiced quarterly Water $ 1,000.00 Invoiced quarterly Publicity, Marketing, Printing $ 1,000.00 Invoiced quarterly Gas $ 2,000.00 Invoiced quarterly Rates and Levies water rates $ 200.00 Invoiced quarterly sewer rates $ 300.00 Invoiced quarterly council rates $ 3,000.00 Invoiced annually emergency service levy $ 300.00 Invoiced annually Administration stationery $ 1,000.00 Annual expense books/newspapers $ 500.00 Annual expense postage $ 1,000.00 Annual expense Phone rental and calls (mobile calls, $ 50.00 Invoiced monthly messages on hold, etc) ISDN lines and internet lines $ 30.00 Invoiced monthly medical supplies $ 30.00 Monthly expense Plant and Equipment Repairs and Maintenance $ 70,000.00 Based on average annual repairs and maintenance cost for a venue of similar size and nature, commencing in year 2

Investment Outflows/ Purchases Cycling Equipment $ 5,000.00 Annual expense Timekeeping equipment $ 5,000.00 One off expenses Office equipment $ 2,000.00 Annual expense Grounds Maintenance Equipment $ 1,000.00 Annual expense Equipment (Bar and kiosk) $ 2,000.00 Annual expense DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Other Depreciation Depreciation is calculated using a straight line approach. Term of life for equipment and the facility is assumed to be 10 and 25 year respectively. Depreciation for the facility has not been included in the profit and loss statement. Period Financial year Construction Timeframe Assume construction to be completed by 30 June 2009 Project Finance Assume capital building costs are financed entirely through Government grants Land No provision has been made for leasing of the proposed site

Market Interest Rate - Business Loans 8.75%p.a Cash Rate 6.75%p.a Company Tax Rate 30%p.a Table 5: Estimated Cash Flow from Operating Activities Darwin Cycling Club Velodrome

ESTIMATED CASH FLOW 2008/09 2009/10 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

CASH FLOWS FROM OPERATING ACTIVITIES

OPERATING INFLOWS Sales Hire Fees - Stadium, Schools and community sporting groups $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 Sales- Stadium, Commercial, $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 Sales- Stadium, Commercial, Major Events $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 Sales- corporate, fundraising & private training sessions $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Sales - Merchandise $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales - Sponsorship $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales - Advertising $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Sales - Catering, functions $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 Sales - Catering, game days $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120

Equipment Hire Hire- Indoor/outdoor carpet (each roll 3.8m x 25m) $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 Hire- Sebel Integra loose chairs $396 $396 $396 $396 $396 $396 $396 $396 $396 $396 Hire- Portable stage ± up to 16 panels available, 2400mm x 1200mm x 400mm high $2,112 $2,112 $2,112 $2,112 $2,112 $2,112 $2,112 $2,112 $2,112 $2,112 Hire- Portable boxing ring (6.1m x 6.1m x 1m high) $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100

Total Operating Inflows $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178

OPERATING OUTFLOWS Salaries Salaries- Manager $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 Salaries- Celaners $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 Salaries- Security $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 Salaries- Stadium Staff $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

Utilities Electricity $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Water $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Publicity, Marketing, Printing $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Gas $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Rates and Levies water rates $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 sewer rates $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 council rates $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 emergency service levy $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Administration stationery $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 books/newspapers $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 postage $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Phone rental and calls (mobile calls, messages on hold, etc) $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 ISDN lines and internat lines $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 medical supplies $360 $360 $360 $360 $360 $360 $360 $360 $360 $360

Plant and Equipment Repairs & Maintenance $0 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000

Total Operating Outflows $174,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840

Taxation Expense $26,801 $5,201 $5,111 $4,571 $4,031 $3,491 $2,951 $2,561 $2,171 $1,781

NET CASH FLOWS FROM OPERATING ACTIVITIES $62,537 $14,137 $14,227 $14,767 $15,307 $15,847 $16,387 $16,777 $17,167 $17,557

50 Table 6: Cash Flow from Investment Activities

CASH FLOWS FROM INVESTMENT ACTIVITIES Investment Outflows Purchases - Cycling Equipment $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Purchases - Timekeeping Equipment (photo finish system, lighting, scoreboard) $0 $5,000 $0 $0 $0 $0 $0 $0 $0 $0 Purchases - Office Equipment (desks, chairs, computers, printers, furniture for drug testing rooms etc) $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Purhases - Grounds Maintenance Equipment (lawn mowers, wheelbarrows, edgers, bins etc) $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Purchases - Equipment (bar & kiosk outlets) $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Building Works Substructure $3,083,880 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Columns $539,550 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Upper Floors $564,120 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Staircases $156,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Roof $4,423,575 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Walls $708,150 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Windows $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Doors $37,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Internal Walls $345,180 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Internal Screens $305,430 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Internal Doors $29,400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Wall Finishes $64,484 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Floor Finishes $227,670 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ceiling Finishes $110,870 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fitments $180,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Hydraulic Services $184,700 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mechanical Services $532,395 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fire Protection Services $36,785 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Electrical Services $531,375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transportation Services $125,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Builders Work I/C Services $484,436 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Track $0 Special Provisions $1,400,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Tennis Court $0 Special Provisions $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Seating $0 Functional Area Costs $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Special Services $0 Special Services $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Criterium Track $0 Special Provisions $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Works $0 Site Preparation $25,150 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Roads, Footpaths and Paved Areas $264,850 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Boundary Walls, Fencing & Gates $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Landscaping and Improvements $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Services $0 Fire Protection Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Stormwater Drainage $80,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Sewer Drainage $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Water Supply $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 External Electric Light and Power $180,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Preliminaries $0 Preliminaries $1,235,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contingencies $0 Contingencies $1,665,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Escalation $0 Escalation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Darwin Loading $0 Special Provisions $2,650,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Professional & Statutory Fees $0 Fees $1,800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Investment Outflows $22,800,000 $0 $15,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

NET CASHFLOWS FROM INVESTMENT ACTIVITIES -$22,800,000 $0 -$15,000 -$10,000 -$10,000 -$10,000 -$10,000 -$10,000 -$10,000 -$10,000 -$10,000 51 Table 7: Cash Flow from Financing Activities

Plant and Equipment Repairs & Maintenance $0 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000

Total Expenses $174,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840

Depreciation $0 $0 $2,000 $2,300 $4,100 $5,900 $7,700 $9,500 $10,800 $12,100 $13,400

Earnings Before Interest and Tax $0 $99,338 $27,338 $27,038 $25,238 $23,438 $21,638 $19,838 $18,538 $17,238 $15,938

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Earnings Before Tax $0 $99,338 $27,338 $27,038 $25,238 $23,438 $21,638 $19,838 $18,538 $17,238 $15,938 Less: Grant funding $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Earnings Before Tax (less Grant Funding) $89,338 $17,338 $17,038 $15,238 $13,438 $11,638 $9,838 $8,538 $7,238 $5,938

Taxation Expense $26,801 $5,201 $5,111 $4,571 $4,031 $3,491 $2,951 $2,561 $2,171 $1,781 Earnings After Tax $72,537 $22,137 $21,927 $20,667 $19,407 $18,147 $16,887 $15,977 $15,067 $14,157

Cumulative Earnings $72,537 $94,673 $116,600 $137,266 $156,673 $174,820 $191,706 $207,683 $222,749 $236,906

Cumulative Taxation Losses $0 $17,338 $34,376 $49,614 $63,052 $74,690 $84,528 $93,066 $100,304 $106,242

Earnings After Tax Without Grant Funding $62,537 $12,137 $11,927 $10,667 $9,407 $8,147 $6,887 $5,977 $5,067 $4,157 Cumulative Earnings Without Grant Funding $62,537 $74,673 $86,600 $97,266 $106,673 $114,820 $121,706 $127,683 $132,749 $136,906

52 Table 8: Estimated Profit and Loss

ESTIMATED PROFIT & LOSS 2008/09 2009/10 2010/2011 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 SALES Hire Fees - Stadium, Schools and community sporting groups $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 $26,136 Sales- Stadium, Commercial, $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 $15,444 Sales- Stadium, Commercial, Major Events $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 Sales- corporate, fundraising & private training sessions $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Sales - Merchandise $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales - Sponsorship $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales - Advertising $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Sales - Catering, functions $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 Sales - Catering, game days $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120 $15,120

COST OF SALES

Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GROSS PROFIT $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178 $264,178

OTHER INCOME Funding/Grants - DLGHS $22,800,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Total Other Income $22,800,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

EXPENSES Utilities Electricity $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Water $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Publicity, Marketing, Printing $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Gas $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Salaries Salaries- Manager $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 Salaries- Celaners $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 Salaries- Security $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 $48,720 Salaries- Stadium Staff $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

53 Table 9: Estimated Profit and Loss continued

Plant and Equipment Repairs & Maintenance $0 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000

Total Expenses $174,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840 $244,840

Earnings Before Interest and Tax $0 $99,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Earnings Before Tax $0 $99,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 $29,338 Less: Grant funding $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Earnings Before Tax (less Grant Funding) $89,338 $19,338 $19,338 $19,338 $19,338 $19,338 $19,338 $19,338 $19,338 $19,338

Taxation Expense $26,801 $5,801 $5,801 $5,801 $5,801 $5,801 $5,801 $5,801 $5,801 $5,801 Earnings After Tax $72,537 $23,537 $23,537 $23,537 $23,537 $23,537 $23,537 $23,537 $23,537 $23,537

Cumulative Earnings $72,537 $96,073 $119,610 $143,146 $166,683 $190,220 $213,756 $237,293 $260,829 $284,366

Cumulative Taxation Losses $0 $19,338 $38,676 $58,014 $77,352 $96,690 $116,028 $135,366 $154,704 $174,042

Earnings After Tax Without Grant Funding $62,537 $13,537 $13,537 $13,537 $13,537 $13,537 $13,537 $13,537 $13,537 $13,537 Cumulative Earnings Without Grant Funding $62,537 $76,073 $89,610 $103,146 $116,683 $130,220 $143,756 $157,293 $170,829 $184,366

54 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

11.2 KEY FINDINGS FROM FINANCIAL ANALYSIS

Based on activities and earnings of other comparative Australian velodromes, the Darwin velodrome could generate approximately $264,178 annually in sales and equipment hire.

Effective management and operation of the velodrome would require employment of a Manager, part-time Cleaners, Security Staff and Stadium staff. Thus total salary expense would be in the vicinity of $141,720 pa. This salary expense is approximately 81% of estimated operating inflows, which is a high proportion.

The net cash inflow from operating activities is $62,537 in year 1.

Upfront capital costs for the facility are $22.8million with ongoing investment of $15,000 initially and then $10,000 for following years in capital equipment.

Financing has been based entirely on sourcing external funding. There is no provision for loans.

Depreciation of the initial capital expenditure has not been factored in to the statements above however would be over $900,000 per annum. This would not be able to be funded from the operating activities of the facility.

11.2.1 COMPARATIVE COSTS

Additional analysis is supplied to illustrate the anticipated cash flow for a cement velodrome. The following assumptions were used in the analysis.

· It is expected that a cement velodrome would not attract the same quantity of overseas/international competitors interested in using the facilities for private training sessions compared to an enclosed velodrome. · A cement velodrome would not be capable of holding commercial functions or raise revenue from equipment hire. Therefore, the operating inflows would be significantly less than a wooden velodrome. · A number of the costs associated with a cement velodrome would be slightly less than a wooden velodrome. For instance, less staff would be required and the cost of utilities and ongoing maintenance would also be less. · Based on other recently built concrete tracks, the cost for building a concrete velodrome would be between $2 and $6 million. · The cost for plant and equipment maintenance is also based on discussions with other Australian concrete velodromes · The following table provides a concise summary of the estimated operating inflows and outflows of a cement velodrome.

55 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

Table 10: Cash Flows from Operating Activities ² Cement Velodrome 2008/09 2009/2010 CASH FLOWS FROM OPERATING ACTIVITIES

OPERATING INFLOWS Sales (includes $10k 'support' from DLGHS) $80,636 Equipment Hire $0

Total Operating Inflows $80,636

OPERATING OUTFLOWS Building Works $5,000,000 Salaries $65,000 Utilities $15,000 Rates and Levies $5,300 Administration $3,320 Plant and Equipment $55,000 Taxation Expense $26,801

Total Operating Outflows $5,000,000 $143,620

NET CASH FLOWS FROM OPERATING ACTIVITIES -$5,000,000 -$62,984

As shown in the above table, a cement velodrome would have less opportunity to attract events and less potential of hiring the venue to customers, thus reducing the possible sources of income. A cement velodrome when compared to a wooden enclosed velodrome would also have reduced expenses, particularly in relation to salaries and utilities.

Despite a cement velodrome having comparatively less running costs, it does not have the facilities or capabilities to generate sufficient revenue, and therefore a negative net cash flow is predicted.

11.3 FINANCIAL CONCLUSIONS

The financial analysis has resulted in the following conclusions:

· The construction of the desired facility will require a $22.8million of finance that will need to be sourced through grants, donations or sponsorship · Operational profits would not be able to sustain a loan to finance the facility · The new facility would be able to achieve a positive cash flow of in the vicinity of $15,000 from year 2 based on the assumptions made · The facility would not be able to fund depreciation of the capital facility and would have a useful life of 20-25 years before requiring replacement · A concrete velodrome facility will require an estimated $5million of finance · A concrete velodrome facility would be unlikely to be able to maintain positive cash flows or fund depreciation.

56 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

12. CONCLUSIONS

Ź The current facility does not meet Union Cyclist International (UCI) standards for holding international or national events

Ź The current facility does not support the development of Territory, national and international cyclists in Darwin

Ź A new velodrome facility will enhance participation in the sport of cycling in the Northern Territory

Ź A new velodrome would ensure that Darwin has sufficient facilities to host a variety of international and national events including the Arafura Games incorporating the Oceania Paralympic Championships

Ź A new velodrome facility would have significant potential to attract a variety of events, concerts and national and international training camps

Ź The proposed concept design will require $22.8million of external funding support

Ź Depreciation of the venue will not be able to be funded by operations

Ź Irrespective of the type of facility (i.e. concrete or wooden) the development of a velodrome will require expert external advice and would have to meet UCI homologation standards

Ź The exiting land parcel is the logical location for any new facility

57 DARWIN CYCLING CLUB DARWIN VELODROME FEASIBILITY STUDY

13. RECOMMENDATIONS

Ź That a new indoor velodrome facility be constructed on the existing site - portion 1676