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CORA) Elite Sports Training Facility, Accommodation and Retail Village in the Surf Coast, Victoria

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CORA) Elite Sports Training Facility, Accommodation and Retail Village in the Surf Coast, Victoria Cape Otway Road Australia (CORA) Elite Sports Training facility, Accommodation and Retail Village in the Surf Coast, Victoria Regional Development Victoria Ernst & Young (EY) has been engaged on the instructions of CORA to prepare a business case for the Department of Regional Development Victoria (RDV) for the proposed CORA facility (" Project "), in accordance with the services agreement dated 26 September 2017. EY has prepared the Report for the benefit of CORA and RDV and has considered only the interests of CORA and RDV. Ernst & Young has not been engaged to act, and has not acted, as advisor to any other party. Accordingly, EY makes no representations as to the appropriateness, accuracy or completeness of the Report for any other party's purposes. Further, EY has prepared this business case in conjunction with, and relying on information provided by CORA. We do not imply, and it should not be construed that we have performed audit or due diligence procedures on any of the information provided to us. No reliance may be placed upon the Report or any of its contents by any recipient of the Report for any purpose and any party receiving a copy of the Report must make and rely on their own enquiries in relation to the issues to which the Report relates, the contents of the Report and all matters arising from or relating to or in any way connected with the Report or its contents. EY disclaims all responsibility to any other party for any loss or liability that the other party may suffer or incur arising from or relating to or in any way connected with the contents of the Report, the provision of the Report to the other party or the reliance upon the Report by the other party. No claim or demand or any actions or proceedings may be brought against EY arising from or connected with the contents of the Report or the provision of the Report to any party. EY will be released and forever discharged from any such claims, demands, actions or proceedings. Ernst & Young’s liability is limited by a scheme approved under Professional Standards Legislation . Contents Executive summary ................................................................................................... 6 Background ............................................................................................................................... 6 Benefits ..................................................................................................................................... 6 Project options considered and recommended solution ............................................................ 7 Delivering the recommended solution ..................................................................................... 10 1. Background ....................................................................................................... 14 1.1 Cape Otway Road Australia ......................................................................................... 14 1.2 Government Funding and Planning Request ................................................................ 15 1.3 Great Ocean Road Region (GORR) ............................................................................. 16 1.4 Importance of tourism to the GORR ............................................................................. 18 1.5 Strategic Masterplan for the Great Ocean Road Region Visitor Economy .................... 18 1.6 This business case ....................................................................................................... 19 2. Problem ............................................................................................................. 21 2.1 Definition and evidence of the problem ........................................................................ 21 2.1.1 Problem 1: Lack of a built visitor offering in the GORR is impacting tourism yield and experience ......................................................................................................................... 22 2.1.2 Problem 2: Increasing competition for major events is putting at risk Victoria’s reputation as the sporting capital of Australia ............................................................................ 27 2.1.3 Problem 3: Limited meaningful employment opportunities in the Region are leading to pockets of social and economic disadvantage ....................................................................... 33 2.2 Timing considerations .................................................................................................. 37 2.3 Consideration of the broader context ........................................................................... 38 3. Benefits ............................................................................................................. 40 3.1 Benefits to be delivered ................................................................................................ 40 3.1.4 Evidence of benefit delivery ........................................................................................ 44 3.2 Importance of the benefits to Government ................................................................... 44 4. Strategic Response options .............................................................................. 48 4.1 Method and criteria ...................................................................................................... 48 4.2 Strategic interventions .................................................................................................. 48 4.2.1 Response options ....................................................................................................... 50 4.2.2 Ranking of response options ....................................................................................... 50 4.3 Recommended response option ................................................................................... 53 5. Project options .................................................................................................. 55 5.1 Project Options Development ....................................................................................... 55 5.2 The Base Case ............................................................................................................ 56 5.3 Option 1: CORA ........................................................................................................... 56 5.3.1 Facilities...................................................................................................................... 56 5.3.2 Project Team .............................................................................................................. 57 5.3.3 Location ...................................................................................................................... 57 5.3.4 Funding, operating structure and revenues ................................................................. 58 5.3.5 Regulatory and Planning Requirements ...................................................................... 58 5.3.6 Timing ......................................................................................................................... 59 5.4 Option 2: A tourism development only .......................................................................... 61 5.4.1 Facilities...................................................................................................................... 61 5.4.2 Project Team .............................................................................................................. 61 5.4.3 Location ...................................................................................................................... 61 5.4.4 Regulatory and Planning Approvals ............................................................................ 61 5.4.5 Timing ......................................................................................................................... 61 5.5 Detailed Description of project options ......................................................................... 61 5.5.6 Accommodation .......................................................................................................... 63 5.5.7 Elite sports training facility ........................................................................................... 65 5.5.8 Sport Science Hub and Education Precinct ................................................................. 68 5.5.9 Retail and Commercial ................................................................................................ 69 5.5.10 Sport and Recreational for Public Use ......................................................................... 71 5.5.11 Organic Farm .............................................................................................................. 72 5.5.12 Residential development ............................................................................................. 72 6. Options Assessment ......................................................................................... 74 6.1 Stakeholder identification and consultation .................................................................. 74 6.2 Financial analysis ......................................................................................................... 80 6.2.1 Key Assumptions ........................................................................................................ 80 6.2.2 Capital Costs .............................................................................................................
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