SELECT COMMITTEE ON ESTIMATES 2018-19

CHIEF MINISTER (CITY RENEWAL AUTHORITY)

19 JUNE 2018

3:15PM – 4:00PM

Chair – Andrew Wall MLA Deputy Chair – Tara Cheyne MLA Member – Caroline Le Couteur MLA Member – Elizabeth Lee MLA Member – Suzanne Orr MLA

BRIEFING INDEX OFFICE OF THE CEO 1. CRA/EPSDD Service Level Agreement

FINANCE 2. CRA Marketing and Consultants 3. CRA KPIs – Financial Measures – including Profit Margins 4. CRA Staffing Numbers 5. 2018-19 CRA Budget Summary 6. CRA Estates – releases and revenue timing based on ILRP

CITY CENTRE MARKETING AND IMPROVEMENTS LEVY 7. City Centre Marketing and Improvements Levy

PROJECTS 8. Project update – Haig Park 9. Project update - West Basin Precinct 10. Project update - City Bus Interchange 11. Project update – Sydney and Melbourne Buildings 12. Project update – Northbourne Avenue 13. Project update – Dickson Group Centre 14. Project update – Asset Recycling Initiative 15. Project update – City Activation 16. Project Update – Civic, Arts & Cultural Precinct 17. Project Update – Precinct Revitalisation Program 18. Project Update – Land Release 19. Project Update - Civic & Braddon Public Realm improvements 20. Project Update – Civic Pool Feasibility BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister

ISSUE: SERVICE AGREEMENT BETWEEN EPSDD AND THE CITY RENEWAL AUTHORITY Talking points: Services provided by EPSDD • Several core enabling services are provided by the Environment, Planning and Sustainable Development Directorate (EPSDD) to the City Renewal Authority (the Authority). The services provided by EPSDD are:

o People and Capability (formerly called Human Resources) o Governance o Information and Records Management (including Freedom of Information)

o Legal support o ICT Business Systems o Government Services o Facility and Fleet Management. • EPSDD and the Authority have entered into a service agreement to ensure appropriate governance over the provision of these core services. • The service agreement is based on the principle of cost neutrality, reflecting the transfer of resources and accountabilities flowing from the 1 July 2017 machinery of government changes. It includes provision for charging for out-of-pocket and for additional services not captured in the current agreement. • A quarterly review of the service agreement was finalised in May 2018. Over the first quarter of 2018, all services provided under the agreement were delivered when requested. All issues and recorded exceptions to agreed performance measures have been resolved, are being addressed or have been flagged for consideration as part of a review process that will deliver a revised service agreement upon expiry of the current agreement.

Cleared as complete and accurate: 18/01/2018 Cleared by: Director Ext: Contact Officer Name: Jessica Buik Ext: 74812 BUDGET ESTIMATES BRIEF

Services provided by the Suburban Land Agency • Financial services are not provided by EPSDD. • Under a service agreement between the Suburban Land Agency (the Agency) and the Authority, the Agency provides the following services to the Authority:

o Financial Management o Valuation o Estate Managment. • Where the Agency has acquired funding or resources as part of machinery of government arrangements to provide the service, there is no charge for the service. • Where the service or service standard required exceeds the resource or funding acquired by the Agency to provide the service, then costs are payable on a ‘by negotiation’ basis. For all services provided (whether by EPSDD or the Agency) • The service agreements include robust dispute resolution and review procedures, including communication arrangements, to enable effective responses to operating issues and risks. • The inaugural service agreements expire shortly and a process for review is underway. The operation and performance of these inaugural agreements will inform the development of the new agreements.

Background Information – may not be suitable for public disclosure

• Under the Administrative Arrangements 2017 (No 1), EPSDD is the administrative unit responsible for the City Renewal Authority. • The service agreement was signed on 22 December 2017. However, EPSDD provided enabling corporate functions and support to the Authority from the time of its commencement on 1 July 2017.

Cleared as complete and accurate: 18/01/2018 Cleared by: Director Ext: Contact Officer Name: Jessica Buik Ext: 74812

BUDGET ESTIMATES BRIEF

o Communications and engagement activitites associated with the CCMIL ($0.295 million); and

o Partnerships and events associated with the CCMIL ($0.491 million). Background Information – may not be suitable for public disclosure

• The increase in consultant expenses in the 2017-18 Estimated Outcome from the 2017-18 Budget is attributable to:

o additional funding received for consultants to provide services such as gap analysis consulting and services of the Government Solicitor’s office. This increase was funded through initiative Building a better city – City Renewal Authority – Operational funding; and

o consulting and contractor expenses incurred which are funded through the CCMIL. The administration of CCMIL was transferred to the Authority during 2017-18. The consulting and contractor services incurred include administration performance consultancy services, cleaning, maintenance and security contractors for the CCMIL precinct. • The decrease in consultant expenses in the 2018-19 Budget in comparison to the 2017-18 Estimated Outcome is associated with a reduction in consultancy expenditure as the Authority becomes more established. • The increase in marketing expenses in the 2017-18 Estimated Outcome in comparison to the 2017-18 Budget is predominantly due to the CCMIL funding transferred to the Authority during the period. A portion of the CCMIL funds are spent on marketing activities to promote events, create vibrant streets and engage with the city centre community. Additionally, the transfer of the Communications and Engagement team and City Activation Unit to the Authority has brought increased marketing expenditure associated with their activities. • The increase in marketing expenses in the 2018-19 Budget compared to the 2017-18 Estimated Outcome is primarily attributable to additional funding received for communication and stakeholder engagement and place making activities through budget initiative More jobs for our growing city – City Renewal Precinct activation projects.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Joey Lee Ext: 53367

BUDGET ESTIMATES BRIEF

Background Information – may not be suitable for public disclosure

• The table below provides a comparison of the original 2017-18 Budget, 2017-18 Estimated Outcome and the 2018-19 Budget key performance indicators (financial measures) for the Authority. 2017-18 2017-18 2018-19 2017-18 EO vs 2018-19 Budget Estimated Budget 2017-18 Budget vs Outcome (EO) Budget 2017-18 EO Land Sales Revenue ($ 0.432 1.819 0.000 1.387 (1.819) million) Gross Profit Margin on 42.00% 57.56% 0.00% 15.56% (57.56%) Land Sales (%) 1 Appropriated Capital 9.500 12.881 18.118 3.381 5.237 Works Expenditure ($ million)

Gross Profit Margin = (lease sales - cost of goods sold including duty) / lease sales.

The variances in the financial measures for the 2017-18 Estimated Outcome compared to the 2017- 18 Budget are primarily attributable to:

• an increase in land sales revenue due to higher than anticipated revenue associated with the sale of air and subterranean rights for Block 37-39, Section 100 of the City (Hobart Place) to Crafted Central Pty Ltd.

• an increase in appropriated capital works expenditure which is predominantly due to the inclusion of initiatives Building a better city – City Renewal Authority – City precinct improvements ($2.750 million) and Urban Renewal Program – Civic and Braddon public realm improvements ($0.972 million).

The variance in the financial measures for the 2018-19 Budget compared to the 2017-18 Estimated Outcome are primarily attributable to:

• a decrease in land sales revenue due to there being no scheduled land releases for the CRA in the Indicative Land Release Program in 2018-19.

• an increase in appropriated capital works expenditure which is predominantly due to inclusion of initiatives Building a better city – City Renewal Authority – City precinct improvements ($4.200 million) and More jobs for our growing city – City Renewal Precinct activation projects ($2.750 million).

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Joey Lee Ext: 53367

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Budget Paper: Budget Statements E Page No: 62 ISSUE: CITY RENEWAL AUTHORITY STAFFING NUMBERS Talking points:

Table 1: Estimated Employment Level

2016-17 2017-18 2017-18 2018-19 Actual Budget Estimated Budget Outcome Outcome Staffing (FTE) 01 20 262 253 Note(s): 1. There were no employees prior to the City Renewal Authority being established on 1 July 2017 as a result of the City Renewal Authority and Suburban Land Agency Act 2017. 2. The increase of 6 FTE from the 2017-18 Budget is due to: a. additional personnel (5) funded in the 2017-18 Budget Review. The detailed breakdown of these positions is as follows: i. 4 FTE - Communications and Engagement staff (transferred from the Economic Development Directorate to support the Authority’s commitment and focus on community engagement; ii. 1 FTE – Board Secretariat position required to provide a full suite of secretariat services to the Authority’s governing Board and four sub committees; and b. one temporary staff member to assist with planning activities for the Sydney and Melbourne Buildings utilising funding from the consultants budget. 3. The FTE decrease of one from the 2017-18 estimated outcome is due to the exclusion from the Budget of the additional temporary personnel funded from initiative Building a better city – City Renewal Authority – Initial works package.

Table 2: 2018-19 Employment Profile

Classification Male Female Total Executive 3 0 3 INFRMS3 1 1 2 INFR4/5 1 3 4 SOGA/B 3 2 5 SOGC 2 2 4 ASO6 1 1 2 ASO5 1 3 4 ASO4 0 1 1 Total 12 13 25

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Joey Lee Ext: 53367 BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Budget Paper: Budget Statements E Page No: 72 ISSUE: 2018-19 CITY RENEWAL AUTHORITY BUDGET SUMMARY Talking points: • The City Renewal Authority (the Authority) will continue to lead the revitalisation of the City Renewal Precinct in 2018-19. • As well as continuing important planning projects and completing streetscape upgrades within the city centre, the Authority has been funded $1 million to undertake new improvement projects in Dickson and Braddon. With this extra funding the Authority will now have about $5 million to spend on precinct improvement projects in 2018-19. • The Authority will continue to activate the precinct with $500,000 to implement a program of interventions and activations across the city centre, Dickson and Braddon which will complement activations in the city centre funded by the City Centre Marketing and Improvement Levy. • In this year’s budget the ACT Government has allocated: o $1 million to deliver a streetscape improvement project in Dickson, that will revitalise tired public spaces. This work will be informed by consultation currently underway with Dickson traders and the community. o $0.9 million to deliver streetscape improvements in Braddon around Haig Park, that will continue to build on the footpath and lighting upgrades recently completed. o $0.5 million to implement a program of interventions and activations that will create distinctive destinations, events and activations across the City, Dickson and Braddon, bringing much needed vitality to these centres. o $0.35 million to further revitalise the Sydney and Melbourne buildings and improve its laneways. This builds on the transition to shared waste enclosures for the buildings, which will clean and de-clutter the laneways, and open up the spaces to match other great laneways like those found in Melbourne.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Joey Lee Ext: 53367

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Budget Paper: Budget Statements E Page No: 72 ISSUE: CITY RENEWAL AUTHORITY ESTATES – LAND RELEASES AND SALES REVENUE Talking points: • The City Renewal Authority will contribute to the following releases in the 2018-19 to 2021-22 Indicative Land Release Program (ILRP):

o City Residential - 350 residential dwelling releases each year in 2019-20, 2020-21 and 2021-22. Settlement of these blocks is expected to occur in the financial years following their release with $32.710 million of revenue expected in each of 2020-21 and 2021-22.

o Australian National University (ANU) exchange sites – commercial release of 15,900m2 in 2019-20 currently under a deed with the ANU. Settlement of these sites is also expected in 2019-20 with $10.950 million in revenue. 2 o Parkes Section 3 – mixed use release of 34,000m in 2020-21 is currently subject to a Memorandum of Understanding with the University of New South Wales. At this point in time the Authority has not included any revenue or costs associated with this release in the Budget. • In 2019-20, the Authority is expecting the settlement of Dickson Block 30 Section 34 to settle for $3.180 million in revenue. This block was released in 2012 and as such is not included in the current Indicative Land Release Program. Settlement of this block has been deferred due to delays related to a Coles site.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Joey Lee Ext: 53367

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Budget Paper: XX Page No: XX ISSUE: CITY CENTRE MARKETING AND IMPROVEMENTS LEVY (CCMIL) Talking points: • The City Centre Marketing and Improvements Levy was first introduced in July 2007 by the Government in recognition of the desire of city centre commercial property owners to establish a business improvement district. • The levy is collected from commercial property owners in Braddon and the city centre across retail and non-retail areas. It is collected at a rate of 0.2992% and 0.2161% respectively of a property’s Average Unimproved Value. • The levy collects approximately $1.9 million per annum. • From its inception until 31 December 2017, the levy was distributed by a private, not-for-profit organisation, In The City Canberra (ITCC). • The City Renewal Authority took over management and distribution of the Levy on 1 January 2018. • The City Renewal Authority has developed a work program to ensure continuity of service and help provide surety to the community. This program includes: Project Funding allocated from 2018/19 budget Performance and Accountability $39,840 City Grants $278,880 Contributing to a Safer Community $59,760 Cleaning and Maintenance $398,400 Partnerships and Events $398,400 Communications and Engagement $139,400 Vibrant Streets $278,880 Capital Works $398,400

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: Contact Officer Name: Mark Usherwood Ext: 76033 BUDGET ESTIMATES BRIEF

• In selecting proposals for funding the key selection criterion is their capacity to attract new visitors and create a positive experience that supports city centre businesses. • The CRA’s performance and progress on these projects will be measuered against KPI’s developed in conjunction with levy payers. Key Information

• The levy is budgeted to provide $1,992,000 in 2018-19. • The retail core accounts for 43% of businesses in the levy area, the non retail core covers 57%. Background Information – may not be suitable for public disclosure

• In June 2017 Government made the decision to not extend or renew the agreement with ITCC to distribute the CCMIL. This decision was made after increasing concerns over the transparency, accountability and efficiencies of ITCC’s operation were raied by community. • Concern has been raised by community that bringing the distribution of the levy into Government would result in the levy being absorbed into base revenue and not properly managed or expended. In order to address this concern the City Renewal Authority has engaged Acil Allen to develop a Performance and Acountability Framework. This Framework will be used to report on how the levy is distributed as well as informing future uses of the levy.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: Contact Officer Name: Mark Usherwood Ext: 76033

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister ISSUE: HAIG PARK PLACE PLAN Talking points: • The ACT Government is now developing a place plan for Haig Park in consultation with the community. • Haig Park is an underutilised urban forest in the heart of Canberra. It is located within an area of increasing urban density and we need to take action now to ensure this precious open space meets community needs. • The City Renewal Authority is using the information gathered from the master plan process to create the place plan. • The place plan will identify the type of activities and supporting infrastructure the community would like in the park, and short-to-long- term actions to support these. It enables interventions to be tested before committing to long-term physical changes. • This will lead to a high-quality design outcome and provide a flexible design framework that provides an enduring vision. • The place plan will respect and promote the park’s heritage significance. A revised Conservation Management Plan will be submitted to the Heritage Council for appoval soon. • More than six hundred people have participated in community consultation processes to date. A third stage of community engagement will be undertaken in late June and early July. If asked: Why is a place plan being developed instead of a masterplan? • A place plan is an action-oriented document that will result in real improvements for the park rather than a long term prescriptive outcome that may be difficult to achieve.

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow Ext: Contact Officer Name: Sophie Davis Ext: 53684 BUDGET ESTIMATES BRIEF

Key Information

• Haig Park is a key community park and a registered place on the ACT Heritage Register. However, a 2017 study found that it is underutilised relative to other parks and open spaces in Canberra. • A draft CMP has been prepared in consultation with the Environment, Planning and Sustainable Development Directorate (EPSDD) Heritage Unit, Transport Canberra and City Services (TCCS) Urban Treescapes and TCCS Roads. • The CMP was formally submitted to the ACT Heritage Council for consideration on 26 September 2017. The ACT Heritage Council provided comments in late December 2017. The City Renewal Authority and the consultants (Tait Network) have worked to address the Heritage Council’s comments and a revised CMP will be submitted in June. Community consultation • So far over 600 people have engaged with the Haig Park place planning process. • Community engagement has been undertaken through various means to ensure as many people as possible can have their say in the future of Haig Park. This includes online, drop-in sessions, workshops, social media, speaker series and meetings. • The following stakeholder groups have been consulted:

o Turner Residents Association; o North Canberra Community Council; o Turner Bowls Club; o Turner Tennis Club; o Turner Scout Hall; o ANU Students’ Association; and o Fenner Hall. • Summaries of the first and second stages of community engagement can be viewed on the Haig Park YourSay page. • The proposed place plan will be presented to the community in late June to July 2018. • A whole of government steering committee has been set up to guide the place plan and CMP. It includes representatives from TCCS, EPSDD (ACT Heritage and Strategic Planning) and Treasury. Justice and Community Safety Directorate and the Australian Federal Police also attend steering committee when necessary. Background Information

• Path and lighting upgrades in Braddon on Lonsdale and Mort Street alignments have improved the safety and use of the park.

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow Ext: Contact Officer Name: Sophie Davis Ext: 53684

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: WEST BASIN PRECINCT Talking points: • Stage 1 of the West Basin Waterfront Precinct is now complete. Henry Rolland Park and the boardwalk was opened to the public on 28 April 2018, and thousands of Canberrans attended the special event. • The Government has funded the next stage of the boardwalk ($37.4 million) that will see it extended a further 500 metres around the edge of West Basin. This work will also involve the reclamation of a section of lake bed, to create a lake edge on the Griffins’ intended 1918 alingment. • The Territory Government is working with the Commonwealth to establish the necessary approvals for the lake reclamation to commence. • A third and final stage will deliver a generously scaled, vibrant, waterfront promenade.

Key Information

• In addition to the development of the waterfront works, the City Renewal Authority (the Authority) is progressing a review of previous planning work around the West Basin mixed use development, undertaken by the then Economic Development Directorate. • This work is expected to commence in August 2018, and take six-months to complete. The work will be funded through internal resources, and is not separately itemised within the 2018-19 Budget. • The intent of the review is to support strategic decision-making by the Authority’s board around its investment strategy in respect of West Basin. Accordingly, extensive community and stakeholder engagement is not anticipated as part of this exercise. Background Information – not be suitable for public disclosure

• Indicative master planning and economic analysis for West Basin was completed in 2013-14 by the Economic Development Directorate. • This was high level planning work covering the whole of the City to the Lake precinct; it did not look in detail at any area within the precinct. This work does not reflect contemporary planning for projects (including light rail and Parkes Way), the underlying assumptions have

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: David Hughes Ext: 56744 BUDGET ESTIMATES BRIEF

changed, and it falls short of the analytical rigor needed to make informed strategic decisions around investment in the development of the West Basin area. • Accordingly, the Authority Board has directed that previous work around West Basin work be critically reviewed through the lens of the Authority’s legislated requirements including the Statement of Expectations. It is intended that this work will be used to underpin and drive the Authority’s proposed investment strategy in West Basin.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: David Hughes Ext: 56744

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: CITY BUS INTERCHANGE Talking points: • CRA has been engaging with TCCS for the expansion of the City Bus Interchange to align with the introduction of Network 18 and connection to light rail services at Alinga Street. • TCCS is the directorate with carriage of this work.

Key Information

• The expansion of the City Bus Interchange impacts significantly upon the public realm, particularly the surroundings of the Sydney and Melbourne Buildings (SMB). • Strategies for the provision of layby areas at sites to the east and west of the City are encouraged by CRA to reduce the need for buses to layby with engines running outside the SMB, particularly at East Row and Alinga Street.

Background Information – may not be suitable for public disclosure

• While noting that the transport hub functions for the City Bus Interchange are essential to transport operations, the impact of bus storage and concentration of bus movements surrounding the Sydney and Melbourne Buildings is a point of contention with SMB business owners. • CRA are keen to influence the minimisation of negative impacts of the interchange upon the public realm surrounding the Sydney and Melbourne Buildings. • The examination of alternative City Bus Station arrangements is timely, to deliver a more contemporary solution for the future of the transport hub.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Cindy Cantamessa Ext: 58339 BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: SYDNEY AND MELBOURNE BUILDINGS Talking points: • Construction of shared waste enclosures at Verity Lane at the Sydney Building and Odgers Lane at the Melbourne Building is occurring to reduce the number of waste bins in the laneways and improve the presentation of the laneways to provide opportunity for activation. • Investment will also be made in public areas around the Sydney and Melbourne Buildings to continue renewal of these spaces and build upon the laneway activations. • To encourage support for the long-term revitalisation of the buildings, and effective overall strategy to manange ongoing building maintenance, development and renewal is required. Key Information

• A budget of $590K has been identified to build four (4) waste enclosures, two (2) in each of Verity and Odgers Lanes. • A budget of $350K has been identified to undertake minor works in the public realm around the Sydney and Melbourne Buildings • A further budget of $0.5M has been allocated for investigations, project management, professional design services and property management advice. • No provision has been identified for any construction works within the Sydney and Melbourne Building properties. Background Information – may not be suitable for public disclosure

• Effective maintenance and upkeep of common areas of the Sydney and Melbourne Buildings has not been successfully achieved in the past and the condition of the buildings is worsening. This is due largely to the ownership structure, where the separate ownership and title of building blocks is placed under many and diverse entitities. In the absence of an overarching owners corporation, there are no structured or practical means for owners to respond to the needs for maintenancs of common property in an integrated manner, particularly in respect of the façade and colonnade. • Consultancy work will be undertaken to lead and encourage building owners to participate through an organised representative association to manage the shared interests and establish a sinking fund for maintenance and improvement of the buildings.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: David Thomas Ext: 79185 BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: NORTHBOURNE AVENUE Talking points: • The renewal of the city centre and Northbourne Avenue corridor is a priority for the ACT Government. • Northbourne Avenue is the main approach route to the national capital and the ACT Government is committed to reinvigorating this important gateway and giving it the prominence and urban quality commensurate with its status. • The Government shares planning responsibilities for Northbourne Avenue with the National Capital Authority. Changes to major planning controls, such as building heights and setbacks of development fronting the Northbourne corridor, are the responsibility of the National Capital Authority. • The economic benefits of increased transport opportunities from light rail, active travel, redevelopment of government assets, and increased densification enabling residential and employment growth provide a unique opportunity to revitalise central Canberra and to become a more sustainable community. • The City Renewal Authority is collaborating with and implementing the planning directions set by the Environment, Planning and Sustainable Development Directorate and the National Capital Authority for the Northbourne corridor. • The Environment, Planning and Sustainable Development Directorate and the National Capital Authority have been jointly developing the City and Gateway Draft Urban Design Framework. The Draft Framework proposes a unified vision for the city and gateway corridor, including planning directions and design principles, to achieve the multiple benefits of urban renewal over the coming 10-15 years. • For the Draft Framework to take effect, planning changes to both the Territory Plan and National Capital Plan are required. Changes to the planning controls through the National Capital Plan, referred to as draft amendments, are the National Capital Authority’s responsibility,

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: Lea Durie Ext: 50477 BUDGET ESTIMATES BRIEF

including any required Development Control Plan. Variations to the Territory Plan are the ACT Government’s responsibility. • The Environment, Planning and Sustainable Development Directorate is preparing Urban Design Guidelines for the corridor which are intended to be incorporated as part of a variation to the Territory Plan to provide better design guidance and planning controls for new development along Northbourne Avenue. • It is anticipated that the planning controls related to the City and Gateway Draft Urban Design Framework could be finalised by the end of 2018. Key Information

• Verge improvements to complement active travel along Northbourne Avenue are currently being delivered through a combination of capital works and as off-site works for selected ARI sites. Verge works from Haig Park to Barry Drive and a number of upgraded paths within Haig Park have been delivered. • City Renewal Authority is collaborating with EPSDD and NCA on the design for the public realm, including verges, and its seamless interface with the private realm. Background Information – may not be suitable for public disclosure

• The Authority intends to progress planning and feasibility work in relation to a consistent verge improvement treatment along Northbourne Avenue between Antill Street in Dickson, and Alinga Street in the City. • . • Generally the verge treatement will seek to create an off-road bicycle lane, a generous width pedestrian path, and high quality landscape zone. • The consistent treatment with high quality materials and finishes which reflect the light rail works in the median, will contribute greatly to the revitalisation of this corridor.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: Lea Durie Ext: 50477

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister ISSUE: Dickson Place Making and Implementation Plan Talking points: • The City Renewal Authority is developing a Place Making and Implementation Plan for Dickson Group Centre in consultation with the community. • The Dickson Place Making and Implementation Plan has three components:

o A Place Proposition which is a statement of what it is that makes Dickson unique and articulates the aspirations of the community

o A Place Plan which identifies the physical improvement and activation opportunities for the centre including an activation calendar

o Preliminary design plans for public realm upgrades in key areas of Dickson supporting the outcomes of the Place Plan.

• The community has been engaged through a number of events including a street party attended by over 300 people. • Community engagement is targeted at catalytic activation and physical improvements that significantly lift the quality and management of the Centre’s public environment. • The next community event is being planned for July 2018. • It is intended the preliminary design work will lead to quick-win improvements utilising a small amount of current funding and inform a Business Case for more substantial capital works funding in the 2019- 2020 financial year.

Cleared as complete and accurate: 12/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: Lea Durie Ext: 53684 BUDGET ESTIMATES BRIEF

Key Information

• The Dickson Place Making and Implementation Plan builds on the work of the Dickson Traders through events such as the Seven Day Makeover. • The project is focussed on public realm and activation and not development of land. • The project will provide community with the tools to run activation events in the centre in addition to those run by Government.

Community consultation • So far over 300 people have engaged with the Dickson Place Making process including traders, community and property owners.

Cleared as complete and accurate: 12/06/2018 Cleared by: Malcolm Snow Ext: 51805 Contact Officer Name: Lea Durie Ext: 53684

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: ASSET RECYCLING INITIATIVE (SITES WITHIN THE CITY RENEWAL PRECINCT) Talking points: • Northbourne Avenue is the main approach route to the national capital and the ACT Government is committed to reinvigorating this important gateway and giving it the prominence and urban quality commensurate with its status. • The renewal of the city centre and Northbourne Avenue corridor is a priority for the ACT Government. • Land releases as part of the sale of Asset Recycling Initiative (ARI) sites along Northbourne Avenue are contributing to the ongoing redevelopment of Northbourne Avenue. • The Government is committed to improving the design quality of private sector development proposals associated with ARI land releases. • Remaining ARI sites within the City Renewal Precinct will be released by tender with a strong emphasis upon design criteria. The ACT Government Architect is providing technical services to the sales process for these sites. Place Implementation Guidelines have been developed which outline the Design Quality Principles, Place Implementation Principles and consulation requirements that the Developer should consider in preparing their Development Plan. • The Northbourne Flats Braddon and Turner are being released as a ‘precinct’ in June 2018. Settlement is programmed for financial year 2018-19 once the Territory has completed the demolition of the obsolete assets. • MacArthur House is programmed for release and settlement in financial year 2018-19. The Territory is currently undertaking the demolition of this obsolete asset.

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow, CEO Ext:51805 Contact Officer Name: Cindy Cantamessa Ext: 58339 BUDGET ESTIMATES BRIEF

Key Information • Key land releases which have been undertaken to date within the City Renewal Precinct include:

o Allawah and Currong Apartments, o Bega Court, o The Northbourne East Precinct, known as Dickson on Northbourne,

o The Northbourne West Precinct, known as Lyneham on Northbourne,

o The Dickson Motor Registry site, and o The Dame Pattie Menzies site. • The release of the Dickson Ambulance Station and the Civic Health Building (1 Moore St) will not be progressed. • The remaining ARI sites along Northbourne Avenue (Northbourne Flats Braddon and Turner, MacArthur House) will be released to meet the ARI timeframes. • The Northbourne Flats Braddon and Turner are now vacant. The Territory will undertake the demolition of these buildings later in the year. • The Territory is also undertaking the demolition of MacArthur House. Work has commenced on site.

Background Information – may not be suitable for public disclosure

Northbourne Flats Braddon and Turner • The sites are on the ARI schedule for release in 2017-18 with settlement in 2018-19. • The sites are 15,607m2 and 23,372m2 and zoned for mixed-use development. • The sites are now vacant. • The Territory will demolish these obsolete assets. Environmental investigative works are currently underway to inform the demolition work. • The sites are being released by tender with design criteria. As part of the assessment, tenderers will be required to present their concept master plan to the evaluation panel. The panel will assess how the concept master plan references the Weave Design and the City and Gateway Urban Design Framework. Tenderers will also be required to submit a Place Proposition Plan and a communication plan as part of their proposal.

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow, CEO Ext:51805 Contact Officer Name: Cindy Cantamessa Ext: 58339

BUDGET ESTIMATES BRIEF

MacArthur House • The site faces Northbourne Avenue and is adjacent to the Macarthur Avenue stop on the Gunghalin to Civic light rail corridor. The size and articulation of the site provides an opportunity to deliver a landmark transit-oriented development as the anchor of a new, vibrant urban village precinct. • The site has an area of 13,633 m2 and is zoned for mixed-use development of approximately 530 dwellings. • The site is on the ARI schedule for release and settlement in financial year 2018-19. • All tenants and the data centre have been relocated. The Territory is undertaking the demolition of this obsolete asset and -work has commenced. ARI Incentive Payments • For 2017-18, the Territory expects to receive $114.91 million from asset sales, with the accompanying incentive payments from the Commonwealth Government expected to be received in 2018-19. • For 2018-19, the final year of the program, the Territory expects to receive further asset sales and incentive payments, as the remaining assets are sold. • Table 1 below provides a breakdown of sale proceeds and incentive payments received to date for all assets including ACTTAB, and expected to be received by 30 June 2018.

Table 1 – All assets (including ACTTAB) Figures – includes ACTTAB Timeframe $ millions Total Asset Sales Up to 30 June 2017 177.20 Total Incentive Payments Received Up to 30 June 2017 22.74 Total Asset Sales & Incentive Payments Received Up to 30 June 2017 199.94

Total Asset Sales 2017-18 Financial Year 114.91 Total Incentive Payments 2017-18 Financial Year - Total Asset Sales & Incentive Payments 2017-18 Financial Year 114.91

Total Asset Sales & Incentive Payments Received Estimated up to 30 June 2018 314.85

• Table 2 provides a similar breakdown as Table 1, but provides figures related to assets within the City Renewal Precinct by excluding all ACTTAB related sale proceeds ($105.5 million) and incentive payments ($15.82 million).

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow, CEO Ext:51805 Contact Officer Name: Cindy Cantamessa Ext: 58339

BUDGET ESTIMATES BRIEF

Table 2 – Assets in City Renewal Precinct (excludes ACTTAB) Figures – excludes ACTTAB Timeframe $ millions Total Asset Sales Up to 30 June 2017 71.70 Total Incentive Payments Up to 30 June 2017 6.92 Total Asset Sales & Incentive Payments Received Up to 30 June 2017 78.62

Total Asset Sales Estimated up to 30 June 186.61 2018 Total Incentive Payments Estimated up to 30 June 6.92 2018 Total Asset Sales & Incentive Payments Received Estimated up to 30 June 193.53 2018

Cleared as complete and accurate: 29/05/2018 Cleared by: Malcolm Snow, CEO Ext:51805 Contact Officer Name: Cindy Cantamessa Ext: 58339

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister

ISSUE: CITY ACTIVATION Talking points: • The Government is committed to implementing an ambitious urban renewal plan which revitalizes and activates our city centre. • The City Renewal Authority is enlivening the city centre through a co- ordinated program of events and activations supported by streetscape improvements that significantly lift the quality and appeal of its public environment. • A good example is the Pic & Mix Pop up installation which is bringing colour and a new dynamic to how people use public spaces. • To date, activations have been run across the city centre’s laneways, plazas and parks. • 2018/19 will feature even more activities for the precinct which will build upon the success of earlier events and respond to community feedback gathered as part of these events. These will include the addition of high quality street furniture to our public realm and pop up activities for children and families. • The City Renewal Authority recently began work on the formulation of a City Activation Strategy that will help guide both short and long term planning for events and activations across the City Renewal Authority Precinct. This strategy is due for completion by the end of August. • From 1 January 2018, the City Renewal Authority took over responsibility for the management of the City Centre Marketing and Improvements Levy.

Key Information

• The CRA has been allocated $500,000 in the 2018/19 budget to fund City Activation activites. • Examples of previous activations to date include:

o The Forage at Odgers Lane in August 2016. o The Backyard Experiment in Garema Place in October 2016 in partnership with the Australian Institute of Landscape Architects.

Cleared as complete and accurate: 25/05/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Mark Usherwood Ext:76033 BUDGET ESTIMATES BRIEF

o KIDSCAPE at Haig Park in October 2016. o ‘Showtime in the City’ in Petrie Plaza February 2017. o Electric Avenues on 7 April 2017 as part of the You Are Here Festival. o Hurly Burley Winter Fair in Hobart Place in June 2017. o A wayfinding program to better connect the city to Floriade 2017. o The Pic & Mix outdoor dining space which, since October 2017, has been in Garema Place, Civic Square, Glebe Park, City Walk and Dickson.

o Enlighten City Precinct, a series of installations and workshops focusing on peoples interaction with light (funded through the CCMIL). • The program of activities for 2018-19 will include:

o More short-term installations to brighten and invigorate spaces in the city. o Continuing to connect the Canberra’s major events to the city centre, including Floriade 2018.

o Activities specifically designed for children and families. • Some of the popular ideas gathered from CRA’s community engagement include:

o more events, both small and large scale, across all areas of the city renewal precinct.

o more focus on the night time economy with more dining options in outdoor spaces.

o improvements to transport, including better parking arrangements, improved infrastructure for cyclists and the development of transport options to access the city centre.

o creating a more colourful city with more art. Background Information – may not be suitable for public disclosure

N/A

Cleared as complete and accurate: 25/05/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Mark Usherwood Ext:76033

BUDGET ESTIMATES BRIEF

Portfolio: Chief Minister Urban Renewal ISSUE: CIVIC, ARTS AND CULTURAL PRECINCT Talking points: • The City Renewal Authority (the Authority), is progressing the development of a Civic, Arts And Cultural Precinct Plan (the Plan) in 2018-19. • This will be an action plan, supported by a program of works and interventions that will lead to revitalisation of the cultural precinct in the City; which is the area around the Canberra Theatre Centre, Legislative Assembly, CMAG and new Government Office Block. • Key outcomes of the Plan include: − Development of a place plan to establish objectives for the precinct and to define its unique identify and character; − Identification of opportunities to broaden the cultural offerings available; − Proposals to revitalise Civic Square and the laneways, including activation of these spaces to improve visitation and vibrancy; and − Development of an urban design framework and master plan to guide future development within the Precinct. • The community and broader stakeholders will have the opportunity to share their views on aspirations for the precinct, and the Plan as it is progressively developed over coming months. • Work on the Plan is expected to commence in July, and take approximately 12-months to complete.

Key Information

• An open tender process to engage a consulting team to develop the Plan commenced in May 2018. Tenders closed on 15 May 2018. • There was a great deal of interest from industry in this work, with 17 tenders received. • The evaluation of tenders is largely complete, and a preferred tenderer has been identified.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: David Hughes Ext: 56744 BUDGET ESTIMATES BRIEF

• Subject to successful contract negotations, the contract is expected to be awarded in mid-late June. Background Information – not suitable for public disclosure

• . This is well below the average cost of tenders received. • Early in 2017-18 when the Authroity was assessing project priorities, $200,000 was set aside for this work. This allocation was made before the scope of the project was developed, and agreed with key stakeholders. • Recognising $200,000 was insufficient to progress the agreed scope, supplementary funding was sought in the 2018-19 Budget, but this was not supported by Treasury. • The Authority is examining internal funds available to contribute to this work, and what limited planning and feasibility funds it is receiving in the 2018-19 Budget. • There is a possibility that the scope of the commission will be reduced in negotiation with the preferred tenderer, if sufficient funding is not available to cover the full scope.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: David Hughes Ext: 56744

BUDGET ESTIMATES BRIEF

Portfolios: Chief Minister Urban Renewal ISSUE: PRECINCT REVITALISATION PROGRAMME Talking points: • The Authority has allocated $7.5m towards a Precinct Revitalisation Program to deliver public realm upgrades and verge improvements over three years. • The initial work package is London Circuit and Akuna Street Public Realm Improvement. It is to improve the connectivity in the city and enhance the existing streetscape. Work consists of demolition, pedestrian pavements, and drainage, lighting, landscaping and street furniture. • The construction contract was awarded to Acclaim Contractors in January 2018 through a public tender process to carry out the London Circuit and Akuna Street Public Realm Improvement works. The original contract amount was $2,268,371.66 (inc GST). • The proposed work for Bailey’s corner is now complete. The first construction package of precinct revitalisation works is progressing well, and is approximately 32% complete.

Key Information

• Detailed design works for Akuna Street from City Walk to Bunda Street is currently being undertaken. This will be a variation to the original scope of work in order to achieve streetscape consistency along Akuna Street and improve connectivity in the city centre. • Further Design of public realm upgrades is currently underway for Mort Street (Bunda to Cooyong) and Cooyong From Northbourne through to Glebe Park. Construction will be undertaken in separate packages subject to priority and available funding. • Consultations with directly impacted property owners and businesses have been carried out prior to the commencement of construction works. Ongoing stakholer management is one of the key focuses for the Authority, intending to have minimal negative impacts upon the public realm.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Peter Rea Ext: 76857 BUDGET ESTIMATES BRIEF

Background Information – may not be suitable for public disclosure

• This program is an extension of an earlier City Revitalisation Program that delivered public realm and verge improvements in the City from 2011-2013, consisting of new paving, street trees, lighting, and street furniture. • The Authority referred the procurement of a contractor to carry out London Circuit and Akuna Street Public Realm Improvement construction services to the Government Procurement Board (GPB) as it exceeded the $1 million GPB referral threshold that applies to the Authority. The GPB has requested 6-monthly update briefings and this request has been actioned.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Peter Rea Ext: 76857

BUDGET ESTIMATES BRIEF

Portfolios: Chief Minister Urban Renewal ISSUE: LAND RELEASE Talking points: • No revenue has been forecast against land sales revenue within the City Renewal Precinct for the financial year 2018-19. • Land sales revenue of $14.130 million is forecast for financial year 2019-20. The sales relate to the ANU Exchange Deed and one site in Dickson. • 350 dwellings are also forecast for release in financial year 2019-20 with settlement 2020-21. These dwellings relate to the Section 63 City. The development potential of this site is dependent upon the completion of Edinburgh Avenue extension which is an offsite works requirement under the Deed arrangements for the purchaser of Section 100. Key Information Land Revenue

• Land sales revenue for financial year 2019-20 relates to:

o ANU Exchange Blocks 2 and 3 Section 20 - $5.940m o ANU Exchange Blocks 2 and 7 Section 4 - $3.010m o ANU Exchange Block 5 Section 30 - $2.000m o Dickson Block 30 Section 34 - $3.180m

Background Information – may not be suitable for public disclosure

ANU Exchange • The ANU City West Integration Precinct Deed was signed in December 2004 between the ACT Government and the ANU and established the basis for the development of the ANU exchange. The Deed gave the ANU certain rights regarding the potential development of blocks within the precinct over the 10 year period to December 2014. The Deed was subsequently extended by five years and will cease on 5 April 2020. As part of the agreement the Territory will not until the completion of the ANU precinct consider a proposal for development of land by any person other than the ANU. The sale of the sites is managed through the direct sale process. • In the event that ANU does not propose to develop these sites, which are programmed on the Indicative Land Release Program for FY 2019-20, the opportunity will exist for the City Renewal Authority to either sell these sites or examine opportunities to redevelop these sites.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Cindy Cantamessa Ext: 58339 BUDGET ESTIMATES BRIEF

London Circuit • The future treatment of London Circuit / Commonwealth Avenue intersection may have a significant impact upon the development potential and urban design outcomes of sites along London Circuit. • The City Renewal Authority considers the raising of London Circuit to be the highest priority infrastructure project in the precinct and is currently seeking agreement to develop a Tier 1 capital works business case for the raising of London Circuit at its intersection with Commonwealth Avenue. • Raising London Circuit will re-shape the southern flank of the city and maximise development potential of the four sites centred on the London Circuit/Commonwealth Avenue Intersection. It will also realise the full planning intent of the National Capital Plan and deliver superior urban design outcomes; including a city street netweork that is pedestrian focussed with vastly improved legibility, connectivity and accessibility compared with the status quo.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Cindy Cantamessa Ext: 58339

BUDGET ESTIMATES BRIEF

Portfolios: Chief Minister Urban Renewal ISSUE: CIVIC & BRADDON PUBLIC REALM IMPROVEMENTS Talking points: • The Civic & Braddon Public Realm Improvements is a renewal programme aiming to provide a consistent and uniformed paving fabric, improve streetlight, provide new street furniture and enhance the amenity of the public realm. • The strategy of this project is to incrementally improve public assets by designing and implementing a rolling works programme in Civic and Braddon. • This programme consists of design works of various sites in Civic, Braddon and along the Precinct corridor to Dickson, and construction superintendence component to oversight the delivery of public realm upgrades. • The consultancy contract was awarded to Smec Australia in December 2017 through a public tender process. The original contract amount was $1,096,528.71 (inc GST).

Key Information

• In addition to the design and construction superintendence works, the City Renewal Authority (the Authority) is progressing a Link and Place study. The intent of the study is to thoroughly understand the street hierarchy in the Civic and Braddon precinct given their importance to the linkage and vibrancy of the CBD. • By having a series of construction-ready projects, the ACT Government can encourage surrounding development to provide a public realm product that is consistent with government investment projects. • The scope of the consultancy engagement is to upgrade areas of the Precinct that have not been benefited from capital investment for the past forty years. Many areas appear to be worn, dated, inaccessible, and are presented with trip hazards.

Background Information – may not be suitable for public disclosure

• The Civic & Braddon Public Realm Improvements is to continue on previous undertaken works as per the Canberra Central Design Manual to provide a higher quality public realm befitting of the nation’s capital.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Lea Durie Ext: 50477 BUDGET ESTIMATES BRIEF

• The Authority referred the procurement of a suitable consultant to carry out the Civic and Braddon Public Realm Improvements to the Government Procurement Board (GPB), together with the London Circuit and Akuna Street construction work package, as they both exceeded the $1 million GPB referral threshold that applies to the Authority. The GPB has requested 6-monthly update briefings and this request has been actioned.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: Lea Durie Ext: 50477

BUDGET ESTIMATES BRIEF

Portfolios: Chief Minister Urban Renewal ISSUE: CIVIC POOL FEASIBILITY Talking points: • The Authority is progressing a needs analysis and feasibility study into a new Civic pool in 2018-19. • Work is expected to commence in August 2018. • In addition to looking at a new Civic pool, the review will more widely analyse the opportunities for broader recreational aquatic facilities. • This may include water-play elements, or an urban beach, as part of future stages of the West Basin waterfront development that is also being progressed by the Authority.

Key Information

• The Authority received funding of $400,000 in 2017-18 to fund a new Civic pool feasibility study. • The Authority agreed to transfer $200,000 of this funding to CMTEDD to assist in filling a budget shortfall on the new Stromlo Pool and Leisure Centre. • The new Civic pool feasibility work, will be completed as part of a broader review of mixed-use development of West Basin, expected to commence in August 2018. • The work will take approximately six months to complete.

Cleared as complete and accurate: 04/06/2018 Cleared by: Malcolm Snow, CEO Ext: 51805 Contact Officer Name: David Hughes Ext: 56744