Page 1 of 12

DOCKLANDS AND MAJOR PROJECTS Agenda Item 5.2 COMMITTEE REPORT

1 August 2006 ACTIVE – FOOTBALL GROUNDS UPDATE

Division Assets & Services

Presenter Ian Harris, Group Manager Parks & Recreation

Purpose

1. To provide an update on the status of the redevelopment projects of the AFL clubs located at North Melbourne Recreation Reserve (North ), Princess Park () and () and also to recommend that Council determine the future of the disused grandstand at the North Melbourne Recreation Reserve.

Recommendation from Management

2. That the Docklands and Major Projects Committee note the following update provided on the status of the redevelopment proposals at North Melbourne Recreation Reserve, and Punt Road Oval and that a report seeking a decision in relation to the facilities at the North Melbourne Recreation Reserve will be presented as soon as practicable.

Key Issues

3. Council resolved in December 2005 to:

" . . 1.1. support the redevelopment of the recreational and sporting facilities located on land managed by the City of Melbourne at North Melbourne, Richmond and Carlton which are currently used by three Australian Football League and various clubs and note that the provision of financial support will be managed through Council’s annual budget processes; 1.2. request that the Australian Football League/Clubs and State Government each contribute no less than any amount that may be provided by Council noting that any allocation by the Council may be conditional upon such commitments being provided by the Australian Football League/Clubs and State Government; and 1.3. in relation to the North Melbourne Recreation Reserve: 1.3.1. rescind all previous resolutions relating to redevelopment of the Reserve, including those relating to the old grandstand; 1.3.2. contribute no more than $2 million capital funds towards the redevelopment of the North Melbourne Recreation Reserve (inclusive of all demolition and landscaping costs) subject to: 1.3.2.1. community access to the facility to the satisfaction of the Council; 1.3.2.2. return of a significant proportion of the land, currently occupied by buildings and other structures, to parkland to the satisfaction of the Council; 1.3.2.3. approval by Council of any capital funding allocation during the Council’s annual budget processes (noting that $548,737 has been allocated in the 2005/2006 capital budget for the grandstand redevelopment); and 1.3.3. consult with the community on the three options proposed in the management report and recommend a preferred option to committee in early 2006; 1.3.4. obtain costings of the three options (refer to above); and 1.4. by instrument of delegation sealed by the Council pursuant to Section 98(1) of the Local Government Act 1989 to delegate to the Chief Executive, or the person from time to time acting in that position, its powers, duties and functions to negotiate and agree final terms and conditions of the proposed redevelopment detailed in paragraph 14 of the Management Report including the community access to the facility and the return of land to parkland.”

Page 2 of 12

4. The Community and Culture Committee on 14 February 2006, resolved as follows:

"1. That the Community and Culture Committee: 1.1. note the consultation undertaken in relation to the three options for the redevelopment of the North Melbourne Recreation Reserve proposed in the 13 December 2005 Council Report; 1.2. approve the redevelopment of the Reserve consistent with the concept proposed in Option 1 of this Report, namely that the new facility be sited on Arden Street co-located with the North Melbourne Swimming pool; 1.3. request that further consultation be undertaken with the community in developing the detailed plans for the facility ensuring community access to the facility to the satisfaction of Council; 1.4. request the preparation of a strategy to achieve the integration of the facilities that will be available to the community in the new buildings with those available at the North Melbourne Swimming Pool; 1.5. note the establishment of a project management group to oversee the project, chaired by the City of Melbourne, involving the State Government, AFL, and Kangaroos Football Club; 1.6. request the development, in consultation with the community, of a landscape plan for the North Melbourne Recreation Reserve to address the design of public spaces and future of the existing buildings on the Reserve (including the grandstand); 1.7. request the establishment of an advisory committee chaired by the City of Melbourne and comprising users of the reserve and representatives of the community, to advise Council on the planning of the Reserve; and 1.8. receive a further update on this project following the development of the detailed plans.”

5. Council further resolved in June 2006 (this has been fully implemented) to:

"1. “. . . write to the State Government to confirm that: 1.1. no Council funds have been budgeted for the upgrades of Princes Park oval and Punt Road oval facilities; 1.2. that Government’s funding commitments to the upgrades of Princes Park oval and Punt Road oval facilities are not conditional on Council funding being made available; and 1.3. advise local community groups and the football clubs accordingly and on the previous Council resolution on this matter.”

North Melbourne Football Club Proposal

6. The redevelopment of Football Club facilities and the broader landscaping of the Reserve has been progressed as two separate planning processes in line with the February 2006 Community and Culture Committee resolution, one to address the new facility and the other to develop a landscaping plan for the overall Reserve (including consideration of the future of the grandstand).

Facility redevelopment

7. The current Football Club facility redevelopment proposal involves the provision of the administration space, training facilities, and an associated indoor ball court. Meeting spaces, training facilities and the ball court would also be made available for general public use. It is not proposed to incorporate a new pool in the facilities as the North Melbourne Council Pool should be able to meet this requirement (especially if the new Club facilities were located close to the Pool). The initial cost estimate of the new facility is $7 million.

8. A Project Control Group chaired by Group Manager Parks and Recreation has been established to oversee the redevelopment of the facility. This Group has representatives from all funding partners i.e. State Government, AFL and Football Clubs and meets tri weekly. 9. Professional services for the redevelopment project have been appointed following a public tender process and include: Project Manager (Hyder Consulting), Architect (Williams Ross), Quantity Surveyor (Turner and Townsville Rawlinsons), Engineering Services (AHW Consulting Engineers) and Engineering Civil/Structural (Irwin Consulting).

2 Page 3 of 12

10. Site assessments have identified some constraints with regard to the possible location of the facility. Two options for the location of the redeveloped facility that have been identified at this point in time as follows (see Attachment 1):

10.1. Option 1: located adjacent to and incorporating the existing pool building and open space at the eastern end of the Reserve. This would allow the full integration of the community facilities associated with the pool and new facility and maximise the area available for public access around the football oval; and

10.2. Option 2: located immediately west of the stormwater easement next to the grandstand site.

11. The assessment of the recreation and community needs of the local area is currently underway, incorporating the use of surveys, focus groups and individual stakeholder meetings. The information derived from this study will inform the recreation needs within the facility and also assist the development process. Council’s Community Services Group is providing information on the broader community requirements that could be incorporated into the facility. Council’s financial contribution to the new facility will be based on the community benefit arising from the facility redevelopment.

12. Preliminary timelines for the project indicate that after initial stakeholder consultation, the preferred site selection and facility concept development plan is expected to be completed by 30 September 2006. This will enable application for a planning permit and dependant on receipt of any objections/appeals and completion of tender documentation, construction should commence late 2006 or early 2007.

Recent Fires

13. Two fires believed to have been deliberately lit, have recently occurred at the reserve. On 24 May 2006 fire destroyed old betting sheds and two vehicles (North and West Melbourne Neighbourhood Centre Bus and the property van of the Football Club). On 22 July fire destroyed the coaching and playing facilities located in portable buildings adjoining the administration building. Temporary arrangements have been put in place to assist the North Melbourne Football Club in the short term, but the loss of facilities has created further urgency to provide new facilities for the Club.

Landscape Plan Advisory Committee

14. The North Melbourne Recreation Reserve Landscape Plan Advisory Committee, (LPAC) chaired by Cr Shanahan, and comprising key stakeholders with an interest in the Reserve has met three times to consider future landscaping of the Reserve (see Attachment 2 for membership). Good progress has been made on the landscape plan, but it cannot be completed until the future of the grandstand is resolved.

Grandstand

15. The old grandstand on the Reserve has not been used by spectators for some years. The grandstand is in very poor condition and is closed to public access due to safety concerns. The Football Club has indicated that it would have no operational use for the grandstand were it to be retained and refurbished. The opportunity to remove all buildings at the western and southern sides of the reserve (including the grandstand) would allow for the creation of a large contiguous area of parklands available for public use within the North Melbourne area.

3 Page 4 of 12

16. The grandstand’s heritage significance was assessed in December 1998 by Heritage Consultants, Allom Lovell & Associates who advised that it had local historical significance, technological and aesthetic interest. Council recently engaged Lovell Chen & Associates to update their original assessment. In summary, this latter assessment advises that “on balance, from a heritage perspective, retention of the grandstand is preferred and there does not appear to be any physical reason which would require demolition. Additionally, the costs of repairs do not appear to be unexpectedly high at this stage. However, in the broader context of redeveloping the ground, there may be a greater benefit which would accrue to the ground which may involve demolition. If such benefits were seen to outweigh the contribution made by the grandstand then demolition may be an acceptable option”. Retention of the grandstand would require refurbishment at an initial estimated cost of $1.7 million.

17. The North and West Melbourne Association have recently engaged Trevor Huggard and Associates to provide an additional structural report on the grandstand. The report suggests that repairs to the building are not substantial; but no specific costing or analysis of works were included in this report.

18. The LPAC, involving a range of stakeholders, has discussed the future of the grandstand, but no consensus of members has been reached on whether it should be demolished or retained.

19. The grandstand is located in the public park and recreation zone of the City of Melbourne Planning Scheme and is not covered by a heritage overlay. There is no requirement for a planning permit to demolish the building.

20. On balance, demolition of the grandstand is preferred as no future use of the grandstand has been identified, its heritage value is not considered to be of particular significance, the cost of refurbishment is high and if removed, would allow a considerable area of contiguous open space to be landscaped, returned to public access, and available for passive recreation.

Richmond Football Club Proposal

21. Partial redevelopment of the Richmond Football Club facilities at the Punt Road Oval in comprising some new office accommodation and a new 25 metre swimming pool was undertaken in 2001. Council contributed $880,000 of the total cost of $3.65 million on the basis that this development met public benefit criteria, ie it provided for ongoing public access to the pool during agreed opening hours, and provided public access to meeting spaces.

22. The current new redevelopment proposal (Attachment 3) involves demolition of the existing degraded social club building (converted grandstand) and its replacement with a smaller administrative and training facility building. It would also involve removing the small structures attached to the eastern end of the Grandstand allowing it to be returned to its former grandeur, and relocation of the Club museum to this structure. The old buildings and earthen mound between the grandstand and Punt Road would also be removed allowing for 30-40 new car parking spaces. Located above these parking spaces would be a of meeting and social areas available for use by the community. The initial quantity surveyor cost estimate for the works is $6.5 million.

23. The Richmond Football Club has requested funding up to $2 million from Council and discussions with the Club are proposed to progress community benefits that would be linked to Council’s potential financial contribution to this project.

4 Page 5 of 12

Carlton Football Club Proposal

24. The current redevelopment proposal includes possible demolition of some existing stands, upgrading of training and administrative facilities, incorporation of medical suites, provision of meeting spaces and construction of a four lane 25 metre swimming pool. It has been proposed that many of these facilities would be available for use by the community. The initial quantity surveyor cost estimate for the works is $10 million (depending on the extent of the demolition of existing stands). The football Club has also suggested the location of a National Fencing Centre and multi- purpose stadium funded by the Victorian and Australian Governments could also be located in the new facility.

25. As with Richmond Football Club, the Carlton Football club has requested up to $2 million from Council, and discussions on this matter are also proposed with the Carlton Football Club on possible community benefits from the project.

Relation to Council Policy

26. City Plan Strategic Objective 3 – Inclusive and Engaging City of Melbourne :

3.3 Deliver and provide access to facilities and services to support city residents, visitors and workers. 3.3.01 Pla n for the changing needs of residents, local and international students, visitors, workers and businesses in the city. 3.3.03 Improve community health and wellbeing by increasing participation in sporting leisure and recreation activities and implementing the City Health and Active Melbourne Strategy. 3.3.04 Contribute to the development of sporting and recreational facilities and investigate the feasibility of communal facilities in Docklands in accordance with Council’s ‘Partnership Funding Principles for new sports facilities in parklands’. 3.4 Promote, celebrate and further develop the City of Melbourne as a culturally rich capital city that encompasses its key strengths in art and sport. 3.4.05 Promote and further develop Melbourne as a sporting capital by delivering the Active Melbourne and National and International Sports Marketing Policy programs.

27. The Draft Active Melbourne Strategy states that, “part of Council’s response to the issues and challenges of increasingly sedentary lifestyles within modern communities, with the aim of enhancing the health and well being of our community. This strategy will strive to provide opportunities for as many people as possible to participate in physical activities to contribute positively to their health and well being”. Under the theme of “Place”, the Strategy advocates that Council “will work cooperatively with the private and voluntary sectors to ensure that these are safe, appropriately equipped and maintained places for the community to access a range of activity opportunities”.

28. The partnership Funding Principles for New Sports Facilities in Parkland was approved by Council in 2001 and resolved that it:

Ø ”approve partnership funding principles for new or refurbished facilities located in parkland based upon council contribution the cost of the community benefit component of the facilities, and the sporting organisation contributing the cost of the component that would benefit the sporting organisation; Ø require that each specific proposal require community consultation and be subject to separate Council approval; and

5 Page 6 of 12

Ø note that any proposal involving new or modified structures would be subject to the statutory planning process and be subject to the community feedback as required as part of the statutory planning process”.

Consultation

29. In relation to the North Melbourne Recreation Reserve:

29.1. a Project Control Group (PCG) comprising Council officers, AFL, Sport and Recreation and Kangaroos Football Club has been established to oversee the redevelopment of the facilities and meets every three weeks. The Group Manager Parks and Recreation chairs this Group;

29.2. a Landscape Plan Advisory Committee, chaired by Councillor Shanahan and comprising key stakeholders with an interest in the North Melbourne Recreation Reserve has met three times since February 2006 to consider the overall landscaping plan of the reserve. The Committee has provided considerable input into landscape concepts and possible public facilities on the Reserve. The Committee has discussed the future of the grandstand, but consensus has not been achieved on whether it should be retained or demolished. Once a decision has been made on this issue, then the landscape plan can be finalised and broader community consultation then undertaken on the plan; and

29.3. the assessment of the local recreation needs of the North Melbourne area has commenced. This will form part of a municipal-wide assessment to support the Active Melbourne Strategy. This includes survey, focus groups and interviews with community groups. The outcomes from this assessment will inform the design and operational elements of any facilities. Subsequent consultation upon completion of the facility design concepts will then be undertaken with key stakeholder groups. Also broad community consultation will be undertaken during the process to obtain a planning permit for the new facility.

30. In relation to the Carlton and Richmond Football Clubs:

30.1. the East Melbourne Association has indicated that it is generally supportive of the Richmond Football Club proposal, subject to no further encroachment into Yarra Park and no further car parking in Yarra Park; and

30.2. the assessment of the local recreation needs of the East Melbourne and Princes Park has commenced and is consistent with points identified in 28.3 above.

31. Regular discussions on all three proposals have been held with the AFL, Department of Sustainability and Environment (representing the Minister responsible for Crown land) and Sport and Recreation Victoria .

Finance

32. Council has resolved to commit up to $2 million to the redevelopment of facilities at the North Melbourne Recreation Reserve over 2006/07 ($1.027 million) and 2007/08 ($0.973 million) subject to the Council budget process. Carlton and Richmond Football clubs have formally requested funding of up to $2 million each for their redevelopments. Consistent with point 5 above, no funds have been budgeted towards upgrades of Princes Park and Punt Road Oval. Discussions with both clubs are proposed to progress community benefits that would be linked to Council’s potential contribution to this project.

6 Page 7 of 12

Legal

33. The matters detailed within the report are within the functions and powers of Council under the Local Government Act 1989. Legal advice will be provided, where necessary, in relation to the various proposals.

Sustainability

34. It is antic ipated that the redevelopments would result in some return of parkland (particularly at the North Melbourne Recreation Reserve and Princes Park - should substantial areas of the existing grandstand be removed). The redevelopments would be designed to greatly improve the aesthetic presentation of the buildings and provide the opportunity to enhance the overall appearance of the parks. The expectation is that the community will have greater access to sporting and recreational facilities thus supporting Council’s Active Melbourne program.

Background

35. Melbourne is renowned for being the sporting capital of Australia. A major part of this reputation and image is generated by the Australian Football League (AFL). The City of Melbourne has a significant part to play in this area and maintenance of the facilities is part of its responsibility. The City of Melbourne has some responsibility for the buildings and facilities on these parcels of land and the condition of some of these buildings is such that urgent refurbishment work is required.

36. The AFL and State Government have developed a Victorian AFL Club Facilities Funding Program to assist Victorian AFL clubs to develop their training and administrative facilities. The program proposes a four (4) way funding arrangement involving the AFL, State Government, local government and individual clubs. The City of Melbourne currently has five (5) AFL clubs located within the municipality (Carlton, Richmond, Kangaroos, Collingwood and Melbourne).

37. The AFL has indicated that it is strategically important for each of its member clubs to have access to the best possible training and administrative facilities. Council officers have consequently worked with the AFL and the State Government to support the achievement of this outcome and to also ensure that there is an increased community benefit as part of any redevelopment.

38. Council is Committee of Management for Princes Park, Yarra Park and North Melbourne Recreation Reserve and consequently manages the leases held by the Carlton, Richmond and Kangaroos Football Clubs at these parks. The facilities of these clubs are inadequate, and in some instances sub-standard.

39. The level of investment required to maintain and refurbish/renew these facilities will be substantial. A joint funding arrangement is considered to be a sound method of ensuring that assets under Council’s control are of high quality with a minimum but reasonable level of investment. Council has previously been advised that a financial contribution of $1.5 million to $2.0 million for each of the three locations be considered and has resolved to commit up to $2 million to the redevelopment of facilities at the North Melbourne Recreation Reserve. Council approved in February 2001 Partnership Funding Principles for new Sports Facilities in Parkland which provides the framework for this type of investment to be utilised.

40. All redevelopment proposals would be required to be subject to full community consultation and approval through the normal statutory planning process. Any future commitment for funding (both quantum and timing) would be subject to Council’s normal budget process.

Attachments: 1. North Melbourne FC Redevelopment Options 2. LP AC Committee Membership 3. Richmond FC Redevelopment Proposal 7 Page 8 of 12 NM Football Club Options Attachment 1 Agenda item 5.2 Docklands and Major Projects Committee 1 August 2006

1

Page 9 of 12 Redevelopment of Recreation and Sporting Facilities Used by AFL – Update Report Attachment 2 Agenda item 5.2 Docklands and Major Projects Committee 1 August 2006

North Melbourne Recreation Reserve – Landscape Plan Advisory Committee

Membership

Cr Brian Shanahan (Chair) Bill Cook -N&WMA Kaye Oddie – N&WMA Geoff Walsh – North Melbourne Football Club Earl Eddings – North Bernadette Summers – St Michaels School Mark Ryan – Kensington Primary School John Davidson – St Aloysius College Lorraine Siska – Hotham History Project Mary Kehoe – Hotham History Project Paul von Chrismar – Buro Architects / Local Resident Lorna Hannan – Local Resident Clive Gartner – Kensington Association Conrad Cunningham – NM Rotary Club / N&WM Business Association Cory Parkhill – N&WM Business Association Jo Hansen – YMCA Thea Bates – The Centre Tanya Phillips – The Centre

1 Page 10 of 12 Attachment 3 Agenda item 5.2 Docklands and Major Projects Committee 1 August 2006 Richmond Club Option

1 Page 11 of 12 Agenda Item 5.2 Docklands and Major Projects Committee 1 August 2006

FINANCE ATTACHMENT

ACTIVE MELBOURNE – FOOTBALL GROUNDS UPDATE

Funding of $6 million gross funding has been included in the 2006/07 budget for the North Melbourne Grandstand redevelopment. External contributions by the AFL, State Government and North Melbourne Football Club will be $5 million. Council’s direct contribution in 2006/07 will be $1.027 million (including $477,000 carry forward from 2005/06). A further bid of $973,000 will be included in the 2007/08 budget process. Any further funding will be subject to normal budget processes.

Joe Groher Manager Financial Services

Page 12 of 12 Agenda Item 5.2 Docklands and Major Projects Committee 1 August 2006

LEGAL ATTACHMENT

ACTIVE MELBOURNE – FOOTBALL GROUNDS UPDATE

The matters detailed in this report are within the functions and powers of the Council under the Local Government Act 1989 (“the Act”). Legal advice will be provided, where necessary, in rela tion to the various proposals.

Section 3C(1) of the Act provides that:

“The primary objective of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions.”

Section 3C(2) of the Act provides that in seeking to achieve its primary objective the Council must have regard to facilitating objectives including:

“(c) to improve the overall quality of life of people in the local community;

(e) to ensure that services and facilities provided by the Council are accessible and equitable;”

Section 3E of the Act provides that the functions of a Council include:

“(a) advocating and promoting proposals which are in the best interests of the local community;

(b) planning for and providing services and facilities for the local community;

(c) providing and maintaining community infrastructure in the municipal district;”

Kim Wood Manager Legal Services