Wyndham City Submission: Inquiry into the Australian Government’s role in the development of cities

July 2017

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Introduction Good growth area planning in regards to transport, economic and residential growth, community infrastructure and services will have intergenerational impacts, not only for local communities, but for greater metropolitan and regional areas. Wyndham City therefore supports the Australian Government taking a more central role in addressing the growth management, and infrastructure provision planning for our cities. We encourage strategic foresight and collaborative planning with State and Local Governments on how cities in can be large, liveable, well and optimally connected in the future.

Wyndham City is a municipality of great economic and social significance at State, regional and greater metropolitan levels. Positioned on the South-Western fringe of , it is the link between the two largest cities in ( and Greater Melbourne) and the gateway to Melbourne for Western Victoria. The 2016 population of Wyndham is 222,656 people, with a projected population of 424,476 forecast for 2036. With net growth of 12,106 residents in 2016, Wyndham is experiencing the second largest population growth of any Council area in Australia.

Wyndham City sits at the coalface of the great challenges confronting our generation of growing cities – the need to plan smart, well, economically viable, socially vibrant, de-centralised and highly connected urban and suburban communities.

To achieve this there will need to be a pattern of settlement and associated infrastructure investment to support jobs and services closer to home, better public transport connectivity, improved road networks and broadband connectivity. Education and health related facilities and services are also critical to enable people and places to realise their potential.

In alignment with the position of the National Growth Area Alliance (NGAA), Wyndham City submits that the underpinning issue of city development across Australian Urban Growth Areas, is lessening the requirement for travel and especially less car travel. This is crucial to enhancing liveability, quality of life and energy and resource reduction through less time spent on roads, less spent on fuel, less congestion and fewer adverse health impacts.

Wyndham is ready to become a smart and connected constellation hub for Greater Western Melbourne and Western Regional Victoria. Investing in our city through City Deals, and supporting sound, transparent and needs-based infrastructure planning, will make us a global model for managing growth sustainably and successfully to the benefit of both regional and metropolitan areas.

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Recommended policy direction An effective program for investment and long-term planning for cities needs to fundamentally acknowledge and be shaped by:

• The spatial distribution of Melbourne’s function as a global trading city, including the constellation of metropolitan, regional, state, national and global activity. • Where population growth is occurring, and a financial strategy as to how the current gap in infrastructure and services will be addressed. • Current future population projections regardless of the objectives of proposed policy to change current trends on population settlement.

Effective Australian Government policy intervention for the development of cities in growth areas, would include:

• A dedicated infrastructure fund targeting economic and social infrastructure for outer urban growth areas. • Stronger urban planning processes and levers. • Adequate transport provision in road, rail and other transport modes for people and industry movement. • Adequate service provision across life stages, with an emphasis on the needs of families and education provision. • Infrastructure that is planned according to population needs and through integrated processes with Local Government. • Increased and improved affordable housing through effective policy and planning reforms.

Understanding the benefit of investment in the outer urban growth areas, is critical to the future of Australian cities development. We therefore recommend targeted actions by the Smart Cities program, including:

• A dedicated investment package for the fast growing outer suburbs for strategic roads and rail and other transformational projects involving education, water, electricity and gas. • A coordinated cross-government focus on the fast growing outer suburbs as investment sites for economic hubs. • Prioritise City Deals for outer growth areas.

This submission addresses these matters, with project examples, under item 1 of the Terms of Reference: Sustainability transitions in existing cities

1.1. Identifying how the trajectories of existing cities can be directed towards a more sustainable urban form that enhances urban liveability and quality of life and reduces energy, water, and resource consumption

• Transport economy – constellation approach • Transport people movement and corridors approach • City Deals • Major infrastructure projects and the Western Interstate Freight Terminal

1.2. Examining the national benefits of being a global 'best practice' leader in sustainable urban development

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• Dedicated infrastructure fund for Australia's outer suburban growth areas, with national benefits through flow-on development effects. • Cities as leaders in Digital Transformation

1.3. Considering what regulation and barriers exist that the Commonwealth could influence, and opportunities to cut red tape

• Sequencing of development and joined-up planning • Commonwealth infrastructure into Precinct Structure Plans: o In-road rail o High speed rail o Universities • Timing of infrastructure delivery and service needs • Housing affordability

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1. Sustainability transitions in existing cities

1.1. Identifying how the trajectories of existing cities can be directed towards a more sustainable urban form that enhances urban liveability and quality of life and reduces energy, water, and resource consumption

Transport economy – constellation approach A constellation planning approach would be better applied in the development of major cities and their regional networks, in which growth areas are understood as critical nodes.

The contemporary definition of Melbourne, should reflect its spatial dynamic role as a global trading city based on the shores of and integrated with the surrounding region. The Greater Melbourne Capital City Statistical Area, which is the basis for the Metropolitan Melbourne and Plan Melbourne, excludes Greater Geelong, and falls short of daily commuter patterns, including the extent of Myki train zones. This dynamic defines Melbourne as a ‘city region,’ rather than just a metropolitan area. Instead of viewing Victoria through a Greater Metropolitan Melbourne and Regional Victoria divide, a constellation approach would recognise the 150km arc of Melbourne and surrounding regional towns and cities where nearly 90% of Victoria’s population reside.

Figure 1: Major Regional Towns at Extent of Myki Zones

In this constellation, Wyndham City should be recognised as a significant western metropolitan city, with movement of industry, people and jobs exchange with Geelong and Ballarat, other western regional areas, as well as central metropolitan Melbourne.

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Transport people movement and corridors approach Transport planning is critical to the future viability of constellation cities. In planning for a Melbourne population of 8 million forecast by 2050, we urgently need a state-wide, long term, adequately resourced Integrated Transport Infrastructure Plan, as required by the Transport Integration Act 2010 (s63). This plan would need to include a significant expansion and effective integration of the public transport network and public transport services, and provision for improved walking and cycling infrastructure.

Investment in transport corridors presents the opportunity to leverage the $4 Billion investment already made in the project to deliver productivity opportunities for the western metropolitan region and Melbourne more broadly. This transport infrastructure can support affordable living options and housing diversity opportunities with excellent access to job rich locations. Two conditions are required to enable this:

1. Firstly, the earliest possible delivery of the remaining railway stations which will help to deliver the desired residential densities associated with compact urban development, and 2. Secondly, planning provisions that enable residential intensification, such as density guidelines are required to be introduced to Precinct Structure Plans (PSPs) located along the Regional Rail Link Corridor.

Figure 2: Leveraging $4 Billion of New Regional Rail Link Infrastructure

Cycling infrastructure can support de-congestion, complement public transport use, and improve community health and wellbeing with long term population health impacts. Population and transport planning should therefore support connected cycling infrastructure for the western region, including the completion of a number of western region significant trails including:

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• Port Phillip Bay Trail • Federation Trail • Western Freeway Trail • Regional Rail Link Trail • Outer Metropolitan Trail

These trails have the potential to become a key cycling route for commuters and for recreation/tourism purposes.

City Deals The Commonwealth’s City Deals investment approach aligns strongly with Wyndham’s direction in seeking new partnership arrangements with public, private and community sector bodies to deliver infrastructure projects. Our major infrastructure projects are already being planned to integrate social and economic elements, such as transport, employment, and recreation and create uplift.

Wyndham City is preparing investment frameworks for train stations along its two rail corridors. These sites have been identified as catalysts to ensure provision of housing, employment and economic development needed to support growth and changing demographic patterns. The Black Forest Station and Sayers Road projects are investment-ready projects that demonstrate world’s best practice in sustainable Greenfield development on an urban fringe. They present significant value capture opportunities and align with Smart Cities investment interests and goals for integrated planning, partnerships, broad social and economic impact, and strong investment return.

• Delivery of the Black Forest RRL Station in would result in significant productivity gains by providing a key transport facility; shaping the City’s growth and contributing to economic development at a City, State and regional level. This project provides a clear benefit to the public through the early delivery of the land use master plan and objectives around value capture. • Integrated activity hub in association with the proposed Sayers Road RRL Station, which includes establishing a town centre community, commercial enterprises, recreation facilities, and residential development. The site would become a transit city hub for the western growth area, with a range of social and economic benefits.

Major infrastructure projects and the Western Interstate Freight Terminal The following major projects are nationally relevant, with significant impact on the future geography of jobs and economic development for Wyndham, the western corridor connecting with western regional Victoria, and the interstate transport and logistics economy:

• The timely construction of the Outer Metropolitan Ring Transport Corridor to enhance Melbourne’s Freight handling capacity and freight movements to and from regional Victoria. This project will accommodate a 100 kilometre long high-speed transport link for people and freight in Melbourne’s north and west.1 • The development of Avalon as Melbourne’s second domestic and international airport, with strong accessibility to western regional Victoria • Planning for Bay West Port as location for a new container port, which is well-suited to becoming Melbourne's future port in the longer term.

1 https://www.vicroads.vic.gov.au/planning-and-projects/melbourne-road-projects/outer-metropolitan-ring-e6- transport-corridor

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• The construction of the Western Interstate Freight Terminal (WIFT) is a key component of developing an integrated freight system for Victoria.

The WIFT will move freight more efficiently by providing modern terminal facilities closer to the large industrial cluster in Melbourne's west, reducing the time and length of truck trips to and from Port Melbourne. In 2013, the WIFT was the subject of a joint pre-feasibility study, with the Victorian Government funding $1.5 million and the Australian Government funding $3.5 million. This $5 million commitment recognised the strategic significance of the development and the need for strong partnerships across all tiers of government in its delivery.

1.2. Examining the national benefits of being a global 'best practice' leader in sustainable urban development

Dedicated infrastructure fund for Australia's outer suburban growth areas Becoming a leader in best practice for sustainable urban development requires a targeted funding program for outer urban growth area development. Wyndham strongly supports the National Growth Area Alliance call for dedicated funding to outer suburban growth areas, as proposed in the 2016 Price Waterhouse Cooper Report: Dedicated Infrastructure Fund for Australia's Outer Suburban Growth Areas.2

A dedicated fund should seek to align the interests of local, state and federal government bodies to produce the strongest local, state and federal economic and social outcomes. These outcomes are linked to the Smart Cities Program as investment in infrastructure funding in growth areas presents significant value capture opportunities. The objectives of the funding should include:

Taking a holistic place based approach • Recognise the full suite of policy and infrastructure required to improve the economic and social outcomes of a specific location. • Design policy and develop infrastructure that integrates with, and supports surrounding areas and contributes to the success of the broader metropolitan area.

Investing in infrastructure that creates long-term economic value • Infrastructure is a foundation of economic growth. Hence, funding needs to identify and prioritise investment into the types of infrastructure that will create measurable impacts on economic growth, productivity and jobs.

Maximising the capacity to fund future infrastructure • The value created through investment should be independently identified, tracked and captured to grow the infrastructure funding pool. • The full spectrum of public and private sector financing and delivery options should be used to leverage government funding and maximise the project success.

Outcome based decisions supported by a solid evidence base • Investment decisions must adhere to a full and transparent business case and cost benefit analysis process.

2 http://www.ngaa.org.au/media/1156/pwc_dedicated-infrastructure-fund-for--outer-suburban-growth- areas-final.pdf

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• All funding should be linked to agreed targets and KPIs which provide a common incentive for success. • KPIs should be monitored throughout the delivery and operation phases, with access to future funding tranches tied to the meeting of KPIs, realisation of benefits and capture of value created.

Accountable decision making and delivery process • All levels of Government need to be aligned on the goals of the funding with risk allocated appropriately. • An independent body is required to recommend funding, track KPIs and measure success against the stated outcomes.

Cities as leaders in Digital Transformation The Australian Government can progress Australia’s digital democracy through investing at the Local Government level in facilitating communities to transition into new economic and social technologies.

Wyndham has a dedicated Smart Cities Office, with the objective to identify and test new technology capable of engaging and informing citizens. Our Smart Cities Office has pioneered the WynLens Project, which uses holographic mixed reality to transform how we present and use city data. In a first for government anywhere in the world, Wyndham City has used Microsoft HoloLens technology to firstly present a three-dimensional vision of our future city, and secondly lay the foundation for a revolutionary decision-making tool.

Projects such as WynLens showcase the potential benefits smart technologies, with practical benefits to community participation and planning. Wyndham City is seeking co-funding through the 2017 Smart Cities and Suburbs Program to enable limitless access and broad adoption.

1.3. Considering what regulation and barriers exist that the Commonwealth could influence, and opportunities to cut red tape

Sequencing of development and joined-up planning The State Planning Policy Framework (SPPF) provides a framework for delivering viable communities with adequate staging of development in line with infrastructure provision. While these provisions exist within the SPPF, they have not yet been given enough effect by successive State Governments. An effective cities development policy at the federal government level, could strengthen these planning levers.

The provision of basic infrastructure on the urban interface often lags behind residential development. This relates to a funding gap and the misalignment in timing between the pace and distribution of residential expansion and the rollout of infrastructure. The absence of an Integrated Transport Strategy for Victoria compounds this problem.

The following 3-point preferred growth management strategy can contribute to achieving a timelier delivery of infrastructure for new communities in the Growth Areas without compromising competition in the land market and affordable housing objectives:

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1. Actively manage the number of areas under development at any one time (‘growth fronts’) to optimise the capacity to provide infrastructure in a timely manner. The primary vehicle for achieving this will be a ‘benchmark sequence of development’ agreed between Council and the State Government infrastructure agencies. 2. Strengthen statutory controls to require increased densities consistent with Council’s Housing Strategy, and investigate other opportunities/incentives to encourage densification consistent with this strategy. Further increases in density should be fostered through development trends, future research findings, and changes in government policy. 3. Manage out-of-sequence development by requiring proponents to build viable communities and incorporate additional costs associated with bringing forward infrastructure.

Timing of infrastructure delivery and service needs Earlier planning timeframes in many cases would allow for the co-location of State and Local Government infrastructure and service delivery. For example, early master planning between Wyndham City and the Department of Education and Training for school provision (central and regional) should be held at the first stage of school development around school and community precincts. This would maximise integration opportunities with co-located early years or community facilities. We recommend a year of planning factored into State and Federal Budgets prior to capital funding announcements.

We recommend that where a strong evidence base is available for the immediate need for core infrastructure, delivery should be brought forward, and that consideration should be given to a flexible approach to staging the introduction of core infrastructure through early ‘pop-up’ options. This could include the phased introduction and development of railway stations along the Regional Rail Link Corridor. A basic station platform (e.g. Aircraft Station) with pop up station facilities today is better than a more extensive station platform (i.e. Tarneit Station or Wyndham Vale Station) in 5- 15 years.

Housing affordability Wyndham City strongly supports measures to increase and improve affordable housing. Wyndham has experienced significant increases in housing crisis and support needs associated with high population growth, affordability vulnerabilities of our peri-urban location, and limited service and support access.

Inclusionary zoning should be considered primarily for government land and in areas where government is undertaking actions that will provide uplift to private land values (such as improved public transport access or land rezoning). Other incentivised planning provisions, such as floor area ratio bonuses, are appropriate for development on privately owned land.

Housing diversity is also needed to provide a range of options for different households and population needs in Wyndham. The introduction of density and housing diversity guidelines in Precinct Structure Plans along the new Regional Rail Link corridor can ensure appropriate dwelling densities and diversity will be developed around current and new railway stations.

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