SHAPING OUR STATE’S FUTURE Annual and Sustainability Report 2019-2020 DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 1 CONTENTS ACKNOWLEDGEMENT OF COUNTRY DevelopmentWA acknowledges the Traditional Custodians throughout Western Australia and their continuing connection to land, water and culture. We pay our respects to all members of Aboriginal communities and cultures throughout the State, to the communities we work with, and to their Elders past and present. Cover: Australian Marine Complex, Henderson 2 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 SECTION ONE – INTRODUCTION AND WELCOME 4 SECTION FOUR - PERFORMANCE 34 1.1 ABOUT DEVELOPMENTWA 5 4.1 SUSTAINABLE COMMUNITIES 1.2 ABOUT THIS REPORT 6 – METROPOLITAN CITIES AND CENTRES 35 1.3 MESSAGE FROM THE CHAIRPERSON 8 4.2 PROSPEROUS INDUSTRY 44 1.4 MESSAGE FROM THE CHIEF EXECUTIVE 10 4.3 RESILIENT REGIONS 50 1.5 PERFORMANCE HIGHLIGHTS 12 4.4 A HIGHLY CAPABLE, INNOVATIVE ORGANISATION 58 SECTION TWO – PURPOSE 14 SECTION FIVE – GOVERNANCE 114 2.1 VISION AND VALUES 15 2.2 OPERATING ENVIRONMENT 16 SECTION SIX – FINANCIAL STATEMENTS 132 2.3 GOVERNMENT PRIORITIES AND STRATEGIC DIRECTION 17 SECTION SEVEN – METROPOLITAN REDEVELOPMENT 2.4 AREAS OF ACTIVITY 19 AUTHORITY COMPLIANCE REPORT 176 2.5 HOW WE DELIVER OUR PROJECTS 21 SECTION EIGHT – GRI CONTENT INDEX 242 SECTION THREE – SIGNIFICANT ISSUES 24 3.1 PROCESS FOR IDENTIFYING SIGNIFICANT ISSUES 25 Yagan Square, Perth CBD DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 3 SECTION ONE INTRODUCTION AND WELCOME Bunuru Festival, Yagan Square, Perth CBD 4 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 1.1 ABOUT DEVELOPMENTWA On 23 September 2019, the Western Australian Land Authority (WALA – formerly trading as LandCorp) and the Metropolitan Redevelopment Authority (MRA) merged to become DevelopmentWA. The Western Australian Land approach to developing plans for the The MRA was created with the Authority (WALA), is a publicly owned future to set the new entity up for purpose of delivering redevelopment State Government Trading Enterprise success. DevelopmentWA is managed projects of strategic significance in (GTE) established under the Western via an independent Board of Directors the Perth metropolitan area. A key Australian Land Authority Act 1992. and reports to Parliament though requirement of the MRA legislation The Metropolitan Redevelopment the Minister for Finance; Aboriginal is to plan, undertake, promote and Authority (MRA) was established Affairs; Lands. coordinate the development of pursuant to the Metropolitan land in Redevelopment Areas in A key requirement of the WALA Redevelopment Authority Act 2011, the metropolitan region. The MRA legislation is to act in accordance beginning operations in January 2012 Act specifies Redevelopment Area with commercial principles: which as an amalgamation of four existing objectives, being: to build a sense requires being cost efficient, redevelopment authorities across of place; to promote economic endeavouring to achieve or surpass metropolitan Perth. wellbeing; to promote urban financial targets and ensuring that efficiency; to enhance connectivity; As part of the merger, the no project undertaken is expected to to promote social inclusion; and to Government determined that WALA achieve less than the hurdle rate of enhance environmental integrity. will provide activities and services for return. The WALA Act requires WALA DevelopmentWA, including servicing to provide or promote the provision the MRA functions. Both sets of of land, infrastructure, facilities and legislation (WALA Act and MRA Act) services for the social, economic and are currently still applicable, and this environmental needs of the State. has required a flexible and responsive Meridian Park, Neerabup DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 5 1.2 ABOUT THIS REPORT This report presents our performance for the financial year This report has been prepared in accordance with the GRI 1 July 2019 to 30 June 2020 and adheres to the requirements Standards: Core option. Using the GRI Standards as part of set out in the Western Australian Land Authority Act 1992 our annual reporting ensures we assess our performance (WALA Act) and Metropolitan Redevelopment Authority against globally accepted sustainability reporting Act 2011 (MRA Act). In this report, we have reported principles and measures. our performance based on DevelopmentWA, MRA and Guidance provided in the Government of Western Australia LandCorp activities. Where relevant, we have identified the Public Sector Commission Annual Reporting Framework has appropriate organisation to which the activities relate. also been used, particularly in the preparation of Section Five ‘Governance’ and Section Six ‘Financial Statements’. 6 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Scarborough Beach DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 7 1.3 MESSAGE FROM THE CHAIRPERSON New ways of working were quickly established, and our technology and systems adapted to the challenges of working from home. What was especially pleasing was the way in which The Annual Report for 2019-20 tells the story of a colleagues at DevelopmentWA looked out for each remarkable year defined by the challenges of the COVID other and shared the highs and lows of the new pandemic. It is also the first time that DevelopmentWA working environment. provides a consolidated report on its role and contribution The Board is deeply appreciative of the professional and to the Western Australian community. personal challenges faced by staff at DevelopmentWA At the mid-year it seemed likely that our year end narrative during the past few months and is especially grateful for would be principally about our response to difficult trading the commitment and focus shown by all to the job we do on conditions and would provide an outline our progress on behalf of Government. the task of bringing LandCorp and the MRA together to And while COVID-19 took us all on a journey of discovery like form DevelopmentWA. At that time, we were making good no other, it was business as usual behind the scenes. We progress with a range of key projects and were seeing moved swiftly to guarantee our project commitments to some encouraging, if early, signs of economic recovery. Government remained on track. Our workforce had co-located just prior to Christmas, a This 2019-20 report provides a very complete account of new corporate identity had been launched and Government progress and achievements to date including milestones had approved a process for consolidation of the met at Subi East, the East Perth Power Station, Ocean two organisations. Reef Marina, Metronet East, and across the more than Then, from late January the pandemic and its effects 150 state-wide projects which are either in planning or on the global and Australian community increasingly development phase. During the year and notwithstanding dominated the focus of all. Unprecedented public health, the challenges of COVID-19, work on these state-shaping safety and wellbeing measures were implemented. Within projects continued. a few short weeks the pandemic’s consequential effects The report also highlights the appetite the Board has on the economy, business, employment and work practices for innovation in all that we do and celebrates awards were felt by all. and achievements from across the year. It also gives At DevelopmentWA our initial focus was to ensure the appropriate emphasis to the importance we place on safety and wellbeing of the men and women who worked our continuing role with Reconciliation Australia noting for us and to ensure that our roles with our Government the creation of the first DevelopmentWA consolidated and business partners, our tenants, and a very broad range Reconciliation Action Plan. We were assisted in no of community stakeholders adapted to the challenges of small part in this initiative by collaboration with other social distancing and regulated business activity. Government agencies, and the private sector, including many Aboriginal run and managed organisations. 8 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Despite the challenged economic times, DevelopmentWA Looking forward, we are now deeply engaged with has delivered a financial dividend to Government. the responsibilities that attach to the continuing role Performance this year has been anchored this year by DevelopmentWA will play in recovery projects and stimulus a focus on land for jobs through the Industrial Lands initiatives across the state. Authority (ILA), a specialist division operating within In 2020-21 we will continue our work with Government DevelopmentWA. The ILA now operates more than 90 to support initiatives across renewal, residential and projects across WA and in the past year has unlocked 393 industrial programs as we create brilliant places for hectares of land for future development. people to live, work, visit and do business. We look forward I also wish to acknowledge the role Government has played to working with all of our partners to leverage private in retiring legacy debt from the former MRA. The MRA sector investment as the recovery effort from COVID-19 received a total of $78 million in support from Government gains momentum. in 2019-20, comprising $21.3 million in recurrent funding To close, I would like to acknowledge and sincerely thank for the MRA’s regulatory functions and for project our Minister the Hon. Ben Wyatt in his role as Minister for expenditures and