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Canberra Outlet Centre Planning Report

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Canberra Outlet Centre Planning Report Canberra Outlet Centre Planning Report Client: Balmain Asset Management Date: 5 May 2016 Contact: Roz Chivers [email protected] (02) 6274 3302 Canberra Phone: 02 6274 3300 Fax: 02 6274 3333 25 Lennox Crossing Acton ACT 2601 www.elton.com.au [email protected] Sydney | Canberra | Darwin ABN 56 003 853 101 Prepared by Roz Chivers Reviewed by Matt Meyer, Rob Taylor Date 5 May 2016 Document name Planning Report Version 3 Contents 1 EXECUTIVE SUMMARY 6 PART B –DESCRIPTION OF THE PROPOSED PLAN VARIATION 8 2 BACKGROUND 9 2.1 The proponent 9 2.2 Location 9 3 THE PROPOSED TERRITORY PLAN VARIATION 14 3.1 Current and proposed land tenure arrangements 14 3.2 The intended development 15 3.3 The form of the required variation 18 PART C - JUSTIFICATION OF THE PROPOSED PLANNING POLICY CHANGE 19 4 NEED FOR THE PROPOSED POLICY CHANGE 20 4.1 Objectives of the proposed plan variation. 20 4.2 Current viability of the Canberra Outlet Centre 21 4.3 Development trends in Outlet Centres across Australia 21 4.4 Evolution of Fyshwick 22 4.4.1 Change in use of floorspace 22 4.4.2 Employment Growth 24 4.6 Estimated catchment 30 4.8 Light rail 32 4.9 Demand for alternate uses permitted under existing zone 33 4.10 Alternate sites 35 4.11 Other potential uses of the site 35 PART D – STRATEGIC PLANNING POLICY CONTEXT 38 5 STRATEGIC PLANNING POLICY CONTEXT 39 5.1 The Territory Plan 39 5.1.1 The Statement of Strategic Direction 39 5.1.2 IZ2 Industrial Mixed Use Land Use Zone 46 5.1.3 Fyshwick Precinct Map and Code 48 5.1.4 Overlay Zone: MAAR - Main Avenues and Approach Routes 49 5.1.5 Commercial Zone Development Code 49 PART E – PRELIMINARY CONSULTATION 53 6 CONSULTATION SUMMARY 54 6.1 Consultation process 54 6.2 Staged approach 54 6.2.1 Market research 54 6.2.2 Community Information Sessions 55 6.2.3 Correspondence 55 6.3 Outcomes of consultations 55 6.3.1 Market research outcomes 55 6.4 Community Information Sessions 63 6.5 Correspondence 66 6.6 Findings of the Consultation 66 PART F – POTENTIAL IMPACTS 67 7 PHYSICAL FEATURES, INFRASTRUCTURE AND BUILT FORM IMPACTS 68 7.1 Typography 68 7.2 Soils and geology 68 7.3 Hydrology 69 7.4 Physical Infrastructure 69 7.4.1 Traffic 69 7.4.2 Parking 70 7.4.3 Public Transport 71 7.4.4 Utilities 71 7.5 Hazards 71 7.6 Built Form 72 7.7 Amenity of the area 72 8 NATURAL FEATURES AND VALUES 73 8.1 Ecological values 73 9 SOCIAL AND CULTURAL CONTEXT 74 9.1 Communities of interest 74 9.2 Impact on social infrastructure 74 9.3 Cultural and Heritage Environment 74 9.4 Economic environment 74 10 NET COMMUNITY BENEFIT AND OPPORTUNITY COSTS 77 APPENDICES A Community Information Session Advertisements 80 B Community Information Session Posters 81 C Correspondence to Canberra Business Chamber 83 FIGURES Figure 1 Location map for the Canberra Outlet Centre showing surrounding major arterial routes 10 Figure 2 Detailed map of the location of the Canberra Outlet Centre 11 Figure 3 Aerial photograph of the Canberra Outlet Centre highlighting adjacent developments and surrounding undeveloped land. 12 Figure 4 The Symonston-Jerrabomberra Valley part of the Eastern Broadacre area. 13 Figure 5 Current floor plan for the Canberra Outlet Centre. 16 Figure 6 Proposed floor plan for the homemaker hub demonstrating location of the supermarket 17 Figure 7 Worker Trade Area surrounding the Canberra Outlet Centre 25 Figure 8 Eastern Broadacre Study Area Map 27 Figure 9 Bus stop immediately outside of the Canberra Outlet Centre 32 Figure 10 Light Rail Corridors Draft Network showing proposed Park and Ride near Canberra Outlet Centre 33 Figure 11 Zoning of Fyshwick 46 Figure 12 Fyshwick Precinct Map 48 Figure 13 Typography of site prior to development 69 Figure 14 Canberra Outlet Centre car park 1.30pm Friday 27/6/14 71 TABLES Table 1 Amount and Use of Floorspace in Fyshwick and South Canberra 2011 23 Table 2 Employment distribution in Canberra 1981-2006 24 Table 3 Canberra Outlet Centre Worker Trade Area- worker population profile 2011 26 Table 4 Canberra Outlet Centre - estimated total additional employment levels 28 Table 5 Floorspace (m2) by district in Canberra September 2011 compared to population size. 29 Table 6 South Canberra Population Projections 2001-2021 30 Table 7 Location of supermarkets near Fyshwick 30 Table 8 Canberra Outlet Centre- Supermarket estimated sales potential 31 Table 9 Current IZ2 land being marketed by the Land Development Agency 34 Table 10 Industrial land release by industrial area (site in m2) 34 Table 11 Permitted uses and compatibility with the existing development 37 Table 12 Consistency with the Statement of Strategic Direction 46 Table 13 Zone specific controls area RC2 industrial mixed use zone 48 Table 14 Canberra Outlet Centre - supermarket impact analysis 2016/17* 76 1 Executive Summary Block 8 Section 48 Fyshwick (337 Canberra Avenue Fyshwick) was sold by the ACT Government by restricted auction in December 2005 for one or more of the following purposes: (i) Bulky Goods Retailing; (ii) Non Retail Commercial Use; (iii) Restaurant; and (iv) Shop. A Direct Factory Outlet (DFO) and Homemaker Hub opened for trading on the site in 2008 boasting space for 100 fashion stores, 24 homemaker stores and approximately 1800 car spaces. Since its earliest days of trading DFO has been in direct competition with the Capital Airport Groups Brand Depot which closed in 2011 after struggling to find and retain tenants. Majura Park has since opened in place of Brand Depot and has been and is continuing to entice tenants and shoppers away from DFO and the Homemaker Hub. As a result DFO was placed in receivership in March 2012. The vacancy rate is expected to increase sharply in the near future as a result of the significant number of tenancies (14,118m2) either on holdover or with leases maturing in the next six to 12 months, the incentives being offered by the Canberra Airport Group, and the desire of many of the homemaker tenants to relocate to be closer to IKEA and located in a more traditional homemaker centre environment. Over 30% of the Centre’s tenancies are at risk, with the bulk refusing to recommit to the Centre without a clear strategy to underpin the Centre’s attraction. The financial viability of the Centre would suffer further with additional store closures and loss of employment the clear flow on effects. The Centre currently provides employment (permanent and casual) for around 850 people (tenants and centre management staff) and approximately 100 contractors. Additional store closures may mean that it is no longer financially viable to keep the entire Centre open. If the Centre was to close it would send a negative message to the business and broader community about the strength of the ACT economy, and also potentially result in a derelict building on a major avenue and approach route in Canberra. To avoid this outcome, the Asset Manager on behalf of the Receiver, wishes to reposition the asset. As the building is of a high quality and less than ten years old assessments of potential uses of the existing building have been undertaken. The result of these assessments is that there is limited capacity for uses other than retail, leisure or entertainment. Consequently it is proposed to incorporate into the existing building envelope a small supermarket (1000m2) to underpin the future financial viability of the Centre and increase employment within the Centre. However, Block 8 Section 48 falls within the RC2 area on the Fyshwick Precinct Map (IZ2 Mixed Use Industrial Land Use Zone) which restricts the maximum gross floor area of a supermarket to 200m2. Without the removal of this restriction the inclusion of a supermarket will not be feasible as a 200m2 supermarket is not sustainable and would not assist in tenant retention and attraction. Balmain Asset Management on behalf of Direct Factory Outlets Pty Ltd (Receivers & Managers appointed) is therefore seeking a site specific Territory Plan variation. The variation will make Canberra Outlet Centre a multi-purpose shopping destination – discount outlet, homemaker component and supermarket & fresh food – providing significant community benefits including 6 Canberra Outlet Centre Elton Consulting » Additional and sustained employment of over 50 people directly employed by the supermarket and an additional 50 people employed indirectly as a result of the supplier induced multiplier effect (100 jobs created) » Greatly improving the range of retail facilities including fresh food and groceries available for the 12,700 plus strong Fyshwick workforce, shoppers and the growing population in South Canberra. » Improving the underutilised floorspace at the Canberra Outlet Centre » Facilitating Fyshwick growth as a retail destination and attracting shoppers from outside of the ACT – the Outlet component is the only discount retail outlet between Essendon in Melbourne and Homebush in Sydney » Supporting the range of community facilities currently on offer at the Canberra Outlet Centre and facilitating the establishment of other community facilities e.g. child care, indoor recreation facility » Enhancing the ongoing financial viability of the Centre, ensuring that the standard of the building is maintained » Increasing the attractiveness of land on the land release program in Fyshwick and Symonston by improving convenience for employees and employers » Improving lease negotiations and most importantly tenant retention and attracting new tenants, based on increased sales rate per sqm and attracts retailers that like to be in centres that have supermarkets » Improves the ability to hold shoppers already at Canberra Outlet Centre (over 4.2 million visitors per year) The repositioning of the Centre may also involve the inclusion of a Park and Ride facility for 100 cars and a Bike and Ride facility in the basement car park.
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