Planning and Environment Act 1987 GREATER BENDIGO PLANNING SCHEME AMENDMENT C161 – PART 2 EXPLANATORY REPORT Who is the planning authority? This amendment has been prepared by the Greater Bendigo City Council, which is the planning authority for this amendment. Land affected by the amendment The amendment affects land located approximately 500 metres west of the Marong township within proximity to the Calder Highway, Dry Creek, Bullock Creek, Sandhurst/Inglewood Railway Line and Yorkshire Road. The land is currently used for cropping and grazing with an associated rural dwelling and outbuildings. The land affected by the amendment is approximately 311 hectares of land zoned Comprehensive Development Zone – Schedule 3 Marong Business Park Comprehensive Development Plan. It is surrounded on all sides by the Farming Zone. Figure 1: Land affected by the amendment The affected land is: Address Parcel details 20 Yorkshire Road, Wilsons Hill Lot 1 TP215794 104 Carters Lane, Marong Lot 1 TP952938 Lot 2 TP952938 Lot 1 TP119927 CA 87, TP764719 CA 86, TP764719 CA 84, TP308026 CA 86A1, TP589221 CA 83B1, TP589221 CA 83, TP783012 2 unmade government road reserves What the amendment does The amendment applies a Public Acquisition Overlay (PAO) – Schedule 6 to the above described land. The purpose of the Overly is to identify land to be acquired by Greater Bendigo City Council for the future development of the Marong Business Park. Specifically the amendment proposes to: • Apply Schedule 6 to Clause 45.01 (Public Acquisition Overlay) to land at 20 Yorkshire Road, Wilsons Hill and part of 104 Carters Lane, Marong, and 2 unmade government road reserves for the proposed Marong Business Park. • Amend the Schedule to Clause 45.01 (Public Acquisition Overlay) to alter the purpose of acquisition for PAO6 to Proposed Marong Business Park and drainage corridor. Strategic assessment of the amendment Why is the amendment required? Following extensive investigations as part of the Bendigo Future Industrial Land Strategy (2006) and Marong Business Park Analysis Project (2007), the land has been identified as suitable for a strategic employment site that will support the strong industrial growth potential in higher order freight related and manufacturing industries for the Bendigo region. The land is zoned Comprehensive Development Zone Schedule 3 to allow for the use and development of a business park in accordance with the Marong Business Park Comprehensive Development Plan, November 2016 . The Public Acquisition Overlay (PAO6) is required to facilitate the acquisition of the land by the Greater Bendigo City Council for the purpose of the Marong Business Park. Without acquisition the land is unlikely to be developed for industrial and business purposes and is likely to continue to be utilised for agricultural purposes and undeveloped, when there is strong demand for its development in a shorter timeframe. The amendment will have a net community benefit, providing a sound return on community capital after considering economic, social and environmental effects. How does the amendment implement the objectives of planning in Victoria? The amendment achieves the following objectives of planning in Victoria under Section 4(1) of the Planning and Environment Act (1987): ° To provide for the fair, orderly, economic and sustainable use and development of land. ° To provide for a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria ° To protect public utilities and other assets and enable the orderly provision and co- ordination of public utilities and other facilities for the benefit of the community; ° To facilitate development in accordance with the objectives for planning in Victoria. ° To balance the present and future interests of all Victorians; ° To provide for compensation when land is set aside for public purposes and in other circumstances The amendment meets these objectives by identifying and reserving land with a Public Acquisition Overlay for the purposes of the Marong Business Park. The amendment will facilitate 30 years of industrial land supply for the municipality and provide significant economic benefits to the region. The amendment balances the present and future interests of all Victorians on the basis that the site will deliver 30 years industrial land supply and associated employment opportunities, and supports economic growth in the region, while minimising detrimental social and environmental impacts. The amendment is supported by the Loddon Mallee South Regional Growth Plan (2014) . The affected landowners will be properly compensated in accordance with the requirements of the Planning and Environment Act 1987 and Land Acquisition and Compensation Act 1986 . How does the amendment address any environmental, social and economic effects? The amendment will allow for the compulsory acquisition of land for the development of the Marong Business Park. This will create positive long term social and economic effects for Greater Bendigo and the wider Loddon Mallee South region in providing greater opportunities for business and employment. It will allow Council to increase economic development for the benefit of the community. Social Effects While the amendment will have an impact on the current landowners, this must be balanced against the broader social benefits for Greater Bendigo and the Loddon Mallee South region. The application of the PAO will enable Council to purchase the land. Council will then facilitate the development of the Marong Business Park, which will provide for industrial land to meet the forecast demand over the next 30 years, to accommodate a potential 3,270 jobs within the industrial and service sectors. The Proposed Marong Business Park Socio- Economic Impact Assessment (July 2012) found that the provision of the required land supply in a business park environment would also create an extra 359 jobs over and above the forecast 3,270 for the period up to 2041. The amendment will deliver a net community benefit on the basis of creation of skills and skill retention, creation of business opportunities and business retention and human capital uplift. The development of the business park is likely to stimulate investment in Marong township, effectively bringing forward investments in community infrastructure. Economic Specialist reports on industrial land supply and demand and socio-economic impacts have been prepared to address the economic impacts of the amendment. A Review of Demand and Supply for Industrial Land in Greater Bendigo (February 2012) prepared identifies that that there is strong industrial growth potential for the Greater Bendigo region. The report forecast that by 2041, Greater Bendigo could have: • about 3,270 additional industrial jobs, the majority of which will be in manufacturing or service industries; and • anywhere between 460,000 and 620,000 sqm of additional industrial floor space occupying between 135 and 243 hectares of industrial land. The report states that a high proportion of land demand is projected to come from freight orientated industries. These industries tend to have large land requirements ranging from 20,000 sqm to 40,000 sqm on average. The projected demand for industrial land in Greater Bendigo comprises Manufacturing (42%), Freight (30%), Service Industry (19%) and Utilities (9%). There is currently approximately 10 years supply of available industrial land within the municipality. That is, land that is zoned and is serviced or readily able to be serviced with utilities. However there is a range of both supply and demand side issues that affect the provision of industrial land. There is a perception that there is an adequate supply of lots exceeding 2,000 sqm, though typically many of these lots are constrained by lack of suitable infrastructure, the need for buffers from residential areas, and planning controls. The report also indicated that there was a strong demand for, but a shortage of small, flexible lots (around 500 sqm). As a result of this shortage owners of industrial land are able to demand higher lease payments and attach difficult and potentially restrictive leasing conditions. Other identified supply side issues related to the difficulty of consolidating or expanding operations on existing sites, whether because of zoning controls or through individual site capacity. While consultation undertaken as part of the review noted low demand for large footprint sites and strong demand for smaller parcels, the review also detailed a number of trends which also influence demand for industrial land. There is a trend toward larger floor area per employee. Intensification of land and ability to expand are also factors which influence demand for larger lots. The report concluded that “there should be a supply of zoned, developable and readily serviced land at least sufficient to meet the highest level of estimated demand under the Base Case, that is, 243 ha over 30 years.” The amendment will provide approximately 235 hectares of net developable land, which will generally meet the demand for industrial development within the City of Greater Bendigo for the next 30 years. The Proposed Marong Business Park Socio-Economic Impact Assessment (July 2012) compared a business as usual scenario vs. the alternative scenario, being the development of the business park, concluding that up to 16 construction jobs will be created and supported by development of the business park, leading to uplift in Victorian Gross State