Melbourne’s rapidly growing south east growth corridor

The City of Casey, in Melbourne’s south east,is a modern vibrant and rapidly growing community providing an urban lifestyle with close access to Melbourne’s CBD and major transport routes.

City of Casey is one of the nation’s fastest growing urban areas and has recorded the largest increase in population of any local government area in Victoria.

– Almost 40,700 additional people moved into the municipality between 2001 and 2006 which equates to an average annual population increase of around 4.1 per cent.

– Casey’s current population of 240,000 is forecast to grow strongly with an estimated 96,500 additional people moving into the municipality by 2021 which equates to an average of almost 40 new households settling in Casey every week.

Backed by the Victorian Government’s Melbourne 2030 strategy, the City of Casey will be a key focus for future population growth and development in Melbourne’s south east growth corridor.

A valuable and well located site within a Principal Activity Centre (PAC)

Council has selected a 5.1 hectare site for future development that will enable integration of an extensive range of retail, commercial, cultural, sports and recreation and civic activities.

The site is located within the Fountain Gate Narre Warren Principal Activity Centre (PAC) and is adjacent to the existing Fountain Gate Shopping Centre. The site is approximately 40 kilometres from Melbourne’s CBD.

The site is well positioned in relation to major transport routes (Monash Freeway and Princes Highway)and public transport services including taxi services, bus interchange and passenger rail services (Narre Warren train station).

The site has direct access to an extensive range of retail, business and community services including the Narre Warren community library, sports grounds and the Casey Aquatic and Recreation Centre (Casey ARC).

The site benefits from high levels of visitation from residents and visitors both from within the main trade area and beyond. This serves to enhance the long term viability, performance and competitiveness of future developments on the site.

City of Casey anticipates significant increases in visitation levels reflecting current and future population growth and future retail and mixed use developments within the Narre Warren Fountain Gate Principal Activity Centre.

Preferential Planning through a Priority Development Zone (PDZ)

The State Government has approved the application of a Priority Development Zone (PDZ) to the site and the broader Fountain Gate Narre Warren Principal Activity Centre.

The PDZ allows for development of 25,000 m² of shop retail floor space on the subject site and removes third party rights of objection.

Details of Council’ s planning framework including specific information relating to the PDZ are contained in Part 3 of this Invitation.

Requirement for new civic and community facilities

Casey’s continuing population growth means that Council must prepare to meet the future needs of the community and future generations.

Council has undertaken extensive consultation with the community, its staff and arts and library users to assess and define future requirements for a range of civic and community facilities.

Council recognises a unique opportunity to develop a new integrated Main Street precinct in Narre Warren which will integrate a variety of activities on the site including retail, civic, cultural and artistic and sporting and recreation.

New civic and community facilities are to be delivered through the Casey Main Street development including:

Specific design specifications for all civic and community facilities are contained in Part 3 and Schedule 3 of this Invitation.

The Site

Existing site conditions and activities

Council has selected a 5.1 hectare site for future development that will enable integration of an extensive range of retail, commercial, cultural, sports and recreation and civic activities.

The Site is positioned beside the existing Fountain Gate Shopping Centre,which is one of the largest non-capital city retail destination in Australia, and a diverse mix of current retail tenancies, including Big-W, K-Mart, Homemaker and lifestyle centres.

The Site forms part of a key Council land holding which is currently occupied by a range of municipal and community facilities (including the Casey ARC) and comprises a number of surrounding retail, industrial, mixed use developments and car parking.

The Site is available for development with tenure in the form of a long term lease. Development must incorporate Council’s civic and community facilities detailed in Part 3 and Schedule 3 of this Invitation.

Site assessments

Site measurements, title plans and drawings and relevant supporting materials are attached in Schedule 5 of this Invitation.

A range of supporting site assessments have been prepared including: heritage and archeological, flora and fauna, traffic and parking.

Details of those assessments will be provided upon registration to this Tender Invitation.

Existing facilities arrangements

As Council’s existing offices, library and car parking presently occupy the site, the construction of new civic and community facilities will need to take place before the remainder of the site is developed.

The Successful Tenderer will be required to agree to a coordinated plan with Council to ensure Council’s operations including Casey ARC car parking requirements are able to continue throughout the development process.

A new main street including retail/mixed use development

Council’s vision is for a main street retail and mixed use development which effectively integrates a variety of existing and proposed civic, retail, lifestyle and recreation opportunities in accordance with the Fountain Gate-Narre Warren Structure Plan.

The PDZ applies to the site which allows for up to 25,000m² of shop retail floor space.

It is a requirement of this Tender that the Casey Main Street development must effectively incorporate all civic and community facilities defined in Part 3 and Schedule 3 of this Invitation.

The 5.1 ha site comprises four(4) discrete parcels for development as part of an integrated main street concept. Details of the four separate parcels for development are provided in the following table:

Development & long term lease structure

Council will offer the site for development with a long term lease and requires that development of the site will provide funding for timely development of new civic and community facilities.

Development will be governed by a 5 year development lease which will be superseded by the long term ground lease on completion of the development.

Council will grant to the Successful Tenderer a 50 year ground lease over each developed parcel of the site. The Successful Tenderer may develop the site in discrete parcels or as a whole to an agreed timetable within the 5 year development lease window.

The only prerequisite for the grant of a long term ground lease is the completion of the development in compliance with the development lease and payment of consideration.

The development lease will not be able to be transferred or sublet without the consent of Council.

Should there exist preconditions to development commencing (eg: finalisation of plans to Council’s approval, permits, funding) the Successful Tenderer and the Council will enter into an Agreement to Lease pending satisfaction of those conditions.

Conditions precedent to commencing development and whether development will be staged or completed all at one time must be identified in the Tender Response contained in Schedule 2.

Financial Offers

Council invites tenderers to:

a) provide consideration for the development opportunity in the form of provision of all or part of new civic and community facilities (the details of which are set out in Schedule 3 to be constructed on Council land Parcel B); and

b) develop Parcels A, B, C and D as an integrated, mixed use Main Street precinct.

In return, Council will lease Parcels A and C of the Site and Parcel B depending on the development scheme to the Successful Tenderer for a term of 50 years after development.

Civic & community facilities procurement options

Tenderers may consider a range of potential procurement opportunities to facilitate the design and construction of civic accommodation, including but not limited to:

If a BOOT option is considered, it is anticipated that at the expiry of the term, ownership and operational responsibility for Council Workplace will transfer back to Council in accordance with a predetermined condition index.

Council accommodation during development

Council’s activities presently being undertaken on the Site will need to continue on the Site and with minimal disruption.

Tenderers are required to familiarise themselves with Council’s activities and present accommodation on the Site and satisfactorily address Council’s accommodation requirements during the development process.

This specifically relates to Council’s existing workplace and library.

Access

During construction, access to the Site will be governed by the terms of the Development Lease executed by the successful Tenderer and the Council.

After completion of the Project, access will generally be via Magid Drive and Patrick Northeast Drive, unless otherwise approved by the Council.

Extent of Works

Demolition and services and infrastructure works on or in relation to the Site will be the responsibility of the Successful Tenderer.

Integrating Works

It is anticipated that the Project will require a number of off site works to fully facilitate and integrate the Project as a Main Street development. These works may include, amongst other things, public realm on Patrick Northeast Drive, off site roadworks (including the possibility of a road adjoining the Fountain Gate Shopping Centre) and vehicle and pedestrian access and integration points.

The Successful Tenderer will be responsible for these works which will be specified with more certainty prior to and be incorporated into the Final Document.

Public Transport

The Fountain Gate – Narre Warren CBD Incorporated Plan October 2006 identifies the need for a central bus interchange located in the vicinity of the current facility. It is expected the central bus interchange will continue in its current location for the foreseeable future however with a significant reconfiguration to address amenity and operational issues.

The development proposal will provide a high standard and all weather pedestrian access to the bus interchange through the use of clearly defined and convenient pedestrian linkages, provision of formal pedestrian crossings at key locations, and use of weather protection design solutions such as verandah awnings. Development proposals could also include options that take advantage of the site slope to provide grade separated direct pedestrian linkages to the bus interchange (Subject to agreement with Fountain Gate Shopping Centre as the adjoining property owner).

The development proposal will also need to show how provision is made for access to the Casey Main Street by both Met route bus services and charter services, particularly along Patrick Northeast Drive to reduce the reliance on private motor vehicle usage.

Traffic and Parking Plan

A preliminary traffic plan has been prepared for Council by Traffix Group which provides an initial assessment of the order of magnitude of the parking and traffic implications associated with the conceptual Casey Main Street development.

A detailed traffic plan will be required in accordance with the Priority Development Zone that addresses the parking and traffic generation associated with the development and identifies the mitigating measures to manage the parking on-site and access/egress to the surrounding road network. The Traffic and Parking Plan will need to demonstrate that appropriate parking is provided including the replacement of existing on-site parking associated with the Civic/Library and Casey ARC.

It is expected the parking will be provided in shared public parking facilities incorporated into the development.

The development proposal will need to demonstrate the parking facilities are located and accessible in an efficient, safe and convenient manner taking into account the range of activities and users associated with the Casey Main Street.

A detailed traffic assessment will be required to identify any mitigating measures needed to ensure efficient access/egress from the Casey Main Street to the surrounding arterial network.

The development will need to demonstrate the road network supporting the development accords with the Fountain Gate – Narre Warren CBD Incorporated Plan October 2006; road network provisions. The development proposal will need to demonstrate that streets within the Casey Main Street provide a high level of pedestrian amenity. Patrick Northeast Drive will be required to facilitate through traffic movements whilst the Main Street is expected to operate within low-speed / high pedestrian orientated environment.

The development proposal will need to demonstrate how parking and access for the existing Civic/Library and Casey ARC will be facilitated throughout the construction period.

Car Park Management Plan

Parking for the Casey Main Street is expected to be provided through integrated on-site shared public parking facilities.

A Car Park Management plan will be required to be provided demonstrating how the car parks will be managed to ensure integration of the individual car park facilities and servicing of all of the site activities including retail, Council/civic and the broader precinct demands. The Car Park Management Plan will cover issues such as hours of operation, security, time / use restrictions and operational responsibility.

Legal Documentation & Specific Information relating to Financial Offers

Site to be leased ‘as is where is’

The Council will lease the Site for the purposes of undertaking the Project "as is, where is." The Council makes no warranties or representations regarding, but not limited to, the following:

Tenderers need to make and rely on their own enquiries. The Council will not undertake any remediation works or other works on the Site.

Structure of documentation

The proposed Final Document will be available to short-listed Tenderers from the Council after the Tender assessment stage.

The Final Document will comprise the following:

Stamp duty

All legal documentation provides that the Successful Tenderer, and not the Council, is responsible for all stamp duty (if any) in relation to the Project.

This is not negotiable.

Security of performance during development lease

The legal documents do not provide any specific proposal for additional security for the consideration to be provided to the Council.

The Tender Response requires security (for assurance that the civic and community facilities are delivered) to be specifically addressed and this is also one component of the Evaluation Criteria. Supplementary to this security, the Development Lease has a 5 year tenure only and any extension to the term of the Development Lease requires Council approval.