East Shore Geelong project

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A TRANSFORMATIONAL PLAN – A MAJOR ECONOMIC STIMULUS AND JOBS CREATOR FOR GEELONG WITH “ZERO” COST TO GOVERNMENT.

Application for a grant of crown land MAY 2012 | version 1.0

“ Elms Partners Limited has developed what we call a “Transformational Plan” for the City of Geelong, a plan that contributes socially, economically and environmentally to the City.

In order to commence detailed analysis and planning work required to give effect to the “Transformational Plan”, the City of Greater Geelong has asked Elms Partners to assist with the preparation of this application for the grant of a small slice of Crown Land to be excised from the Eastern Gardens water front edge in Geelong. “

Lawrence Elms

Chairman and founder, Elms Partners

INTRODUCTION

This rare universal support has been achieved because the basis of the Transformational Plan creates an outstanding, fully funded, community benefit that includes;

• A world-class arena with convention and exhibition facilities,

• Substantial improvements and beautification of the Eastern Gardens,

• A hotel and serviced apartments, together with the generality of the plan to underpin and support increased Geelong and regional tourism,

• A highly desirable water front lifestyle precinct, including an increased number of marina berths that capitalizes on Geelong’s northerly facing Corio Bay frontage, and

• An express water taxi service that connects Geelong to Avalon, Melbourne and Frankston.

In combination, the sum of all the component parts of the Transformational Plan contributes to the economic, environmental and social sustainability of Geelong and the Region.

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EXECUTIVE SUMMARY

The Transformational Plan has been developed with the objective of substantially contributing to Geelong’s economic prosperity and desirability through the catalyst of a comprehensive development thesis, the sum of which will transform Geelong and the wider Bellarine by including;

01:: Financial structuring, strategy and detailed analysis that integrates with the optimum master plan, and defines a complete build programme achievable at no cost to the public purse.

– A world class cultural and business landmark – the East Shore Centre to be retained as public property with an estimated net surplus in excess of $7.5 million per annum.

– Significantly enhanced public spaces including a privately owned and operated world- class hotel and serviced apartments,

– Privately owned shoreline residential apartments constructed on piers extending into the shallow water of Corio Bay

02:: Employment and flow-on business creation within the development project that ensures economically sustainable development.

03:: Differentiation of Geelong’s distinct character from Melbourne as a welcome lifestyle alternative.

04:: Iconic architecture that positions Geelong as a desirable destination in which to work|play|stay|live. G

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ECONOMIC BENEFITS

High level analysis of the economic impact focuses on the macroeconomic, flow-on effects of introducing more income into the local economy from external sources. Internal regional cash flows into the project (endogenous) are a substitution of local spending from one locus to another.

However, increased external (exogenous) spend will add to the pool of local wealth.

The Impact of Construction

· The total project cost is currently estimated at A$725,000,000

· The estimated number of jobs created during the construction phase is 830 of which 500 are local

· The estimated number of jobs created during the operational phase is direct employment 550 and indirect employment 800

· Over the construction period of approximately four years, we estimate the direct injection of funds into the economy from external sources to be roughly A$450,000,000.

· The estimated annual economic impact during the operational phase is $86,600,000

ACHIEVING THE TRANSFORMATIONAL PLAN WITHOUT NET GOVERNMENT INVESTMENT OF ANY KIND IS CENTRAL TO THE STRATEGY.

We intend to uncover the value inherent in the site to attract private investment on a scale that will pay for the entire development including the landmark East Shore Centre.

The East Shore Centre and all of its economic and social benefits will be a gift to the people of Geelong, and in addition they will have access to an exciting and vital new hub for the city.

Our plan includes landscaping the shoreline park areas, and providing a promenade that houses vibrant cafes, bars, and restaurants. This too will become a major asset to the city at no cost to the ratepayer.

COMMUNITY BENEFITS

01:: Transformation of the waterfront adding a vibrant new dimension to the city’s character.

– State of the art infrastructure with an emphasis on a waterfront lifestyle and leisure precinct to match the best in the world.

– Public parks devised around the principals of genius loci, including public space features, sculptures and art.

02:: An iconic venue to host entertainment, business and education events.

03:: A “zero” cost to government on the basis of our plan and yet it is a major economic stimulus and jobs creator.

04:: An increased sense of city pride.

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VISITOR BENEFITS

01:: Contemporary landmarks and World-Class Hotel

02:: Positive change in perceptions of Geelong

03:: Greater visibility of investment opportunities in Geelong

04:: More reasons to visit and stay in Geelong

05:: A greater experience in Geelong

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SURPLUS TO GOVERNMENT

01: The transformation of Crown Land achieving the required development approvals based on a coherent master plan creates land value conservatively estimated at $120,000,000 and as high as $140,000,000.

02:: We propose the realized value of the master planned buildable area will be invested in the necessary infrastructure, public place making, recreational facilities and the capital costs of The East Shore Event Centre.

03:: The East Shore Centre managed and operated efficiently will deliver an ongoing positive cash flow to the City. The significant residential and commercial components will also increase rate revenues to the City, however this plan does not assume or rely on any net increase in rate revenues.

Further development potential outside the water front precinct envisaged by the Transformational Plan could also be realised through capital raising financed by cash flow from the East Shore Centre.

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THE GEELONG OPPORTUNITY :: LOCAL CONTEXT

Positioning Geelong as a waterfront lifestyle destination and events centre gives definable purpose to the downstream master plan ideas we have generated.

Elms Partners objectives are based on some key principals;

01:: Activating the Geelong waterfront to create an unmatched, purpose designed, culture and lifestyle precinct in Australia.

02:: Giving emphasis to the parkland by activating its edge and definition.

03:: Creating a place making architectural statement for the East Shore Events Centre.

04:: Aid the City’s efforts in attracting inward investment and further development.

05:: Creating a boulevard, anchored by the East Shore Events Centre and creating a vibrant retail and entertainment strip.

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