Agenda of Parks and Recreation Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Parks and Recreation Committee Meeting

Page 17

11/6/2020

REPORT TITLE: kunanyi / Mount Wellington - Halls Saddle Visitor Hub - Feasibility Study - Update

REPORT PROVIDED BY: Program Leader Bushland Recreation

Manager Bushland

Director City Amenity

Report Purpose and Community Benefit

1.1. This report presents the findings of investigations into the establishment of a visitor hub at Halls Saddle to provide gateway access to kunanyi / Mount Wellington.

2. Report Summary

2.1. A high quality and easily accessible 'front door' required for the mountain has been deemed feasible at Halls Saddle that would improve the visitor experience of the City's greatest natural asset.

2.2. Improving access to kunanyi / Mount Wellington is an issue of State importance.

Prior to COVID-19, growing visitor numbers had put aging visitor facilities at key locations under intense pressure at peak times. Consequently local and tourism needs are not being adequately serviced.

2.3. The short term implications of COVID-19 for tourism visitation are dramatic and unprecedented.

Medium and longer term outcomes are unknown at this stage, however it remains reasonable to assume that over time visitor numbers will recover to growth projections prior to the COVID-19 outbreak.

2.4. In September 2019, the Council endorsed redirecting its efforts away from The Springs to investigate the Halls Saddle site’s feasibility and potential for servicing visitor access to the mountain.

2.5. The investigation work, detailed in the kunanyi / Mount Wellington Halls Saddle Visitor Hub Feasibility Study (Refer Attachment A) has found the site is viable as the primary visitor gateway to the mountain and to accommodate the main required functions for a visitor gateway including approximately 285 car parks, a bus interchange and a visitor centre.

2.6. The concept plans provided are generally in conformity with the requirements of the planning scheme with no notable impediments identified in providing the necessary infrastructure and services.

2.7. Should the Council resolve to develop a Halls Saddle Visitor Hub, funding in the order of $5.7M will be required.

2.8. Given the Council’s financial constraints, external funding opportunities should be pursued.

The Government COVID-19 economic stimulus programs could potentially fund the project with the concept at a stage it could be accelerated to shovel relatively quickly (subject to all relevant approvals) and deliver a much needed community asset that will generate jobs, growth and value in the economic recovery phase.

3. Recommendation

That:

1. The kunanyi / Mount Wellington Halls Saddle Visitor Hub Feasibility Study, marked as Attachment A to the report, be received and noted.

2. The Study be used as the basis for further development of the proposal for Halls Saddle to become the primary gateway entrance for access to kunanyi / Mount Wellington and the City’s recreational tracks and trails in that area.

3. The next project phase be progressed and include:

(i) Design development to enable the City to pursue external funding opportunities.

(ii) Engagement with stakeholders and the community to inform design development.

(iii) Further development of the business model and planning for the proposal.

4. A further report be provided to the Council on the findings of the above, at the appropriate time.

4. Background

4.1. kunanyi / Mount Wellington is Tasmania’s third most visited tourist attraction and most visited natural attraction.

The mountain currently attracts 500,000 visitors per year and within ten years visitation to the mountain was projected to grow up to 700,000 visitors per year.

4.2. kunanyi / Mount Wellington requires a high quality and easily accessible ‘front door’ for people wishing to explore the mountain’s forests, walking tracks and mountain bike trails.

4.3. Over the last two years the City has investigated the establishment of a new publicly funded visitor hub at The Springs.

However, whilst a visitor hub at The Springs would be a feasible and a major attraction, the site itself (and Pinnacle Road) has limited capacity to cope with projected traffic volumes and parking.

4.4. On 23 September 2019, the Council endorsed investigating an alternative site at Halls Saddle to establish its potential role as the primary road-based gateway entrance facility for servicing visitor access to the mountain. (Refer Attachment B for the Preliminary Assessment report of July 2019 previously provided to the Council)

That: 1. The Springs Visitor Centre Concept as developed to date, not be progressed.

2. Comprehensive assessment and feasibility assessment be undertaken into the Halls Saddle site to establish its potential role as the primary road-based gateway entrance facility for servicing visitor access to the mountain.

3. This work to involve:

(i) Concept development – including confirming required site functions and feasibility assessment.

(ii) Site master planning to ensure any required functions can fit within the site.

(iii) A transport / access analysis – including the site’s potential role in providing for a regular mountain bus service.

(iv) Determination of infrastructure and services requirements at the site.

(v) Compliance with planning scheme, including bushfire risk requirements.

(vi) Preparation of a high level assessment of the financial investment required to develop the Halls Saddle site as proposed.

(vii) The identification of potential grant funding and other external funding opportunities that could provide the investment required to develop the Halls Saddle site.

Halls Saddle site from the Organ Pipes (yellow circle)

4.5. The investigation work, detailed in the kunanyi / Mount Wellington Halls Saddle Visitor Hub Feasibility Study (Refer Attachment A) has found the site is viable as the primary visitor gateway to the mountain and to accommodate the main required functions for a visitor gateway including approximately 285 car parks, a bus interchange and a range of other visitor facilities.

4.6. The Feasibility Study involved:

4.6.1. Concept development;

4.6.2. Site master planning;

4.6.3. A transport/access analysis including consideration of the site’s potential role in providing for a regular mountain bus service;

4.6.4. Determination of infrastructure and services requirements;

4.6.5. Compliance with planning scheme, including bushfire risk requirements; and

4.6.6. High level cost estimates.

Indicative map

4.7. The findings in relation to each element of the September 2019 Council resolution are summarised below.

Concept Development

4.8. The vision for the site is captured on page 5 of the Feasibility Study.

As the primary visitor gateway to the mountain the Halls Saddle visitor hub can be

"the starting point to experience kunanyi/Mt Wellington – to see it, to get to know what it offers and to deepen your understanding of its mystery and magic.

The whole site is dedicated to delivering this experience."

Render of the proposed visitor centre development (page 20 of Study).

Site Master Planning

4.9. The concept plan is portrayed on page 18 of the Study. The former quarry site can accommodate the main required functions for a visitor gateway including approximately 285 car parks, a bus interchange and visitor facilities.

4.10. The concept elements include car park / interchange, café, visitor information, mountain bike entry node facilities, toilets / showers, lookout and space / services for commercial providers (i.e. bike hire).

Transport / Access Analysis

4.11. Engineering firm GHD undertook a transport and access analysis to ensure sufficient patrons can access the proposed hub at Halls Saddle including car parking, bus interchange, circulation requirements and ancillary services.

A summary of the review is on page 9 of the Study, with the full GHD report on pages 27-47.

The Halls Saddle site can deal with the identified transport issues.

“The proposed concept provides approximately 285 car parking spaces at the Halls Saddle site.

This would be sufficient for the majority of the year, with additional measures for meeting the Saturday demand during January requiring consideration” (page 9 of Study).

4.12. A parking accumulation model was developed to test the site's potential role in providing for a regular mountain bus service.

“The Halls Saddle site is seen as an opportunity to transform transport and access for kunanyi / Mount Wellington.

The primary purpose of the site is to provide car parking and an interchange for shuttle services with the opportunity to provide additional features such as a café, visitor centre, toilet and shower facilities and connections for walking and cycling.”

“The proposal is not anticipated to generate additional traffic to the area but to instead redirect existing traffic heading to kunanyi / Mount Wellington and to advocate mode shift to minimise demand on Pinnacle Road”

4.13. The investigations (visitor projections and parking accumulation model) have found that a system with a mix of transport modes could be introduced in stages as visitor numbers grow and improved services come on-line.

Infrastructure and Services Requirements

4.14. Engineering firm Gandy and Roberts completed a high level assessment of the site’s latent conditions / suitability for creation of level areas and foundations for any proposed buildings and car park needs.

JMG completed a similar assessment for the required services including water, sewer and power provision.

4.15. No impediments were identified (see page 10 of the Study for a summary of the review).

Mains water and power supply already run through the site and an on-site sewerage system (Septic/ AWTS Sewer) is recommended as the most practical and economical option.

Compliance with Planning Scheme

4.16. Statutory planning consultants Emma Riley and Associates (ERA) advise that the proposal and concept plans are generally in conformity with the requirements of the planning scheme (a summary of the review is on page 11 of the Study).

4.17. The key considerations to obtain planning approval under the Hobart Interim Planning Scheme 2015 for the Visitor Centre will be to minimise impacts on natural values (the site is a highly disturbed former quarry site), minimise impact on landscape values and maintain the enclosed natural and almost total screening of any buildings from Huon Road.

4.18. Regarding bushfire risk requirements, the ERA report notes the building be built to BAL 29 and the extent of the hazard managed area located on the edge of the cleared quarry is portrayed on the site masterplan (page 18 of the Study – shaded area surrounding the visitor centre building).

Potential Cost

4.19. Cost estimates for the buildings and infrastructure necessary to support the proposed visitor facility have been prepared by quantity surveyors Matrix Management Group with all appropriate limitations identified.

4.20. A high level estimate in the order of $5.7M (excl. GST) has been identified and include the cost for capital works associated with:

· Infrastructure services (i.e. potable water, sewage, power);

· Building construction & internal fit out (i.e. hospitality, amenities);

· Soft and hard landscaping;

· Vehicle movement (i.e. roads, car parking, bus set downs);

· Pedestrian and cycle movement (i.e. paths, track connections, trail heads).

Funding Sources

4.21. The proposal could leverage significant broader economic benefits to Hobart and the State (i.e. contribution to tourism economy, local businesses, and the recreational / health benefits).

Post COVID-19 nature-based tourism including mountain biking could play a significant role in the economic recovery of our City and region.

4.22. Potential grant funding and other external funding opportunities that could provide the investment required to develop the Halls Saddle site have been considered.

4.23. However in light of COVID-19, the Tasmanian and Australian Government COVID-19 economic stimulus programs are more likely.

4.24. The Halls Saddle Visitor Hub could accelerate its development to shovel ready very quickly and deliver a much needed community asset that will generate jobs, growth and value in the economic recovery phase.

4.25. There are also opportunities for third party investments in infrastructure elements (i.e. rentable space).

5. Proposal and Implementation

5.1. This report seeks the Council's endorsement to enact the next stage of the project and further develop the concept for a visitor gateway for the mountain located at the Halls Saddle site.

5.2. The next stage of work will:

5.2.1. Inform the Council of key stakeholders (and the community’s) view on the role the site can play in solving transport issues and servicing visitor access to the mountain.

5.2.2. Further develop planning and approvals to a shovel ready point, and position the City to be able to capitalise on any available Government economic stimulus programs.

5.2.3. Progress a cost effective solution to longer term mountain visitation pressures while tourism numbers are impacted by COVID-19.

5.3. The next project phase be enacted to include:

5.3.1. Progress design of the concept to enable the Council to pursue external funding opportunities.

5.3.2. Engagement with stakeholders and the community to help inform design development.

5.3.3. Further development of the business model and planning for the proposal.

6. Strategic Planning and Policy Considerations

6.1. The 2018 City of Hobart community vision recognises the Mountain as key to Hobart's sense of place, culture and economy. Improving visitor access to the Mountain helps deliver the City’s vision.

6.2. The Wellington Park Management Trust is currently developing a Visitor and Recreation Strategy for Wellington Park. Improving access to kunanyi / Mount Wellington is a crucial issue to address.

6.3. A decentralised model of mountain visitation would see a number of key access hubs including Halls Saddle (primary), Fern Tree Park (just renovated), The Springs, Big Bend and the summit.

6.4. These key access hubs along with the extensive network of walking and mountain bike tracks would enable local, national or international visitors to access powerful nature experiences on the mountain.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Project development -

There is an existing allocation of $43,000 within the City's operating budget which could be used to further project investigations (i.e. schematic design, other works necessary to prepare for a development application).

7.2. Impact on Future Years’ Financial Result

7.2.1. Should the Council resolve to build a Halls Saddle Visitor Hub, funding in the order of $5.7M will be required.

7.2.2. At present there is no capital allocation for this project in the City's 10-Year Capital Works Program.

7.2.3. A concerted campaign to secure funding for the project could be pursued.

7.2.4. Commercial components (i.e. a café) could potentially support the development and provision of public / tourist services via annual lease payments.

7.2.5. Alternative options to the City funding in full the built infrastructure may be available (i.e. potential concessions to a long term lessee who may be able to fully or partially fund the build). Any such exploration / investigation would be the subject of future reports to the Council.

7.3. Asset Related Implications

7.3.1. Should the Halls Saddle development eventuate, it would be a new asset and incur new ongoing maintenance costs. The proposed operating model (leases etc) would need to be designed to cover this.

7.3.2. The extent, quality and level of service at the mountain’s key entry points require significant upgrade to meet the high and projected growing mountain visitation.

8. Legal, Risk and Legislative Considerations

8.1. A development at Halls Saddle would require planning approval under the Hobart Interim Planning Scheme 2015.

External preliminary opinion is that the concept plans are generally in conformity with the requirements of the planning scheme.

8.2. The site is outside Wellington Park and therefore there are no permits or approvals required from the Wellington Park Management Trust.

9. Environmental Considerations

9.1. The site is a highly disturbed former quarry and is zoned environmental management.

Environmental impacts influenced the development of the site concept and, if a development application were to proceed, further development and any associated environmental impacts would be subject to the statutory planning process.

10. Marketing and Media

10.1. Considering the public interest in the mountain, it will be necessary to implement communications measures to advise the public, key stakeholders and interested parties of the process being undertaken.

11. Community and Stakeholder Engagement

11.1. The investigation to this point has been preliminary and aimed to determine the feasibility and potential scope for visitor facilities at the Halls Saddle location.

11.2. The City of Hobart has a well-established community consultation process which can be initiated once the Council determines if the proposal is worthy of further work at this point in time.

12. Delegation

12.1. This matter is delegated to the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Greg Milne

Program Leader Bushland Recreation

John Fisher

Manager Bushland

Glenn Doyle

Director City Amenity

Date: 4 June 2020

File Reference: F20/28567

Attachment a: Halls Saddle Visitor Hub Feasibility Study - March 2020 ⇩

Attachment b: Halls Saddle Preliminary Assessment - July 2019 ⇩

Item No. 6.1

Agenda (Open Portion)

Parks and Recreation Committee Meeting - 11/6/2020

Page 71

ATTACHMENT a

Item No. 6.3

Agenda (Open Portion)

Parks and Recreation Committee Meeting

Page 97

11/6/2020

REPORT TITLE: Sandy Bay Sailing Club - Request for Extension of Lease

REPORT PROVIDED BY: Parks Projects Officer

Manager Parks and Recreation

Director City Amenity

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to consider a request from Sandy Bay Sailing Club to formalise for a further 10 year extension and another 10 year option to their current lease agreement of the Sandy Bay Sailing Club, Long Point Road, Sandy Bay.

2. Report Summary

2.1. A request has been received from Sandy Bay Sailing Club from its current expiry in 2031 for a further 10 years and with another 10 year option.

2.2. The reason for the extension is to provide the club with certainty for its ongoing operations and confidence to proceed with the approved masterplan development for the Club, specifically to construct a new boat storage facility which will improve both site facilities and OH&S issues.

2.3. The Council previously approved in 2018 an extension of the lease footprint of the Club to accommodate its redevelopment.

2.4. The request is supported.

3. Recommendation

That:

1. A lease to the Sandy Bay Sailing Club over the Sandy Bay Sailing Club, Long Point Road, Sandy Bay for a period of ten (10) years with an option of a further (10) years, from the expiry of their current lease in 2031, be approved, subject to no objections being received during the statutory community engagement process required under Section 178 and 179 of the Local Government Act 1993.

(i) Should any objections be received during the community engagement period, a further report will be provided to the Council.

2. The leased area be provided at a nominal annual rent ($50 per annum).

3. The General Manager be authorised to finalise the terms and conditions of the lease.

4. In accordance with the Council Policy Grants and Benefits Disclosure the benefit recognised to the Sandy Bay Sailing Club by way of reduced rental as part of the new lease be disclosed in the City’s Annual Report.

4. Background

4.1. In 2010, the Council approved a 10 year lease with two option periods for a further 10 years and one year over the Sandy Bay Sailing Club, Long Point Road Sandy Bay extending the property under lease until 2031.

4.2. The Council, at its meeting 23 July 2018 granted approval for an extension of the lease footprint of the Sandy Bay Sailing Club to enable it to accommodate proposed development works in accordance with it approved master plan.

Indication of lease footprint

4.3. The Sandy Bay Sailing Club has experienced growth over the past five years due to a changing program and coaching structures with membership doubling during this period currently just over 300.

4.4. Recent upgrades at the Club have been undertaken with assistance from a State Government grant and Origin Energy that has included renovation of the kitchen, a doubling of the size of the girls changeroom area and addressing several OH&S issues.

4.5. The immediate lease period extension request has followed the granting of a planning permit for a new boat storage and has been developed to improve both site facilities and safety.

4.6. The extension request is sought to provide certainty to the Club given their significant capital investment to the site.

5. Proposal and Implementation

5.1. Should the Council approve the recommendation, the following will need to occur for implementation:

5.1.1. Pursuant to Sections 178 and 179 of the Local Government Act 1993, community engagement be undertaken.

5.1.2. Upon conclusion of the community engagement process:

5.1.2.1. Should no objections be received, the General Manager be authorised to finalise the terms and conditions of the lease; or alternatively

5.1.2.2. Should objections be received, a further will report be provided to the Council on the matter.

6. Strategic Planning and Policy Considerations

6.1. The Capital City Strategic Plan 2019-2029 supports the proposal with Strategic Objective 2.3:

2.3 Hobart communities are active, healthy and engaged in lifelong learning.

2.3.1 Provide and progressively enhance a range of quality place and facilities where people can enjoy education, recreation, socialising, healthy living and other activities and events.

6.2. Assessment of the request was undertaken in accordance with Council Policy ‘Leases to Non Profit Organisations’.

6.3. The proposed benefit of the lease, on nominal terms, is to be recorded in the City’s Annual Report, in accordance with Council Policy ‘Grant and Benefits Disclosure’.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There will be no impact to the Council as result of this proposal.

7.2. Impact on Future Years’ Financial Result

7.2.1. As the Club has developed all facilities on the site, a nominal annual rental will continue to be applied.

8. Legal, Risk and Legislative Considerations

8.1. Any new lease documentation will be prepared by the City’s Legal Services team.

9. Social and Customer Considerations

9.1. The Sandy Bay Sailing Club is an important community facility and that supports Hobart and Tasmania’s strong association with the sea and sailing. The Club has a long history of not only producing successful sailors but also facilitating access to water-based recreational activities for a broad cross-section of the Tasmanian Community.

9.2. The Club has grown substantially in recent years and supporting a lease extension will allow the club to confidently continue its scope for growth.

10. Delegation

10.1. The matter is delegated to the Council.

Kellie Williams

Parks Projects Officer

Lee Farnhill

Manager Parks and Recreation

Glenn Doyle

Director City Amenity

Date: 5 June 2020

File Reference: F19/164732

Item No. 6.4

Agenda (Open Portion)

Parks and Recreation Committee Meeting

Page 100

11/6/2020

REPORT TITLE: Derwent City Bowls Club (Bowling Greens and Buildings), Cnr Lettitia and Ryde Street, North Hobart - Lease Renewal

REPORT PROVIDED BY: Parks Projects Officer

Program Leader Projects and Assets

Manager Parks and Recreation

Director City Amenity

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to consider a request from the Derwent City Bowls Club for a new 20 year lease for the bowling greens and clubrooms in North Hobart

2. Report Summary

2.1. The Derwent City Bowls Club has requested a new 20 year lease over their City owned clubrooms and bowling greens in North Hobart.

2.1.1. It is proposed to offer the Club a new 10 year lease, with an option for a further 10 years.

2.1.2. The Club has held a lease over the premises since the 1920’s after moving from the TCA Ground.

2.1.3. The club requested a variation to the premises in 2015 to add an additional area at the rear entrance to enable the lessee to construct an access ramp and to relinquish a disused bowling green which was approved. Their lease was amended to reflect the changes in December 2015.

2.1.4. The new lease is supported subject to the City’s obligations under the Local Government Act 1993.

2.1.5. The report is recommending approval of a lease renewal with the Derwent City Bowls Club.

3. Recommendation

That:

1. A lease to the Derwent City Bowls Club over the bowling greens and buildings at 1 Ryde Street, North Hobart for a period of ten (10) years, with an option for a further ten (10) years, be approved, subject to no objections being received during the statutory community engagement process required under Sections 178 and 179 of the Local Government Act 1993.

(i) Should any objections be received during the community engagement period, a further report will be provided to the Council.

2. The leased area be provided at a nominal annual rent ($50 per annum)

3. The General Manager be authorised to finalise the terms and conditions of the lease.

4. In accordance with the Council Policy Grants and Benefits Disclosure the benefit recognised to the Derwent City Bowls Club by way of reduced rental as part of the new lease be disclosed in the City’s Annual Report.

4. Background

4.1. The Derwent City Bowls Club hold a lease with the City for its clubhouse and bowling greens at 1-5 Ryde Street, North Hobart, and is situated on the same property title as North Hobart Oval.

4.1.1. The current lease was originally approved by the Council in 1999.

4.1.2. A variation of the original lease was approved on 17 December 2015 to add an additional area at the rear entrance to enable the lessee to construct an access ramp and to relinquish from the original lease a disused 3^rd bowling green.

4.2. The Derwent City Bowls Club lease area is indicated below

4.3. The current lease area is well maintained by the Derwent City Bowls Club, and as such is considered a minimal impact to the City.

5. Proposal and Implementation

5.1. It is proposed that a new lease for a period of 10 years with an option for a further 10 year extension to the Derwent City Bowls Club, at a nominal annual rental of $50, be given in-principle approval.

5.2. Pursuant to Section 179 of the Local Government Act 1993, as the requested lease term exceeds five years, the City undertake community consultation, as required under Section 179 of the Act ‘Sale, exchange and disposal of public land’.

5.3. It is proposed that subject to no receipt of public objection to the proposed lease, following the community consultation prescribed under Section 179 of the Act, the General Manager negotiate the terms of the lease, at nominal rental, with the value of the benefit to be recorded in the City’s annual Report, in accordance with Council Policy Grant and Benefits Disclosure.

5.3.1. In accordance with the Act, should any objections be received from the public, a further report will be presented back to the Council.

6. Strategic Planning and Policy Considerations

6.1. The Capital City Strategic Plan 2019-29 supports the proposal with Strategic outcome 2.3:

Hobart communities are active, healthy and engaged in lifelong learning.

6.2. Assessment of the request was undertaken in accordance with Council Policy Leases to Non Profit Organisations.

6.3. The proposed benefit of the lease, on nominal terms, is to be recorded in the City’s Annual Report, in accordance with Council Policy Grant and Benefits Disclosure

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The commercial annual rental valuation of the Derwent City Bowls club lease area is $40,000.

7.1.2. The value of the reduced rental is recorded in the City’s Annual Report in accordance with the Council Policy Grants and Benefits Disclosure.

7.2. Impact on Future Years’ Financial Result

7.2.1. There will be minimal impact on future years’ operating results.

7.3. Asset Related Implications

7.3.1. The City owns the building and as such has it listed as an asset.

The terms of the lease requires the Club to meet the outgoings for the leases facility.

8. Legal, Risk and Legislative Considerations

8.1. Any new lease documentation will be prepared by the Council’s Legal Services Officer.

9. Social and Customer Considerations

9.1. The Club has a consistent membership and has been a long term tenant of the area.

10. Community and Stakeholder Engagement

10.1. Pursuant to Sections 179 and Sections 178 of the Local Government Act 1993, community consultation be undertaken in accordance with the Act, as listed below:

10.1.1. Notification in the Mercury on at least two separate occasions;

10.1.2. Display of the notification onsite;

10.2. The notifications to advise the public that any objections to the proposed lease may be made to the City within 21 days of the date of the first publication.

11. Delegation

11.1. The matter is delegated to the Council.

Kellie Williams

Parks Projects Officer

Shannon Avery

Program Leader Projects and Assets

Lee Farnhill

Manager Parks and Recreation

Glenn Doyle

Director City Amenity

Date: 5 June 2020

File Reference: F20/50248

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