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City of hobart

AGENDA

Council Meeting

 

Open Portion

 

Monday, 26 September 2022

 

at 5:00 pm

Council Chamber, Town Hall

 

REPORT UNDER SEPERATE COVER

ORDER OF BUSINESS

10.     City Shaping Program Update. 2


Item No. 10

Report Under Separate Cover (Open Portion)

Council Meeting

Page 2

 

26/9/2022

 

 

10.      City Shaping Program Update

            File Ref: F22/90677; 19/79

Report of the Director City Futures of 23 September 2022 and attachment.

Delegation:                 Council


Item No. 10

Report Under Separate Cover (Open Portion)

Council Meeting

Page 4

 

26/9/2022

 

 

REPORT TITLE:                  City Shaping Program Update

REPORT PROVIDED BY:  Director City Futures

 

1.         Report Purpose and Community Benefit

1.1.     The purpose of this report is to provide the Council with an update on the City Shaping program including the Greater Hobart Plan, the response to the engagement for the Central Hobart Precincts Structure Plan (CHPSP) discussion paper (refer Attachment A), along with an update on the progress of the CHPSP.

1.2.     These reports benefit the community by ensuring that our City Shaping program including CHPSP provides for future development, public infrastructure, built form and public realm improvements that are guided by good governance, appropriate analysis and a planning framework that has had community and key stakeholder input.

2.         Report Summary

2.1.     The Greater Hobart Plan has been signed by the four Greater Hobart Mayors. A copy of the final document is available via the Greater Hobart Committee website or click here Greater Hobart Plan

2.2.     The CHPSP is in its final stages of preparation.

2.3.     It has been subject to significant analysis and two rounds of community consultation including on the Discussion Paper released in the last quarter of 2021.

2.4.     A report into the engagement on the CHPSP Discussion Paper has been prepared (refer Attachment A) that summarises the form and key themes raised during the engagement.

2.5.     It is proposed that the Council note the Engagement Report, particularly the key feedback points that will be incorporated into consideration of the final CHPSP.

2.6.     Following a public meeting on 16 April 2019 into building height issues the Council resolved at its meeting on 17 June 2019 to note that the issues raised in the public meeting resolutions relating to building heights and design will be examined as part of the Central Hobart Precincts Plan project.

2.7.     Along with other analysis as part of the preparation of the precincts plan, two projects have been undertaken that expressly consider the future built form in Central Hobart:

2.7.1.     One models the potential built form to a selection of specific blocks within Central Hobart of current planning scheme provisions as well as comparison to the provisions in the amendment proposed to the planning scheme developed by Council officers following the Building Heights Standards Review; and

2.7.2.     The other is an analysis of the social, economic and environmental impacts of the two sets of planning scheme provisions.

2.8.     The findings from this analysis will be included in the draft for final consultation to be provided to Council in November 2022.Overall, the current market conditions will shape overall outcomes for Central Hobart over and above any proposed change to the planning scheme or the existing scheme The SGS reports indicates these conditions will constrain delivery of the floor space possible under either option to be no more than 40% of its potential.

2.9.     This report seeks to provide an update on the timeline for finalisation of the CHPSP and introduce the whole of City shaping program: Future Hobart, noting this is not a new ‘major project’ it is the collective governance and reporting mechanism for major projects that include precinct plans, implementation plans and major infrastructure projects.

3.         Recommendation

That:

1.      The report be received and noted.

2.      The Engagement Report on the CHPSP Discussion Paper be received and endorsed for release through the CHPSP projects page.

 

4.         Background

4.1.     The Minister for Planning, the Hon. Roger Jaensch wrote to the Council on 4 March 2019 on the issue of building heights and suggested that it be covered under the City Deal by way of a strategic approach to urban growth through the development of comprehensive precinct plans.

4.2.     Following a public meeting on 16 April 2019 into building height issues, the Council resolved at its meeting on 17 June 2019 to note that the issues raised in the public meeting resolutions relating to building heights and design will be examined as part of the Central Hobart Precincts Plan project.

4.3.     Following some delays due to the COVID-19 pandemic the precincts plan is in its final stages.

4.4.     The release of the Greater Hobart Plan provides Council with an opportunity to audit all of the major planning strategies for the city against the goals articulated in the Greater Hobart Plan and the city strategic priorities.

4.5.     Council officers are gathering all approved and proposed master plans, precinct plans and strategies to create a single view of the LGA. They are also bringing together a shared view of planned activity to better understand future resource and capital requirements.

4.6.     The CHPSP is a keystone structure plan in this single view and will be finalised ready for final public consultation by November 2022 and, once community consultation is complete in February 2023, the final document will be provided to Council for endorsement.

4.7.     By bringing together master plans and structure plans, precinct plans and strategies we anticipate we will be able to provide an update to the incoming council on sequencing of key projects. This work will also help to confirm the forward capital works program for rest of the new council term. This approach is in line with Part D of the Strategy for Growth and Change in the Greater Hobart Plan, Chapter 13 – City Shaping – Guiding Future Development.

4.8.     Our aim with this work is to provide clarity on when projects will be started and when key infrastructure will be delivered. It will also bring together all internal and external major developments into a single view so council officers are able to identify funding synergies and provide opportunities for negotiating greater community infrastructure contributions on major works.

4.9.     This consolidated view of the future story of the city will be referred to as Future Hobart and provide the authorising environment for the long term program of work, reported on bi-annually to council enabling clarity and visible progress for the council as representatives of the community.

5.         Background of timeline of Central Hobart Precincts Structure Plan

September 2017

Council endorsed the preparation of a report on the necessary scheme amendments and the time it would take to set a limit on height to a non-discretionary maximum of 45 metres in the area covered by the City of Hobart Interim Planning Scheme.

October 2017

Council resolved that the preparation of the further report in relation to the planning scheme amendments concerning building heights within the CBD, also consider non-discretionary maximum height controls.

October 2017

Council endorsed the project brief and the invitation to Leigh Woolley to submit a quotation to undertake Building Height Standards Review - Hobart Interim Planning Scheme 2015 - Sullivans Cove Planning Scheme 1997

September 2018

Council endorses Building Heights Standard Review report

Oct/Nov 2018

Public comment on report and proposed planning scheme amendments to implement recommendations.

December 2018

Council resolves to commission social, environmental and economic impact assessment of proposed height restrictions.

January 2019 and February 2019

Council received a petition – Building Heights - Public Meeting.

The Council resolved to receive and note the petition and refer it to the appropriate committee.

March 2019

The Council resolved to facilitate the public meeting in accordance with the requirements of the Local Government Act 1993.

April 2019

Public Meeting held

April 2019

Following consideration of assessment brief and letter received by the Minister for Planning, Council resolves to progress consideration of building heights through a precinct plan for central Hobart.

May 2019

Council engaged with the TEC to conduct an elector poll.

July 2019

Elector Poll held.

August 2019

Council considered Building Heights – Elector Poll Results - an absence of a resolution from the Council, meant no further action was required.

October 2019

Implementation Plan for Hobart City Deal released with Central Hobart Precinct Plan as key action.

March 2020

Precinct plan project formally and publicly commenced with release of Baseline Report and Economic, Demographic and Employment Study (HillPDA report).

May 2020

Precinct Plan project paused due to uncertainty of social and economic impacts arising from COVID-19 pandemic.

March 2021

Precinct Plan project recommenced with COVID-19 update to HillPDA report underway.

July 2021

Report to Council on development feasibility impact assessment of potential building height standards as well as state-wide apartment standards.

October 2021

Report to Council on draft Discussion Paper for community engagement.

Oct/Nov 2021

Community engagement on Discussion Paper component for the Precinct Plan project.

May 2022

Report to Council Workshop on approach for more technical stakeholder consultation of the urban design framework and draft structure plan.

Jun/Sept 2022

Stakeholder workshops on draft Precinct Plan.

Sept/Oct 2022

Finalise the Precinct Plan ready for endorsement by Council

November 2022

Final Draft Precinct Plan with implementation strategy endorsed by Council.

November 2022

Final Draft Precinct Plan shared for public comment

February 2023

Final Precinct Plan endorsed by Council

6.         Engagement

Due to feedback on the Discussion Paper, changes have been made to the approach to preparing the precincts plan including:

6.1.     Structuring to be comprised of two separate but interrelated parts - a Structure Plan and an Urban Design Framework;

6.2.     Adjusting the boundaries of the five precincts; and

6.3.     Further consideration of the future land use potential for the area including increased residential development, the civic and cultural heart of the city and also how the innovation economy might need to be addressed due to proximity of the Hospital, medical and other research facilities in the area.

6.4.     A report into the engagement on the Discussion Paper has been prepared which summarises the key themes from engagement from:

6.4.1.     3,100+ visits to YourSay;

6.4.2.     200 YourSay survey responses;

6.4.3.     88 participants in 4 workshops;

6.4.4.     23 meetings with stakeholder group;

6.4.5.     20 Stakeholder submissions received;

6.4.6.     7 presentations to CoH advisory and reference groups; and

6.4.7.     63 organisations presented to or received feedback from.

6.5.     It is proposed that the Council note the themes arising from the engagement and the key considerations that have shaped the next iteration of the CHPSP. This engagement report will be published to the CHPSP project page and available for viewing by those that have contributed to the engagement on this project.

7.         Social, Economic and Environmental Impact of building height scenarios

7.1.     Along with other analysis as part of the preparation of the precincts plan, two projects have been undertaken that expressly consider the future built form in Central Hobart:

7.1.1.     One by Preston Lane Architects, in conjunction with a quantity survey and a valuer, involved modelling the potential built form from current planning scheme provisions as well as those for an amendment proposed to the planning scheme developed by Council officers following the Building Heights Standards Review (the Woolley Report). The standards are designed to protect key views and to provide for better sunlight access to streets within Central Hobart.

7.1.2.     The other is an analysis of the social, economic and environmental impacts of the two sets of planning scheme provisions by SGS Economics.

7.2.     The first report provided significant input to the second report.

7.3.     The SGS report specifically addresses the social, economic and environmental impact of current planning scheme provisions in comparison to proposed planning scheme amendments prepared following the Building Heights Standards Review and findings that will be considered for the final draft of the CHPSP are:

7.3.1.     The main finding in relation to the proposed planning scheme amendments is that the underlying floor space capacity and feasibility analysis suggests there is very little difference in development potential from the current to the proposed planning scheme amendments.

7.3.2.     Due to the similarity in development potential, the potential future productivity performance of Central Hobart is very similar too.

7.3.3.     The most significant constraint to commercial development in Central Hobart is set by the current market conditions. The unfavourable conditions may linger for some time as development projects in Tasmania compete for scarce resources.

7.3.4.     Overall, the current market conditions will shape overall outcomes for Central Hobart over and above any proposed change to the planning scheme or the existing scheme the SGS report indicates these conditions will constrain delivery of the floor space possible under either option to be no more than 40% of its potential.

7.3.5.     Due to this there is a greater need to focus on more granular development of specific opportunities that will enable the highest and best use outcomes for a range of the blocks identified for development in the CHPSP. This will be included in the CHPSP implementation plan as a critical next step.

7.4.     The findings of both the Preston Lane and the SGS Economics studies have been used to inform the preparation of the draft CHPSP.

7.5.     It is anticipated that a planning scheme amendment to the Local Provisions Schedule, once it is in effect in 2023, will implement amended built form and envelope provisions that will create increased certainty for the community and developers. This would be informed by a further round of public consultation on a draft of the CHPSP.

7.6.     Further work with developers will provide greater certainty as market conditions continue to be challenging. A more proactive and entrepreneurial approach by the City will be needed to achieve the best possible outcomes economically, socially and financially for the city centre in light of these market conditions.

8.         Strategic Planning and Policy Considerations

8.1.     Future Hobart, the CHPSP and associated engagement and analysis are relevant to the community aspirations for the future of Hobart as articulated in: Hobart: A community vision for our island capital.

8.2.     The CHPSP and the engagement undertaken as part of its development assist in the achievement of the strategic outcomes of all Pillars of the Capital City Strategic Plan 2019-2029 and particularly:

8.3.     Pillar 1. Sense of Place

8.3.1.     Hobart keeps a strong sense of place and identity, even as the city changes.

8.3.2.     Hobart’s city scape reflects the heritage, cultural and natural environment that make it special.

8.3.3.     In City decision-making we consider how different aspects of Hobart life connect and contribute to sense of place.

8.4.     Pillar 7. Built Environment

8.4.1.     Development enhances Hobart’s unique identity, human scale and built heritage.

8.4.2.     Community involvement and an understanding of future needs help guide changes to Hobart’s built environment.

8.5.     Pillar 8: Governance and civic involvement

8.5.1.     Hobart is a city of best practice, ethical governance and transparent decision-making.

9.         Financial Implications

9.1.     Funding Source and Impact on Current Year Operating Result

9.1.1.     The project is jointly funded under the City Deal with the State Government contributing.

9.2.     Impact on Future Years’ Financial Result

9.2.1.     The CHPSP will outline a strategic approach to future infrastructure requirements that may require funding in future years.

9.3.     Asset Related Implications

9.3.1.     Future Hobart will provide greater clarity of future asset renewal plans.

9.3.2.     The asset related implications of the CHPSP will be addressed in an implementation plan.

10.      Legal, Risk and Legislative Considerations

10.1.   The CHPSP will require implementation through changes to the planning scheme.  This will be subject to a further consideration by Council once the plan is finalised.

10.2.   Future Hobart will also track and action key legal, risk and legislative considerations.

11.      Environmental Considerations

11.1.   Environmental impacts of future development options and consideration of sustainable buildings and precinct design, have been addressed while drafting the precincts plan. Climate change is a key driver for consideration of options broadly across the precincts plan.

11.2.   Future Hobart will include a plan for key environmental strategies

12.      Social and Customer Considerations

12.1.   A broad range of Council social policies have been considered in the preparing the precincts structure plan as has Council’s Community Engagement Policy and Framework.

12.2.   Future Hobart will include a consolidated view of social and community policies and strategies and their implementation and renewal dates.

13.      Marketing and Media

13.1.   There are no marketing implications. There may be some media interest in the social, economic and environmental impacts report.

14.      Community and Stakeholder Engagement

14.1.   A detailed Stakeholder Engagement Plan has been developed.  Engagement occurred with the release of a Baseline Report in early 2020; establishment of a reference group for the project; wide consultation with officers from all divisions of the Council; and the community and key stakeholders by way of engagement on a Discussion Paper in late 2021 and early 2022.

14.2.   Since the engagement on the Discussion Paper, engagement has occurred with key stakeholders and it is proposed that a further round of community engagement occur prior to finalising the plan.

15.      Delegation

15.1.   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.

 

Katy Cooper

Director City Futures

 

 

Date:                            23 September 2022

File Reference:          F22/90677; 19/79

 

 

Attachment a:             Central Hobart Precincts Plan Discussion Paper Engagement Report August 2022   


Item No. 10

Report Under Separate Cover (Open Portion)

Council Meeting - 26/9/2022

Page 12

ATTACHMENT a

 

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