Amendment C230 to the Greater Geelong Planning Scheme

[5768061: 8147751_1] Amendment C230 to the Greater Geelong Planning Scheme Jetty Road Urban Growth Area Stage 1 Development Contributions Statement to the Planning Panel by Matt Ainsaar, Managing Director Urban Enterprise Pty Ltd 7/06/2011

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 CONTENTS 1 QUALIFICATIONS... 2 2 ENGAGEMENT... 3 3 THE PROPOSED JETTY ROAD URBAN GROWTH AREA DCP... 4 4 CONCLUSIONS... 9 Urban Enterprise Pty Ltd 1 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 1 Qualifications 1. My name is Matt Ainsaar and I am the Managing Director and founder of Urban Enterprise. 2. Urban Enterprise is a firm of urban planners, land economists and tourism planners based in Melbourne. The firm has more than 22 years experience providing consultancy services to all levels of Government and a wide range of private sector organisations in Victoria and in other States of Australia. 3. I am a qualified planner and land economist with more than 30 years experience. 4. Urban Enterprise has a track record of successfully preparing Development Contributions Plans for Councils as well as negotiating development contribution arrangements with Councils on behalf of developers. We have also had experience in negotiating appropriate open space contributions for a range of development situations. I have appeared as an expert witness at Planning Panel hearings in respect of development contributions, for both developers and Councils. 5. My educational qualifications and memberships of professional associations include: Bachelor of Town and Regional Planning, University of Melbourne Graduate Diploma of Property, RMIT University Member, Planning Institute of Australia (Certified Practising Planner) Member, Victorian Planning and Environmental Law Association Associate, Australian Property Institute (Certified Practising Professional). Urban Enterprise Pty Ltd 2 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 2 Engagement 6. I was instructed by Maddocks on behalf of the City of Greater Geelong to prepare an expert evidence statement to present at the Planning Panel hearing in relation to this matter. 7. My instructions were to prepare and present a summary of the Development Contributions Plan for Stage 1 of the Jetty Road Urban Growth Area, prepared by Urban Enterprise (dated April 2011). 8. I have reviewed the amendment documentation and other relevant documents and policies. Documentation reviewed includes: Jetty Road Urban Growth Plan (Amended September 2008); Jetty Road Urban Growth Area Infrastructure Plan (CPG Australia, February 2010); Review of Engineering Infrastructure Cost Estimate (SMEC Urban, January 2010); Jetty Road Urban Growth Area Development Contributions Plan Stage One (Exhibition and Post Exhibition Versions); Amendment documents for C230 to the Greater Geelong Planning Scheme; Greater Geelong Planning Scheme. 9. I am familiar with the site and the surrounding area. 10. A copy of the relevant information that is required to accord with the Planning Panels Victoria Expert Evidence is attached at Appendix A to this report. Urban Enterprise Pty Ltd 3 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 3 The Proposed Jetty Road Urban Growth Area DCP Introduction 11. Urban Enterprise prepared the Jetty Road Urban Growth Area Development Contributions Plan (DCP) Stage 1 on behalf of the City of Greater Geelong. 12. The Jetty Road Growth Area is identified as a westerly expansion of the existing Clifton Springs/Drysdale township. 13. Stage 1 of the Growth Area is generally bounded by Port Phillip Bay to the north, Jetty Road and Griggs Creek to the east, the Bellarine Rail trail to the south and a line running parallel to and approximately 400 metres east of McDermott Road to the west. 14. The DCP was prepared to identify the infrastructure required to service the development of Stage 1 of the Growth Area, and to fairly apportion the costs of this infrastructure across all land owners within the Growth Area. 15. Some infrastructure items will service the entire Jetty Road Growth Area as such costs for these infrastructure items have also been apportioned to Stage 2 of the Growth Area. 16. This DCP is not the sole source of funding for infrastructure items in the Jetty Road Urban Growth Area. Council will provide funding for the rehabilitation of Griggs Creek. In addition, Council will prepare a DCP for the Stage 2 area at the appropriate time in the future in order for Stage 2 land owners to provide funding for a range of infrastructure items following the rezoning of the land. 17. The DCP has a life of 20 years, beginning from the date it is incorporated into the Greater Geelong Planning Scheme. Existing Section 173 Agreement 18. Because the land was rezoned for development prior to the gazettal of a formal development contributions plan, each land owner in the Jetty Road area was required to enter into a section 173 agreement to provide for development contributions. A copy of a typical Section 173 Agreement is provided in Appendix D. 19. The existing Section 173 Agreement between Council and all landowners in the Stage 1 area regulates virtually all aspects of the development of the land including the payment of development contributions. The Section 173 Agreement will continue to regulate the rights and obligations of the parties even after this DCP is formally introduced into the planning scheme unless a landowner and Council agree to terminate the Section 173 Agreement and instead rely solely on the approved DCP. That is only appropriate for that land in respect of which there has not been a planning permit granted. I understand Mr Montebello will explain these legal practicalities further to the panel. Urban Enterprise Pty Ltd 4 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 20. For those properties that continue with the Section 173 Agreement, the introduction of this DCP into the planning scheme has the effect of adjusting the rate (albeit ever so slightly) of the development contribution which is payable. The Section 173 Agreement provided that if the rate of the approved DCP is higher than the rate in the Section 173 Agreement, the new rate will apply and vice versa. Seeclause 3.1.5 of the Section 173 Agreement. 21. Apart from a modification to some of the projects in the Infrastructure List attached to the Section 173 Agreement the development contribution provisions of the Section 173 Agreement and the DCP are in all other respects consistent with one another. Methodology 22. The DCP relies on the nexus principle, that is, the cost of infrastructure required to support the development of the precinct is apportioned across all land with which there is a clear nexus or relationship. 23. Infrastructure items required to support the development of the entire precinct were identified based on expert advice provided by planning, traffic and engineering consultants, in conjunction with the City of Greater Geelong. 24. In DCPs, the level of demand that a particular land parcel will generate for each infrastructure item is expressed in terms of demand units. The demand unit used for this DCP is net developable hectares of land. That is, one net developable hectare of land is equal to one demand unit. 25. Stage 1 has a total area of 154.99 hectares. Of this, a total of 130.28 hectares is defined as Net Developable Area. Net Developable Area is the total area of the land excluding tree reserves, drainage reserves, land set aside for public open space other than small local parks as identified in Standard C13 of Clause 56 of the Planning Scheme and in this case also excluding land for the collector roads that is to be funded under the DCP. 26. In total, 17 development infrastructure items were identified to be funded by the DCP so as to support the development of the precinct. This is in addition to infrastructure works that are typically provided by developers through permit conditions. 27. The infrastructure projects identified in the DCP have been categorised as follows: Roads and traffic management; Land acquisition; Trail Networks/Pedestrian Crossings; Open Space; Community Facilities; Planning costs. Urban Enterprise Pty Ltd 5 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 28. One project falling within the Community Facilties category was classified as a "community infrastructure" item for funding purposes namely theregional and Community Learning Hub, to be located in Drysdale township. This item of infrastructure is funded by the Community Infrastructure levy and not the Development Infrastructure Levy Calculation of Levies 29. Cost estimates for each infrastructure item were provided by engineering consultants (CPG),verified by Council officers and relevant agencies and peer reviewed by SMEC urban for Council. 30. Cost estimating sources include: Jetty Road Urban Growth Area Infrastructure Plan (CPG, February 2010); Peer Review of Engineering Infrastructure Cost Estimate (SMEC Urban, 2010); Council officers (indexed to February 2010); Valuation Advice for Development Contributions, Landlink Opteon (February 2010) 31. The total cost of each infrastructure item was apportioned to Stage 1 of the Jetty Road Urban Growth Area, Stage 2 of the Jetty Road Urban Growth Area and existing development based on the projected share of usage for that item. 32. The cost of each development infrastructure item apportioned to Stage 1 of the Jetty Road Urban Growth Area was then converted into a Development Infrastructure Levy per demand unit (net developable hectare). 33. Table 1 shows the calculations undertaken to arrive at a total Development Infrastructure Levy. Table 1 Development Infrastructure items, costs and levy calculation Category Roads and Traffic Management Cost apportioned to Stage 1 (excl. GST) Demand units DI Levy (per net developable ha) $4,409,167.56 130.28 $33,843.78 Land Acquisition $776,848.38 130.28 $5,962.91 Trail Networks/Pedestrian Crossings $1,130,047.00 130.28 $8,673.99 Open Space $1,360,945.78 130.28 $10,446.31 Community Facilities $1,644,430.42 130.28 $12,622.28 Planning Costs $125,000.00 130.28 $959.47 Total $9,446,439.14 130.28 $72,508.74 Note: All amounts are shown in February 2010 dollars. 34. The total Development Infrastructure Levy for this DCP for residential development is $72,508.74 per net developable hectare. Urban Enterprise Pty Ltd 6 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 35. The cost of the one community infrastructure item was converted into a Community Infrastructure Levy (per dwelling). Table 2 shows the calculations undertaken to arrive at a Community Infrastructure Levy. The Community Infrastructure Levy is capped at $900. Table 2 Community Infrastructure items, costs and levy calculation Infrastructure Item Construction of a Regional and Community Learning Hub Cost apportioned to Stage 1 (excl. GST) Dwellings in Stage 1 CI Levy (per dwelling) $1,482,583.27 1,615 $918.01, capped at $900 Note: All amounts are shown in February 2010 dollars. 36. The development contribution required under the Section 173 agreement is $72,541.26 per net developable hectare (Sept 2009 dollars), or $73,115.98 in March 2010 dollars when indexed according to the methods specified in the Section 173 agreement. Comparing Levies to Existing DCPs 37. A comparison of the levies in Stage 1 of the Jetty Road Urban Growth Area against approved and exhibited levies in regional Victoria is provided in Appendix B. 38. Appendix B shows that the levy is lower than the two most recent residential DCPs prepared in regional Victoria (Mooroopna West, City of Greater Shepparton, and North Dennington, Warrnambool City Council). Submissions to Amendment C230 39. Eight submissions were received by Council as part of the Amendment C230 process. 40. Key issues in the submissions included: Timing for construction of the east west connector road; Request for Stage 2 to contribute to the east-west road; Pedestrian bridge over the north south road at the Bellarine Rail Trail; Vic Roads request for the north-south road to be provided early; Objection to the compulsory acquisition of land for the north-south road; Query on the need for golf course netting; Claims that the costs and contingencies are too high in the DCP; Request to reduce the community infrastructure contributions; Works in kind and relationship between DCP and S173 Agreement. Urban Enterprise Pty Ltd 7 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 41. Changes were made to the exhibition version as a result of the submissions made and to reflect updated land development information available following exhibition of the DCP. 42. All changes made to the exhibition version of the DCP are shown in Appendix C. These changes generally involved: Changes to the land budget and Net Developable Area; Changes to wording to reflect the existing Section 173 Agreement; Changes to the scope of some infrastructure items, specifically items R002 (North South Collector Road land acquisition) and P003 (Pedestrian Bridge); Changes to the rounding of infrastructure costs; and Subsequent changes to the overall levy and costs as a result of the above. 43. The changes made to the DCP were relatively minor, and the resultant change to the DCP levies was minimal. The Development Infrastructure Levy in the exhibition version of the DCP was $73,672 compared with $72,508 in the post-exhibition version of the DCP. Urban Enterprise Pty Ltd 8 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 4 Conclusions 44. The DCP uses a sound methodology that is appropriate to this growth area, with the inclusion of infrastructure items that are needed to support the development of the area and have a nexus with proposed development. 45. The DCP provides for the fair apportionment of costs across all landowners. 46. The proposed Development Infrastructure Levy is $72,508.74 per net developable hectare, and the proposed Community Infrastructure Levy is $900 per dwelling. 47. Clause 3.1.5 of the existing Section 173 Agreement provides for the adjustment of the development contribution payable in line with the rate in an approved DCP. Declaration I have made all the enquiries that I believe are desirable and appropriate and that no matters of significance that I regard as relevant have to my knowledge been withheld from the Panel. Matt J Ainsaar Managing Director, Urban Enterprise Pty Ltd BTRP, Grad Dip Prop, MAPI, AAPI, CPP Urban Enterprise Pty Ltd 9 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 Appendix A. Requirements of Planning Panels Victoria Expert Evidence Name: Matt Jacques Ainsaar, Managing Director, Urban Enterprise Address: 389 St Georges Road, North Fitzroy, Vic 3068 Qualifications: Bachelor of Town and Regional Planning, University of Melbourne Graduate Diploma of Property, RMIT University Member, Planning Institute of Australia (Certified Practising Planner) Member, Victorian Planning and Environmental Law Association Associate, Australian Property Institute Experience: I have over 30 years experience as a planner and land economist and have extensive expertise in the Development Contributions area. Urban Enterprise has a track record of successfully preparing Development Contributions Plans for Councils as well as negotiating development contribution arrangements with Councils on behalf of developers. I am currently advising developers and Councils in respect of development contributions matters including Stockland, Urban Land Developments, Cardinia Shire, the City of Casey and the City of Greater Geelong. I have appeared as an expert witness in most of the recent growth area panel hearings in respect of development contributions. Areas of Expertise: Areas of expertise include strategic urban planning, Development Contributions planning, land economics, property and tourism planning. Expertise to Prepare this Report: My experience in urban planning, land economics and property over the past 30 years provided the tools to develop a specialisation in development contributions. I have undertaken numerous Development Contributions Plans and have given advice to public and private sectors in regards to development contributions. I have appeared as an expert witness in most of the recent growth area panel hearings in respect of development contributions. I am therefore qualified to prepare this report and expert witness statement. Urban Enterprise Pty Ltd 10 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 Instructions: My instructions were to prepare and present a summary of the Development Contributions Plan for Stage 1 of the Jetty Road Urban Growth Area, prepared by Urban Enterprise (dated 4 April 2010). Facts, Matters and Assumptions Relied Upon: I have relied on the following for my assessment: Jetty Road Urban Growth Plan; Jetty Road Urban Growth Area Infrastructure Plan; Jetty Road Urban Growth Area Development Contributions Plan Stage One (Post Exhibition Version); Amendment documents for C230 to the Greater Geelong Planning Scheme; Discussions with City of Greater Geelong council officers Greater Geelong Planning Scheme. My familiarity with the site and the surrounding area; Relevant experience. Documents Taken into Account: See above. Identity of Persons Undertaking the Work: Matt J Ainsaar, assisted by Paul Shipp, Senior Strategic Planner. Summary of Opinions: Refer to Paragraphs 44 to 47: Conclusion. Urban Enterprise Pty Ltd 11 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 Appendix B. Comparison of Development Infrastructure Levies Regional Victoria Development Contributions Plan Infrastructure items Date of contributions DCP funds to be collected DIL per ha (at date of exhibition/approval) DIL per ha (March 2010) Warrnambool City Council North Dennington * Roads, drainage, planning Nov-2008 $12.9m $94,132 - $115,252 $95,194 - $116,410 # City of Greater Shepparton Mooroopna West Roads, bridges, trails, drainage, community facilities Jan-2009 $10.2m $71,181 - $109,255 (Indexation data not available) Shepparton South Corridor Roads, trails, drainage Nov-2003 $5.0m $29,091 $34,496 Shepparton North Corridor Roads, trails, drainage Nov-2003 $3.3m $28,178 $33,413 Baw Baw Shire Council Baw Baw Shire Council Roads, intersections, drainage, open space, community facilities, townscape works Jun-2006 $29.7m $477 - $3,701 (per dwelling) $568 - $4,498 (per dwelling) @ 10dw/ha= $5,680 - $44,980 City of Greater Geelong Jetty Road Stage 1 * Roads, intersections, drainage, trails, community facilities, planning. Feb-2010 $17.4m $72,509 $72,509 *exhibited # land values not indexed requires annual revaluation. Source: Various Development Contributions Plans as approved or exhibited. Note: Levies were indexed to March 2010 by Urban Enterprise to enable comparison. Urban Enterprise Pty Ltd [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners 1

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 Appendix C. Schedule of Changes to the Exhibition Version of the DCP No. Summary of Change Comments 1 Land budget Updated to reflect latest development plans and land ownership information. The result was a lower Net Developable Area of 130.28 compared with 135.05. This change is ultimately reflected in the updated levies. 2 R002 Change to infrastructure item Removal of the planning cost component of this item ($100,000). 3 P003 Change to infrastructure item Replacement of the pedestrian bridge (at a cost of $1.26m) with pedestrian signals (at a cost of $475,000) for the rail trail for an overall cost reduction of $785,000. 4 Section 1.1 Additional information to cross reference with the existing Section 173 Agreement. 5 Section 3.1 Additional information to clarify that costings in the CPG Infrastructure Plan have been reviewed and updated subsequent to the preparation of the Infrastructure Plan. 6 Section 5.1 - wording Wording in this section updated to reflect existing Section 173 Agreement relating to timing of payment of the Community Infrastructure Levy. 7 Section 7.1 - wording Wording in this section updated to reflect existing Section 173 Agreement relating to indexation of levies. 8 Section 7.2 - wording Wording updated to reflect existing Section 173 agreement relating to land valuation. 9 Section 8.1 - wording Wording in this section of the DCP changed to reflect the existing Section 173 Agreement in relation to works in kind and remove Table 10 (list of works deliverable in-kind). 10 Section 8.2 - wording Wording updated to reflect existing Section 173 Agreement. 11 Infrastructure cost rounding All infrastructure costs were rounded to the nearest $1,000 based on the infrastructure plan costs rather than the nearest $10,000. 12 New item planning costs Insertion of a new DCP item to cover Planning and DCP costs at a total cost of $125,000. 13 Update all levies and totals Update all levies, totals and project sheets as a result of the above changes. 14 Minor edits and rewording Minor edits and rewording throughout the document. Urban Enterprise Pty Ltd 1 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners

Jetty Road Urban Growth Area Development Contributions Expert Witness Statement Matt Ainsaar 6-6-2011 Appendix D Section 173 Agreement Urban Enterprise Pty Ltd 2 [5768061: 8147751_1]Urban Planners Land Economists Tourism Planners