16-09-16 outline of submissions on behalf of the botanica ......the zagame automotive group are the...

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IN THE MATTER OF PLANNING & ENVIRONMENT ACT 1987 &

ENVIRONMENTAL EFFECTS ACT 1978

THE MELBOURNE METRO RAIL PROJECT

INQUIRY PURSUANT TO THE ENVIRONMENTAL EFFECTS ACT AND ADVISORY

COMMITTEE PURSUANT TO THE PLANNING AND ENVIRONMENT ACT

AT MELBOURNE

OUTLINE OF JOINT SUBMISSIONS ON BEHALF OF OWNERS OF 501

SWANSTON STREET MELBOURNE.

Introduction

1. These submissions are made on behalf of the owners of and principal occupiers of

land at 501 Swanston Street, Melbourne (‘501’). 501 is an 18-level commercial tower

spanning more than 25,000 square metres of Net Lettable Area (NLA),

accommodating ten commercial and retail tenants most of whom are significant

local, national and/or global participants in their industry segments. The land at 501

Swanston Street is owned by 501 Pty Ltd, that in turn is equally co-owned by PDG

Corporation and the Zagame Group.

2. They follow on from and they should be read in conjunction with the submissions by:

a. PDG Corporation (PDG): and

b. Zagame Group Pty Ltd (Zagame Group, Zagames)

to the Inquiry and Advisory Committee (‘IAC’) dated 6 July 2016.

3. Those submissions raised the following issues of concern:

a. Business disruption,

b. Noise Vibration dust and amenity type issues,

c. Traffic management around and access to 501.

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4. By way of background the following provides a brief overview of the two entities

making these submissions:

a. PDG is a privately owned, Melbourne based property development

organisation which has continued under its original leadership and direction

for the last three decades. The business has organically grown from humble

beginnings to become one of Melbourne’s most successful and trusted

property developers. Throughs its various businesses it provides a full suite of

property development and related services from, inter alia, architectural, to

a full-service real estate agency, mortgage broker, body corporate

manager and property development services, employing almost 100

people.

b. The Zagame Group is a family owned company. Through its various

companies Zagame retail into Victoria some of the world’s premium

marques of motor vehicles. As is evidenced by its premises at 501 Swanston

Street the Zagame Automotive Group portfolio provides Victoria with a world

class automotive experience. It invests heavily in providing state of the art

showrooms and customer service through its 12 plus dealerships located

throughout Melbourne and the Mornington Peninsula, employing [450]

people.

The Zagame Automotive Group are the exclusive Victorian dealer for Aston

Martin, Ferrari, Maserati, McLaren, Lamborghini, Lotus, Morgan and Rolls-

Royce. With six (6) Audi dealerships they are one of Australia’s largest Audi

retailers as well as being the official dealer for Abarth Alfa Romeo, Fiat &

ŠKODA in Victoria.

5. 501 will be materially affected by the Melbourne Metro Rail Project (‘Project’).

6. In particular it will be affected by the development of the CBD North Station. 501 is

located to the immediate north, immediate west and “above” the proposed City

North Station and associated construction site. The closure of part of Franklin Street

at the rear of the 501 land and from which it gains access is of significant concern.

The land

7. 501 Swanston Street is located on the corner of Swanston Street and Victoria Street,

Melbourne.

8. The land has a frontage to Swanston Street (25.315 metres), Therry Street (37 metres)

and to Victoria Street (45.475 metres).

9. Vehicular access to the land is primarily from Franklin Street. Pedestrian access to the

land is from Victoria Street (to the motor vehicle dealership) and from Therry

Street/Victoria Street to 501.

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10. Car parking to the 501 building is provided on site (approximately 60 spaces to the

Zagame occupancy in the basement) and 160 spaces are provided in the adjoining

building immediately to the south.

11. A perpetual licence exists with the owners of the land to the south to access the car

park for the 501 tenants via Franklin Street.

Figure 1: State Map base with 501 Swanston Street (highlighted).

Source: State Gov’t Victoria

12. The 501 land is developed with a 18 level building (plus basements) with the lowers

levels being set aside for Zagame Automotive as a dealership for Audi and Maserati

motor vehicles. The upper levels of the building comprise offices that contain a

number of national and international tenants.

Photograph 1 501 from north side of Victoria Street

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13. Originally constructed to house Ansett Australia in 1978, 501 Swanston Street’s

distinguished hexagonal shape and prominent corner location has made it a well-

recognised building within the Melbourne city skyline.

14. In 2002 PDG purchased the building from Ansett’s Receivers and in mid-2012 the

Zagame Group became co-owners with a view to rejuvenate the premium office

tower. The major redevelopment work has now been completed, with a total of $120

million having been invested into the building since 2002.

15. Tenants in this premium commercial address, in addition to the Zagame Group and

PDG, include:

a. RMIT;

b. Defence Force Recruitment/Manpower Group;

c. Brookfield Multiplex;

d. Cardno;

e. Meinhardt;

f. Premier Technologies; and

g. Podium Café.

16. It is estimated that 1,400 people work in the building each day, excluding visitors

(clients, customers, contractors etc.). It is difficult to quantify the customers that

attend the main building each day but it is estimated that over a month in the order

of 1,000 customers visit the Zagame Group dealerships. Further the Defence Force

Recruitment division attracts considerable numbers of people (~ 150 potential

recruits) during the course of a normal week.

17. 24-hour access is available to the building (and is utilised), particularly vehicular

access via Franklin Street (Refer to Photograph 2).

18. The Franklin Street address is significantly important to the operation of the 501 land.

It provides access to the 160 car parks within 501 and it is used as the main loading

area for 501. Vehicle delivery and despatch (in the order of 400+ per calendar

month) occurs from this access point.

19. The Zagame Automotive Group service centre and sales team service 20+ vehicles

per day with access obtained from both Franklin Street (with the deliveries of cars to

and from this address) and from Victoria Street (Audi customers) and Therry Street

(Maserati customers). I am instructed that the Audi dealership is the largest retailer of

Audi motor vehicles within Australia.

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Photograph 2: rear of 501 showing principal access point from Franklin Street

20. 501 does not oppose the Project but is concerned with the potential impact of the

construction activities and the process in resolving these issues during the 5+ years of

construction on its operation.

Our Issues

21. These submissions seek to highlight the following key concerns, viz:

a. The proposed Project approval mechanisms,

b. Impacts on the Zagame Automotive business from interruptions to access

(both pedestrian and vehicular) during the Project construction period,

c. Impacts on the tenants of the 501 Swanston Street from interruptions to

access and pedestrian networks, to its employees, consultants and

contractors,

d. Impacts from the proposed truck routes to the City North station precinct,

the delivery of steel and materials and the removal of spoil,

e. Impacts from partial road closures to Franklin Street,

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f. Impacts from noise and general construction activities, and

g. Impacts from housekeeping type issues within the area by the contractors

during the construction of the project.

22. Importantly 501 seeks to ensure that all relevant matters are appropriately considered

and resolved throughout the phases of the Project.

Approval Framework

23. In our submission, whilst a framework and performance based approach is proposed

it is the yet to be resolved detail that is to be ultimately provided by the appointed

contractors in meeting the terms of the Incorporated Document proposed by the

Amendment to the Planning Scheme that will be key to business impact.

24. The Project has the real potential in this location to significantly affect the wellbeing

and operations of 501 and its various tenants if relevant matters are not adequately

resolved through this process.

25. That the MMRA has elected to proceed with a performance based approach in our

submission is an issue.

26. On our review there is no link provided between the EMRs circulated and amended

by this process and the requirement to adopt this as part of the implementation of

the Incorporated Document.

27. 501agrees with a number of submissions made by others to the IAC that it is not

possible to judge the magnitude, likelihood or significance of environmental effects

or the acceptability of environmental outcomes given the approach taken by the

MMRA.

28. This was a key element in our original submissions to the IAC and remains so to this

day.

29. Whilst it is noted that some changes have been made to the recommended

Environmental Performance Requirements (‘EPR’s’) such as EPR TA and EPR TB which

are generally supported, there is no certainty of outcome or accountability to third

parties whose interests are affected, such as the 501.

30. For non-Government or Agency stakeholders the implementation of the various

measures called up under the EPR’s TA rely on being invited if considered to be a key

stakeholder. There is no test as to who is a key stakeholder and no obligation to be

invited in the EPRs.

31. We make the observation that consultation alone does not ensure that affected

interests will be considered, addressed or agreed outcomes incorporated.

32. In our submission there remains a real possibility that, following consultation, our views

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will, no matter how valid, be ignored as the contractor follows its interests in applying

the EPRs.

33. We agree with other submissions that acceptable outcomes must be set out in the

EPR’s to ensure the interests of third parties are protected.

34. In respect of the proposed Incorporated Document, 501 has the following concerns:

a. There are no rights of third parties to be either consulted or their views

considered.

b. The Incorporated document for the Project is required to be only ‘generally

in accordance’ with the various plans/documents to be approved (page 5).

c. Early works approvals can appear to bypass the need to have EPR’s

developed. Again any early works approval need only to be carried out

generally in accordance.

d. There does not appear to be a link between the EPRs developed as part of

the current process and the Incorporated Document.

35. This approach is not satisfactory to ensure an appropriate outcome for affected

parties such as 501.

36. Given 501’s context at the intersection of three streets and requiring all hours’ access

to a fourth, 501 is particularly exposed to access issues that will be generated by the

Project.

37. As noted above Franklin Street is a major and significant access point to the 501 land.

38. Further with the number of workers and customers coming to the site the amenity

issues that may arise through noise, dust and vibration further highlights this issue.

39. Accordingly, 501 has a material interest in ensuring that the EPR’s clearly define

acceptable outcomes in this respect.

40. The key concerns sought to be addressed within these submissions are:

a. Unacceptable/inappropriate air quality noise and vibration; and

b. Transport and traffic impacts.

Unacceptable/inappropriate air quality, noise and vibration

41. Construction activities prior to and during the building of the City North Station will

have a potentially adverse impact on the conduct and operation of the ten (10)

commercial and retail businesses at 501.

42. One only has to look at the current construction activities occurring at the rear of the

501 land in Franklin Street to fear the worst for the proposed construction that will

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occur we believe over a 4 to 5 year period.

43. Specifically, we see this nuisance arising from:

a. Construction activities in Franklin Street (refer to Fig 2, below) and

b. Trucks using Franklin and Victoria streets to deliver to and remove spoil from

the site (refer to Figure 3 below).

44. We note that the construction method proposed for the City North Station is a mined

cavern. We understand that the approach is that cavern stations are constructed

from underground. The proposed station entrance to the cavern stations would be

used as access shafts. This would appear then to relate to the part of Franklin Street

to the west of Swanston Street. What then of the proposed construction areas to the

west of Swanston Street and adjacent to the 501 Franklin Street Access?

45. It is not clear how the spoil from the cavern will be bought to the surface in the areas

set aside for construction purposes within Franklin Street (either east or west of

Swanston Street) and then be despatched by truck. Is it that this area will be sued

for stockpiling of spoil, materials, sheds or what?

46. On the basis of the above we believe there may be airborne construction,

operational noise and vibration that may affect 501.

47. The proximity of 501 necessitates adequate protection or mitigation measures from

adverse noise and vibration impacts, both during the construction and operational

phases of the Project.

48. 501 seeks to ensure that the visual appearance and form of any temporary structures

or fencing is appropriately designed to provide reasonable amenity. Such is not the

case at present.

49. The lack of resolution in respect of how spoil will be conveyed from the City North

Station construction is a further concern to 501, specifically in respect of noise

mitigation, road amenity and air quality.

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Figure 2

Figure 3

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Traffic and Transport Impacts

50. The Project will have a significant impact on 501 both in respect of access during

construction and legacy transport and traffic outcomes.

51. The truck routes described in Figure 3 (above) are too imprecise to enable a proper

view to be taken in respect to impacts. It is unclear in which direction the truck

movements will occur. It is unclear other than outside peak times how the up to 210

truck movements per day will be timed. It is unclear why the plan provides reference

to the Arden Street precinct. The route to the west and to the immediate north of

the City Baths is not clear as to what role that part of the street network plays in the

process.

52. Vehicular access to the building at 501 is provided by two principal points:

a. From Victoria/Therry Street; and

b. From Franklin Street.

53. The Franklin Street access provides the main access to the site for car parking and

waste. The Victoria Street/Therry Street access provides for customer car spaces for

Zagame Automotive and small deliveries.

54. Deliveries of motor vehicles to the site occur within the Franklin Street road reserve.

55. The Project proposes to alter and partially close Franklin Street. In doing so it appears

to limit traffic to one lane in each direction. It is unclear if any street loading will be

available once the Project commences. (refer to Figure 5).

56. Further, the limiting of access along this length of Franklin Street provides in our

opinion an unsatisfactory response to a major access point and will therefore provide

potential inconvenience and business disruption to the tenants and users of 501.

57. It is not only the construction period that is important to 501, but also the legacy

outcomes for the surrounding road network. As a result of the construction of the City

North Station, 501’s access to Franklin Street will be permanently modified.

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Figure 4

58. Key areas of concern in this respect to changes to Franklin Street (as depicted in

Figure 5 below) and the “occupation” of Franklin Street include:

a. Construction workers parking.

b. The reduction of short term car parking.

c. Ensuring 24 hour access to the car parking facilities at 501.

d. Ensuring on street loading is maintained/available to 501 and its tenants.

e. A lack of sufficient detail around the retention of 24/7 vehicle access to The

501 development during construction.

f. A commitment for representatives of 501 to provide input and comment on

any Traffic Management Plans relied upon during construction.

g. The ability to resolve problems as they arise during construction without

being considered a key stakeholder.

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59. Indeed, without specific recognition and appropriate consultation with 501, there

can be little assurance that ongoing access will be managed appropriately by a

contractor.

60. To this end we seek further changes to the EPRs that would include:

a. 501 be given the opportunity to comment on developing TMPs for the city

north station component of the project including the various construction

phases. (T1 and TA).

b. A mechanism be established to require the contractor to discuss and

resolve any unforeseen issues that may arise such as traffic safety and traffic

capacity which need to be addressed throughout construction.

61. The EPR should require consultation and consideration of matters put by relevant

stakeholders. Anything less allows for the possibility that stakeholders’ interests will not

be taken into account and addressed, particularly if those interests are inconvenient

or difficult to resolve, or the contractor has commercial imperatives to not resolve

complaints.

62. Accordingly, EPR T5 (fourth dot point) should be modified to include reference to key

stakeholders.

63. A new EPR that deals with on street loading for all businesses should be developed

Figure 5

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or this aspect should be clearly enunciated within the existing EPRs.

64. EPR T1 has been modified to require construction workers to be provided with car

parking where practicable. We support this but it should be strengthened to direct

construction workers such that they should not park on street.

65. The new EPR TA is supported but should be strengthened to make it mandatory to

include stakeholders in its group.

66. The new EPR TB is supported.

67. The EPRs developed and modified/amended through this process should be

recognised within the Incorporated Document and not be left to a contractor to

develop their own set.

Conclusion

68. Whilst 501 supports in principle the project there are a number of outstanding issues

that will unless adequately resolved impact significantly on the 501 land.

69. We thank the IAC for the opportunity of raising with it the concerns as outlined

above.

Peter Soding Tixxis Pty Ltd. For 501 Pty Ltd. 4 October 2016

16-09-16 outline of submissions on behalf of the botanica ......the zagame automotive group are the...

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