P L A N N I N G C O M M I T T E E R E P O R T Agenda Item 5.3 4 September 2007APPLICATION FOR PLANNING PERMIT TO THE MINISTER FOR PLANNING: 131-135 BOURKE STREET, MELBOURNE

Division Sustainability & Regulatory Services

Presenter Con Livanos, Executive Officer Development Planning

Purpose

1. To advise the Committee of a planning application made to the Minister for Planning for the demolition of the existing buildings and the construction of a 25 storey building for use as serviced apartments, ground level retail and basement car parking at 131-135 Bourke Street, Melbourne.

2. The Minister for Planning is the Responsible Authority for the application. The City of Melbourne has been asked to comment on the application.

3. This report is presented to the Committee at the request of Cr Ng.

Summary

Council Ref Number: TPM-2007-16

Proposal: Demolition of the existing buildings and the construction of a 25 storey building for use as serviced apartments, ground level retail and basement car parking.

Applicant: Notice of the application has been given to the City of Melbourne by the Department of Sustainability and Environment. Urbis are the applicant for the permit.

Zoning: Capital City Zone (Schedule 1 – Outside Retail Core)

Overlays: Design and Development Overlay, Schedule 1 (Active Street Frontages) Design and Development Overlay, Schedule 2 (Height Controls) Design and Development Overlay, Schedule 4 (Weather Protection) Public Acquisition Overlay

Existing Use: Three storey building along the Bourke Street frontage, which reduces to a two storey height to Little Collins Street. The tenancies fronting Bourke Street are currently used for retail (WC Penfolds and Dimmy’s). The tenancy fronting Little Collins Street is used for a restaurant (Bistro 1). The upper floors of the Bourke Street building are used for a day spa and massage parlour.

Number of Objections: Six (6) submitted directly to Council, including one from the National Trust of Australia (Victoria).

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Recommendation from Management

4. That the Planning Committee:

4.1. advise the Department of Planning and Community Development (formerly the Department of Sustainability and Environment) that the Council supports the proposal, except recommends that the front portion of the existing building fronting Bourke Street is retained;

4.2. request that the Minister for Planning approve an amendment to the Melbourne Planning Scheme utilising his powers under Section 20(4) of the Planning and Environment Act 1987 to introduce interim heritage controls to the property at 131-135 Bourke Street, Melbourne; and

4.3. simultaneously seek authorisation from the Minister for Planning to prepare Melbourne Planning Scheme Amendment C124 (which applies a heritage overlay to 131-135 Bourke Street, Melbourne) for public exhibition and proceed with the exhibition of the amendment.

Subject Site and Proposal

5. The subject site extends the length of the block from Bourke Street to Little Collins Street (refer Attachment 1).

6. The site adjoins the Southern Cross development to the east.

7. The site is currently developed by a three storey brick building along the Bourke Street frontage of the site, which reduces to a two storey height to Little Collins Street.

8. The application seeks approval for the demolition of the existing buildings on the site and the construction of a 25 storey serviced apartment building, ground level retail uses and basement car parking.

9. Details of the proposal (at Attachment 2) include:

9.1. a serviced apartment complex comprising a total of 444 serviced apartments and associated amenities including conference facilities, restaurant, gymnasium, lap pool and spa;

9.2. two (2) retail tenancies at ground level, with frontage to Bourke Street and Little Collins Street respectively;

9.3. basement level car parking with the provision of 45 car spaces; and

9.4. vehicle access to the basement car park and a loading dock is to be provided by a double crossover on Little Collins Street.

10. The proposal has been designed to incrementally step back from the building frontage to Bourke Street. To Bourke Street, the podium is to be constructed to the title boundary to a height of 13.3m (3 storeys). At levels 4 to 12, the building is setback approximately 11.2m from the northern boundary, 6m from the eastern boundary and 3.6m to the western boundary. At levels 13 to 24, the building is setback from the Bourke Street frontage by 24.7m.

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11. To Little Collins Street, the podium is setback 0.88m from the southern title boundary for a height of 7.9m (2 storeys). At levels 4 to 24 of the building the tower is setback 2.45m from the southern title boundary, 6m from the eastern boundary and 6.14m from the western boundary.

12. The overall height to the top of the building, excluding plant, is 77.9m as measured from the Bourke Street frontage.

Key Issues

13. The following key issues have been identified:

13.1. demolition of the existing building;

13.2. appropriateness of the replacement building; and

13.3. car parking and access.

Demolition of the Existing Building

14. The building, known as the former Eastern Arcade, was originally built in 1872 and converted into large shop floors in 1926, with a façade dating from 1894. The building presents a 19th century Moghul architectural style façade to Bourke Street at the upper level (refer Attachment 3).

15. The National Trust of Australia (Victoria) classified the former Eastern Arcade building in 2000 for its high architectural significance and historical associations. The Statement of Significance notes:

“Architecturally, the façade is the best example of the 19th century Moghul style in Melbourne, an exotic architectural treatment that was used very rarely. The horse-shoe arcading of the first floor, the large pointed horseshoe arch of the second floor verandah, and the delicate curvilinear patterned top frieze are the most notable features. The upper level of the Little Collins Street façade survives from the 1872 arcade, as do the original laminated timber arches of the roof of the arcade, and the side walls and roof.

Historically, the building was one of the grand arcades of Melbourne, with two levels of shops, stretching the whole city block…”

16. In May 2007, Heritage Victoria received and accepted a nomination to include the subject site in the Victorian Heritage Register, which identifies and protects places of state cultural heritage significance. Heritage Victoria does not consider the building to be of State importance, and thus to warrant inclusion on the Victorian Heritage Register. Instead, they recommended that the City of Melbourne include the building as an individual place in the Heritage Overlay of the Melbourne Planning Scheme, noting that:

“The former Eastern Arcade is of local architectural significance for its unusual Moorish style façade and it is of historical interest as one of Melbourne’s nineteenth century retail buildings.”

17. The subject building is currently graded ‘C’ in Council’s Central Activities District Conservation Study, however Council’s Conservation Consultant confirms that the building was originally graded ‘C’ in 1985 due to the heritage consultant’s lack of certainty regarding the condition, appearance and integrity of the upper level façade, which at the time, was completely obscured behind a large screen (refer Attachment 4).

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18. The ornate façade has been revealed for some years now and Council’s Conservation Consultant advises that a more appropriate grading would be either B, or possibly an A grading. As such, Council’s Conservation Consultant considers that the existing building is worthy of heritage protection via a Heritage Overlay under the Melbourne Planning Scheme.

19. The Bourke Street building is of local heritage significance for its unusual Moorish style façade, and its entire demolition should not be supported. However, as the subject site is not within a Heritage Overlay it is not protected from demolition.

20. It is therefore recommended that Council write to the Minister for Planning to approve an amendment to the Melbourne Planning Scheme utilising his powers under Section 20(4) of the Planning and Environment Act 1987 to introduce interim heritage controls to the property at 131-135 Bourke Street, Melbourne.

21. Such interim protection will ensure that demolition is not undertaken until such time that the heritage merits of the building have been further considered.

22. Given the current planning application, there is a need for urgency and the public interest would be served by immediate action.

23. The applicants advise that the existing building could not be incorporated into the redevelopment of the site. They advise:

“…taking into consideration the low heritage grading of the building, it was determined that alternate options to incorporate the existing facades within the design and development concept would be a ‘token’ gesture…and would result in a lesser quality outcome for the site, an incomplete response to the streetscape, poor integration with the public realm, and may limit the internal and amenity configuration of the mix of uses.

Ultimately, however, the final design resolution was strongly influenced by the structural complexity to retain the facades. From a technical and structural perspective it was determined that the retention of the façade along Bourke Street was extremely difficult as a result of the proposed construction of the basement level car park and service requirements of the development…”

24. It is considered that the incorporation of the Bourke Street façade into the development would not be a ‘token’ gesture, provided that a reasonable portion of the Bourke Street building was retained.

25. Local Policy ‘Urban Design in the Capital City Zone’ recommends that towers above podiums in the Central City should be setback at least 10 metres from street frontages. This could translate to the retention of at least 10 metres of the existing Bourke Street building. As currently proposed, the lower level of the tower of the proposed development is setback a similar distance, at 11.2m from Bourke Street and provided that the structural complexities of the integration between the existing and new portions are resolved, a reasonable portion of the existing building could be retained.

26. The structural complexities outlined by the applicant arise from the desire to extend the basement floor level up to the Bourke Street frontage. These structural complexities would be largely resolved (possibly completely) if the basement floor was also setback 11.2m (i.e. to align with the structural grid line for the tower setback). This reduced floor area would require the relocation of the fire service rooms currently shown on the plans and would result in an overall reduction of 8 car parking spaces. This reduced number of car parking spaces (revised total of 37) is consistent with Council’s policy to limit on-site car parking in the Capital City Zone.

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Appropriateness of the Replacement Building

27. If the entire demolition of the existing building were not an issue, the proposed replacement building, including its height, form and detailing, as proposed would be supported.

28. The development would be built to the Bourke Street and Little Collins Street boundaries and present active street frontages along Bourke Street and the majority of Little Collins Street, ensuring continuity of ground floor retailing on both street frontages. Whilst Little Collins Street also needs to be used for vehicular access, which would present a gap on this frontage, it is preferable that this occur at the rear of the site, rather than the main street frontage of Bourke Street.

29. The majority of the subject site is affected by a height restriction of 80 metres (DDO2-HC-7). The front quarter (approximately 24m) of the site is affected by a height restriction of 40 metres (DDO2-HC-2).

30. As described earlier, the building provides a three level transition from the Bourke Street frontage. The northern boundary of Bourke Street will be built to a height of 13.3m (3 storeys) from ground level to create a street level podium and maintain the 3 to 4 storey streetscape rhythm to the west. At the mid level (levels 4 to 12) the building is setback 11.2m from Bourke Street, with setbacks from east and west to provide separation between the proposal and the western tower of the Southern Cross development. At this mid level, the tower of the building is 40 metres in height which is in accordance with the preferred maximum building height outlined above. The main tower (levels 13 to 24) of the proposal is setback 24.7m from the Bourke Street frontage. With an overall height of 77.9m to the top of the building parapet, the height is consistent with the preferred maximum building height of 80 metres outlined above.

31. This incremental stepping back of the building from Bourke Street ensures that the building would sit comfortably within the context of the built form in Bourke Street, including the approved West Tower of the Southern Cross project. Importantly, the development would not intrude upon the important views to Parliament House along Bourke Street.

32. The setback of the tower over the podium would ensure that downward drafts are deflected from penetrating to the street level. Wind Effects advice provided by the applicant concludes that the development would not induce significant additional wind flow into surrounding streets and that conditions would be maintained within the criterion acceptable for comfort for walking.

33. Council’s Urban Design Branch supports the proposed redevelopment.

Car Parking and Access

34. The vehicle access to the site is located off Little Collins Street which provides access to the loading area at ground floor level and the parking (45 spaces) in the basement level.

35. This limited number of car parking spaces (and a further reduction if the basement floor was reduced) is consistent with Council policy which seeks to limit on site car parking in the Capital City Zone.

36. Council’s Engineering Services Group advise that the design layout of the car parking spaces is generally satisfactory and raise no major issues with regard to the proposed development.

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Relation to Council Policy (including Municipal Strategic Statement)

37. The MSS outlines the following vision for the Central City:

“The Central City continues to be the primary place of employment, business, finance, entertainment, cultural activity and retail in Victoria, and a place that facilitates the growth of innovative business activity.”

38. Relevant land use strategies for the Central City include:

38.1. encourage the development and establishment of new and innovative professional, commercial and retail business which take advantage of the City’s central location and accessibility by a range of transport nodes;

38.2. support the continued development and growth of the broad range of existing business in the Central City;

38.3. encourage retention and enhancement of specialised shopping and entertainment precincts within the Central City, including Collins Street and Little Collins Street;

38.4. encourage a mix of public and commercial uses at ground level in new developments to support street life and provide pedestrian interest; and

38.5. encourage the provision of varied facilities and services which support the diversity of tourists throughout the Central City.

39. Relevant built form strategies for the Central City include:

39.1. protect the unique qualities of the Hoddle Grid including heritage buildings and precincts, the regular grid layout and laneways;

39.2. protect views to Parliament House along Bourke Street;

39.3. ensure that the design of tall buildings in the Central City promotes a human scale at street level, respects the street pattern and provides a context for heritage buildings;

39.4. ensure development fronting streets creates a continuous building edge and integrated streetscape;

39.5. ensure that development provides weather protection along key pedestrian routes; and

39.6. ensure that the design of buildings enhances the safety of pedestrians.

40. Local Policy ‘Urban Design in the Capital City Zone’ provides the primary guidance for development in the Central City. Relevant policy includes:

40.1. encourage buildings, including towers, to align to the street pattern and to respect the continuity of street facades;

40.2. retain views into and out of the Capital City Zone and vistas to important civic landmarks;

40.3. towers above the podium should be setback at least 10 metres from street frontages to deflect downward drafts from penetrating to street level; and

40.4. towers should be well spaced to equitably distribute access to an outlook and sunlight between towers and ensure adequate sun penetration at street level.

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Time Frame

41. Notice of the application was given to the City of Melbourne in accordance with Section 52(1)(b) of the Planning and Environment Act 1987. Comments on the application were requested to be received by the Department of Planning and Community Development within 28 days. This time frame has passed.

42. Council Officers have requested that Department of Planning and Community Development not to make a decision on the application until the Planning Committee considers this report.

Consultation

43. The application was not publicly advertised by Department of Planning and Community Development as it is exempt from notification requirements under the Capital City Zone and the Design and Development Overlays affecting the site.

Finance

44. The approximate costs associated with exhibiting the amendment will be in the order of $2,000 for Council's heritage advisor to prepare a revised heritage assessment to finalise the grading of the building, $5,000 for notice and exhibition, $7,000 for panel costs (based on a 1 day hearing) and $7,000 for expert heritage evidence. Statutory costs are in the order $740 for the Department of Planning and Community Development to approve the amendment and $1,000 for any further notices once approved. This is a total cost in the order of $23,740.

Legal

45. The Minister for Planning is the Responsible Authority for this application. Division 1 of Part 4 of the Act sets out the requirements in relation to applications for permits pursuant to the relevant planning scheme. Divisions 1, 2 and 3 of Part 3 of the Act set out the relevant provisions in relation to planning scheme amendments.

Background

46. It is recommended that Council requests the Minister for Planning under Section 20(4) of the Planning and Environment apply an interim heritage overlay on the site, as it is the most expeditious process to apply a heritage overlay. Section 20(4) of the Planning and Environment Act enables the Minister for Planning to amend the planning scheme without notice to expedite an amendment. This would ensure that the heritage significance of the site is taken into account in the short term. At the same time, Council would pursue its own amendment to place the heritage overlay on the site on a permanent basis. The Council amendment would follow the normal amendment procedure where amendments are publicly exhibited to enable all affected parties and interested persons to participate. The interim controls are considered necessary until the merits of the property permanently in the Heritage Overlay is fully tested by the amendment process. The interim heritage overlay, if granted by the Minister, would be superseded or removed depending on the outcome of the full amendment process.

47. After the request for the 20(4) amendment from the Minister for Planning is lodged, it is intended to seek Authorisation from the Minister for Planning to place Melbourne Planning Scheme Amendment C124 on exhibition. After authorisation, the amendment would be placed on public exhibition.

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Attachments: 1. Locality Plan 2. Proposed Development Plans 3. Recent Photograph of the Subject Site 4. Former Photograph of the Subject Site

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48. The Planning and Environment Act 1987 requires that an amendment to a planning scheme is on exhibition for not less than one month – providing an opportunity for anyone to make a submission. To fulfil these requirements, details of the amendment will be sent to the owners and occupiers of the site, adjoining land and other interested parties such as the National Trust and notices will be placed in The Age newspaper.

49. Any submissions received during exhibition would be reported back to Council. Council can then make changes to the amendment to satisfy the submissions, refer submissions to an independent panel or choose to abandon it. At a Panel hearing, all submitters have the opportunity to be heard. The amendment process could take up to 12 months to complete depending on submissions and the panel process.

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Agenda Item 5.3 Planning Committee

4 September 2007

FINANCE ATTACHMENT

APPLICATION FOR PLANNING PERMIT TO THE MINISTER FOR PLANNING: 131-135 BOURKE STREET, MELBOURNE

Any costs associated with the implementation of the recommendations will be met through the branches budget.

Joe Groher Manager Financial Services

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Agenda Item 5.3 Planning Committee

4 September 2007

LEGAL ATTACHMENT

APPLICATION FOR PLANNING PERMIT TO THE MINISTER FOR PLANNING: 131-135 BOURKE STREET, MELBOURNE

The Minister for Planning is the Responsible Authority for this application.

Division 1 of Part 4 of the Planning and Environment Act 1987 (“the Act”) sets out the requirements in relation to applications for permits pursuant to the relevant planning scheme.

Section 52(1) of Act provides that “unless the responsible authority requires the applicant to give notice, the responsible authority, must give notice of an application in a prescribed form –

(b) to a municipal council, if the application applies to or may materially affect land within its municipal district”.

In making its decision, Section 60(1) of the Act requires the responsible authority to consider, amongst other things, all objections and other submissions it has received. Section 61(1)(b) provides that the responsible authority may decide to grant a permit subject to conditions.

Divisions 1, 2 and 3 of Part 3 of the Act set out the relevant provisions in relation to planning scheme amendments.

Section 8 (1)(b) provides that the Minister may prepare amendments to any provision of a planning scheme.

Section 20 (4) further provides that the Minister may exempt himself or herself from any of the requirements regarding exhibition and notice if the Minister considers that compliance with any of those requirements is not warranted and makes such an exemption appropriate.

Section 9 of the Act provides that the Minister may authorise the preparation of an amendment to a planning scheme.

Kim Wood Manager Legal Services

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