business plan - city of shoalhaven

Shoalhaven Industrial Lands

Business PlanAugust 2010

Council Property Steering Committee 7 November 2012 - Addendum Report 1 - Item 1

2010/21 Shoalhaven Industrial Lands Business Plan

Contents1. Introduction 1

1.1 Description of the Industrial Lands Business 1

1.2 Economic Development Office 2

1.3 Requirements for a Business Plan 3

1.4 Objectives of the Business Plan 4

2. Three Year Business Plan Objectives Summary 5

2.1 Statement of Business Direction 5

2.2 Key Performance Indicators and Targets 5

2.3 Summary of Business Trends 7

3. Key Strategic Issues for the Next Three Years 9

3.1 Industrial Land Development Reserve 10

3.2 Industrial Land Strategy 10

3.3 Transport Connectivity to the National Road Network 11

3.4 Marketing 11

3.5 Special Contractual Conditions 12

3.6 Rezoning of Employment Lands 12

3.7 Environmental and Business Leadership 13

AppendicesA Current Industrial Estate Profiles

B Future Estate Profiles


Page | 12010/21 Shoalhaven Industrial Lands Business Plan

1. Introduction

1.1 Description of the Industrial Lands Business

The Shoalhaven City Council has been involved in industrial land development with the City for over thirty years. To date these developments have been in the northern parts of the City at Bomaderry, North Nowra, South Nowra, Huskisson and Yerriyong (Albatross).

Over these thirty years approximately 180 lots have been subdivided, sold and developed to accommodate the needs of local industry. Some 2500 jobs have resulted from these developments and have provided diversification of the Shoalhaven Economy.

In other areas of the Shoalhaven, such as Shoalhaven Heads, Huskisson, Basin View, Sussex Inlet and South Ulladulla, the majority of industrial land has been in the ownership of, and in some cases has already been developed by, the Crown (NSW State Government). Undeveloped industrially zoned land is still largely owned by the Crown who was an active developer in the 1980s and early 1990s, but has since withdrawnfrom this market. The Crown continues to hold large undeveloped parcels of industrial zoned land throughout New South Wales.

Shoalhaven City Council’s interests in industrial land are administered internally by the Economic Development Office, which currently has three industrial estates where land sales are currently available:

Flinders Industrial Estate – South Nowra;

Albatross Aviation Technology Park – Yerriyong; and

Woollamia Estate – Huskisson.

Further information on each of these existing estates is provided in estate profiles in Appendix A.

As part of Council’s responsibilities in ensuring that an ongoing supply of industrial land is available to the market, opportunity for the development of a new estate at Ulladulla and extension of the Flinders Industrial Estate are also being investigated (refer estate profiles at Appendix B). The business structure for Council’s industrial lands interests is illustrated in the organisational chart in Figure 1, and an overall location plan for all the estates is shown in Figure 2.

Figure 1: Industrial Land Interests Organisational Chart



North Nowra

Bomaderry

Flinders Estate Extension

Albatross Aviation Technology Park

Ulladulla

Flinders Estate

Woollamia

Figure 2: Shoalhaven Industrial Land Map

In continuing to develop, sell and manage the industrial land portfolio, the Industrial Lands area of Council maintains the following vision and mission statements:

Industrial Lands Vision:

To provide adequate industrial lands to facilitate the ordered growth of industrial development within the City.

Industrial Lands Mission:

To combine the delivery of industrial land with other areas of economic development to encourage and grow investment, jobs and business opportunities within the Shoalhaven.

1.2 Economic Development Office

As mentioned above, the Shoalhaven City Council’s specialist Economic Development Office administers Council’s industrial land portfolio. However the Economic Development Office has a much broader role than just land sales.

The Economic Development Office has two main functions. Firstly it maintains a lobbying/development role to identify the need for and delivery of key infrastructure for the economic growth of the Shoalhaven. At the business level, the Economic Development Office works with existing and new enterprises to provide assistance in their plans for growth.

Under Council’s Draft Delivery Program and Operational Plan 2010-2011, the Economic Development Office has a wide range of roles and responsibilities including:

Potential future estate

Current estate

Completed estate



To identify and advocate specific infrastructure, development and liveability outcomes that further diversify the Shoalhaven economy;

To develop industry sector strategies for various existing and new industries within the Shoalhaven;

To collaborate on economic development initiatives with a range ofstakeholders;

To lobby and liaise with government at all levels to improve key road infrastructure links to the Shoalhaven;

To devise various strategies for precincts such as the waterfront

To monitor Council’s “Local Preference Policy”;

To promote and expand the “Shoalhaven Rewards” program;

To promote educational, research and training opportunities within the Shoalhaven; and

To work with local business across a range of programs, initiatives and regulatory requirements.

Within this context, Council’s industrial land portfolio plays an important role in assisting the development of employment opportunities by providing the Shoalhaven with an adequate supply of employment lands. That said, the Economic Development Office’s core role is to assistbusiness in investing in the Shoalhaven, and in many instances this would not involve sale of industrial land.

1.3 Requirements for a Business Plan

Shoalhaven City Council has recently transitioned to the Integrated Planning and Reporting Framework, which will become the standard operational framework for local government in NSW over the next few years. This section provides a brief review of how the Shoalhaven Industrial Lands business, and this Business Plan, relate to this framework.

Integrated Planning and Reporting Framework

The industrial lands business of Council and the need for business planning are articulated under Council’s Community Strategic Plan –Shoalhaven 2020. This Plan provides the foundations of Council’s functions under the new Integrated Planning and Reporting Framework.

The Community Strategic Plan identifies a series of Key Result Areas which are supported by a series of programs and initiatives that seek to achieve the desired objectives of Council. Under the Economy Key Result Area, Objective 3.1 identifies the need for:

An economy that is based on Shoalhaven’s distinct characteristics, advantages and natural qualities

This objective is supported by Strategy 3.1.4 which more specially identifies the need to:

Maintain, renew and enhance existing infrastructure to support economic activity and investment

Activities under this strategy require the Economic Development Office to monitor and actively facilitate the availability of appropriate stocks of employment land (including industrial land), as well as devising an industrial land strategy for the Shoalhaven.

The Integrated Planning and Reporting Framework, as described above, is shown in Figure 3.



Figure 3: Integrated Planning and Reporting Framework

The Integrated Planning and Reporting Framework also articulates a number of other responsibilities of the Economic Development Office, most notably the implementation of Councils economic development strategy “Shoalhaven - An Enterprising Alternative”. The industrial lands business forms only a small part of this overall strategy.

1.4 Objectives of the Business Plan

This Business Plan sets out objectives to drive the direction of Council’s industrial lands business operations to ensure that the longer term City Plan strategy and Final Draft Community Strategic Plan objectives as discussed in the previous section are met. These Business Plan objectives for the industrial lands business are:

Objective 1: To deliver acceptable employment and financial returns to Council;

Objective 2: To ensure an adequate supply of industrial land at an appropriate cost to the market;

Objective 3: To work closely with new customers and existing land owners to facilitate value adding activities and development that encourages further investment; and

Objective 4: To encourage sustainable development within Council’s industrial estates.

This Business Plan outlines the operational framework of Council industrial lands business, and recommends a number of strategic directions to enhance business performance over the 2010/2011 to 2012/2013 period. The Business Plan is intended for Executive and Group Management, and for the Economic Development Office’s guidance and implementation as manager of the industrial lands. The Business Plan will be reviewed annually to ensure the proposed direction and actions remain consistent with current trends and Council objectives.



2. Three Year Business Plan Objectives Summary

2.1 Statement of Business Direction

The intention of this Business Plan is to provide direction for Council’s industrial lands business to be a consistently profitable enterprise, meeting the expectations of its new and existing clients, whilst providing Council with sound returns and opportunities to promote economic development. Over the next three years, the industrial lands business will seek to:

Develop an overarching strategy for industrial land within the Shoalhaven;

Further develop, promote and complete sales within all three of its existing industrial estates;

Ensure that industrial estates that are identified as being Regionally Significant Employment Lands within the Employment Lands Guidelines for the Illawarra 2008 are protected as employment generating areas;

Explore options for the development of new estates and other business opportunities, bringing forward those that are identified in the areas of greatest market need and which have the highest levels of employment and financial return for Council;

Continue to work closely with HMAS Albatross, and the Department of Defence generally, to identify opportunities and strategic alliances relating to the development of the Albatross Aviation Technology Park;

Work with purchasers of industrial land allotments to ensure development of those allotments that thereby facilitate employment creation; and

Continue to investigate and implement environmental or other business development opportunities in association with programs such as the Business Treading Lightly initiative.

This vision of where Council’s industrial lands business will be in three years time forms the basis for the actions and directions of this Business Plan, and will ultimately ensure all objectives of the Business and Council are being met.

2.2 Key Performance Indicators and Targets

To assist in achieving the above business direction, as well as Council’s broader planning framework (see Section 1.2) and the more detailed Business Plan Objectives of the Unit (see Section 1.4), key indicatorbenchmarks and targets have been identified in this section to provide measureable progress of the Business Plan.

These indicator benchmarks and targets of the industrial lands business over the next three years (2010/11 to 2012/13 financial years) arepresented overleaf.



Business Plan Indicators and Targets (2010/11 to 2012/2013)

Financial Indicators

Objective Indicator Benchmark Target over three years

Objective 1: To deliver acceptable employment and financial returns to Council

Balance of the Industrial Lands Development Reserve

Reserve remains in credit

Employment growth within the Shoalhaven

50% higher than population increase over five years

Non-Financial Indicators

Objective Benchmark Target over three years

Objective 2: To ensure an adequate supply of industrial land at an appropriate cost to the market

Employment Lands Guidelines for the Illawarraidentification of regionally significant employment lands

Maintain position of Shoalhaven’s Industrial Estates within the region

A range of price and land type available to the market

Maintain current range

Non-Financial Indicators

Objective Benchmark Target over three years

Objective 3: To work closely with new customers and existing land owners to facilitate value adding activities and development that encourages further investment

Number of sales to new or existing land owners

2010/2011: 2 sales 2011/2012: 2 sales

2012/2013: 2 sales

Completion of development within two years of land sale

80% of all land sales

Objective 4: To encourage sustainable businessdevelopment within Council’s industrial estates

Businesses within industrial estates participating in Business Treading Lightly initiative

= 7 businesses

2010/2011: 8businesses



Achieving and adhering to these objectives and targets will consistently achieve the related objectives and targets of Council’s overall planning framework. These objectives and targets also provide strategic direction to the business and a platform to achieve the Statement of Business Direction described in the Section 2.1.

Recommendations relating to these objectives and targets are also further discussed and articulated throughout Section 3 which relates to the proposed direction of the industrial lands business with respect to identifying and overcoming strategic business issues.



2.3 Summary of Business Trends

Business trends provide an indication of the existing business performance and other trends on which to establish realistic and implementable future measures and targets. This section provides a brief overview of sales, revenue and expenditure, as well as macro-economic trends and other external trends that impact on the industrial land business.

Macro-Economic and Other Trends

Macro-economic trends, such as general business conditions, have a significant impact on industrial land sales at the local level. These trends are highlighted by the recent economic conditions (commonly referred as the Global Financial Crisis), where no sales were made for over 18 months.

National and state level impacts on the industrial business market are also evident, for example in the lead up to elections.

Other recent local trends in industrial development include:

Increase in larger sites to accommodate distribution centres including warehousing and logistics;

Increase in the use of industrial sites for low-cost commercial activities such as call centres; and

An oversupply of smaller factory units.

Revenue Trends

Revenue from the industrial lands business comprises of two primary sources, ongoing rental of two improved sites owned by Council, and through land sales.

Over the last 3 years, revenue has declined significantly as a result of the global financial crisis. Property sales have been very low, with some income earned through grants associated with the Albatross Aviation Technology Park and rental income. Over the next three years (2010/2011 to 2012/2013), revenue is expected to be between $2.0 and $2.75 million,

comprising primarily of land sales, with around $90,000 in rental returns. These revenue streams are detailed in Table 1 below.

Table 1: Revenue 2010/2011 to 2012/2013

Revenue Type 2010 / 2011 2011 / 2012 2012 / 2013

Rental - Norfolk Avenue Site $39,285 $38,200 $39,300

Rental - Sexton Street Site $48,554 $50,011 $51,511

Land Sales $2,000,000 $2,650,000 $2,450,000

TOTAL $2,087,839 $2,738,211 $2,540,811

A new loan to the value of $1.5 million is also expected to be raised in the 2010/2011 financial year.

Expenditure Trends

Expenditure for the industrial lands business can be categorised into four main areas:

Loan repayments (both internal and external);

Land purchase;

Land development; and

Ongoing costs for improved sites.

Over the next three years expenditure is expected to be relatively high, as land purchase and development costs of new estates occur. A new loan required to purchase a large industrial land parcel in Ulladulla will result in increased general loan repayments, though these will decrease in three years time when existing loans expire.

Land development will peak in the 2011/2012 financial year when development of the Ulladulla site is expected. Land development costs will otherwise be in the range of $1.2 to $1.5 million per financial year.



A breakdown of expenses of the industrial lands business over the next three years is provided in Table 2.

Table 2: Expenses 2010/2011 to 2012/2013

Expenses Type 2010 / 2011 2011 / 2012 2012 / 2013

Loan Repayments $428,263 $656,400 $486,926

Rental Sites Expenses $1,159 $1,194 $1,230

Land Purchase $1,500,000 $0 $0

Land Development $1,200,000 $2,950,000 $1,500,000

TOTAL $3,129,422 $3,607,594 $1,988,156



3. Key Strategic Issues for the Next Three Years

This section provides details relating to key strategic issues impacting on the industrial land business. Discussion of key issues is related back to the objectives of this Business Plan with recommendations and timeframes provided on how these will be addressed over the 2010/2011 to 2013/2014 or longer term period.

In review, the objectives of this Business Plan are:



Objective 3: To work closely with new customers and existing land owners to facilitate value adding activities and development that encourages further investment; and


Indicative timeframes provided for the undertaking of recommendations are to be applied as follows:

Short-Term refers to completion before the end of the 2010/2011 financial year;

Medium-Term refers to completion before the end of the 2012/2013financial year;

Long-Term refers to completion before the end of the 2015/2016financial year; and

On-going refers to actions that require continuous consideration throughout the Business Plan timeframe.

It should be noted that while indicative timeframes have been provided, changing business circumstances may result in the re-prioritisation of these recommendations and such changes would be reflected in annual reviews of the Business Plan.

Key strategic issues discussed in this section are:

Industrial Land Development Reserve;

Industrial Land Strategy;

Transport Connectivity to the National Road Network;

Marketing;

Special Contractual Conditions; and

Rezoning of Employment Lands.



3.1 Industrial Land Development Reserve

An Industrial Land Development Reserve has been established into which the proceeds from industrial land sales (cash basis) are transferred and held for the purposes of reinvestment into the employment lands sector. The reserve is used to fund future infrastructure implementation and upgrade, as well as being available for the purchase of new land parcels when such opportunities arise.

Future Direction:

In the future, the Industrial Land Development Reserve would remain in credit, enabling the repayment of all loans and with a surplus to facilitate significant development and infrastructure opportunities to be realised in short timeframes. The Reserve would be separated from general Council funds and be clearly earmarked for the purposes for which it was created. If borrowings are required, they would only be pursued in a prudent manner.

Relevant Objectives:

Objective 1: To deliver acceptable employment and financial returns to Council; and

Objective 2: To ensure an adequate supply of industrial land at an appropriate cost to the market.

Actions:

Develop and maintain a forward plan of proposed capital works within existing industrial estates.

Medium-term / On-going

Where considering new estate opportunities, ensure;

o The Reserve is built up to a level to allow, where applicable, loan free development; and

o Through feasibility studies and valuations, that projected returns will replenish the Reserve over time.

On-going

3.2 Industrial Land Strategy

Under Strategy 3.1.4 of the Council’s 2010-2011 Delivery Program and Operational Plan, the Economic Development Office is required to “Devise an industrial land strategy for the Shoalhaven”. This strategy would be designed to articulate the current and future opportunities taking into consideration the findings and requirements of the Illawarra and South Coast Employment Lands Taskforce and Guidelines.

Future Direction:

The Industrial Land Strategy would provide a flexible, but clearly articulated guide of Shoalhaven City Council’s industrial lands business including:

Detailed analysis of local, regional and state trends within the industrial and employment lands area;

Projected staging, timing and infrastructure requirements of existing industrial estates based on the above analysis; and

Potential sites and/or the typical site requirements sought for the purchase of land and development of new estates.

The implementation of the Strategy would guide Council’s direction with respect to industrial lands, providing a clear framework for decision-making.






Actions:

Develop an Industrial Lands Strategy that clearly articulates Council’s current and future industrial lands intentions.

Medium-term

3.3 Transport Connectivity to the National Road Network

The changing nature of industrial estates, and particularly the introduction of larger logistics and warehousing facilities, has resulted in the utilisation of larger transport vehicles and therefore vehicle weight. While existing estate infrastructure (roads and bridges) were designed to appropriate standards at the time of construction, key infrastructure items may be inadequate for future uses should larger vehicle access be required.

Future Direction:

In the future, strategic decisions will be made to facilitate larger vehicle (for example AB-triple and B-triples) access to certain existing or new industrial estates. These operations would be likely to utilise the Sydney-Nowra-Canberra route via the Princes Highway and Main Road 92, with Council responsible for the access between State and National roads and the estate allotments.


Objective 3: To work closely with new customers and existing land owners to facilitate value adding activities and development that encourages further investment.

Actions:

Undertake a review of existing estates to determine current and future access “blockages” to form a baseline for future decision making.

Medium-term

Monitor the need for, and give consideration to the undertaking of strategic infrastructure upgrades as required to cater for future client requirements.

On-going

3.4 Marketing

Council currently undertakes targeted marketing through a range of media including:

Prominent advertisements within the hard copy and web-based versions of the Yellow Pages;

Online through Council’s website and the Shoalhaven “The Enterprising Alternative” business website; and

On-site advertising within Council’s industrial estates.

In addition to these formal means of advertisement, Council also participates in trade shows and conferences of strategic customers such as Defence and aviation. Other targeted marketing opportunities are also pursued from time to time as such opportunities arise.

While these forms of marketing are partly fixed advertising, much of the ongoing marketing opportunities for introducing clients to Council’s industrial estates is facilitated through the work of Council’s Economic Development Office. This client focused approach provides opportunity for not only the sale of land, but also the value added investment and employment creation associated with the development of that land.



Future Direction:

Current marketing activities are considered to be well targeted and consistent with the balance of cost and reward. In the future, this trend of marketing Council’s industrial lands through a business and client relationship building exercise will continue to provide not only land sales but continued employment growth within the region.


Objective 1: To deliver acceptable employment and financial returns to Council; and


Actions:

Continue the current balanced marketing approach whilst developing new marketing approaches as appropriate during the course of the Business Plan.

On-going

3.5 Special Contractual Conditions

Council’s strong hold on the industrial lands sector within the Shoalhaven provides a unique ability to service clients and to promote the creation of economic development and employment growth. Within all sales contracts, Council includes a buyback provision that enable the buyback of land should development not progress. This control ensures that land speculation and land banking does not occur, and that land sale will ultimately result in the development of the site and creation of employment. These buyback provisions and assurances that the land will be developed and create employment opportunities would be lost if land was to be listed and sold solely by agents.

Future Direction:

The special contract provisions will be maintained in the future, providing the Economic Development Office to continue to facilitate employment and economic growth within the area. While it is considered possible to open the market and create a short-term monetary gain through increased sales without these special conditions, the controlled environment of the Shoalhaven’s industrial land sector is considered to be a on-going benefit to the community.




Actions:

Council ensure the on-going provision of special contractual clauses within industrial land sales to assist in facilitating value adding opportunities in economic and employment growth.

On-going

3.6 Rezoning of Employment Lands

A constant threat to the viability of any industrial land development is the encroachment of perceived “higher-value” land uses such as commercial and residential development. Under the Employment Lands Guidelines for the Illawarra, the rezoning of industrial land should be undertaken with close consideration of the need to protect regionally significant employment lands. In doing so, it is recommended that any proposed rezoning identify alternative locations and opportunities for employment generating development. In-turn, these proposals are increasingly being



directed to the Economic Development Office for consideration and assessment.

Future Direction:

Through the development of an Industrial Lands Strategy, the principles and considerations of rezoning and replacement lands will be articulated and assessment of such proposals be based on clear guidelines. These principles will provide a strong case for the retention of all existing industrial land zones to ensure changing trends and long-term employment land opportunities are maintained.

Relevant Objective:

Objective 2: To ensure an adequate supply of industrial land at an appropriate cost to the market.

Actions:

In the development of the Industrial Land Strategy, principles for the consideration of rezoning and land replacement be developed which strongly defend the potential for rezoning of regionally significant employment lands.

Short-term

3.7 Environmental and Business Leadership

The Economic Development Office has over time participated in a range of environmental and business development initiatives such as the Business Treading Lightly initiative currently being implemented by the Southern Councils Group. The Business Treading Lightly initiative seeks to examine and implement changes to business practices and operations that result in improved environmental outcomes.

In the interests of creating sustainable industry, the Economic Development Office also seeks to market the program and encourage participation by its clients and businesses within its estates.

In its role as developer of industrial estates, the Economic Development Office also seeks to ensure that sustainability and innovation in the area of environmental leadership is clear throughout its projects.

Future Direction

As the importance of sustainability continues to become integral to many business operations, so too will participation in programs such as the Business Treading Lightly initiative. In the timeframe of the Business Plan, the Economic Development Office will continue to market and encourage participation in the Business Treading Lightly or like programs, enabling viable initiatives to be developed, researched and implemented.

By promoting and actively engaging in emerging sustainability trends, the Economic Development Office will position itself to gain a competitive advantage in the growing green business sector and its associated employment and economic development opportunities.

Relevant Objective:


Actions:

That the Economic Development Office continue their participation in the Business Treading Lightlyand other like programs, including the investigation and implementation of feasible environmental initiatives within existing or new estates.

On-going

That the Economic Development Office continues to market and encourage participation by their clients and businesses within their estates in the Business Treading Lightly and other like programs.

On-going


Appendix A

Current Industrial Estate Profiles


Flinders Industrial Estate – South Nowra

First established in 1978, this development at South Nowra has several large factory premises with a number of international companies operating from the estate. A wide variety of products are produced and sold/exported from the Shoalhaven to markets interstate and overseas. The estate is serviced by many local hauliers operating to Sydney, Ports Botany and Kembla, and other centres throughout NSW and Australia.

The estate has been developed in stages to assist in achieving a consistent and steady flow and availability of industrial land on the market. The first stages were developed in 1978, and the most recent Stage (Stage 9) was released in 2007 yielding 18 additional lots having a size range of 3000sqm to 6344sqm. The previous stage was released in 2005 yielding 12 lots. A summary of the available land at the estate is provided in Table 1 below.

Table 1: South Nowra - Available Lot Summary (June 2010)

Stage Lots Released Lots Sold Lots For Sale

9 (2007) 18 1 17

8b (2005) 12 10 2

8a (2004) 16 14 (+1 Leased) 1

Previous stages 5

TOTAL 25

The above available land has an expected sales value of more than $6m. In addition to the above there is approximately 21 hectares of industrial land still to be developed which should enable an on-going supply of the estate for about 5-8 years. The purchase of an additional land parcel adjoining the estate (approximately 12 hectares in size) is currently being negotiated. Indicative land size and price (April 2010 and GST inclusive) is provided in Table 2.

Capital expenditure for the Flinders Estate over the next three years is shown in Table 3. Unless there is an unexpectedly high take-up of existing available land, no expenditure is anticipated due to the high number of lots already available. Expenditure does not however include the potential expansion area currently under consideration.

Table 2: South Nowra - Indicative Land Size and Price

Size (sqm) Approx Dimension Price

3,200 40m x 80m $260,000

3,800 50m x 75m $300,000

6,344 85m x 80m $407,000

9,245 62m x 147m $615,000

13,000 80m x 161m $700,000

Table 3: South Nowra - Projected Capital Expenditure

2010/2011 2011/2012 2012/2013

Expenditure $0 $0 $0

Flinders Estate Layout Plan


Albatross Aviation Technology Park – Yerriyong

The Albatross Aviation Technology Park (AATP) was first developed in the mid 1990s to accommodate the Seasprite Helicopter Program being implemented by the Royal Australian Navy on the adjoining HMAS Albatross Naval Air Base. AATP immediately adjoins the Base, with direct airfield access via a security controlled gate and taxi-way system developed within the Park. A summary of the available land at the estate is provided in Table 1 below.

Table 1: Yerriyong - Available Lot Summary (June 2010)


1 (1998) 5 4 1

2 (2005) 9 2 7

TOTAL 8

The above available land has an expected sales value of more than $2.5m. In addition to the above there is approximately 25 hectares still to be developed. Several major Defence programs are expected to be situated at HMAS Albatross in coming years, with potential of taking up several hectares of existing and future lots. Defence policy to accommodate contractors off-Base is expected to greatly assist in achieving future sales.

Future expansion of the Estate will require extension of the existing taxiway and a provision of $1m has been earmarked for these works which would be required as the take-up of lots determines. Indicative land size and price (April 2010 and GST inclusive), with and without access to the taxiway, is provided in Table 2.

Capital expenditure for Albatross Aviation Technology Park over the next three years is shown in Table 3. These capital expenditure items include $150,000 in the coming 2010/2011 financial year for electrical upgrades, and $600,000 in financial year 2012/2013 for taxiway extensions. It is noted however that the taxiway extensions would need to be brought forward if required by proposed developments.

Table 2: Yerriyong - Indicative Land Size and Price


Without access to taxiway

3,270 62m x 45m $210,000

3,600 60m x 60m $230,000

With access to taxiway

4,032 60m x 65m $302,500

6,770 70m x 92m $510,000

15,000 150m x 100m $955,000

Table 3: Yerriyong - Projected Capital Expenditure

2010/2011 2011/2012 2012/2013

Expenditure $150,000 $0 $600,000

Albatross Aviation Technology Park Layout Plan


Woollamia Estate – Huskisson

The Woollamia Estate was first developed by the Crown in the mid/late 1970s with Council purchasing the Crowns remaining interest in the mid 1990s. Stage 3 of this estate has been undertaken in two releases in 1995 and 2005 respectively. A summary of the available land at the estate is provided in Table 1 below.

Table 1: Huskisson - Available Lot Summary (June 2010)


3A (1995) 14 14 0

3B (2005) 13 8 5

TOTAL 5

The above available land has an expected sales value of around $1.0m. In addition to the above there is approximately 5 hectares still to be developed. Indicative land size and price (April 2010 and GST inclusive) is provided in Table 2.

Capital expenditure for the Woollamia Estate over the next three years is shown in Table 3. Only a small amount of expenditure is expected in the 2010/2011 financial year, with much of the development work already completed in the estate.

Table 2: Huskisson - Indicative Land Size and Price


1,800 42m x 42m $200,000

1,900 42m x 42m $210,000

3,400 30m x 55m $240,000

3,810 40m x 90m $285,000

Table 3: Huskisson - Projected Capital Expenditure

2010/2011 2011/2012 2012/2013

Expenditure $50,000 $0 $0

Woollamia Estate Layout Plan


Appendix B

Future Estate Profiles


Flinders Industrial Estate Extension – South Nowra

The expansion of the existing Flinders Industrial Estate in South Nowra is proposed through the purchase of a Crown land parcel which has been identified adjoining the existing estate.

The land under consideration is approximately 10 hectares in size, and will accommodate up to eight additional industrial land parcels. The land is between the current factories in Albatross Road (North) and the Archer Racecourse.

The land is currently zoned as public open space, but is proposed to be rezoned to industrial under the new Shoalhaven LEP due for exhibition and gazettal over the next 18 months. The site and proposed zoning map are identified in Figure 1 and Figure 2 respectively.

NO

RF

OLK

AV

E

CU

MB

ER

LAN

D A

VE

FLINDERS RD

ALB

ATR

OSS R

D

Figure 1: Flinders Industrial Estate Extension Area

Figure 2: Anticipated Zone Map under new Shoalhaven LEP

The land has an expected sales value of around $2.4m, with capital expenditure to purchase and develop the site shown in Table 1 below. Development costs below would include development of equestrian facilities on the adjoining Archers Racecourse land, which would also return further value.

Table 1: Flinders Estate Extension - Projected Capital Expenditure

2010/2011 2011/2012 2012/2013

Development $500,000 $1,500,000 $0

Land Purchase $850,000 $0 $0

Proposed Industrial

subdivision site

Proposed Industrial

subdivision site


Ulladulla Estate Extension – South Nowra

At Ulladulla the Crown has two areas of industrially zoned land – around Camden Street and off Kings Point Road. The Kings Point Road industrial zone was first developed by the Crown in the late 1970s and early 1980s, producing 40 lots over a total of 13.6 hectares. While three lots remain vacant and several lots still have potential for further development, in reality the supply is now almost exhausted.

The second area of industrially zoned land owned by the Crown, a total of 19 hectares, remains underdeveloped. Council estimates that up to 33 lots could be developed over four stages on the site, with a total sales value of around $9.4m. Development costs area estimated as being $6.15m.

The approximate site and zoning map are identified in Figure 1 and Figure 2 respectively.

D.E.

EASE

ME

NT T

O D

RAIN

WA

TER

EASEM

ENT TO DRA

IN WATER

R.O.W. & SERVICES

(D P 1 1 6 6 1

7)

AROO RD

KINGS POINT DR

BLACKBURN RD

CO

LLER R

D

Figure 1: Ulladulla Industrial Estate Area

Sewage TreatmentPlant

7(a)

6(c)

7(a)

7(a)

5(d)

5(d)

5(a)

7(a)

6(a)

6(a)

6(d)

4(a) 4(a)

4(a) 4(a)

6(c)

6(c)

5(d)

6(a)

Proposed

400m Buffer

400m Buffer4

00

m B

uf fer

AROO RD

CO

LLER

RD

BLACKBURN RD

KINGS POINT DR

PRINCES HWY

10

20

20

20

30

30

30

40

40

40

50

50

50

50

60

60

60

60

60

70

70

70

70

70

Figure 2: Ulladulla Industrial Land Zone Map

Capital expenditure to purchase and develop the site is shown in Table 1 below. Only the initial stages of development are included in the below table, as future stages would not be commissioned until it is required by demand. The overall supply is expected to fulfil this demand for around 15 years.

Table 1: Ulladulla Industrial Estate - Projected Capital Expenditure

2010/2011 2011/2012 2012/2013

Development $1,000,000 $1,600,000 $0

Land Purchase $1,500,000 $0 $0

Proposed Industrial

subdivision site


business plan - city of shoalhaven

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