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LINDFIELD COMMUNITY HUB – PUBLIC PRIVATE PARTNERSHIP PARTNERSHIP

Project Proposal Submission to Office of Local Government (OLG) Ku-ring-gai Council April 2016

Ku-ring-gai Council | Lindfield Community Hub PPP_Project Proposal to OLG_April 2016 | of 37

To be a vibrant, mixed-use precinct, presenting high-quality community infrastructure which serves as a meeting point for the Lindfield local community and the wider LGA.

2014 WINNER

For excellence in local

government

KU-RING-GAI COUNCIL 818 Pacific Highway, Gordon NSW 2072 P 02 9424 0000 | E [email protected] | W kmc.nsw.gov.au

mailto:[email protected]


General Manager’s Foreword ......................................................................................................................................... 1

1. Introduction ......................................................................................................................................................... 3

2. Key Terms & Definitions ..................................................................................................................................... 3

3. Project Details ..................................................................................................................................................... 4

3.1 Project Vision ..................................................................................................................................... 4

3.2 Project Objectives .............................................................................................................................. 4

3.3 Project Background ............................................................................................................................ 5

3.4 Project History .................................................................................................................................... 5

3.5 Project Location ................................................................................................................................. 6

3.6 Legal Description of Site .................................................................................................................... 6

3.7 Planning Context ................................................................................................................................ 7

3.7.1 Zoning ................................................................................................................................................ 7

3.7.2 Building Height ................................................................................................................................... 8

3.7.3 Floor Space Ratio (FSR) .................................................................................................................... 8

3.7.4 Land Reservations ............................................................................................................................. 8

3.7.5 Planning Proposal .............................................................................................................................. 8

3.7.6 Site-Specific DCP............................................................................................................................... 9

3.8 The Master Plan ................................................................................................................................. 9

3.8.1 Master Plan Options & Design Evolution ........................................................................................... 9

3.8.1.1 Master Plan Option 1 ......................................................................................................................... 9

3.8.1.2 Master Plan Option 2 ....................................................................................................................... 11



3.8.1.5 Assessment of Master Plan Options ................................................................................................ 16

3.8.1.6 The Adopted Master Plan ................................................................................................................ 17

3.9 Market Sounding .............................................................................................................................. 18

3.10 Project Mandatory Components ....................................................................................................... 19

4. Strategic Positioning of the Project within Council’s Long-Term Plans ............................................................. 20

4.1 Community Strategic Plan 2030 ....................................................................................................... 20

4.2 Long-Term Financial Plan 2015/16 to 2024/25 ................................................................................ 20

4.3 Revised Delivery Program 2013/2017 & Operational Plan 2015/2016 ............................................. 21

5. Strategic Positioning of the Project in the Context of NSW Government’s Plans .............................................. 21

5.1 Council’s Charter Obligations under the Local Government Act ...................................................... 21

5.2 A Plan for Growing Sydney 2031 (Metropolitan Strategy) ................................................................ 22

5.2.1 NSW Government Merger Proposal................................................................................................. 25

5.3 Collaboration with Transport For New South Wales (TfNSW) .......................................................... 26

6. The Public-Private Partnership (PPP) as a Preferred Delivery Model ............................................................... 27

CONTENTS


7. Project Management Structure ......................................................................................................................... 27

8. Project Programme ........................................................................................................................................... 28

9. Financial Information ......................................................................................................................................... 28

9.1 Project Costs .................................................................................................................................... 28

9.2 Project Feasibility Analysis ............................................................................................................... 28

9.2.1 Options Analysed ............................................................................................................................. 28

9.2.2 Key Assumptions & Limitations ........................................................................................................ 30

9.2.3 Key Findings .................................................................................................................................... 30

9.2.4 Updated Feasibility Analysis of Adopted Master Plan ...................................................................... 30

9.3 Sources of Funding .......................................................................................................................... 30

9.4 Value of Council Contributions ......................................................................................................... 31

9.5 Section 94 Funds Disbursement Plan .............................................................................................. 31

9.6 Council’s Annual Revenue Available for PPP .................................................................................. 31

10. Risk Management ............................................................................................................................................. 31

11. Probity Management ......................................................................................................................................... 32

12. Supporting Documentation ............................................................................................................................... 32

Ku-ring-gai Council | Lindfield Community Hub PPP_Project Proposal to OLG_April 2016 | Page 2 of 37


1. Introduction

This Project Proposal contains preliminary technical and financial information pertaining to the Lindfield Community Hub project. It is intended to aid the Office of Local Government (OLG) in gaining a preliminary understanding of the proposed development parameters, and assist in determining the requirement (or not) for the project to be referred to a Project Review Committee (PRC).

This document has been prepared in accordance with the NSW PPP Guidelines contained in Section 400F (1) and (2) of the Local Government Act.

2. Key Terms & Definitions

The definitions of key terms used in this document are provided in the table below.

Term Definition

Council Ku-ring-gai Municipal Council

DCP Development Control Plan

DPE Department of Planning and Environment

ESD Environmentally Sustainable Development

KLEP 2012 Ku-ring-gai Local Environment Plan 2012

Master Plan The master plan prepared by Council to guide the future development of the Project Site

OLG Office of Local Government

OMC Ordinary Meeting of Council

LGA Local Government Area

MP Member of Parliament

PPP Public-Private Partnership as defined under the Local Government Act 1993 and the Department of Local Government, Guidelines on the Procedures and Processes to be followed by Local Government in Public-Private Partnerships, 2005

Project The Lindfield Community Hub Project generally comprised of the mandatory components set out in Section 3.10 of this Proposal Document, including development of the master plan, development of the detailed design of the built environment, the construction of the intended facilities, and the ownership, operation and maintenance of the various components, including the provision of commuter car parking

Project Objectives The specific results that Council and the community seek to achieve through fruition of the Lindfield Community Hub project.

Project Site Council-owned land on Woodford Lane in Lindfield and as indicated in Figure 1.

TfNSW Transport For New South Wales

Table 1: Key Terms & Definitions


3. Project Details 3.1 Project Vision

The ‘Lindfield Community Hub’ is a strategic urban site located in close proximity to the Lindfield railway station and the Pacific Highway. Situated conveniently between the Lindfield shops on the east and residential communities on the west, the site is most conducive for a holistic development that caters to Lindfield’s local community and businesses. The development will enhance the site's unique values by creating pedestrian plazas, urban parks and urban gardens. The project will serve as a precedent for mixed-use developments within the LGA. The building layouts and design will ensure the penetration of optimal daylight in all directions, and be embedded with cutting-edge ESD initiatives. High environmental ratings and design excellence provisions will be integral to the project. The community hub building will be an exemplary social space, constantly buzzing with community events and interaction. The library will aid in knowledge enhancement and will be a sought-after meeting location particularly for young people. The community centre will provide much-needed modern infrastructure and a range of spaces where community classes and functions will be hosted. The outdoor amphitheatre will hold community events, and the lush gardens will be planted with a wide variety of indigenous plants and flowers, encouraging biodiversity and providing a pleasant microclimate all-year round. The specialty retail and cafes lining the public park will greatly enhance the lifestyle of local residents, and of the wider LGA. Through this project, the local community with have a high-quality space of socialization and events and the local economy will be greatly boosted. In summary, the vision for the Lindfield Community Hub is: “To be a vibrant, mixed-use precinct, presenting high-quality community infrastructure which serves as a meeting point for the Lindfield local community and the wider LGA. The project will demonstrate Council’s leadership in design excellence, innovation and environmental sustainability.”

3.2 Project Objectives

The project objectives were developed over time, and in close conjunction with the local community. The main objectives are to:

Enhance and revitalise the local centre; Provide for much-needed community infrastructure; Consider and enhance the physiological and general well-being of the community; Promote a variety of uses within the site to present the community with choice; Provide a development that has a clear and distinct character; Support and enhance a robust local economy; Create through deliberate design, a vibrant space for people to meet, rest and spend

time; Provide a public venue for community events; Maximise the area covered by mature tree planting; Utilise existing and new trees to provide for shade, and allow for flora & fauna to

thrive; Provide for a leafy character on all streets; Provide car parking within basement levels of buildings, to conceal from public view

and to improve visual amenity of the site and its surrounds; Encourage social connectivity and social inclusion; Integrate land-use and transport; Allow for flexibility for future change of uses; Provide for a financially viable project; Incorporate water-sensitive urban design;


Undertake rainwater harvesting and grey water recycling; Use buildings as an environmental education tool; Enhance access and connectivity to public transport and future cycle routes; Provide equal access for all; and Incorporate the principles of Crime Prevention Through Environmental Design

(CPTED).

3.3 Project Background

The Lindfield Community Hub project is a mixed-use development project in Lindfield on Sydney’s north shore. Council intends this project will be delivered as a Public Private Partnership (PPP). The PPP process is governed by NSW PPP Guidelines (Guidelines on the Procedures and Processes to be followed by Local Government in Public-Private Partnerships, 1 September 2005 by Department of Local Government).

3.4 Project History Key milestone dates for the project are as follows:

May 2012 the NSW Government announced its intention to build and fund a new commuter car park in Woodford Lane, Lindfield;

June 2012 Council resolved to commence reclassification of Council’s car park from community to operational land;

January 2013 the Ku-ring-gai (Local Centres) LEP was gazetted by the then Minister for Planning and Infrastructure;

May 2013 Council resolved to commence preparation of a master plan for the Project in partnership with Transport for NSW (TFNSW);

July 2013 Council adopted a planning proposal to reclassify Council land and submit the proposal to the Minister for Planning;

Late 2013 Council commenced acquisition of properties on Bent Street/Woodford Lane for open space and roads, and by early 2015 the acquisition of all 6 properties zoned RE1/SP2 is complete;

April 2014 Elton Consulting on behalf of Council completed the Lindfield Community Facilities Study;

October 2014 Council engaged O’Connor Marsden as probity advisers for the project; December 2014 Council engaged SJB and Aspect consultants to prepare master plan

options and a preferred master plan; April 2015 Council resolves to commence compulsory acquisition of Drovers Way to

allow closure of the road reserve; March-May 2015 Council undertook community engagement seeking input on four

development options; August-September 2015 Property Based Solutions (PBS) consultants on behalf of

Council undertook a market sounding of the Project with selected private sector participants;

October 2015 Council adopted a preferred development option for the Project; October 2015 Council engaged Sparke Helmore Lawyers as legal advisors; November 2015 Council resolved to prepare a planning proposal to amend the KLEP

2012 provisions to be consistent with the preferred development option; November 2015 Council adopted a preferred traffic management option for Lindfield

Local Centre, prepared by Peopletrans consultants, and submits it to the RMS for their concurrence;

December 2015 Council submitted a formal proposal to TFNSW as the basis for commencing negotiations with TFNSW regarding the funding of commuter car parking;

December 2015 Council resolved to deliver the Project by way of a Public Private Partnership (PPP); and

January 2016 Council notified OLG by letter of Council’s intention to undertake a PPP.


3.5 Project Location

The site is a Council-owned car park site in Lindfield in Sydney’s north shore, west of the railway line; generally bounded by Bent Street on the north, Beaconsfield Parade on the south, Woodford Lane on the east and residential properties on the west.

Fig 1: Subject Site

3.6 Legal Description of Site

The legal description of the properties contained within the project site is as per the table below:

Property No Land No Lot Number Plan Type Plan Number 109520 46875 2 DP 1099330 109520 46880 7 DP 1099330 109520 46883 10 DP 1099330 109520 46882 9 DP 1099330 109520 46885 12 DP 1099330 102951 2935 5 DP 666521 141194 34989 A DP 445535 102955 2939 10 DP 3498 102956 46369 9 DP 1090427 109520 46884 11 DP 1099330 109520 46877 4 DP 1099330 109520 46878 5 DP 1099330 109520 46881 8 DP 1099330 109520 46874 1 DP 1099330 109520 46876 3 DP 1099330 109520 46879 6 DP 1099330 109520 46886 13 DP 1099330 102953 2937 1 DP 724823 102496 44207 1 DP 929131 102952 2936 1 DP 980108 109520 46887 14 DP 1099330 109520 46889 16 DP 1099330 109520 46888 15 DP 1099330


102954 2938 3 DP 667420

Table 2: Legal description of properties within project site

3.7 Planning Context

3.7.1 Zoning Current: The Lindfield Community Hub site is currently zoned part B2 Local Centres, part RE1 Public Recreation, part SP2 Local road and part R4 High Density Residential under the KLEP 2012. The part of the site zoned R4 High Density Residential consists of a 490m2 (approx.) portion of 12 Bent Street that is not required for the extension of Drovers Way. The remainder of 12 Bent Street is currently zoned SP2 local road with a small slither (<50m2) RE1 Public Recreation. The land at 2-10 Bent Street and 1A Woodford Lane currently zoned RE1 Public Recreation was acquired by Council using section 94 Development contributions for local open space. The Community Hub master plan makes provision for the equivalent amount of open space throughout the site while identifying a portion of the land previously acquired for open space for retail and community uses. The retail and community uses would not be permitted on that portion of the site zoned RE1. Rezoning the whole hub site to B2 Local Centres will facilitate the implementation of the master plan across the entire site.

Figure 2: Existing Zoning Map

Proposed: The entire site, excluding the R4 zoned portion of 12 Bent Street, is proposed to be zoned to B2 Local Centres.


Figure 3: Proposed Zoning Map

3.7.2 Building Height Current: The maximum permissible height for that portion of the site zoned B2 Local Centre is currently 11.5m. That portion of the site zoned RE1 Public Recreation does not have an applicable height limit, while 12 Bent Street has a maximum height of 17.5m. Proposed: The maximum height of buildings for the entire site, excluding the R4 zoned portion of 12 Bent Street, be amended to 26.5m. The maximum height for 12 Bent Street will remain unchanged at 17.5m. 3.7.3 Floor Space Ratio (FSR) Current: The maximum permissible FSR for that portion of the site zoned B2 Local Centre is currently 1:1. That portion of the site zoned RE1 Public Recreation does not have an applicable FSR, while 12 Bent Street has a maximum FSR of 1.3. Proposed: The maximum FSR for the entire site be amended to 1.3:1. 3.7.4 Land Reservations Current: The land at 2-10 Bent Street and 1A Woodford Lane is currently identified on the Land Reservation Acquisition Map of the KLEP (Local Centres) 2012 as land reserved for Public Recreation, while 12 Bent Street is identified as land reserved for Local Road. As Council has now acquired these sites for the intended reserved purposes identified in the LEP, there is no longer a requirement for the reservations to appear on the Land Reservation Acquisition Map. Proposed: The Land Reservation Acquisition Map is proposed to be amended to delete the reservations applying to 2-10 Bent Street and 12 Bent Street, Lindfield. 3.7.5 Planning Proposal A Planning Proposal for the rezoning of the site to B2 Local Centre is currently under preparation and will be submitted to the DPE very shortly.


3.7.6 Site-Specific DCP Site-specific development controls for the project site have been included in the Draft Ku-ring-gai Local Centres Development Control Plan.. This Draft DCP was resolved by (elected) Council at an OMC on 22 March 2016 to be publicly exhibited. The objectives and development controls laid out in this DCP provide guidance for the future development of the site. This Draft DCP is currently under exhibition until 29 April 2016.

3.8 The Master Plan

3.8.1 Master Plan Options & Design Evolution

Planning for the Lindfield Community Hub commenced in mid-2012 following an announcement by NSW Government of its intention to build a multi-storey commuter car park on a Council-owned car park site (project site) on Woodford Lane in Lindfield. The announcement by the Minister for Transport was viewed by Council as a significant opportunity to expedite the delivery of much-needed community and urban infrastructure in the Lindfield town centre, and therefore keenly supported by Council in principle. Further, the provision of commuter car parking in this locality had been a matter long raised in the various community consultation processes facilitated by Council over recent years. However, both Council and the local community opposed TfNSW’s plans for a stand-alone above-ground car park on the site, and pushed for commuter car parking to be accomodated within basement levels of an integrated mixed use development. Consequently, a well-organised and highly engaged lobby group named ‘Support Lindfield’ consisting of residents and business owners, was formed to garner community support for the project and to liaise with State Government and Council. The main objective of the group was to prevent TfNSW from building an above-ground car park and to ensure the development of an integrated mixed-use development with underground car parking. Support Lindfield had already run a number of community forums and developed a concept for the site; in addition to briefing Federal and State MPs. Council quickly recognised the critical need to be proactive in the master planning process, to actively seek the best possible outcome for the community and for the environment, the absence of which would lead to significant reputational damage and loss of trust. The other major risk was possible loss of the strategic potential of the site. Accordingly, at an OMC on 28 May 2013, Council resolved to establish a project team to prepare a planning study and oversee and support the preparation of a master plan for the site, in partnership with TfNSW. A number of studies were then undertaken to define the project and determine its feasibility, including but not limited to a preliminary financial feasibility analysis, a traffic and transport study, a community facilities needs analysis and Phase 1 & Phase 2 Environmental Studies. In late 2014, urban design and landscape consultants were engaged via a competitive tendering process to prepare four (4) illustrative master plan options. The master plan options were exhibited between 21 March 2015 and 14 May 2015. The community and all key stakeholders were extensively consulted during this period. Details of the consultation process undertaken have been included in the Community Engagement Outcomes Report by CRED, located at Appendix A1.

An overview of the exhibited options has been provided in the sub-sections below. 3.8.1.1 Master Plan Option 1 Option 1 comprises of: 1,265sqm library 1,200sqm community centre 620sqm child care centre 1,500sqm supermarket 1,000sqm specialty retail 4,717sqm open space


32 residential dwellings 515 car parking spaces contained in basement levels

The main characteristics of Option 1 are: Low-scale development Retain existing trees New park with deep soil planting Civic edge to Bent Street Community Hub is visible from Pacific Highway Corner park with at-grade connections Residential edge to Drovers Way Good relationship between Hub, Park and Square Residential is stand alone and easily subdivided Connection from Community Centre to the square Square connecting to existing and future potential links to Pacific Highway Separate access to residential development Active frontages addressing the park Passive surveillance over the park

Fig 3: Master Plan Option 1


Fig 4: 3D Visualization of Option 1

3.8.1.2 Master Plan Option 2

Option 2 comprises of: 1,265 sqm library 1,200 sqm community centre 620 sqm child care centre 3,000 sqm supermarket 1,573 sqm specialty retail 4,395 sqm open space 105 residential dwellings 760 car parking spaces contained in basement levels

The main characteristics of Option 2 are: Large development with a variety of uses No existing trees retained New park with deep soil planting around the edge Community Hub’s visibility from Pacific Highway Civic edge to Bent Street Built edge to Drovers Way Public space to Woodford Lane Residential edge to Beaconsfield Parade Good relationship between Hub, Park and Square Residential is stand-alone, more deliverable Retail offer to Square Grade access from Library to Park Square connecting existing and future potential links to Pacific Highway Separate access to residential development Active frontages to park and square





Option 3 comprises of: 1,245 sqm library 1,200 sqm community centre 616 sqm child care centre 1,100 sqm commercial 476 sqm specialty retail 4,825 sqm open space 120 residential dwellings 627 car parking spaces contained in basement levels


The main characteristics of Option 3 are: No supermarket Existing trees retained New linear park/ reserve with deep soil planting Civic edge to Bent Street and Drovers Way Residential buildings address Woodford Lane Residential edge to Beaconsfield Parade Good relationship between Hub and Park Passive surveillance to park and square 3 separate residential buildings Small ‘eat street’ retail offer Community Hub is less visible from Pacific Highway Square connecting existing and future potential links to the Pacific Highway Separate access to residential development Active frontage to park and square





Option 4 comprises of: 1,255 sqm library 1,210 sqm community centre 640 sqm child care centre 1,100 sqm commercial 2,778 sqm specialty retail 4,200 sqm supermarket 4,935 sqm open space 105 residential dwellings 600 car parking spaces contained in basement levels

The main characteristics of Option 4 are: No residential Existing trees retained Large elevated park on top of supermarket Supermarket/ planted wall to Bent Street and Drovers Way Retail + Community Hub to Woodford Lane Natural edge to Beaconsfield Parade Good relationship between Hub, Park and Square Elevated park above Drovers Way Hub is not visible from Pacific Highway Good retail connections to park Shared entry to car park Active retail frontages addressing the park Some deep soil planting available to north Square connecting existing and future potential links to Pacific Highway


3.8.1.5 Assessment of Master Plan Options

To ensure the transparency of Council’s decision-making process, at an OMC on 11 November 2014, (elected) Council adopted a set of evaluation criteria for the assessment of the development options. These criteria are listed below: Public response to options as determined by on-line and face-to-face survey

responses, public comments during workshops and information sessions; and public submissions during exhibition;

A cost review of each option by Council’s consultant quantity surveyor; A financial feasibility analysis of the options by Council’s land economist consultant; A review by Council’s traffic consultant; A review by Council’s community facilities consultant; A council staff review of each option against the objectives of the project as set out in

the project brief; A review by specialist Council staff including engineers, traffic, landscape, and urban

design among others; Project Working Group (PWG) approval of preferred preliminary option; and Full Council approval of preferred illustrative master plan.

Following a public exhibition period, an assessment was undertaken by staff and specialist consultants. A report was prepared for an OMC on 8 September 2015 which provided a comprehensive assessment of the options using the adopted criteria. Each option was ranked 1 through to 4 (4 being the highest score and 1 being the lowest score) against each of the criteria. The assessment matrix has been included in the following table:

Table 3: Master Plan Options – Assessment Matrix

The assessment found Option 2 to be the clear preference with a score of 55/60 or 91%. Options 1, 3 and 4 were ranked as less preferred with scores of between 38/60 (63%) and 40/60 (67%). Based on the assessment, Option 2 was recommended and resolved by (elected) Council at an OMC on 6th October 2015 as the preferred option. A copy of an OMC Report dated 8 September 2015 containing details of the studies undertaken, the options assessment process and results, has been included at Appendix A2.


3.8.1.6 The Adopted Master Plan

Based on the result of the options assessment and the results of the market sounding process (outlined later on in this report), Option 2 as exhibited, was recommended as the preferred option for the Lindfield Community Hub. At an OMC on 6 October 2015, (elected) Council accepted this recommendation and adopted a variation of Option 2, with a maximum building height of 7 (seven) storeys, for the purposes of an Expression of Interest (EOI), which excluded the following properties from the site: Scouts Association land located at 1A Beaconsfield Parade, Lindfield (Lot 2 of

DP184154; Lot C of DP 399995; and Lot A of 327729) and AUSGRID land located at 1 Beaconsfield Parade, Lindfield (Lot 1 of DP184042); During the subsequent period (December 2015 to February 2016): (Elected) Council resolved to prepare a planning proposal to amend the KLEP 2012

provisions to be consistent with the preferred master plan option; (Elected) Council prepared site-specific development controls for the site to support

the LEP amendment; (Elected) Council resolved at an OMC on 8 December 2016, to deliver the Project by

way of a Public Private Partnership (PPP) based on legal advice by Spark Helmore Lawyers (Appendix A3);

A final traffic management scheme and report, and supplementary report was completed by Peopletrans consultants and submitted to the RMS for their concurrence (Appendices A4 & A5);

Jones Lang LaSalle (JLL) completed a final financial feasibility study for Council’s preferred master plan option (Appendix A6); and

SJB Architects prepared a Final Master Plan report, updating the master planning process and fully documenting the preferred option, including updated development statistics (Appendix A7).

Fig 11: Adopted Master Plan


Fig 12: Artist’s Impression of the Proposed Public Open Space

Fig 13: Artist’s Impression of Woodford Lane

3.9 Market Sounding

A market sounding was conducted in August 2015 in order to gauge preliminary interest in the project from potential private sector parties. The market sounding process was carried out by consultants Property Based Solutions (PBS), via a series of face to face and telephone interviews with a representative selection of the development industry including with companies of varying financial resources and track records. In addition, 2 (two) major supermarket chains were also included on the list of potential participants for the market sounding process. The entire market sounding process was covered by a “probity framework” designed to protect Council, the participants and the project. Independent probity advisors, O’Connor Marsden (OCM), engaged by Council, attended a random selection of the interviews in order to ensure that the due probity protocols were followed. The market sounding was undertaken with the intention to: promote Ku-ring-gai Council as a Council that is professional, forward thinking and

focused on delivering well balanced community and commercial outcomes;


give confidence to the development sector that Ku-ring-gai Council was genuinely and positively committed to achieving the development of the Lindfield Community Hub site via an arrangement with the private sector;

display Council’s commitment by demonstrating that Council had retained a multidisciplinary project delivery team with a track record and capable of interacting with developers in a common sense and commercially sensitive manner;

test the commercial viability of the project to ensure that it is capable of delivering not only the community outcomes but also the potential for Council to derive an income from the project that could be used to fund additional community assets;

provide developers with confidence that when submitting an EOI, they were doing so with the knowledge that the project had been designed to achieve a ‘win-win-win’ outcome for the Council, the community and the private sector;

communicate that Council was actively seeking full and frank feedback from developers.

A total of fourteen (14) development companies were contacted for the market sounding meetings including large domestic developers, medium sized domestic developers, foreign developers and large retailers. The results of the market sounding process were overwhelmingly positive. The companies endorsed the location, mixed-use nature of the development concept, and the engagement process with the private sector. The full Market Sounding Report prepared by PBS Consultants has been included at Appendix A8.

3.10 Project Mandatory Components

At an OMC on 6 October 2015, (elected) Council adopted a set of mandatory requirements for the project. A copy of this resolution has been included at Appendix A9. In summary, the mandatory components of the Lindfield Community Hub project are as follows: Construction of a community hub building (total area 3,000sqm) to be owned by

Council comprising a café, new branch library, community centre and child care centre with roof garden, & including internal fit-outs;

A public park of a minimum consolidated area of 3,000m2; A public plaza to be owned by Council comprising a minimum area of 1,000m2; A minimum of 167 public car parking spaces to be owned by Council and

accommodated within basement levels; Up to 140 commuter car parking spaces to be funded by TFNSW and accommodated

within basement levels; Up to 5,000sqm of retail floor space including a supermarket with a minimum size of

3,000m2; Up to 95 residential apartments; Streetscape upgrade works to Bent Lane, Bent Street, Woodford Lane and

Beaconsfield Parade; Road works to Bent Lane and Woodford Lane; Construction of new public street to be owned by Council between Bent Street and

Beaconsfield Parade; Construction of a new kiss & ride zone on Woodford Lane; Modifications to traffic signals works at the intersections of Tryon Place/Pacific

Highway & Balfour Street/Pacific Highway; and Installation of new traffic signals at intersection of Beaconsfield Parade and Pacific

Highway.


4. Strategic Positioning of the Project within Council’s Long-Term Plans

4.1 Community Strategic Plan 2030

Council’s current Community Strategic Plan ‘Our Community – Our future 2030’, adopted in June 2013, provides strategic direction to Council, the community, other government entities and organisations in planning and delivering projects, services and facilities within the Ku-ring-gai LGA. The Lindfield Community Hub project directly responds to the Community Strategic Plan 2030 (attached at Appendix A10), particularly with respect to long-term objective P4 Revitalisation of our centres (page 41). Direct references to the project within the Plan are highlighted below. The long-term objective under P4.1 states ‘Our centres offer a broad range of shops and services and contain lively urban village spaces and places where people can live, work, meet and spend leisure time’. One Council’s intended achievements against this objective is as follows: ‘An improvement plan for Lindfield Centre is being progressively implemented in collaboration with owners, businesses and state agencies’, in which Council’s role is identified as ‘Lead, facilitate and deliver.’ The project seeks to deliver a high-quality integrated mixed-use development, close to Lindfield station, bringing much-needed revitalisation to the local area. The co-location of community hub, supermarket, specialty retail, residential, public park and urban plaza, will enable the design of a high-quality, vibrant, urban precinct where people can live, work and socialise.

4.2 Long-Term Financial Plan 2015/16 to 2024/25

The project is included within Council’s Long-Term Financial Plan 2015/16 to 2024/25, attached at Appendix A11. The Plan (on page 3) states that Council maintains healthy levels of working capital and reserves, and has a strategy in place to fund renewal of infrastructure assets and debt funding for major projects via identified sources of repayment. (Elected) Council resolved at an OMC on 6 December 2015, that the Lindfield Community Hub project would be undertaken as a Public Private Partnership (PPP). Direct and indirect references to the Lindfield Community Hub project in the Plan are highlighted below. The ‘Financial Performance Summary – Forecast’ on page 18 states: “The operating result after accounting for capital items is a surplus in all projected years…..The strong results in 2016/17 to 2018/19 are primarily due to forecast gains from sale of assets to fund infrastructure renewal works as well as capital income from partner contributions partly funding major projects…..Planning for these projects, should consider the inclusion of commercial opportunities of sufficient return to cover ongoing operational costs of the public spaces in the precinct.” Council, via this project, seeks to build and own a community hub building (including library, community centre and childcare centre), public park with potential leasable spaces, and possibly some specialty retail, all of which will contribute to the long-term management and operational costs of the proposed facilities. The project has been earmarked as a major capital project initiative for 2015/16 within the ‘Project Capital Expenditure’ section on page 26 of the Plan. The Plan makes direct reference to the project as follows: “The community hub is planned to be located on Council’s car park off Woodford Lane on the western side of Lindfield, the project will deliver a new park and town square, as well as a new branch library and community


centre. The hub will become a focus for community activities for the southern part of the Ku-ring-gai LGA.”

4.3 Revised Delivery Program 2013/2017 & Operational Plan

2015/2016

The project is included within Council’s Revised Four-Year Delivery Program 2013/2017 and One-Year Operational Plan 2015/2016, attached at Appendix A12. Direct references to the Lindfield Community Hub project are highlighted below. The Mayor’s Foreword on page 6 of the Plan makes direct reference to the project: “Our strong programme of improvements to community assets is set to continue in 2015/16 with highlights that include……..Continued planning for revitalisation of key sites in Lindfield, including the Lindfield Village Green and Lindfield community Hub, as well as progressing commuter parking initiatives.” The General Manager’s message on page 8 states: “---there are many exciting things happening in the year ahead. Highlights will include the revitalisation of local centres in Lindfield and Turramurra through our Activate Ku-ring-gai program….” The task for 2015/2016 is to ‘Progress planning for the Lindfield Local Centre’. Theme 3 of the Plan (Places, Spaces and Infrastructure), Item P4.1.4 on page 53 states: “An improvement plan for Lindfield centre is being progressively implemented in collaboration with owners, businesses and state agencies.” Theme 4 of the Plan (Access, Traffic & Transport), Item T1.1.3 on page 59 states: “Advocate to relevant Government agencies and private companies for integrated public transport facilities and service improvements that meet community needs.” The task for 2015/2016 is to ‘Continue to lobby Transport for NSW in the provision of additional commuter car parking at priority rail stations, including Lindfield and Turramurra.”

5. Strategic Positioning of the Project in the Context of NSW Government’s Plans

5.1 Council’s Charter Obligations under the Local Government Act

The Lindfield Community Hub project fully complies with Council’s Charter obligations contained within the Local Government Act 1993 (Section 8). The project’s compliance with the Charter is noted in the table below:

No Charter Obligation Project Compliance

1 To provide directly or on behalf of other levels of government, after due consultation, adequate, equitable and appropriate services and facilities for the community and to ensure that those services and facilities are managed efficiently and effectively

The core objective of the project is to provide much-needed community infrastructure/benefits to the local area of Lindfield, and to the LGA, in close consultation with the community.

2 To exercise community leadership

Through this project, Council seeks to showcase leadership in design excellence and ESD. The projects seeks to achieve high environmental and sustainability ratings, including consideration of a WELL rating for ensuring wellness of the community at all levels (master plan and building level).

3 To exercise its functions in a manner that is consistent with and actively promotes the multicultural principles

The project, particularly the community hub building and the public open space, seeks to cater to the unique needs of users and employees from varying cultural backgrounds.

4 To promote and to provide and plan for the needs of children

The community hub building, including the library and childcare centre, and the public open


No Charter Obligation Project Compliance space, will cater to the needs of children of

varying ages. 5 To properly manage, develop, protect, restore,

enhance and conserve the environment of the area for which it is responsible, in a manner that is consistent with and promotes the principles of ecologically sustainable development

The proposed 3,000 sqm public park will enhance the visual quality and positively foster the microclimate of the local area. The surrounding streetscapes will be planted with mature trees, further adding to the leafy quality of the streets, and providing for ecological habitats. The projects seeks to achieve high environmental and sustainability ratings, including consideration of a WELL rating for ensuring wellness of the community at all levels (master plan and building level).

6 To have regard to the long term and cumulative effects of its decisions

Through this project, Council is striving to set up a thriving community hub and public park, which will provide huge economic and social benefits to the local area. The project is intended to be self-sustaining in the long run, with no additional burden to rate- payers.

7 To bear in mind that it is the custodian and trustee of public assets and to effectively plan for, account for and manage the assets for which it is responsible

The project is planned to be self-sustaining in the long run, with no additional burden to tax payers. Council will manage and operate the community hub building and the public park.

8 To engage in long-term strategic planning on behalf of the local community

The project is a response to the urgent need for community infrastructure in Lindfield, as outlined in an LGA-wide Community Facilities study undertaken by Elton Consulting and is well-embedded within Council’s long-term financial plan, strategic plan and operational plan.

9 To exercise its functions in a manner that is consistent with and promotes social justice principles of equity, access, participation and rights

The project has been undertaken in close collaboration and consultation with the community. Independent probity advisors, O’Connor Marsden (OCM), have been engaged to ensure that a high level of transparency is maintained during the course of the project and within its governance framework. OCM have prepared a Probity Management Plan (PMP) which is strictly adhered to by the Project Management Group. The PMP applies equally to both internal Council staff and external consultants.

10 To facilitate the involvement of councillors, members of the public, users of facilities and services and council staff in the development, improvement and co-ordination of local government

N/A

11 To raise funds for local purposes by the fair imposition of rates, charges and fees, by income earned from investments and, when appropriate, by borrowings and grants

N/A

12 To keep the local community and the State government (and through it, the wider community) informed about its activities

Council provides regular updates regarding this project, through face-to-face consultation sessions with the local community, newsletter mailouts and through Council’s website.

13 To ensure that, in the exercise of its regulatory functions, it acts consistently and without bias, particularly where an activity of the council is affected

N/A

14 To be a responsible employer.

N/A

Table 4: Project Compliance Charter Obligation

5.2 A Plan for Growing Sydney 2031 (Metropolitan Strategy)

A Plan for Growing Sydney, released in December 2014, is the NSW Government’s plan for the future of the Sydney Metropolitan Area over the next 20 years. The Plan provides key directions and actions to guide Sydney’s productivity, environmental management, and livability – including the delivery of housing, employment, infrastructure and open


space. The Lindfield Community Hub project seeks to fully achieve all of the key goals, principles and directions laid out in the Plan. The project seeks to achieve all of the four goals set down in ‘A Plan for Growing Sydney’ as follows: Goal 1: A competitive economy with world-class services and transport The project seeks to develop an exemplary integrated mixed use development, within walking distance to public transport infrastructure (Lindfield station), and well-integrated with the provision of on-site commuter parking. The proposed development seeks to lead the way in design excellence and ESD provisions. Goal 2: A city of housing choice with homes that meet our needs and lifestyles The project proposes a judicious mix of apartment types and designs, catering to a wide variety of family types and lifestyles. New apartments will be supported by local infrastructure and will reflect the demographic needs of the Lindfield community. Goal 3: A great place to live with communities that are strong, healthy and well- connected The project will provide a high-quality 3,000sqm urban park with amphitheatre, gardens and urban plaza, integrated with a community hub building, specialty retail, supermarket and residential uses, providing a much-needed boost to the lifestyle of the local community and to the local economy. Council envisages the community hub will revitalise the local area, and provide for a meeting space for the local community. The health and well-being of the community is on the forefront of the project’s agenda. Accordingly, Council is currently investigating the possibility of acquiring a WELL rating for the community hub building, along with other ESD initiatives. Goal 4: A sustainable and resilient city that protects the natural environment and has a balanced approach to the use of land and resources The project seeks to replace an existing surface car park with a 3,000sqm high-quality public park, amongst other uses. This park is a response to community need, and will have a positive impact on the microclimate of the area. The surrounding streetscapes are planned to be revitalised with new street trees, footpaths and verges, providing for a leafy outlook and enhanced visual amenity.


Fig 14: Map of Northern Sub-Region


The Plan for Growing Sydney is guided by three planning principles, one of which applies to this project: Principle 1: Increasing housing choice around all centres through urban renewal in established areas The project proposes a judicious mix of apartment types and designs, catering to a wide variety of family types and lifestyles. New apartments will be supported by local infrastructure and will reflect the demographic needs of the Lindfield community. The project seeks to revitalise the western part of Lindfield and the local economy. The project is also consistent with the Key Directions within the Plan for Growing Sydney, as set out below. Direction 3.1 – Revitalise existing suburbs The project intends to facilitate an integrated high quality mixed-use development within the Lindfield local centre, co-locating community facilities, supermarket, specialty retail and residential apartments on the site, allowing existing and future residents to have access to local services. Proximity to the Lindfield railway station and on-site provision of commuter parking greatly encourages and enhances the use of public transport. Direction 3.3 – Create healthy built environments The project encourages a healthy community by creating a mixed-use precinct that can support physical activity and connect and strengthen the community. The project seeks to integrate land use and transport to encourage active modes of travel such as walking and cycling, and will provide for public spaces that are safe, clean and attractive with the potential to hugely improve social interaction through the provision of community facilities including a new library and childcare centre. In addition, Council is currently investigating the possibility of acquiring a WELL rating for the community hub building, along with the promotion of other wellness initiatives within the community hub. Direction 3.4 – Promote Sydney’s heritage, arts and culture The provision of local cultural infrastructure such as the library and community hub proposed on this site will deliver benefits to the community by facilitating and enhancing social and cultural engagement. Further, growth in local arts and culture can be fostered through partnerships and shared resources, such as the multipurpose hall within the hub building and the events space proposed within the public open space.

5.2.1 NSW Government Merger Proposal Despite recent uncertainties in local government, particularly in light of potential council amalgamations, Council strongly believes that the Lindfield Community Hub project, which has firm roots within Council’s long term plans, and which is eagerly awaited for by the local community, and should not be delayed. The merger proposal for Hornsby Shire Council (part) and Ku-ring-gai Council released by NSW Government in early January 2016, on page 2, specifically refers to the Lindfield Hub project, viz. “the revitalisation of Lindfield, Turramurra and Gordon town centres to transform them into cultural and civic hubs together with the opportunity to incorporate activities for teenagers, senior citizens and more commuter car parking in any redevelopments”. Therefore, Council believes it highly appropriate to expedite this project and the much-needed community benefits it brings.


5.3 Collaboration with Transport For New South Wales (TfNSW)

Council has a sound track record of working in close collaboration with TfNSW in the design and implementation of integrated projects such as the Gordon Bus Interchange project and the Culworth Avenue Commuter Car Park project in Killara. On 29 May 2012, the NSW Government announced its intention to build nine (9) new commuter car parks at train stations across the CityRail network in Sydney, providing more than 1,200 additional car spaces. These new commuter car parks, some with new interchanges, were planned to be built at Granville, Canley Vale, Gordon, Sutherland, Lindfield, Kiama, Moss Vale, Oak Flats and Padstow. The announcement outlined a proposal for Lindfield which would include a commuter car park with 240 spaces and a new kiss-and-ride zone. The works were estimated by TfNSW at the time to cost $34 million, to be delivered through the TfNSW Transport Access Programme which is a $770 million NSW Government initiative tasked with delivering accessible, modern, secure and integrated transport infrastructure. On 26 June 2012, Council resolved to reclassify the project site from ‘Community’ to ‘Operational’ land to facilitate the delivery of this new public transport infrastructure and associated upgrades in the Lindfield local centre. The Planning Proposal received a Gateway Determination in January 2013. In July 2013, (elected) Council adopted a planning proposal to reclassify Council land and submitted the proposal to the Minister for Planning. The reclassification was finalised in February 2014. In May 2013, following extensive discussions with TfNSW representatives, Council resolved to commence preparation of a master plan for the site in partnership with TfNSW. From that time forward, regular co-ordination meetings have been held between Council staff and TfNSW representatives to resolve the process of delivery of commuter car parking spaces within two (2) integrated projects: Lindfield Village Green and the Lindfield Community Hub. Council and TfNSW investigated various scenarios for the delivery of commuter car parking in Lindfield local centre, including: Scenario A - 240 car spaces located on the western side of Lindfield as part of the Lindfield Community Hub project; Scenario B - splitting the commuter parking with 100 spaces on the east side as part of the Lindfield Village Green project and the remainder (140) on the west side; and Scenario C - 200 commuter parking spaces on the east side and 40 spaces on the western side. Council undertook a traffic impact assessment of the Lindfield network traffic model which showed that locating 240 commuter spaces on the Hub site would create conflicts particularly on Saturdays when the community typically seeks retail facilities. Given the mixed-use nature of the Lindfield Community Hub project (including retail, supermarket and community facilities), the traffic demands and congestion from Lindfield (east) would significantly deteriorate and impact negatively upon the local community. Increased delays in traffic queues would be generated at key intersections. For these reasons, Council’s traffic consultants recommended that the two hundred and forty (240) commuter car parks be split between the Lindfield Community Hub and the Lindfield Village Green sites: 140 spaces on the Community Hub site and 100 spaces on the Village Green site. Following informal agreement between Council and TfNSW that splitting of the commuter car parks was the preferred approach, TfNSW requested that Council submit a formal proposal to the Assistant Deputy Secretary of the Planning Division of TfNSW, for the Minister’s approval as the basis for commencing negotiations and completing an agreement between the parties for the delivery of 240 commuter car spaces in Lindfield. This formal proposal was submitted to TfNSW in December 2015. A copy of this proposal has been included at Appendix A13.


In February 2016, Council submitted a draft MoU to TfNSW setting out the terms on which the parties might agree to act collaboratively and in good faith to negotiate and finalise funding from TfNSW for the construction of one hundred and forty (140) basement car parking spaces on the site, as part of an integrated mixed-use urban renewal project. Council currently awaits TfNSW’s feedback on the Draft MoU. A copy of the Draft MoU prepared by Council and sent to TfNSW for consideration has been included at Appendix A14.

6. The Public-Private Partnership (PPP) as a Preferred Delivery Model Council’s lawyers, Sparke Helmore Lawyers (SHL), on 23 November 2015, provided legal advice which stated that the most appropriate delivery mechanism for the project was a Public Private Partnership (PPP). In summary, a PPP was recommended rather than a voluntary planning agreement for the following reasons: Council would be making contributions to the proposal which, if managed under a

planning agreement would give rise to tendering issues and complications about Council's role as proponent and as consent authority. In particular, the proposal was best suited to a PPP arrangement because Council intended to seek Expressions of Interest and then negotiate with the successful proponent, rather than invite further tenders for the contract;

Council's proposal to be involved in the process and have some control over delivery times was more consistent with a project delivery agreement rather than a planning agreement;

The potential for the arrangement to involve ongoing maintenance and operation obligations can be more easily addressed under a PPP arrangement;

Variations or non-conforming submissions could be more easily accepted under a PPP; and

Following the PPP guidelines and engaging probity advisers will assist Council in ensuring the arrangement is not perceived as being contrived or manipulated to suit Council as developer.

SHL’s full legal advice has been included at Appendix A15.

7. Project Management Structure A project management structure has been prepared which will remain operational until Council signs the PPP Contract with a preferred partner. Subsequent to this point, a PPP Entity will be created and the structure of this Entity which will be communicated to the OLG closer to the time. The project management structure has been included at Appendix A16. In summary, the structure includes a Project Management Group (PMG), a Project Working Group (PWG), a Project Steering Committee (PSC), various Project Advisory Groups (PAGs), an EOI Evaluation Committee (EC), and independent consultants for legal advice, development advice and probity advice.


8. Project Programme A Project Programme up to the point of signing of the PPP Contract has been prepared and included at Appendix A17. Key project dates are as follows:

EOI release August 2016

Official Notification of Successful Applicant/Preferred PPP partner:

December 2016

Negotiations with preferred partner: December 2016 to June 2017

Legal finalisation of Contracts: July 2017

Signing PPP Contract: July 2017

Planning & Design Phase: August 2017 - November 2017

Lodgment of DA: December 2017

DA Approval: December 2018

Construction commencement: June 2019

Construction completion: December 2021

9. Financial Information 9.1 Project Costs

Cost estimates were prepared by MBM consultants for the various master plan options prepared by SJB Architects in 2015 (ref: Section 3.8 of this document).

An updated cost report was recently prepared by RLB which estimates the total cost of the project at $148,501,000.00 (inclusive of GST).

RLB’s full cost report (draft) has been attached at Appendix A18, and their Lifecycle Costing Report has been attached at Appendix A19. These reports will be further reviewed, refined and finalised prior to Council’s next submission to the OLG (PPP Step 3 Submission).

9.2 Project Feasibility Analysis

Based on the cost report prepared by MBM in 2015, Jones Lang LaSalle (JLL) were engaged to prepare a feasibility analysis of the four (4) master plan options. A summary of JLL’s feasibility work has been provided below.

9.2.1 Options Analysed In summary, JLL analysed four (4) master plan options, as follows:

Option 1: 3 Storey, Community facilities + library, speciality retail, mini-major retail, residential (32 units), car parking including 240 commuter spaces


Option 2: 7 Storey, Community facilities + library, speciality retail, major retail, commercial, residential (105 units) car parking including 240 commuter spaces

Option 3: 5 Storey, Community facilities + library, speciality retail, commercial, residential (120 dwellings), car parking including 240 commuter spaces

Option 4: 3 Storey, Community facilities + library, speciality retail, major retail, car parking including 240 commuter spaces


9.2.2 Key Assumptions & Limitations JLL made the following key assumptions and limitations: Equity injection to the project $13.19million from collected s.94 contributions as at April 2015; Equity injection to the project $16.8million from the State Government of NSW for the construction of the commuter car park (subject to agreement from TfNSW); and No income is derived from the community uses or car parking. 9.2.3 Key Findings JLL’s observations from the financial analysis undertaken are summarised below: Option 1: Provides a poor financial outcome of based on significant ‘community costs’ (including associated car parking) with smaller income producing uses. Option 2: Provides an indicative ‘break-even option’ given the provision of residential and major retail uses. Option 3: Presents the most viable option given the quantum of residential. Option 4: Provides a poor financial outcome based on the lack of residential which support the options viability. The major retail also assumes constrained trade based on the assumption that there will be no right turn lane from Pacific Highway to Beaconsfield Parade. In summary, Option 3 presented the most financially rewarding proposition for Council with Option 2 presenting itself as a ’break-even’ proposition, including a small margin for error, delay or change of project scope. JLL’s full feasibility report covering all 4 master plan options prepared by SJB in 2015, has been attached at Appendix A6. 9.2.4 Updated Feasibility Analysis of Adopted Master Plan JLL are currently preparing an updated financial feasibility analysis based on the following information: The final/adopted Master Plan by SJB; Valuation of project site by Preston Rowe Paterson; and Updated cost report by RLB. This updated report by JLL will form an integral part of Council’s PPP Business Plan, which will form part of Council’s next submission to the OLG (PPP Step 3 Submission). 9.3 Sources of Funding The project is planned to be funded through three (3) sources. These are as follows: Council Contribution: Council’s contribution to the project is 1.3HA of Council-owned land on Woodford Lane near the Lindfield railway station (refer Figure 1), and up to $12,419,703.00 (exclusive of GST) from Section 94 Contributions Fund towards project construction which is pre-allocated to this project via (elected) Council resolution. Private Sector Partner Contribution: It is anticipated that the private sector partner will contribute approximately $117,544,230.00 (exclusive of GST) to the project, depending on the proposal that is accepted by Council through the EOI process. The benefit to the proponent will also depend on the proposal that is ultimately accepted. TfNSW Contribution: TfNSW has agreed in-principle to fund one hundred and forty (140) underground commuter car parking spaces within the site. The exact amount of funding forthcoming from TfNSW is currently under negotiation and has not been finalised yet.


9.4 Value of Council Contributions

Council’s contribution to the project is 1.3HA of Council-owned land on Woodford Lane near the Lindfield railway station (refer Figure 1), and $17,456,770.00 (exclusive of GST) of Section 94 Contribution Funds (including 12,419,703.00 towards project construction and $5,037,067.00 towards project design and management) which is pre-allocated based on (elected) Council resolution.

A detailed land valuation is currently being undertaken by Preston Rowe Paterson (PRP), which will establish the monetary value of Council-owned land (project site).PRP’s full valuation report will be submitted to the OLG along with Council’s PPP Step 3 documentation.

9.5 Section 94 Funds Disbursement Plan

Council’s Section 94 funds are planned to be disbursed over the project lifecycle based on key construction milestones. Although it is hard to estimate the exact figures prior to engagement with the private sector partner, it is currently envisaged to be as per the table below:

Table 5: Draft Section 94 Funds Disbursement Plan

9.6 Council’s Annual Revenue Available for PPP

Council’s annual revenue is not envisaged to be utilised in the delivery of this project. The project is planned to be self-funded in the long-term. Further details of lifecycle costing and ongoing sources of revenue for operation and maintenance of the facility will be detailed in Council’s Business Plan which will form part of the next step in the PPP process.

10. Risk Management

A comprehensive Risk Management Plan has been prepared for the project. In summary, the Risk Plan identifies risks under the following categories: Site Risks Design, construction & commissioning risks Risks associated with the private sector partner Financial Risks Operational Risks Market Risks Network/Interface Risks Industrial Relations Risks Legislative/Government Risks Asset Ownership Risks Force Majeure On 21 January 2016, over 30 (thirty) senior council staff and external consultants attended the Lindfield Major Projects Risk Workshop. The workshop was convened to identify risks

2016/17 2017/18 2018/19 2020/21 2021/22 Total

10% 25% 23% 22% 20% 100%

1 Construction Cost 135,001,000 12,419,703 117,544,230 0 3,464,193 3,115,057 2,949,099 2,891,354 12,419,703

2

Project Management Costs (Council's Internal Costs ) 5,037,067 0 1,745,677 900,000 900,000 891,390 600,000 5,037,067

TOTAL 135,001,000 17,456,770 117,544,230 1,745,677 4,364,193 4,015,057 3,840,489 3,491,354 17,456,770

No Element of Work

Total Estimated Construction

Cost, Excluding GST ($)

*CPI variances have not been reflected in this table.

*Council's Section 94 Funds Disbursement Plan$Total Private

Partner Contribution,

Excluding GST ($)

Council's Section 94

Contribution to Project,

Excluding GST ($)


associated with the Lindfield major projects from a wide range of professionals within Council and relevant consultants. The workshop covered various risk factors. Attendees worked in groups to pin-point specific risks within the risk areas and recorded these to be considered in the preparation of the final risk management plan. The workshop was highly collaborative and successful. Attendees positively engaged with the process, and identified a wide range of potential risks. The information collected was collated and analysed to inform the development of this risk management plan. The full risk management plan has been attached at Appendix A20.

11. Probity Management

A Probity Management Plan (PMP) was prepared by independent consultants, O’Connor Marsden (OCM). The PMP outlines in detail the management of the various project decision-making components such as: Governance arrangements and management; Reporting requirements; Key roles and responsibilities; and Document framework.

The PMP also details the various probity principles and their application, particularly with respect to: Fairness, consistency and transparency; Accountability in relation to decision making; Identification and resolution of conflicts of interest; and Open competitive processes focused on achieving value for money.

OCM will also act as independent observers during the EOI process and will ensure that a high level of transparency and accountability is maintained throughout the duration of the project.

The full Probity Management Plan by OCM has been attached at Appendix A21. All members of the Project Management Group of the Project have read the PMP and signed an undertaking to abide by the principles contained therein. A Confidentiality and Conflict of Interest Register is being maintained within Council, with OCM having full access to this Register.

12. Supporting Documentation A comprehensive list of studies and reports were prepared by professionally well-regarded consultants and has supported the preparation of this Project Proposal. These have been appended to this Proposal document, and are listed below: A1 Community Engagement Outcomes Report by CRED A2 Council Report dated 8 September 2015 A3 Council resolution dated 8th December 2016 A4 Traffic management scheme and report by Peopletrans A5 Supplementary Traffic Report by Peopletrans A6 Feasibility Analysis of Master Plan Options by Jones Lang LaSalle (JLL) A7 Final Master Plan report by SJB Architects A8 Market Sounding report by Property Based Solutions (PBS) A9 Council Resolution dated 6th October 2016 A10 Council’s Community Strategic Plan 2030 A11 Council’s Long-Term Financial Plan 2015/16 to 2024/25 A12 Council’s Revised Delivery Program 2013/2017 & Operational Plan 2015/2016 A13 Council’s Commuter Car Parking Funding Proposal to TfNSW A14 Draft MoU between Council and TfNSW (as proposed by Council) A15 Legal Advice from Spark Helmore Lawyers (SHL) recommending a PPP


A16 Project Management Structure A17 Project Programme A18 Project Cost Report by Rider Levett Bucknell (RLB) A19 Project Lifecycle Costing by Rider Levett Bucknell (RLB) A20 Risk Management Plan (Draft) A21 Probity Management Plan (PMP)

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