YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW Final Report

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YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW Final Report

  1. 1. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW Final Report Prepared by Hansen Partnership and Charter Keck Cramer For City of Yarra September 2004
  2. 2. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 NOTE Please note that the land zonings included in the recommendations of this report dated September 2004 are not as of right and have not been approved by the Council of the City of Yarra. Any future rezoning of land subject to this study will be assessed on a case by case basis in accordance with the Industrial and Business Strategy which forms part of the current review of industrial and business activities in the City of Yarra. Each rezoning proposal will be considered as a formal amendment to the Yarra Planning Scheme and will be assessed against the policy framework prepared as part of the study and through the ongoing review of Yarra’s Municipal Strategic Statement (MSS) over the next twelve months. September 2004. Hansen Partnership – Charter Keck Cramer
  3. 3. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................ I 1 INTRODUCTION ............................................................................................... 1 1.1 The Purpose of this Strategy 1 1.2 Approach 2 2 THE IMPORTANCE OF EMPLOYMENT AND BUSINESS TO YARRA .................................... 3 3 CONTEXT....................................................................................................... 4 4 INDUSTRIAL AND BUSINESS ZONED LAND ............................................................... 7 5 INDUSTRY & BUSINESS ACTIVITY ......................................................................... 9 5.1 Overview 9 5.2 Economic Structure 10 5.3 Trends in Business & Industry Location 11 5.4 Business Movement 13 5.5 Characteristics of Yarra’s Workers 14 5.6 Where do Yarra workers come from? 15 6 PLANNING BACKGROUND ................................................................................. 17 6.1 State Planning Policy 17 6.2 City of Yarra Municipal Strategic Statement 19 6.3 Local Planning Policies 27 6.4 Melbourne 2030: Planning for Sustainable Growth 28 6.5 Industry in Melbourne: Open for Business 30 6.6 Industrial and Business Activity: Trends and Opportunities Analysis (Ratio Report) 31 6.7 Amendment C27 to the Moreland Planning Scheme - Panel Report 35 6.8 Previous Rezonings 37 6.9 Development Proposals 38 6.10 Zoning Controls 42 7 TOWARDS AND INDUSTRIAL AND BUSINESS STRATEGY ............................................ 50 7.1 Introduction 50 7.2 Economic Considerations - Economic Outlook Industry and Business 50 7.3 Strategic Considerations 51 7.3.1 Activity Centre Policy 54 7.3.2 Public Transport Accessibility 55 7.3.3 Yarra River Corridor 55 7.3.4 The Need for an Integrated Policy Approach 56 7.4 Land Use Planning Considerations 57 7.4.1 Recognising Yarra’s Mixed Use (Multi-use) Character 57 7.4.2 Existing Industries / Industrial Concentrations 59 7.4.3 Under Utilised Land 59 7.4.4 Making the Most of Underutilised Industrial Land 60 7.4.5 Large Industrial Sites 60 7.4.6 Isolated Industrial Sites 61 7.4.7 Heritage Buildings 61 7.5 The Planning Decisions to be Made 62 7.5.1 Which Zone is Most Appropriate 62 Hansen Partnership – Charter Keck Cramer
  4. 4. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 7.5.2 When and How to Rezone? 63 7.5.3 Site Specific Rezonings 64 7.6 Conclusion 64 8 FUTURE OF INDUSTRIAL AND BUSINESS PRECINCTS ................................................. 65 8.1 Doonside Precinct 66 8.2 CUB Precinct 68 8.3 Victoria Crescent / Harper Street 70 8.4 Gipps Street Precinct 72 8.5 Johnston Street 74 8.6 Other Industrial and Business Precincts 76 8.6.1 Cremorne 76 8.6.2 Trenerry Crescent 77 8.6.3 Queens Parade (B3Z) and Alexandra Parade 77 8.6.4 North Fitzroy Village 78 8.6.5 Amcor, Alphington 79 8.6.6 Barkly 79 8.6.7 Noone 80 9 INDUSTRIAL AND BUSINESS STRATEGY ................................................................. 81 9.1 Vision 81 9.2 Objectives 82 9.3 Strategies 82 9.4 Policy 83 9.5 Implementation 87 9.6 Implications of this Strategy 89 9.7 What Council Can Do To Promote Industry and Business in the Municipality 90 9.8 Area Enhancement and Development Contributions 93 9.8.1 Development Contributions Plan 93 9.8.2 Conditions on Permit 95 9.8.3 Agreements 96 9.8.4 Council Development Contributions Policy 97 APPENDIX 1 - DESCRIPTION OF INDUSTRIAL AND BUSINESS PRECINCTS ............................. 1 TDZ 97 - AMCOR Precinct 2 TDZ 98 & 103: North Fitzroy Village Precinct & Queens Parade Precinct 4 TDZ 100 - Heidelberg Road Precinct 7 TDZ 101 – Noone / Hoddle 9 TDZ 105 Nicholson Street - TDZ 106 Alexandra Parade - TDZ 109 Johnston / Brunswick Street Precincts 11 Nicholson Street Precinct 11 Alexandra Parade Precinct 12 Johnston / Brunswick Street Precinct 13 TDZ 107 - Smith Street (Johnston-Budd) Precinct 15 TDZ 108: CUB - Johnston / Hoddle - Victoria Crescent / Harper Street Precincts 18 CUB Precinct 19 Johnston / Hoddle Precinct 20 Victoria Crescent / Harper Street Precinct 21 TDZ 110 - Gipps Precinct 23 TDZ 111 – Risely Precinct 27 TDZ 112 - Swan Street and Burnley Precincts 31 TDZ 113 - Doonside, Stawell (GTV 9), Stawell (B4Z) Precincts 33 Hansen Partnership – Charter Keck Cramer
  5. 5. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Doonside Precinct 34 Stawell Precinct (GTV9) 36 Stawell Precinct (Business 4 Zone) 37 TDZ 114: Cremorne and Dover – Barkly - Church Street Precincts 39 Cremorne & Dover Precinct 40 Barkly Precinct 42 Church Street Precinct 44 List of Figures Figure 1 - Rezoning Recommendations Summary Map ........................................................ viii Figure 2 - Locality Map.................................................................................................................. 5 Figure 3- Study Precincts Map ..................................................................................................... 8 Figure 4 - Change in Employment by Industry 1996-2001 ..................................................... 13 Figure 5 -City of Yarra: Business Relocations by Type of Activity.......................................... 14 Figure 6- Yarra MSS Industrial and Commercial Framework Plan ........................................ 24 Figure 7- Yarra MSS Retailing and Activity Centres Framework Plan................................... 25 Figure 8 - Yarra MSS Transport and Access Framework Plan ................................................ 26 Figure 9 - Ratio Report Future Direction Strategy Map .......................................................... 34 Figure 10 -Key Development Site Map..................................................................................... 41 Figure 11 - Land Use Influences in Yarra................................................................................... 53 Figure 12 - Doonside Precinct Zoning Recommendation Map ............................................ 67 Figure 13 – CUB & Victoria Crescent / Harper Street Precincts Zoning Recommendation Map ....................................................................................................................................... 72 Figure 14 - Gipps Street Precinct Zoning Recommendation Map ....................................... 74 Figure 15 - Queens Parade Zoning Recommendations Map............................................... 78 Figure 16 - North Fitzroy Village Zoning Recommendation Map ......................................... 79 Figure 17 - Barkly Street Precinct Zoning Recommendation Map ....................................... 80 Figure 18 – TDZ 97 AMCOR Precinct Map .................................................................................. 3 Figure 19 - TDZ 98, North Fitzroy Village Precinct Map ............................................................. 5 Figure 20 - TDZ 103, Queens Parade Precinct Map.................................................................. 6 Figure 21 – TDZ 100, Heidelberg Road Precinct Map ............................................................... 8 Figure 22– TDZ 101, Noone / Hoddle Precinct Map ............................................................... 10 Figure 23 - TDZ 105, 106, 107 - Johnston, Brunswick and Nicholson Street Precincts Map 14 Figure 24 - TDZ 107, Smith Street (Johnston-Budd) Precinct Map......................................... 17 Figure 25 - TDZ108 CUB, Victoria Crescent/Harper Street & Johnston/Hoddle Precincts Map ....................................................................................................................................... 22 Figure 26 - TDZ 110, Gipps Precinct Map.................................................................................. 26 Figure 27 - TDZ 111, Risley Precinct Map................................................................................... 30 Figure 28 - TDZ 112, Swan Street and Burnley Precincts ......................................................... 32 Figure 29 - TDZ 113, Doonside, Stawel (GTV 9) & Stawel (B4Z) Precincts Map ................... 38 Figure 30- TDZ 114, Cremorne, Dover, Church and Barkly Street Precincts Map .............. 46 Hansen Partnership – Charter Keck Cramer
  6. 6. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 List of Tables Table 1 - Industry & Business Mix: Share of Total Employment .............................................. 10 Table 2: Journey to Work from Individual LGAs, 1996 ............................................................ 15 Table 3 - Key Development Sites............................................................................................... 38 Table 4: Indicative Employment Ratios (City of Melbourne) ................................................ 51 Table 5: Estimated Change in Land Use Requirement 2001-2020 ....................................... 51 Table 6 - Summary of Rezoning Change ................................................................................. 90 Hansen Partnership – Charter Keck Cramer
  7. 7. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 EXECUTIVE SUMMARY Introduction The purpose of this study is to: review trends in industrial and business activity on the future use and development of land zoned Industrial 1 and 3, and Business 3 and 4 in the municipality of Yarra; and to make recommendations regarding the future use and zoning of such land. The consultant team commissioned to prepare the study by Council comprised Hansen Partnership, town planners and urban designers, and Charter Keck Cramer, property advisors and economists. As part of the study Charter Keck Cramer prepared a separate report titled “Industry and Business Activity: Trends and Opportunities Analysis (April 2004). That report presents full details of the economic analysis component of the project and underlies the recommendations contained in this report. The Importance of Employment and Business to Yarra Yarra is a mixed use municipality in which business and residential activities interact to provide the interesting and diverse cosmopolitan inner city character that makes Yarra such as special place for people to live, work and visit. A significant number of businesses and jobs exist within the municipality. In addition to contributing to the character of Yarra, these businesses and the employment opportunities make a significant contribution to the local and regional economy, and to the lifestyles enjoyed by local residents. With some 55,000 jobs existing in Yarra and a population of around 67,000 (2001 figures), there are nearly as many jobs in the municipality as there are residents. This highlights the importance of employment and business to the municipality. It also highlights the need to balance the requirements of business with those of residents, in all aspect of local government decision making regarding the future planning and development of the municipality. Context Yarra has a tradition of manufacturing industry, much of which located along the Yarra River in the late 19th and early 20th Centuries, but which was also dispersed throughout other parts of the municipality. The role of industry in Yarra has changed considerably over the years and ongoing change is continuing to occur. Substantial restructuring of industry, in particular manufacturing industry and the TCF (Textiles Clothing and Footwear) sector, has seen many factories and businesses close down or relocate from the municipality. This has resulted in a loss of local businesses and jobs, negative impacts on the local economy, and the creation of considerable amounts of vacant and underutilised industrial land within the municipality over time. This change has also provided considerable new development opportunities within the municipality, the benefits of which have contributed to reversing the previous decline in population experienced in Yarra, improving the appearance and amenity of many parts of the municipality, enhancing the Yarra River corridor, and providing the opportunity for new generation business to establish. Hansen Partnership – Charter Keck Cramer i
  8. 8. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Within metropolitan Melbourne recent transport infrastructure changes, such as the construction of the Metropolitan Ring Road and City Link, have significantly changed accessibility and industrial location patterns in Melbourne. Whilst industrial activity has declined in Yarra employment has increased. Yarra has become a preferred location for many smaller and medium sized businesses, particularly those in computer, technology, marketing and design, and restricted retail. These trends are expected to continue. Industry & Business Activity The City of Yarra’s total working population in 2001 was 55,300. Of that amount about 8,213 (15%) were people employed in the manufacturing sector and wholesale trade sectors of the economy. The concentration of manufacturing activity within Yarra relative to the rest of Melbourne is not particularly strong. Manufacturing activities for which Yarra has a strong concentration are limited to: food and beverages (reflecting the presence of CUB in Abbotsford); textiles, clothing and footwear; and printing, publishing and recorded media. There is evidence of strong concentrations of activity in Yarra relative to the rest of Melbourne in business services activities, particularly within emerging growth sectors such as finance and insurance, property and business services, and health services. The evolution of Australia’s manufacturing economy towards higher value added activities focussed upon innovation rather than production, has resulted in a shift away from traditional blue-collar activities towards white collar employment. Within the wholesale trade sector there is a strong concentration of personal and household goods wholesaling in Yarra. This reflects a number of factors including the proximity of Yarra to CAD retailers, as well as the trend towards factory outlets selling direct to the public. There is also a strong concentration of business service activity within Yarra, particularly in Richmond. The economic performance of Yarra over the period 1996-2001 was mixed, with traditional industries such as manufacturing, and in particular blue-collar activities and wholesale trade, performing below that achieved by these sectors at the metropolitan level. This contrasts with the business services sector which outperformed the rest of metropolitan Melbourne. Significant opportunities exist for the further development of business service related activities within Yarra, supported by the opportunity to establish links to CAD based organisations. Planning Policy Background This study is part of the review of the Yarra Municipal Strategic Statement (MSS) that is presently being undertaken by the Council. As such it will contribute to a new MSS being prepared for the municipality, and in particular to new polices for industrial and business activity. State planning policies provide little guidance in relation to the future use and development of industrial land. Rather, implications regarding industrial land need to be drawn from policies regarding other matters such as activity centres, residential development and public transport. Melbourne 2030 is the strategic planning document most relevant to this study. The policy directions that will have the greatest influence on the future use of industrial and business zoned land in Yarra include: Hansen Partnership – Charter Keck Cramer ii
  9. 9. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Policies that aim to direct a significant proportion of new residential development into and around activity centres – This policy will have implications on the future use of underutilised industrial land located close to activity centres in Yarra. Policies to encourage office development to locate in activity centres, and which discourage out-of-centre development – This policy will have implications on the future use of underutilised industrial land in Yarra that is located some distance away from activity centres. Policies that encourage better use of public transport and the establishment of higher density housing and also employment uses (especially where close to activity centres) along the principle public transport network – This policy will have implications for the future use of underutilised industrial land along key public transport routes and tram routes throughout the municipality. Towards an Industrial and Business Strategy Key considerations that have been taken into account in formulating the recommendations contained in this study include the following: Economic Considerations − While industry will remain an important component of Yarra’s local economy, the demand for industrial land has declined in the past and is expected to continue to decline in the future. − It is forecast that over the next 15 to 20 years to 2020, demand for industrial and related land in Yarra is likely to decline by around 20 hectares. − A considerable increase in demand for business services activities and office type uses is forecast in Yarra over the next 20 years, of around 150,000 square metres. Strategic considerations: − Proximity to activity centres – This policy is supportive of higher order employment (i.e. office) and higher density residential uses on underutilised industrial land within or close to activity centres. − Proximity to public transport and the principle public transport network – This policy is supportive of higher density residential use, or higher density employment uses such as offices (where also close to activity centres) on underutilised industrial land close to railway stations and along Public transport routes throughout the municipality. − Proximity to the major environmental features such as the Yarra River – Supportive of higher order uses such as residential or offices uses on underutilised industrial land abutting the river corridor (subject to appropriate built form relationships to the river). Land Use planning considerations − Recognising Yarra’s mixed use character. − Reflecting existing major industries and concentrations of industrial activity that are viable and have a medium to long term commitment to an area. − Seeking ways to better utilise and rehabilitate underutilised, vacant or derelict industrial land. − Realising the difficulty of redeveloping large industrial sites for new industrial purposes and the need for greater flexibility in relation to the redevelopment of such land. − Recognising the need to adopt a flexible approach in relation to isolated industrial sites, particularly those in otherwise residential areas and off main roads. − Recognising the need for a flexible approach in relation to heritage buildings in industrial areas, to ensure their ability to be retained, refurbished and reused. Hansen Partnership – Charter Keck Cramer iii
  10. 10. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 The above considerations are relevant where existing industrial land is either vacant or underutilised. Other than in exceptional circumstances, land that is efficiently used for viable industrial purposes that has a long term commitment to the area, is not considered for rezoning to a zone that would undermine the continued operation of such businesses. Future of Industrial and Business Precincts Doonside Precincts − Potential for land to the north of Appleton Street to be rezoned to a Mixed Use Zone when existing industry relocates, to enable a mix of commercial and higher density residential uses close to Victoria Gardens. − Rezone land along the east side of Burnley Street, to the north of Blazey Street, to a Mixed Use Zone to allow flexibility to reflect existing ground level commercial uses and to provide the opportunity for upper level office or residential activities. − Rezone the balance of the area to a Business 3 Zone to retain the existing industrial use of the area, whilst providing the opportunity for a wider range of business uses, including offices. CUB Precinct − Retain existing industrial zonings that apply to the CUB site and surrounding area, to protect the long term interests of CUB and the role of the area as an industrial precinct. − Rezone land to the east of Grosvenor Street, including Flockhart Street and extending east to Walmer Street to a Business 2 Zone, with a local policy that identifies the future of the area as an employment precinct, but with the opportunity for a residential component as part of mixed use developments. − Rezone land along the north side of Victoria Street from its existing Business 3 Zone to a Business 1 Zone. Victoria Crescent / Harper Street − Transform Victoria Crescent into an attractive landscape boulevard with active street frontages. − Rezone land along the east side of Victoria Crescent to a Mixed Use Zone to provide the opportunity to revitalise the area and to achieve mixed use or residential redevelopment adjacent to the river. − Rezone land south of Mollison Street, including the Brush Fabrics site, to a Mixed Use Zone to allow mixed use or residential redevelopment. − Rezone land bounded by Gipps Street, Victoria Crescent, Mollison Street and Nicholson Street to a Business 3 Zone, to retain the existing industrial use of the area whilst providing the opportunity for a wider range of business uses, including offices. Gipps Street Precinct − Rezone to a Business 3 Zone to retain the existing industrial use of the area whilst providing the opportunity for a wider range of business uses, including offices. Johnston Street − Consult with land owners and occupiers about the rezoning of land along the north side of Johnston Street between Wellington Street and Hoddle Street (extending through to Sackville Street) to a Business 1 Zone, in order to revitalise this underutilised area. − Rezone land zoned Business 3 on both sides of Johnston Street between Smith Street and Wellington Street, to a Business 1 Zone. On the north side of Johnston Street the Business 1 Zone should only apply to properties fronting Johnston Street and should not extend through to Sackville Street. Hansen Partnership – Charter Keck Cramer iv
  11. 11. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 − Rezone land between Brunswick Street and Smith Street to a Business 2 Zone to differentiate the retail role of this area from that of Brunswick Street and Smith Street, whilst providing the flexibility for shop top or upper level housing or office uses (including a local planning policy to reflect intent of rezoning). Cremorne − Retain the existing Business 3 Zone that applies to the area. − Rezone the Kangan Batman TAFE sites to Business 3 Zones to encourage their redevelopment for business rather than residential purposes. − Adopt a flexible approach in relation to the redevelopment of the historic Richmond Maltworks site. This may include support for a mixed use development with a residential component. − Retain the Stitches Site at the corner of Cremorne Street and CityLink in a Business 3 Zone and encourage redevelopment consistent with that zone. Trenerry Crescent − Adopt a flexible approach to redevelopment proposals affecting the two remaining sites in that area zoned Business 3, including the possibility for mixed use or residential redevelopments (i.e. Mixed Use Zone). Queens Parade − Rezone land bounded by Queens Parade, Alexandra Parade, George Street and Napier Street, in Fitzroy North to a Mixed Use Zone Alexandra Parade − Rezone the area zoned Business 3 on the north side of Alexandra Parade, between Smith and Wellington Street, to a Mixed Use Zone to provide the opportunity for upper level office or residential activities along main road frontages or for the residential use of underutilised sites in local streets abutting residential uses. North Fitzroy Village − Rezone the area bounded by St Georges Road, Fergie Street and Scotchmer Street to a Business 1 Zone to encourage the redevelopment / refurbishment of the existing building of the site in a manner that contributes to the North Fitzroy Village in a positive manner. Barkly − Rezone all Industrial 3 Zoned land in the area to a Business 3 Zone to provide greater opportunity to maximise the utilisation of land for higher order business and employment activities, whilst recognising the existence of established industries and businesses. Noone Street, Clifton Hill. − Support the existing request to rezone the site of the Australian Dyeing Company to a Mixed Use Zone to support mixed use or residential redevelopment. Figure 1 indicates the location of existing industrial and business precincts and provides a summary of the rezoning changes recommended in this study. Things Council Can do to Support Industry and Business in the Municipality Council’s attention should be focussed on two key areas: keeping existing business within the municipality; and attracting appropriate new businesses to the municipality. Hansen Partnership – Charter Keck Cramer v
  12. 12. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Council’s efforts in terms of supporting industry and business in the municipality should be directed towards the following four areas in relation to support for industry and business: supportive whole of Council attitude; strategic planning certainty; expedient development approvals process; and business development support. Area Enhancement and Development Contributions The rezoning of industrial land to a zone that allows higher order uses such as offices or residential uses, has the potential to change the character of an area, to change activity levels and traffic patterns, to create demands for improvements to the amenity of the area, and create a need to upgrading or provide new public infrastructure, services and facilities. Council should adopt a policy that seeks to optimise the funding of area enhancements and infrastructure requirements from private development, in accordance with established principles for development funding and contributions. Hansen Partnership – Charter Keck Cramer vi
  13. 13. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Implications of the Study The following table summarises the existing area of land included in the Industrial 1 and 3 zones and the Business 3 and 4 zones assessed as part of this study, and the subsequent area of land in relevant zones should all rezonings identifies in the study be initiated. Zoned Existing Area (ha) Change (ha) Future Land Area (ha) IN1 52.1 -35.05 17.05 IN3 31.4 -12.99 18.41 Total IN1 and IN3 83.5 - 35.46 B3 95.7 +29.43 125.13 B4 8.5 0 8.5 B2 - +7.44 - B1 - +1.49 - MUZ - +9.68 - Hansen Partnership – Charter Keck Cramer vii
  14. 14. YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004 Figure 1 - Rezoning Recommendations Summary Map Hansen Partnership – Charter Keck Cramer viii
  15. 15. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 1 INTRODUCTION 1.1 The Purpose of this Strategy The purpose of this study as outlined in the project brief issued by the City of Yarra is to: analyse the principal findings of the ‘Ratio Report’ (Industrial and Business Activity: Trends and Opportunities Analysis Parts A and B, prepared by Ratio Consultants, July 2000); identify and analyse the viability and trends in the industrial and business sectors of Yarra’s economy; review all land contained within the Industrial 1 and Industrial 3 zones, and the Business 3 and Business 4 zones; consider the future role and functions of Yarra’s industrial and business areas and assess the planning tools to manage these areas under the planning scheme; and provide recommendations regarding areas to change and areas that should remain industrial, and a decision making framework for Council. The study brief also identified the following more detailed objectives: To critically review the existing and proposed Yarra controls and policies, and strategic planning documents including the Ratio Report. To analyse the business and industry trends that are emerging nationally and locally, that will influence Yarra’s future development. To analyse the dynamics of the local property market which will influence the future position of Yarra within the wider commercial / industrial property market. To assess the current and future role of the City of Yarra for commercial and industrial activity based on a supply and demand analysis that takes account of industry trends, availability of land, competition with other competing commercial and industrial precincts etc. To estimate the level of future development required to accommodate potential demand. To determine the most appropriate land zoning in order for economic development opportunities to be maximised. To establish criteria for evaluating individual sites based upon a number of factors including market and developer requirements, economic development and urban planning principles. Hansen Partnership – Charter Keck Cramer Page 1
  16. 16. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 To review the precincts outlined in the Ratio Report based on the property supply and demand analysis and having regard to the viability and sustainability of the precincts. To identify the potential futures for the precincts in terms of viable and sustainable industries, opportunities for clustering certain industries, employment opportunities, and areas that are better converted to alternative uses and what these alternatives may be. To make recommendations regarding any changes in land use zoning or other planning scheme provisions. To provide a strategic policy framework for managing industrial and business activity in Yarra. To define the industrial areas, the role and future sustainable use of these areas and how interface issues should be addressed. To provide a future decision making framework to assist Yarra in managing current trends and the changing form of industry and business in the future. 1.2 Approach The consultant team for this study comprised Hansen Partnership, town planners and urban designers, and Charter Keck Cramer, property advisors and economists. Charter Keck Cramer’s role was to analyse the existing economic situation and the economic outlook in relation to industrial and business activity in Yarra. That economic overview provided input into that component of the study undertaken by Hansen Partnership. Hansen Partnership’s work included reviewing land use patterns in industrial areas, reviewing the current planning policy context, and making recommendations regarding the future strategic land use framework for industrial and business zoned land in the municipality. As part of this study Charter Keck Cramer prepared a separate report titled “Industry and Business Activity: Trends and Opportunities Analysis (April 2004). That report presents full details of the economic analysis component of the project. That report informs the planning and land use recommendations contained in this document. As part of the study Council established a working group of existing business operators in the municipality. The consultants met with that group to discuss issues relevant to industry and business in Yarra. The consultants have also met with a number of proponents of rezoning requests and a number of other individual businesses operating within the municipality. Hansen Partnership – Charter Keck Cramer Page 2
  17. 17. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 2 THE IMPORTANCE OF EMPLOYMENT AND BUSINESS TO YARRA Yarra is a mixed use municipality in which business and residential activities interact to provide an interesting and diverse cosmopolitan inner city character, which makes the municipality such as special place for people who live, work and visit. A significant number of businesses and jobs exist within the municipality. In addition to determining the character of Yarra, business and employment opportunities available in the municipality make a considerable contribution to the local and regional economy and to the lifestyles of local residents. With some 55,000 jobs existing in Yarra (2001) and a population of 67,000 (2001), there are nearly as many jobs in the municipality as there are residents. This highlights the importance of employment and business to the municipality. It also highlights the need to balance the requirements of business with those of residents, in all aspects of local government decision making related to the future planning and development of the municipality. The economic profile of the municipality is changing, with a transition towards jobs in the retail, service business and public sectors of the economy. However industry and wholesale trade activities still account for a quarter of all jobs available in Yarra. Combined with new generation business uses in which traditional distinctions between industry and office activities have become blurred, a positive approach to the future planning and development of the industrial and business zones relevant to this study it is critical to ensuring the economic base of Yarra evolves to meet current and future business needs. Hansen Partnership – Charter Keck Cramer Page 3
  18. 18. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 3 CONTEXT The City of Yarra is situated immediately to the east of Melbourne’s Central Activities Area (CAD). Yarra includes the suburbs of Richmond and Burnley in its south, Collingwood and Abbotsford in its central areas, Fitzroy to North Carlton in its north and Alphington in its far east (refer to Figure 2 for locality map). Yarra has a diverse population of around 67,000 people (2001). One third of residents are from non-English speaking backgrounds including Vietnam, Greece, and Italy. The diverse community is reflected in the range of shopping, employment, entertainment and cultural destinations in the municipality. The municipality has a tradition of manufacturing industry, much of which located along the Yarra River in the late 19th and early 20th Centuries, but which was also dispersed through other parts of the municipality. Carlton and United Breweries in Abbotsford and AMCOR in Alphington are continued evidence of this trend. The municipality has also been a traditional centre of the textiles clothing and footwear (TCF) industry in Victoria, with particular concentrations in Collingwood and in the Richmond / Cremorne area. The role of industry in Yarra has changed considerably over the years and ongoing change will continue to occur. The municipality is experiencing significant change with regards to its business and industrial sectors in line with global trends. Substantial restructuring of industry, in particular manufacturing industry and the TCF sector, has seen many factories and businesses close or relocate from the municipality. This has resulted in a loss of local businesses and jobs, negative impacts on the local economy, and the creation of considerable amounts of vacant and underutilised industrial land within the municipality over time. Within metropolitan Melbourne recent transport infrastructure changes, such as the construction of the Metropolitan Ring Road and City Link, have significantly changed accessibility and industrial location patterns in Melbourne. New fringe industrial areas have become more accessible to the wider metropolitan region and are the preferred locations for manufacturing industry, freight and distribution operations. These changes continue to have an impact on the types of industry and business that benefit from locating in Yarra. Hansen Partnership – Charter Keck Cramer Page 4
  19. 19. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 2 - Locality Map City of Yarra The nature of economic activity in Yarra has also been influenced by the gentrification of what was essentially a traditional working class municipality. This has had a significant impact on the characteristics of the local labour force, housing demand and the level and nature of household expenditure. The inner city has become a desirable and sought after residential address. Over the past decade pressures for inner city housing have seen many former industrial areas transformed into residential areas through the refurbishment of former industrial buildings into warehouse style apartments and the construction of new apartments. This has changed expectations in terms of amenity issues such as interfaces with industry, industrial traffic in residential streets etc. Over time there has been an ongoing loss of industrial land to other zones. With the introduction of a Mixed Use Zone by the Victorian Planning Provisions (VPPs) in the mid 1990s, considerable areas of ‘struggling’ industrial zoned land were rezoned into this new zone, that allows a mix of residential and business activities. This was particularly the case in areas such Kerr Street Fitzroy and Cambridge Street Collingwood, where the former Foy and Gibson buildings have been converted to predominantly residential warehouse apartments. The Tanner Street area adjoining Richmond Station is an area where rezonings enabled former industrial buildings to be re-used for residential apartments. Hansen Partnership – Charter Keck Cramer Page 5
  20. 20. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Considerable change has occurred along the Yarra River, where former industrial areas have been rezoned for a mix of residential and or office development. Trenerry Crescent in Abbotsford and River Street in Richmond are two such areas. The rezonings have provided considerable opportunity to maintain Yarra’s industrial building heritage through the refurbishment of historic industrial buildings into warehouse apartments and offices; uses to which they are particularly well suited. Whilst industrial activity has declined in Yarra employment has increased. Yarra has become a preferred location for many smaller and medium sized businesses, particularly those in computer, technology, marketing and design, and restricted retail. Many of these operations are essentially office uses, but many combine a mix of activities and necessitate buildings that provide a mix of office and warehouse style accommodation. Former industrial strips such as along the southern end of Church Street, the northern end of Smith Street and the eastern ends of Bridge Road and Swan Street, have become thriving mixed business destinations with offices, showrooms, restricted retail outlets and the like. The rezoning of former industrial areas such as the Cremorne area, to allow a wider range of business activities has resulted in the rejuvenation of these areas to include a mix of businesses and increased local employment. An important reason for the gentrification of the municipality and the change in profile of businesses locating in Yarra has to do with less tangible matters, such as the overall character and ambience of the municipality as a place to live and work. Yarra is a busy, bustling, at times congested place. It is a place where people can live in an unrenovated terrace, in public housing, in a stunning new apartment overlooking the Yarra, or in funky converted warehouse at the back of Smith Street. People can rent an old factory to set up a new business, convert one into a contemporary office, or work out of home within easy reach of the city. The shopping and entertainment strips of Swan Street, Bridge Road, Smith Street and Brunswick Street are interesting, busy, different and exciting places. The area is attractive to active, energetic and creative people. It is these elements that make Yarra the place that it is today. It is these factors that are important to the ongoing vitality of Yarra for business and employment generating uses. Hansen Partnership – Charter Keck Cramer Page 6
  21. 21. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 4 INDUSTRIAL AND BUSINESS ZONED LAND Figure 3 shows the location of all Industrial 1 and 3, and Business 3 and 4 zoned land in Yarra. The amount of land included in each zone is summarised as follows: A total of approximately 83 hectares of industrial zoned land, comprising 52 hectares of Industrial 1 and 31 hectares Industrial 3 zoned land. A total of 96 hectares of Business 3 zoned land. A total of 8.5 hectares of Business 4 zoned land. A field investigation was undertaken of all Industrial and Business 3 and 4 zoned land as part of this study. The purpose of that investigation was to identify the general nature of existing land uses, key features of each area such as major businesses, residential interface and accessibility issues, the level of utilisation of land, opportunities and constraints for future development in each area. That work formed a basis for an assessment of the suitability of current zones applicable to each area and ultimately recommendations regarding future zonings. A summary of the findings of the field investigation is included in Appendix 1. This should be referred to directly for more detailed information regarding the existing characteristics of industrial and Business 3 and 4 zoned land throughout the municipality. Hansen Partnership – Charter Keck Cramer Page 7
  22. 22. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 3- Study Precincts Map Hansen Partnership – Charter Keck Cramer Page 8
  23. 23. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 5 INDUSTRY & BUSINESS ACTIVITY This chapter presents a synopsis of a detailed economic analysis prepared as part of this study by Charter Keck Cramer - ‘Industry and Business Activity: Trends & Opportunities Analysis’ (2004). The Charter Keck Cramer analysis addresses the current industry and business profile in Yarra, outlines past influences, and presents trends at the local, national and global level. 5.1 Overview Yarra’s current economic structure reflects its historical role as a manufacturing location particularly for the textile, clothing and footwear sector (TCF), as well as office-based activities that have been attracted to Yarra due to its proximity to Melbourne’s CAD. The nature of economic activity in Yarra has also been influenced by the gentrification of traditional working class areas. This has had widespread impacts on the characteristics of the local labour force, housing demand and the level and nature of household expenditure. Initiatives by successive federal Governments in the areas of industry policy and macroeconomic management over the past 20 years have impacted significantly on the structure of the Australian economy. The progressive unwinding of protection for the manufacturing sector, particularly for the textile, clothing and footwear sector, has resulted in a restructuring of Australian industry away from manufacturing towards higher value-adding service orientated activities. These initiatives have been reflected at the local level by traditional manufacturing precincts within Australia’s capital cities experiencing decline, business closures and relocations, job losses and as a consequence, pressure for land use change. Melbourne’s economic growth and expansion since being founded in 1835 has resulted in continual change in land use. The progressive development of transport infrastructure has allowed Melbourne’s growing population and economic activity to spread initially beyond the City of Melbourne into Yarra and then into Melbourne’s inner and outer suburbs. The development of Melbourne’s CAD as a financial and administrative centre was dependent upon the relocation of other functions to suburban locations. This in turn supported the development of the wider Victorian economy. This process continues today with the highest and best use for sites reflecting trends in the wider economy and pressures for land resources to accommodate the needs of industrial and business activities and workers. As a result, land use change across the metropolitan area, including Yarra, reflects the dynamics of industry and economic growth and contributes to economic and employment growth at not only the local level but also a regional and national level. Hansen Partnership – Charter Keck Cramer Page 9
  24. 24. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 5.2 Economic Structure Yarra’s current economic structure reflects the history of its development commencing in the 19th century and extending through periods of strong industrial growth which established Melbourne as the centre of manufacturing in Australia. As the Australian economy has evolved so has Yarra’s economy, with the services sector now accounting for a large share of employment. The City of Yarra’s total working population in 2001 was 55,300 with 33,100 (60%) of workers employed in workplaces located within the Yarra (North) SLA. The remaining 22,200 persons were employed within the Yarra (Richmond) SLA. A key characteristic of this working population is a trend towards business and health services. Yarra has some 8,213 people employed in the manufacturing sector, which represented approximately 3.4% of manufacturing jobs in the Melbourne Statistical Division (MSD) (2001). There was a reduction in manufacturing employment between 1996 and 2001 of some 2,378 people. This compares with a growth of around 2,464 people employed in the property and business services sector in Yarra. This is reflective of the general decline in manufacturing employment and the growth in professional and business services. There is evidence of strong concentrations of activity in Yarra relative to the rest of Melbourne, particularly within emerging growth sectors such as finance and insurance, property and business services, and health services. These concentrations of activity provide Yarra with a competitive advantage in attracting further activity, as new and relocating businesses seek locations offering opportunities for the establishment of linkages with established businesses. (It should be noted that the presence of the Epworth Hospital accounts for a large proportion of health & community services in Yarra). Table 1 - Industry & Business Mix: Share of Total Employment Industry Metro. Melbourne City of Yarra Finance & Insurance 4.9% 3.3% Property & Business Services 13.4% 16.1% Health & Community Services 9.7% 16.3% Manufacturing 16.7% 14.9% Wholesale Trade 6.3% 9.6% Retail Trade 15.1% 13.0% Health & Community Services 9.7% 16.3% Source: Charter Keck Cramer, 2004 Hansen Partnership – Charter Keck Cramer Page 10
  25. 25. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 The concentration of manufacturing activity within Yarra relative to the rest of Melbourne is not particularly strong. Those activities for which Yarra has a strong concentration of activities is limited to: food and beverages (reflecting the presence of CUB in Abbotsford) textiles, clothing & footwear; and printing, publishing and recorded media. The future contribution of these activities to employment generation within Yarra will depend on a number of factors including future investment decisions by CUB, the outlook for the textiles, clothing and footwear sector and the ongoing attractiveness of Yarra as a location for these activities. The evolution of Australian’s manufacturing towards higher value added activities focussed upon innovation rather than production, has resulted in a shift away from traditional blue-collar activities towards white collar employment. North Yarra has a higher concentration of white collar manufacturing activities than blue collar when compared to the rest of Melbourne. The future development of white collar manufacturing will however be dependent upon the level of competition from other locations with strong concentrations, including the Monash technology precincts and industrial precincts within the City of Melbourne such as Fishermens Bend. Within the wholesale trade sector there is a strong concentration of personal & household goods wholesaling in Yarra. This reflects a number of factors including the proximity of Yarra to CAD retailers, as well as the trend towards factory outlets selling direct to the public. There is also a strong concentration of business service activity within Yarra and in particular in Richmond. The activities undertaken generally relate to higher level activities requiring managers and professionals. The proximity of Yarra to the Melbourne CAD is likely to support a further concentration of such activity in Yarra in the future. 5.3 Trends in Business & Industry Location The nature and pace of future economic development in Yarra will be determined by a number of factors including: the existing industry and business mix and the exposure this offers to growth sectors; any competitive advantages associated with Yarra’s geographic location with respect to its ability to source appropriately skilled labour, access to transport infrastructure, proximity to key organisations or the level of amenity available; and the ability to accommodate the changing property requirements of industry. Hansen Partnership – Charter Keck Cramer Page 11
  26. 26. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 The economic performance of Yarra over the period 1996-2001 was mixed, with traditional industries such as manufacturing, and in particular blue-collar activities and wholesale trade, performing below that achieved by these sectors at the metropolitan level. This contrasts with the business services sector which outperformed the rest of metropolitan Melbourne. The disparity in the growth performance of sectors reflects the transition that Yarra is currently undergoing from that of a traditional manufacturing location to that of a centre for the provision of business services. This transformation is being facilitated by a number of factors including the increasing attractiveness of outer suburban locations for industry, and the out-sourcing of non-core business functions by large organisations located in the Melbourne CAD to smaller operations that might located in inner city locations such as Yarra. Hansen Partnership – Charter Keck Cramer Page 12
  27. 27. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 4 - Change in Employment by Industry 1996-2001 50% 40% Total MSD City of Yarra 30% Change in Employment 1996-2001 20% 10% 0% -10% -20% -30% Manufacturing Wholesale Trade Retail Trade Accommodation, Property and Health and Café & Restaurants Business Services Community Services Source: ABS, Charter Keck Cramer Trends in the growth of white collar manufacturing employment indicates that Yarra experiences strong competition from the Fishermens Bend and Port Melbourne industrial precincts, where the opening of the City Link network has encouraged the development of previously underutilised industrial land. Similarly, strong competition is also exerted by Melbourne’s south-eastern industrial belt. The analysis suggests that strong opportunities exist for the further development of business service related activities within Yarra, supported by the opportunity to establish links to CAD based organisations. 5.4 Business Movement A total of 183 businesses moved into the City of Yarra over the period 2000-2003, compared to 171 businesses that moved out of the municipality. While the total movement of businesses is similar in each direction, there are noticeable differences at the industry level. The number of manufacturing firms that moved out of Yarra exceeded the number that relocated into Yarra by 22%. This contrasts with technical and business service activities, in which 24% more businesses moved into the municipality compared to those that moved out. Hansen Partnership – Charter Keck Cramer Page 13
  28. 28. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Whilst there has been a net inflow of wholesaling businesses into Yarra, a closer examination indicates that many of the businesses relocating into the municipality are more accurately described as showroom / bulky goods outlets (i.e. restricted retailing premises within the meaning of the planning scheme). Many of these activities are establishing in high exposure locations such as along Bridge Road, Church Street and Victoria Parade. Conversely, those businesses leaving Yarra represent the more traditional forms of wholesaling that typically locate in industrial precincts. Figure 5 -City of Yarra: Business Relocations by Type of Activity 100 90 Relocations In 80 Relocations Out 70 No. of Businesses 60 50 40 30 20 10 0 Manufacturing Techical & Business Services Wholesaling Source: Charter Keck Cramer 5.5 Characteristics of Yarra’s Workers Yarra’s working population differs noticeably from that of the wider metropolitan area with: significantly higher representation from managers and administrators, and professionals; and relatively lower incidence of employment in blue collar and clerical occupations. As at 2001 Yarra’s population was approximately 67,000 (The MSS refers to a population of 65,000 which was based on 1996 census data). Thus, there has been a steady increase in population moving into Yarra in recent times. Hansen Partnership – Charter Keck Cramer Page 14
  29. 29. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 The profile of Yarra’s resident workforce has changed noticeably over the past decade in response to the gentrification of areas such as Fitzroy and Richmond. As indicated by industry trends presented earlier, over the period 1991- 2001 the proportion of residents working in the property and business services sector increased from 11% to 21%, while the proportion working in manufacturing declined from 14% to 10%. In comparison the shift from manufacturing to business services at the metropolitan level saw the proportion of employment in manufacturing fall only marginally from 17% to 16%, and property and business service section increase its share from 8% to 13%. The composition of Yarra’s resident workforce is also reflected in where people work. In 1996, 34% of Yarra’s resident workforce were employed in the City of Melbourne, with a further 13% working in the municipalities of Boroondara, Stonnington and Port Phillip. These municipalities offer strong employment opportunities in the business services and finance sectors. Continued growth in employment opportunities in these sectors will increase the attractiveness of Yarra as a place to live for higher-income professionals. This will result in upward pressure on residential property values. Rising house prices combined with an increasing availability of manufacturing employment opportunities in Melbourne’s outer suburbs will encourage the migration of manufacturing workers to Melbourne’s middle and outer suburbs. This in turn will work to further reduce the attractiveness of Yarra for businesses requiring access to a suitably skilled manufacturing workforce. 5.6 Where do Yarra workers come from? In 1996 Yarra drew most of its workers from Yarra itself (13.6%), Boroondara (8.7%), Darebin (7.9%), Manningham (5.2%), Banyule (5.1%), Moreland (4.7%), Whitehorse (4.7%) and Stonnington (4.2%) as detailed in Table 2. Table 2: Journey to Work from Individual LGAs, 1996 LGA Person Percent Cumulative Percentage Yarra (C) 7,269 13.6% 13.6% Boroondara (C) 4,649 8.7% 22.3% Darebin (C) 4,200 7.9% 30.2% Manningham (C) 2,771 5.2% 35.4% Banyule (C) 2,704 5.1% 40.5% Moreland (C) 2,498 4.7% 45.2% Whitehorse (C) 2,490 4.7% 49.8% Stonnington (C) 2,222 4.2% 54.0% Whittlesea (C) 2,177 4.1% 58.1% Hansen Partnership – Charter Keck Cramer Page 15
  30. 30. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 LGA Person Percent Cumulative Percentage Port Phillip (C) 1,873 3.5% 61.6% Glen Eira (C) 1,788 3.4% 65.0% Monash (C) 1,778 3.3% 68.3% Moonee Valley (C) 1,669 3.1% 71.4% Brimbank (C) 1,494 2.8% 74.2% Knox (C) 1,156 2.2% 76.4% Hume (C) 1,146 2.1% 78.5% Melbourne (C) 1,092 2.0% 80.6% Nillumbik (C) 1,029 1.9% 82.5% Maroondah (C) 1,002 1.9% 84.4% Kingston (C) 991 1.9% 86.3% Other 7,327 13.7% 100.0% Total 53,325 100.0% Source: VicRoads, Charter Keck Cramer, 2004 Together these municipalities accounted for 54% of Yarra’s working population, whilst only accounting for 8% of Melbourne’s total working population. This indicates that Yarra is heavily dependent upon these area for sourcing its workers. Changes in the educational and occupational composition of these areas will therefore influence the nature of industrial and business activity in Yarra. With the exception of Darebin, the top eight LGAs that accommodate Yarra workers (listed in Table 2) have household incomes greater than the metropolitan average. Hence, Yarra is attracting workers from a pool of high income earners relative to the metropolitan average. Yarra workers are drawn from areas that have increasing proportions of white- collar workers - in particular professionals - and a corresponding lesser proportion of blue-collar workers. The proportion of white collar workers in the top eight LGA’s, except for Darebin, are above average when compared to the Melbourne average. In the LGA’s which Yarra workers are drawn from there is a high proportion of people employed in property & business services and retail trade. Compared to the Melbourne average, all areas have below average proportions employed in manufacturing. Hansen Partnership – Charter Keck Cramer Page 16
  31. 31. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 6 PLANNING BACKGROUND This section of the report examines planning considerations relevant to the future use and development of industrial and business land in Yarra. It reviews relevant state and local planning policy that influences decisions regarding the future of industrial zoned land, refers to other relevant documents, identifies past rezonings that have occurred and current development proposals, and reviews the applicability of various zoned contained in the Victorian Planning Provisions (VPPs). 6.1 State Planning Policy The objectives of planning in Victoria (as set out in Section 4 (1) of the Planning and Environment Act 1987) that are most relevant to this study include the following: “To provide for the fair, orderly, economic and sustainable use and development of land. To secure a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria. To conserve and enhance those buildings, areas or other places which are of scientific, aesthetic, architectural or historical interest, or otherwise of special cultural value. To balance the present and future interests of all Victorians.” The State Planning Policy Framework contained in the Yarra Planning Scheme seeks to ensure that the objectives of planning in Victoria are fostered through appropriate land use and development, and practices that integrate relevant environmental, social and economic factors in the interest of net community benefit and sustainable development. Clause 11 of the State Planning Policy Framework outlines seven principles of Land Use and Development Planning. These relate to: Settlement Environment Management of Resources Infrastructure Economic Well-Being Social Needs Regional Co-operation Hansen Partnership – Charter Keck Cramer Page 17
  32. 32. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 The State Planning Policy Framework seeks a balance between land uses, with an emphasis on consideration of social, environmental and economic effects of development. The policies most relevant to this study include the following. Clause 11 – Settlement Planning is to anticipate and respond to the needs of existing and future communities through provision of zoned and serviced land for housing, employment, recreation and open space, commercial and community facilities and infrastructure. The main objectives for strategic planning are that it contributes towards: Health and safety Diversity of choice Adaptation in response to changing technology Economic viability A high standard of urban design and amenity Land use and transport integration Clause 11 – Economic Well-Being Planning is to contribute to the economic well-being of communities by supporting and fostering economic growth and development by providing land, facilitating decisions, and resolving land use conflicts, so that each district may build on its strengths and achieve its economic potential. Clause 11 – Social Needs The SPPF seeks to recognise social needs with regards to providing land for community resources including affordable housing, places of employment, open space etc. Planning must also ensure adequate and safe physical and social environments for residents through the appropriate location of uses and developments, and quality of urban design. Clause 17 – Economic Development Clause 17 outlines objectives and strategies for economic development. Specifically Clause 17 seeks the following. These objectives are particularly relevant to this study. Activity Centres – encourage the concentration of office, commercial, administrative, entertainment and cultural developments into activity centres which provide a range of uses that are highly accessible to the Hansen Partnership – Charter Keck Cramer Page 18
  33. 33. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 community. Essentially industry and its related uses should not be located in primary activity centres. Business – encourage developments that meet the needs for entertainment, commerce, retail and office uses. These uses should be located together in existing or planned activity centres to ensure sustainability of commercial facilities. Industry – ensure that land is available for industry and to facilitate the sustainable development and operation of industry, and research and development activity. This policy seeks to ensure that key industries throughout Melbourne are maintained. This policy notes the state significance of industrial areas at Dandenong South, Campbellfield and Somerton, and Laverton North. Clause 18 – Infrastructure Clause 18 states the objectives and strategies for all infrastructure related functions, in particular, main roads, railway, bicycle transport, car parking and access to public transport. The primary objective is to ensure that land use planning is integrated with the various elements of transport infrastructure. Summary The State Planning Policy Framework encourages the long term viability of industrial land by clustering like uses and providing new industrial land in growth areas. The development of industrial land in designated growth areas (as per ‘Melbourne 2030’) are a consideration for this study. A discussion of Melbourne 2030 is provided later in this chapter. The development of most of Yarra’s business and industrial areas occurred long before planning policy existed. Thus many of the industrial and business areas are scattered, with small pockets of industrial land located throughout the municipality, often in close proximity to activity centres, sensitive uses and residential areas. The SPPF provides the framework for local planning policies. Local policy cannot conflict with the strategic principles contained within the SPPF. Thus, any recommendations or policies that derive from this study must be consistent with statewide planning policies. 6.2 City of Yarra Municipal Strategic Statement This study, and a number of other studies being undertaken by Council, is part of an overall review of Council Municipality Strategic Statement (MSS). These projects will result in a revised MSS being prepared for the City of Yarra. Hansen Partnership – Charter Keck Cramer Page 19
  34. 34. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Council’s existing MSS provides current planning policy direction for the municipality. The existing MSS provides the strategic context and rationale for statutory planning controls in the City of Yarra. The MSS builds upon the strategies and general principles of the State Planning Policy Framework. As identified in Council’s MSS, Yarra’s industrial base has witnessed considerable change in past decades. Traditional manufacturing industrial activity of the past is being replaced by modern enterprises involved in assembly, warehousing and distribution, and research and the application of technology. The MSS states that manufacturing activity, whilst in decline, remains an important component of local industry. The greatest concentrations of business activity are identified as being in: textile, clothing and footwear (TCF); printing, publishing and recorded media; petroleum, chemical and associated products; and the machinery and equipment sectors. Clause 21.03 of the MSS (Key Influences & Issues) acknowledges factors that influence the development of Yarra: The changing community in terms of ageing population, increasing polarisation between the ‘rich’ and the ‘poor’, and ethnic diversity. Previous population decline due to smaller households. Declining industrial activity resulting in a shift to more assembly, warehousing and distribution, and research and technology. Shift in local economic base with focus on finance, property and business services, cultural / recreational tourism, and wholesale and distribution activities. Changing retail patterns requiring strip shopping centres to evolve in response to retail trends and shopper expectations to remain viable. Managing amenity impacts of business and non-residential land uses on residential uses which can be achieved by the move towards ‘cleaner’ industries and performance based approaches to planning to enable land-uses to successfully co-exist. The development boom, particularly within established residential areas which are experiencing in-fill medium density developments. New development needs to take account of heritage attributes and neighbourhood character. Urban renewal which is happening because of Yarra’s network of arterial roads (accessibility), array of former industrial sites, and Yarra River frontage present an opportunity for land use change particularly for new commercial or residential development in high profile locations. Protecting environmental assets by ensuring water quality is maintained, encouraging use of public transport, and promoting energy efficient building design. Hansen Partnership – Charter Keck Cramer Page 20
  35. 35. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Impacts of regional transport functions, in particular proximity to major arterial roads such as City Link, the Eastern Freeway and Monash Freeway. Growth opportunities in tourism related to the Yarra River Corridor, shopping precincts which contain bars, restaurants and specialist retail, arts venues, and cultural destinations. The potential impacts of late night trading venues to residents of Yarra. Clause 21.04 (Vision, Strategic Framework) outlines key strategies for Yarra which relate to identity, sustainability, liveability and the economy. The overall objective for Yarra is: “The Yarra community highly values the City’s diverse social and cultural fabric, its built environment rich in heritage and leading edge contemporary development, through to the natural environment of the Yarra River Corridor. The ‘Yarra City Plan (1998 - 2001)’ directs Council’s resources towards enhancing such assets to ensure a City renowned for its distinctive social and urban character, a competitive local economy, high standards of amenity and ecologically sound urban development. In essence, the aim is to achieve a socially, environmentally and economically sustainable future for the Yarra community.” Clause 21.05 (Strategic Elements) contains the detailed strategies regarding: Element 1 – Yarra Urban Design Framework Element 2 – Residential Land Use and Development Element 3 – Industry and Commerce Element 4 – Retailing and Activity Centres Element 5 – Open Space Element 6 – Yarra River Corridor Element 7 – Heritage Conservation Element 8 – Transport and Access Element 9 – Community Facilities Elements 3 and 4 are particularly relevant to this study. Element 3 seeks to retain a viable industrial base with emphasis on value added export oriented industrial activities. The Industrial and Commercial Framework Plan contained in the MSS (refer to Figure 4) designates areas into categories for ‘Core Industrial Areas’, ‘Industrial Buffer Zones’, and ‘Isolated Industrial Sites’. These areas are defined as follows: Core Industrial Areas – locations of existing industrial operations, including industries which have the potential to cause amenity impacts. Industrial Buffer Zones – areas located at the edge of core industrial areas which directly adjoin residential land. Hansen Partnership – Charter Keck Cramer Page 21
  36. 36. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Isolated Industrial Sites – sites that are not in an industrial land use cluster and are remote from either of the Industrial Core or Buffer Areas. Key strategies for industry and commerce are to: facilitate the efficient use of marginalised industrial land and a shift in the City’s economic base towards service business through establishing ‘Business Enterprise Areas’; facilitate the trend toward Home Based Business through encouraging co-location of residential / business occupations within Mixed Use Areas and providing for single caretakers dwellings ancillary to established business operations within the Business Enterprise Areas; protect Industrial and Business Enterprise Areas from further encroachment by residential or retail activities; and encourage business activities that adopt best practice environmental standards. Strategies in relation to retailing and activity centres are illustrated on the Retail and Activity Centre Framework Plan (refer to Figure 7) and include the following: to direct and concentrate large scale display based retailing (restricted retail uses) to designated locations along Hoddle Street, Swan Street and Heidelberg Road through the application of the Business 4 Zone; to reinforce the identity of Yarra’s major shopping strips and promote quality urban design outcomes through application of the Design and Development Overlay along primary and secondary boulevards; and to discourage retail (shop) and restricted retail activities outside designated retail strips, except where such activity is ancillary to or offers a support service to other activities (including minor retailing associated with warehouse, wholesale and showroom activities within industrial, business enterprise and commercial areas). Strategies within Element 8, Transport and Access, that are relevant to this study are to: Integrate transport and land use planning to improve the efficiency of the road network linking core industrial and business enterprise areas to freight transport corridors (Princes Street/Alexandra Parade, Hoddle Street/Punt Road and the Monash Freeway). Minimise the need for heavy vehicles and business traffic to access sites via streets of predominantly residential land use. Key strategies for transport and access are contained in the Transport and Access Framework Plan. Refer to Figure 8. The policy framework suggests that in relation to industry it is important to balance the need to maintain an employment base within Yarra, with the high Hansen Partnership – Charter Keck Cramer Page 22
  37. 37. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 demand for residential development. Council policies seek to retain existing industry whilst clearly stating that future industry should be ‘clean and green’, adopt best practice environmental management practices and a high level of innovation. The MSS encourages the development of the business service sector, which will provide jobs for a range of skill levels and also provide a sustainable employment base for the municipality. Hansen Partnership – Charter Keck Cramer Page 23
  38. 38. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 6- Yarra MSS Industrial and Commercial Framework Plan Source: Yarra Planning Scheme, 2004 Hansen Partnership – Charter Keck Cramer Page 24
  39. 39. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 7- Yarra MSS Retailing and Activity Centres Framework Plan Source: Yarra Planning Scheme, 2004 Hansen Partnership – Charter Keck Cramer Page 25
  40. 40. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 Figure 8 - Yarra MSS Transport and Access Framework Plan Source: Yarra Planning Scheme, 2004 Hansen Partnership – Charter Keck Cramer Page 26
  41. 41. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 6.3 Local Planning Policies Clause 22.05 (Location of Commercial / Industrial Activities Policy) of the Yarra Planning Scheme outlines Yarra’s policy for the location of commercial / industrial activities. The objective of the policy is to ensure that there are no adverse amenity impacts between land uses and developments in areas of mixed activities and at the interface between these areas and residential neighbourhoods. The policy discourages activities with adverse amenity impacts from locating next to residential land uses in the Business Enterprise, Industrial Buffer, and Mixed Use areas shown on the Industrial and Commercial Framework Plan in the MSS. It is also policy that Council consider the following issues when assessing the amenity impacts of land uses and developments in the above mentioned areas: hours of operation; design and location of buildings, plant and equipment; noise; emissions; car parking and loading bay provisions and access; and landscaping. Clause 22.06 (Caretakers Houses Policy) relates to planning permit application for caretakers’ houses in Business 3, Industrial 1 and Industrial 3 zones. The Caretakers’ Houses policy seeks to ensure that caretaker houses are properly planned for supervisory services of an associated industrial or commercial activity. It is policy that caretakers’ houses: should be provided directly in association with and ancillary to approved commercial or industrial land use and development; should be above ground level; and should be less than 10% of total floor area of the associated commercial or industrial use excluding car parking and loading bay areas or up to 100m2 whichever is the lesser. The primary purpose of the policy is to prevent residential development encroaching into industrial areas and areas included in a Business 3 Zone (in which residential uses are prohibited). Since the introduction of the policy there have been a number of quasi residential developments in industrial areas that raise a number of issues regarding the effectiveness of the policy. Hansen Partnership – Charter Keck Cramer Page 27
  42. 42. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 6.4 Melbourne 2030: Planning for Sustainable Growth ‘Melbourne 2030 – planning for sustainable growth’ (Melbourne 2030) is a 30 year plan to manage growth and change across metropolitan Melbourne and the surrounding region. Melbourne 2030 has been adopted by the Victorian State Government and will be implemented through Clauses 12 and 13 of the State Planning Policy Framework section of planning schemes. Melbourne 2030 was accompanied by six draft implementation plans. They related to urban growth boundaries, growth areas, housing, activity centres, green wedges and integrated transport. There is no implementation plan for industry. Melbourne 2030 is based on nine key ‘directions’ as detailed below: − Direction 1 – A more compact city: Build up activity centres as the focus for high quality development, living and activity, broaden the business and service base of activity centres (which includes more office uses), restrict out of centre development, and locate a substantial proportion of new housing in or close to activity centres to offer good access to services and transport. Direction 1 classifies Metropolitan Melbourne’s activity centres into five types and defines the role and function of centres, including preferred uses, scale of development and links to the public transport system. The City of Yarra contains five Major Activity Centres: − Fitzroy, Brunswick Street − Fitzroy, Smith Street − Richmond, Swan Street − Richmond, Bridge Road − Richmond, Victoria Street Major Activity Centres are typically defined as activity centres with a smaller catchment than a Principal Activity Centre. However they supplement the network of Principal Activity Centres and provide additional scope to accommodate ongoing investment and change in retail, office, service and residential markets. Melbourne 2030 encourages continued broadening of the range of uses in Major Activity Centres and upgrading of public transport services. − Direction 2 – Better management of metropolitan growth: Establishes an urban growth boundary to limit outward urban development (sprawl), concentrate urban expansion into growth areas, manage development so that services are available from early in the life of new communities, and protect green wedges from inappropriate development. Hansen Partnership – Charter Keck Cramer Page 28
  43. 43. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 − Direction 3 – Networks with the regional cities: Promotes the growth of regional cities and key towns on regional transport corridors, and controls development in rural areas to protect agriculture and avoid inappropriate rural residential development. − Direction 4 – A more prosperous city: Maintain access to productive natural resources, strengthen Central Melbourne’s capital city functions, develop key transport gateways, create opportunities for innovation and the knowledge economy, and encourage deployment of broadband telecommunications services. Initiative 4.1.4 is to increase protection for natural resource-based industries, industrial land and energy efficient infrastructure against competing and incompatible uses. Other initiatives include encouraging manufacturing and storage industries that generate significant volumes of freight to locate close to air, rail and road freight terminals, and assist local councils to provide well located and low-cost premises for start-up enterprises. An initiative of Direction 4 seeks to amend, where needed, the business and industrial zones in planning schemes to provide for the essential needs of the production economy whilst not undermining the intent of the activity centres policy in Melbourne 2030. − Direction 5 – A great place to be: Promote good urban design, recognise / protect cultural identity, neighbourhood character and sense of place, improve community safety, promote excellent neighbourhood design and improve the quality and distribution of local open space, improve environmental health of the bays. Also to protect coastal and foreshore environments and maintain and develop Melbourne as a desirable tourist destination. − Direction 6 – A fairer City: Increase the supply of well-located affordable housing, plan for more equitable distribution of social infrastructure, improve the coordination and installation of services and infrastructure in new development, and develop a strong cultural environment with increased access to the arts, recreation and cultural facilities. − Direction 7 – A greener City: Manage water resources in a sustainable way, protect water quality, reduce waste, increase recycling, reduce energy usage and greenhouse gas emissions, ensure land use and transport planning and infrastructure provisions contribute to improved air quality, and protect native habitat and biodiversity. − Direction 8 – Better transport links: Upgrade and develop the principal public transport network (PPTN) and local connectivity between transport and activities, improve operation of existing public transport networks, give more priority to cycling and Hansen Partnership – Charter Keck Cramer Page 29
  44. 44. YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004 walking in planning urban development, and promote the use of sustainable personal transport options. − Direction 9 – Better planning decisions, careful management: Achieve better planning decisions, speed up resolution of appeals, develop strong partnerships with local government, and implement Melbourne 2030 in an integrated way involving the community. The implications of Melbourne 2030 for the City of Yarra relate to the increased density and development promoted around activity centres. Direction 1 will impact particularly upon the relationship between Swan Street Major Activity Centre and the adjoining industrial areas to the south in Cremorne. The relationship between the Victoria Street Major Activity Centre and major industrial activities in the CUB Precinct and at Victoria Gardens will also potentially impact upon the future of traditional industrial precincts in Richmond, Abbotsford and Collingwood. The concentration of industrial zoned land around Gipps Street, Collingwood, is also reasonably close to the Smith Street Major Activity Centre which may have an impact on industrial activities. 6.5 Industry in Melbourne: Open for Business Industry in Melbourne: Open for Business is a report prepared by the Department of Infrastructure (2000) which outlines the trends in industrial land supply and demand in recent years. It provides a comparative analysis of manufacturing and industry in Victoria and at a National level. The report notes that Victoria has more industrial zoned land than the capital cities of other states and also has a larger amount of vacant industrial land. Within Victoria, Yarra has a relatively low quantity of industrially zoned land compared to the other metropolitan municipalities. The industrially zoned land is unevenly distributed throughout metropolitan Melbourne with major concentrations located in five broad spatial areas: Brimbank, Hobsons Bay and Wyndham; Hume and Whittlesea; Knox and Maroondah; Casey, Frankston, Greater Dandenong, Kingston and Monash; and Mornington Peninsula. In terms of where and how much industrial land Yarra has in comparison to other municipalities, Yarra is ranked 27th out of 31 municipalities. The report notes that there was an increase in industrial zoned land in metropolitan Hansen Partnership – Charter Keck Cramer Page 30

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