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ORDINARY MEETING

5 DECEMBER 2012 15

CAIRNS RECTANGULAR PITCH STADIUM – FINAL REPORT

Brett Spencer: 19/3/130: 3791010

RECOMMENDATION:

That Council:

a) Receives the Cairns Rectangular Pitch Stadium Final Report as presented by Coffey Commercial Advisory Pty Ltd (Cox Architects co-consulting);

b) Endorses Barlow Park as the designated site to stage the development of a Cairns rectangular pitch stadium;

c) Agrees that the relocation of the Barlow Park athletics facilities to another suitable location, following consultation with local athletics clubs, forms the first stage of the Cairns Rectangular Pitch Stadium project;

d) Agrees to pursue significant State and Federal Government funding opportunities (as they arise) in support of the redevelopment, subject to specific Council consent prior to the lodgement of any specific funding request; and

e) pending the securing of redevelopment funding, maintains Barlow Park in its current configuration and to its current level of functionality.

EXECUTIVE SUMMARY:

Council, through its Corporate Plan, committed to undertake a feasibility study into the need for a major rectangular sports stadium for Cairns. The two-part study is now complete and Council is being asked to commit to a plan for the staged redevelopment of Barlow Park to a “10,000 seat + 10,000 standing room” stadium over the coming years. Further adding to the vision is an aspirational plan to progress to a 20,000 seat stadium over the course of perhaps the next 20-50 years. The case for a “10,000 seat + 10,000 standing” stadium in the foreseeable future is based on projected population increases and national sporting codes desiring to expand their product into the populated regions of this state. The project report is about planning well and having a vision for the future. Barlow Park was identified as the preferred site for the stadium following an extensive assessment of a large range of sites across the city.

Stage 1 (~$6m) – Relocation and completion of athletics track, in consultation with local athletics clubs.

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Stage 1a ($8.4m) – Barlow Park - major ground, playing surface and car park redevelopment aimed at bringing the fans closer to the pitch. Completion of stage 1a creates a better viewing experience for the spectators and retains the existing facilities at Barlow Park. The Stadium would maintain the current events schedule and could possibly attract national level content. The cost could increase to $11.3m if two new light towers are included within the scope of works.

Stage 1b ($58.6m) – Full redevelopment of the western stand, provision of corporate, broadcasting and function amenities, increased seating from 1,700 to 3,400, standing for 16,600. At completion of Stage 1b works, Barlow Park would have the capability to host national level televised events with improved undercover seats on the western side. The cost could reduce to $55.7m if the initial two new light towers are included in Stage 1a.

Stage 2 ($38.7m) – Build east stand to final capacity. Food and Beverage outlets, corporate amenities and increasing the seating to 10,000, with capacity for 10,000 standing.

There are further aspirational stages proposed in the report but it is at this point (ie the end of Stage 2) a 10,000 seat stadium would be used by international, national and other high level sports and events. In addition to having two resident state level tenants in rugby league and football (soccer), the business plan for the facility envisages securing at least two national level games per year in each of the three major codes. Given the high capital costs involved in developing the facility, the timing of the commencement of the redevelopment and of the commencement of subsequent stages will in all likelihood be dependent upon Council securing funding contributions from one or both of the other tiers of government. No commitments have been secured at this point. The business plan for the stadium (at 10,000 seats) indicates:

a likely annual operating contribution from Council of an estimated $1.8m (including depreciation);

this compares to the current net cost to Council of operating Barlow Park in its current form of $1.5m (budgeted operating deficit including depreciation);

at the end of Stage 1a the net cost to Council is estimated at $0.7m (including depreciation); and

at the end of Stage 1b it is $1.5m (including depreciation)..

The projected economic impact of a Stage 2 completed stadium is significant:

A one off value added benefit from construction of $91.3m and 869 jobs. An annual value added benefit from the operations of the stadium and the

induced visitations of $11.4m and 147 jobs.

Officers commend the report and recommendations to Council as its preferred plan for the future of a rectangular stadium in the Cairns region. The final Coffey Commercial Advisory Pty Ltd (Cox Architects co-consulting) Part 2 Report (“the Report”) has been distributed to Councillors and will be made available on Council’s website.

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BACKGROUND: Council resolutions relating to the subject in 2010 and 2011 can be found at Attachment 1. In addition, Council has been provided with monthly project updates at the Community Services Committee meetings and three Councillor Workshops (7 October 2011 Part 1 Needs Study, 8 August and 14 November 2012 Part 2 Stadium Development Study). Cairns Rectangular Pitch Stadium Needs Assessment (Part 1) The recommended option, Scenario B Option 2, suggested a level of demand for a stadium with the following specification: A 20,000 capacity stadium of 10,000 seats and 10,000 standing. Player, coaching, media and corporate amenity.

This Needs Assessment identified that there was currently national sporting code (football (soccer), rugby union and rugby league) content available and significant demand within the Cairns market for these games, but that the attraction of this content was not possible without the development of a new stadium or redevelopment of existing facilities. Cairns Rectangular Stadium Development Study (Part 2) – Scope The details of the Part 2 scope of works are summarised as follows: Concept plan (1), Site assessment and selection, Stadium development, Capital costs (2), Management models, Project deliver method analysis, Preliminary risk analysis, Business plan/Financial analysis, Economic Impact Assessment (updated from Part 1) Implementation Plan.

COMMENT:

The Cairns Rectangular Pitch Stadium Final Report Executive Summary is located at Attachment 2. The full report has been distributed under separate cover to Councillors and will be made available publically via Council’s website. The full report details each of the above phases resulting in a feasibility plan to develop a “10,000 seating and 10,000 standing” rectangular pitch stadium and ultimately a 20,000 seat stadium should Council wish to pursue this path well into the future.

Site selection was vital in progressing Part 2 of the Study. Cairns Showgrounds and Barlow Park ranked highest against weighted criteria during the assessment process. To meet an appropriate design response as per the project brief and based on the needs and demands identified in Part 1, concept designs and the project brief were generic towards a greenfield site. After further assessment preference was given to the redevelopment of Barlow Park via a staged approach to allow upgrades to occur once the necessary funding is available. Refer concept plans at Attachment 3.

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Athletics Track Relocation The recommendations of the Report provide a vision, plan and incremental process to achieve what the majority of current and prospective users expect in relation to a growing regional city in providing this level of sporting infrastructure to its community. The proposed relocation of the athletics track and associated facilities and amenities is perhaps the most contentious aspect of the recommendation. The athletics stakeholders have been very clear that their preference is to remain at Barlow Park into the future, primarily because of the central nature of the site and its proximity to the CBD and accommodation. The latter is seen as being important for bids to secure major athletics events for the region. Stakeholders did, however, indicate that if relocation was to occur then their preference would be for an alternative central Cairns location. Management of the JCU Smithfield campus had expressed a willingness to discuss hosting of the athletics facility at the campus. This would complement the University’s plans for progressing its sports and health sciences programs and for the development of an elite level training venue on the campus. However this was seen as a lesser option by those athletics stakeholders consulted, because of the site’s distance from central Cairns. Summary Capital and Operating forecasts as estimated by the consultants: (Exception being stage 1 included and estimated cost provide by CRC officers)

Stage & Capital Cost Operational Deficit (including depreciation)

Seated Standing

1 $6.0m Current 1700 18300 1a $8,383,242 ($683,402) 1700 18300 1b $58,626,588 ($1,516,957) 3400 16600 2 $38,649,431 ($1,824,051) 10000 10000 The Stage 1 capital cost includes the requirement to conduct a feasibility and conceptual design, costing and implementation plan relating to the athletics track relocation. It is recommended that (subject to funding), Council look to progress Stage 1 and Stage 1a as a single program of work. The capital cost of this combined package of works is estimated at $14.4m, increasing to $17.3m if the installation of two new light towers are brought forward into this program from Stage 1b. The Operational deficits listed above are the estimated annual net subsidies that Council would be required to commit to should redevelopment proceed. They are based on mid-range assumptions.

CONSIDERATIONS:

Corporate and Operational Plans: This planning work is identified within Council’s Corporate Plan and the Parks and Recreation Strategic Plan 2010-2015 as a major initiative to be undertaken.

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Statutory: There were no statutory drivers for this planning work to have been undertaken. Procurement of consultants has been conducted in accordance with the purchasing principles of the Local Government Act 2009 and in particular Section 106.

Policy: Procurement of the consultants has been conducted in accordance with Council’s General Policy 1:02:23 (Procurement Policy).

Financial Implications: Total cost to undertake the study as approved by Council: Part Cost

Part 1 – Needs Assessment $68,410

Part 2 – Stadium Development $149,016

TOTAL $217,426 Community Engagement The key stakeholder group assisting with Part 1 and Part 2 of the Study comprised representatives from local Rugby League, Rugby Union, Football (soccer) and Cairns Athletics. In addition, recent engagement has occurred specifically with the leadership group of the athletics community and a final consultation session has been conducted with the project group and key government agencies. The general view arising from the latter was that the entire Barlow Park and Showground site should be master planned in an effort to better utilise the Precinct in the years to come. It should be noted however that the current lease of the Showgrounds site to the Show Association ends in 20xx. Consultation with Show Association representatives identified that it would be problematic to locate a rectangular stadium on the Showground site and still deliver an annual Show to the scope and scale of the current annual Show. Sustainability: Not applicable at this stage

OPTIONS: Option 1 That Council endorses officer’s recommendations as submitted in this report for the staged redevelopment of Barlow Park subject to securing required capital funding.

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Option 2 That Council determines that the investment in the stadium as proposed, both operationally and in capital, is insufficient in terms of the economic and social return on investment and so determines that the existing facility provision remains appropriate. Option 3 As with Option 2 however committing to on-going functionality upgrades to Barlow Park as required and as funding permits. Such upgrades would relate primarily to lighting and carpark infrastructure.

CONCLUSION:

It is recommended that Council proceed with Option 1 a) Receives the Cairns Rectangular Pitch Stadium Final Report as presented by Coffey Commercial Advisory Pty Ltd (Cox Architects co-consulting); b) Endorses Barlow Park as the designated site to stage the development of a Cairns rectangular pitch stadium; c) Agrees that the relocation of the Barlow Park athletics facilities to another suitable location, following consultation with local athletics clubs, forms the first stage of the Cairns Rectangular Pitch Stadium project; d) Agrees to pursue significant State and Federal Government funding opportunities (as they arise) in support of the redevelopment, subject to specific Council consent prior to the lodgement of any specific funding request; and e) pending the securing of redevelopment funding, maintains Barlow Park in its current configuration and to its current level of functionality.

ATTACHMENTS:

Attachment 1 – Council Resolutions Attachment 2 – Executive Summary – Cairns Rectangular Pitch Stadium Needs Study (Part 2) Coffey Commercial Advisory Pty Ltd (Cox Architects co-consulting). Attachment 3 – Conceptual Plans Brett Spencer Manager Parks & Leisure Ian Lowth General Manager Community, Sport and Cultural Services

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Attachment 1 – Council Resolutions At the Sports, Arts, Culture & Community Services committee meeting of 13 October 2010, Council resolved: That Council: 1. Approves the progression this financial year of a needs study for a major rectangular

stadium for Cairns; 2. Reports back to Council on progress following needs study and: 3. Conditional upon the need being proven, the undertaking of a local and regional economic

impact study at strategic level, a site selection study, concept plan, development staging plan, capital cost plan, business plan and management plan for such a stadium.

At the Sports, Arts, Culture & Community Services committee meeting of 11 May 2011, Council resolved: That Council: 1. proceeds with the Cairns Rectangular Stadium Needs Assessment; 2. approves the appointment under Local Buy Contract BUS162-0108 of Coffey Commercial

Advisory Pty Ltd to undertake the Cairns Rectangular Stadium Needs Assessment for the amount of $68,410 excluding GST;

3. Subject to the findings of the Needs Assessment and Council’s subsequent approval to proceed, appoints under Local Buy Contract BUS162-0108 Coffey Commercial Advisory Pty Ltd to undertake the Cairns Rectangular Stadium Development Study for the amount of $132,216 excluding GST; and

4. delegates authority to the Mayor and Chief Executive Officer pursuant to Section 257 of the Local Government Act 2009, to finalise any and all matters in relation to the contract.

At Ordinary Council meeting on 23rd November 2011, Council resolved: That Council: 1. Adopts the Cairns Rectangular Pitch Stadium Needs Study (November 2011); 2. Agrees in principle with the Study’s conclusion that there is sufficient demand to support

investment in the initial capital and ongoing operations of the Scenario B, Option 2 development option (broadly, a 20,000 capacity stadium, 10,000 seat and 10,000 standing) based on the identified potential for broader economic and social benefits;

3. Agrees to investigate further the basis on which the outcomes of Scenario B,Option 2 could be delivered by undertaking the Cairns Rectangular Pitch Stadium Development Study;

4. Approves the appointment, under Local Buy Contract BUS162-0108 and in accordance with Section 183 of the Local Government (Finance, Plan and Reporting) Regulations 2010, of Coffey Commercial Advisory Pty Ltd to undertake the Cairns Rectangular Pitch Stadium Development Study for the amount of $149,016 excluding GST;

5. Encourages staff to source other funding steams from all levels of government; and 6. Delegates authority to the Mayor and Chief Executive Officer, pursuant to Section 257 of

the Local Government Act 2009, to finalise any and all matters in relation to the contract.

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Attachment 3 – Conceptual Plans

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