IDC Report on Governance of Melbourne Docklands .Contents 1 Executive Summary 3 Recommendations 6

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Transcript of IDC Report on Governance of Melbourne Docklands .Contents 1 Executive Summary 3 Recommendations 6

  • IDC Report on Governanceof Melbourne Docklands

  • Report of the Docklands and

    Adjacent Areas

    Interdepartmental Committee

    May 2003

  • Contents 1 Executive Summary 3

    Recommendations 6 2 Introduction 7 3 Background 7 4 The IDC Process 8 5 The Docklands Authority 9 6 Proposals from Adjacent Councils 10

    Port Phillip City Council 10 Maribyrnong City Council 11 Melbourne City Council 12

    7 State Government Issues 13 Port of Melbourne 14

    8 Stakeholder, Industry and Business Perspectives 15 Melbourne Port Corporation 15 Parks Victoria 15 Industry 16 Docklands Developers 17

    9 Analysis of Issues 17 Financial Implications 17 Impact of Boundary Changes 21 Planning Issues 22 Port and Industrial Areas: Interface and Integration 23 Place Management of Docklands Waterways and Waterfront 23

    10 Governance Options 25 Option 1: Retain Present Arrangements for Docklands 25 Option 2: Full Restoration of the Docklands Area and its

    Municipal Functions to the City of Melbourne 26 Option 3: Full Restoration of the Docklands Area but only Partial

    Restoration of its Municipal Functions to the City of Melbourne 26 Option 4: Changes to the Municipal Boundaries of the Cities of

    Maribyrnong, Melbourne and Port Phillip 27 Option 5: Establishment of a Coordinated Arrangement for Place

    Creation and Management of Melbournes Waterfront and Waterways 27

    11 Governance Implementation Considerations 28 12 Findings and Recommendations 29

    Boundary Changes Proposed by the Cities of Port Phillip and Maribyrnong 29

    Planning Responsibility for the Docklands Area 30 Place Management of Docklands Waterways and Waterfront 30 Next Steps 31

    Appendix 1: Terms of Reference of the Docklands and Adjacent Areas Interdepartmental Committee 32 Appendix 2: Submissions made to the Interdepartmental Committee 33 Appendix 3: Maps 34

  • Report of the Docklands and Adjacent Areas Interdepartmental Committee

    1 Executive Summary

    1.1 The Docklands and Adjacent Areas Interdepartmental Committee (IDC) has drawn on the guiding principles in its terms of reference and on the input of key stakeholders in recommending appropriate options to the State Government for the long-term local governance of the Docklands and adjacent areas.

    1.2 The IDCs charter was set in the context of the Bracks Governments first term pre-election commitment to return the Docklands to democratically elected local government.

    1.3 Subsequent proposals to the State Government by Port Phillip City Council and Maribyrnong City Council regarding municipal boundary realignments in the Docklands vicinity enlarged the scope of the IDCs work to take in the Docklands, the adjacent Melbourne Port Corporation areas, the key market and rail precinct to the west of the central business district and the Fishermans Bend industrial precinct.

    1.4 The IDC has considered the functions and development timelines originally set for the Docklands Authority, the rate of redevelopment of the Docklands precincts, and the assets and responsibilities of the Authority. It has also taken into account the importance of the port area to the State Governments strategies for freight and economic growth, and the related importance of the Yarra River and Port of Melbourne waterways as tourism attractions.

    1.5 The IDC focused on four main concerns: the evolving role and functions of the Docklands Authority issues related to local governance and municipal boundaries ensuring the best possible management of Melbournes port-

    interface areas and significant waterway system optimising the State Governments long-term, capital city vision for

    Melbourne.

    1.6 The IDC formed the opinion that the optimal outcome for the State, based on the principles set out in the IDCs terms of reference, was that the Docklands Authority or its successor should in time become strictly a development facilitator and a manager of land sale processes. To achieve this, the currently legislated municipal responsibilities of the Docklands Authority should be returned to democratic local governance, while the negotiation and administration of developer agreements should remain with the Authority. In the short term, land-use planning responsibilities should remain with the Docklands Authority and the Minister for Planning.

    1.7 The IDC is of the view that the option for governance that best accommodates the principles set by the Government is the restoration of the Docklands area and its municipal functions, with the exception of statutory planning responsibilities for the precinct, to the City of Melbourne. Special arrangements are needed to ensure that decision making is shared by key State Government bodies and Melbourne City Council with respect to place management of the Docklands waterways and waterfront.

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  • Report of the Docklands and Adjacent Areas Interdepartmental Committee

    Boundary Changes Proposed by the Port Phillip City Council and Maribyrnong City Council

    1.8 On balance, the IDC believes that the perceived benefits to the Port Phillip and Maribyrnong municipalities, through the boundary changes they have proposed, fail to outweigh the major disbenefits identified by the IDC to the States Port of Melbourne and Docklands visions. These disbenefits are caused by potentially redistributing the governance of these areas among multiple municipalities.

    1.9 The IDC considered the merits of addressing the issues identified and the benefits sought by Port Phillip City Council and Maribyrnong City Council through a scheme of apportioning the rate revenue payable by Melbourne Port Corporation, so that the respective councils could fund targeted port mitigation activities.

    1.10 The IDC has not recommended the approach outlined in 1.9 for the following reasons: It would set a precedent in relation to other State Government

    enterprises and local government. The revenue it would generate for the Cities of Port Phillip and

    Maribyrnong ($600,000 per annum to each) would be significantly less than what they would receive under their proposed boundary changes ($1.36 million and $1.5 million rate surpluses, respectively).

    The loss of $1.2 million per annum rate revenue would seriously affect the cash flow of the City of Melbourne.

    1.11 The IDC sees the merits of an alternative approach under which the State Government would establish mechanisms to ensure coordinated management and planning by Maribyrnong City Council, Port Phillip City Council, Melbourne City Council and the State Government, of those areas where local stakeholder needs would best be addressed by an integrated approach.

    Planning Responsibility for the Docklands Area

    1.12 The IDC recognises that, in any development area, planning activity does not cease once initial development is achieved. The Docklands area is likely to be particularly dynamic, with redevelopment applications necessitating continuing need, at least for some time, for a strong and integrated approach to planning control.

    1.13 The IDC is mindful of the rapid build-out of the various Docklands precincts and of the likely expectations for local democracy. However, the State Governments need to maintain a strong role in the planning of the area, for the foreseeable future, is paramount.

    1.14 The IDC is therefore of the view that the current planning arrangements for Docklands, with the Minister for Planning as the Responsible Authority and the Docklands Authority as the Referral Authority, would provide continuity and the surety that the State Governments vision for Docklands, and its investment in the area, will be protected.

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  • Report of the Docklands and Adjacent Areas Interdepartmental Committee

    Place Management of Docklands Waterways and Waterfront

    1.15 The IDC is of the view that the best outcome for Melbournes significant waterways and, in particular, the place management and promotion of the Yarra River and related Docklands, port and waterfront system, would be planning and management oversight by a coordinating body representing a partnership of the interests and expertise of Melbourne City Council, the Docklands Authority, Parks Victoria and the State Government.

    1.16 The IDC has identified that, from the year 2008, the revenue stream generated by rate-paying properties in the Docklands area should exceed the funds required for municipal services to Docklands, and for place management and promotional activities associated with Melbournes waterfront and waterways. The IDC is therefore of the view that Melbourne City Council should have responsibility, through the proposed arrangements, for delivering these functions.

    Next Steps

    1.17 The IDC recommends that it be retained and recommissioned with terms of reference under which it would take responsibility for implementation of the Governments decisions on the governance of the Docklands and adjacent areas. Implementation tasks would include: oversight of drafting of amending legislation for effecting the

    restoration of the Docklands area to local governance under the City of Melbourne

    oversight of drafting of amending legislation to give effect to the coordinating mechanism required for place management of the Docklands waterways and waterfront

    preparation of a deed of protocol/agreement between the State Government and City of Melbourne re the transfer of Docklands Authority municipal functions, including service standards, liabilities and assets

    preparation of a deed of protocol/agreement between the State Government (including the Docklands Authority and Parks Victoria) and the City of Melbourne, to establish a coordinating and planning body t