ACCOMMODATING GROWTHDELIVERING INFRASTRUCTUREBUILDING BETTER COMMUNITIES

A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIESMETROPOLITAN AUTHORITY

PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES

SUBIACO, WESTERN AUSTRALIA

South Australia has embarked on a bold new path toward urban redevelopments that will support our growing economy and population.

The Government has identifi ed a range of infi ll sites along the northwest growth corridor and around the metropolitan area, from Noarlunga in the south to Elizabeth in the north.

In addition, the Government is also upzoning large sections of transit corridors to enable urban infi ll.

A NEW REGIME TO DELIVER URBAN RENEWAL

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The scheduling, planning and delivery of these sites to market is a mammoth task.

Building on lessons from the 2009 international tour of Transit Oriented Development sites, the 2010 Urban Development Tour and examples from around Australia, momentum is gathering for a South Australian Metropolitan Authority to deliver our new city communities.

Population growth is inevitable

Contrary to common misconceptions, international migration is not the sole cause of Australia’s population growth. A recent report by the Centre for Independent Studies shows that even if Australia halved its migration levels, at current fertility levels the population would still grow to 30 million people by 2050.

We can either ignore the reality of population growth and suff er the consequences of unplanned urban expansion, or we can begin to plan strategically for a growing population and economy.

The South Australian Government has chosen the latter and planning for growth is underway. But given the emphasis placed on urban infi ll as a strategy for accommodating metropolitan growth, a new governace structure is needed to deliver the 30-Year Plan for Greater Adelaide.

MEETING THE CHALLENGES OF THE 30-YEAR PLAN

Without a new approach to the delivery of urban renewal - one that is better coordinated, faster and strategically driven, we will experience ill-timed and poorly scheduled developments that fail to meet the needs of the community and heap additional costs onto government.

Metropolitan Authorities charged with infi ll projects in other Australian jurisdictions and around the world have proved their capacity to quickly develop the new communities South Australia will inevitably need as the state prospers and grows.

A Metropolitan Authority should have responsibility for amalgamating and coordinating the delivery of sites to the market to stimulate the creation of new, active, vibrant and sustainable communities that leverage upon and support the State Government’s investment in our public transport system.

South Australia’s current model for delivering urban renewal sees a range of Government agencies working to diff erent objectives with divergent priorities. A clear lesson from successful redevelopment projects overseas and interstate is that the most eff ective means of coordinating urban renewal is through a Metropolitan Authority governance model.

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VAUBAN, FREIBURG, GERMANY

The cost of inaction Coordinating delivery

The rationale and structure

Urban regeneration projects are more complex than greenfi eld developments. They involve more than the preparation of planning ordinance, master plans, structure plans, precinct plans and policies and regulation for private sector response and reaction. A revitalised committment to urban renewal will require strong leadership and a unifi ed and consistent approach to decisions and actions with respect to:

future development and the highest and best • use of land (including potential private-public partnerships);the establishment of eff ective governance • bodies and institutional arrangements;

a commitment to fi scal and fi nancial (both • capital and recurrent) policies and tools;a commitment to legible, transparent and • eff ective policies and guidelines that balance certainty and fl exibility;eff ective community engagement and • consultation;land tenure and acquisition;• land assembly;• land use and activity distribution;• investment in infrastructure to support • development and unlock sites;a commitment to place making and place • capital; andstrong and consistent advocacy for agreed • directions and outcomes.

Policy misalignments working counter to infi ll projects

+ stamp duty disincentive to multi-level residential developments

+ delivery of good public spaces constrained by tax and planning settings

+ many government agencies with diff erent responsibilities and priorities

+ mandatory aff ordable housing requirements constrain innovative approaches

+ energy, sewerage and other infrastructure augmentation costs

+ fractured site ownership and complex titling hampers delivery of sites to market

+ inequitable energy effi ciency requirements

PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES

A Metropolitan Authority will increase South Australia’s ability to deliver the housing, employment and growth it needs to achieve the targets set out in the 30-Year Plan for Greater Adelaide.

WHAT ARE THE OPPORTUNITIES?

In October 2010, the South Australian Government released the fi rst audit of land in the Greater Adelaide area. This audit, the Housing and Employment Land Supply Program report clearly identifi es areas for targeted housing and employment.

Critically, this report highlights that we do not have enough greenfi elds land in the Greater Adelaide area to support our projected population growth. The only option, as identifi ed by Government, is to increase the density of housing and other development around our transport corridors. This is the only solution that will deliver aff ordable housing, in close proximity to where people work and in a way that reduces our impact on the environment.

RESOLVING POLICY INCONSISTENCIES >

A statutory body tasked with the delivery of Zones of State Signifi cance and major corridor developments would have greater ability to resolve the policy inconsistencies that currently exist and that act as a barrier to the delivery of good outcomes for all South Australians.

LINKING HOUSING AND EMPLOYMENT LANDS >

It is critical that we provide jobs for people where they live. A Metropolitan Authority would be positioned to ensure that appropriate employment opportunities are provided in the new communities where people will live.

CENTRE REVITALISATION >

The importance of these Zones and corridor developments as activity centres cannot be underestimated. However, the ability to deliver these outcomes depends on the capacity of the Government or the Authority to reinvest dividends from the sale of land into appealing public spaces.

AFFORDABLE HOUSING >

Rather than the traditional approach of ‘taxing thy neighbour’, a Metropolitan Authority would be able to take a holistic view of the delivery of aff ordable housing, and more importantly, housing in general, to the market.

INVESTOR CERTAINTY >

The greatest advantage of a Metropolitan Authority, as illustrated in Australia and overseas, is the ability to provide investor certainty, for those that purchase homes, for those that start businesses in the new communities and for those developing the sites.

A COORDINATED RESPONSE >

There are currently a dozen Government agencies with an interest in the delivery of Zones of State Signifi cance and corridor developments. This can prompt competition over cooperation and lead tp duplication of eff ort. A Metropolitan Authority off ers ensure the smooth, effi cient and productive delivery of these sites to market,

THE ANSWER FOR SOUTH AUSTRALIA

PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES

To ensure the successful implementation and delivery of the urban renewal required to meet the targets and policies set out in the 30-Year Plan for Greater Adelaide, a Metropolitan Authority should be established as soon as possible.

Almost all successful urban renewal programs have succeeded as consequence of being guided by a Metropolitan Authority.

The Authority must be established with a legislative framework that designates control over all Zones of State Signifi cance, corridor developments and surplus government lands within the Greater metropolitan area. The Authority should also work in partnership with other government agencies such as Housing SA, whose sites will be integral in delivering future urban renewal outcomes.

Given the scale and complexity of this work and its importance in the realisation of regional and state-wide strategic objectives, the Authority should have:

strong leadership and direction;• legislative and statutory authority;• initial fi nancial establishment support with access to recurrent • funding streams;power to initiate and act to achieve agreed outcomes;• a focus that transcends political contexts and cycles;• an approach that is unifi ed, coordinated and structured with • appropriate supporting institutional arrangements;capacity to deliver and achieve short (up to fi ve years), medium • (fi ve to 10 years) and longer term (10 to 20 years) results; an agreed, transparent implementation plan that is adequately • funded, programmed and action-oriented and;power of acquisition to assist with land assembly and the • development of key land parcels (to achieve coordinated development and delivery of key sites and areas).

It is suggested that a Metropolitan Authority of this nature would assist in addressing potential delivery impediments that may arise including competing overnment interests (state / local), competing agency interests or the potential confl icting interests of local stakeholders.

VAUBAN, FREIBURG, GERMANY

NEW SOLUTIONS THAT WORK

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A Metropolitan Authority will ensure infrastructure and land use planning is coordinated and delivered to the market in a strategic manner with a view to delivering economic prosperity.

The Government already has a statutory entity to deal with surplus government lands, called the Land Management Corporation.

This is an organisation that, with some amendments to its structure and charter, is ideally placed to become South Australia’s Metropolitan Authority.

The South Australian model for a Metropolitan Authority should have fi ve fundamental elements:

responsibility for site consolidation in Zones of State Signifi cance; and corridor developments;1. responsibility for precinct planning and development authorisation with fi nal approval undertaken by the Development 2. Assessment Commission;responsibility for coordinating the infrastructure delivery and public realm;3. responsibility for delivering the site to market; and4. required to reinvest dividends from the sale of land into the site.5.

Where Authorities have worked:Dandenong Development Board, VIC•

Honeysuckle Development Corporation, NSW•

Redfern-Waterloo Authority, NSW•

East Perth Redevelopment Authority, WA•

Midland Redevelopment Authority, WA•

Subiaco Redevelopment Authority, WA•

Urban Land Development Authority, QLD•

South Bank Corporation, QLD•

22@Barcelona, Spain•

Urban Centre Metroplitano, Torino•

Portland Development Authority, USA•

City of Philadelphia Redevelopment Authority, USA•

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Government commitment

Reform the Land Management Corporation

THE ACTION PLAN

PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES

Government must commit to establishing a Metropolitan Authority to oversee the deliver of Zones of State Signifi cance and corridor developments in South Australia. This should include powers to:

amalgamate sites;• undertake appropriate planning processes (structure and precinct • planning); andretain and reinvest dividends into public infrastructure.•

The most effi cient pathway to delivering a Metropolitan Authority is to convert the Land Management Corporation. The process of converting the Land Management Corporation must include:

a full review and revision of the Corporation’s Charter;• a full review of skills and requirements of the new body; and• a commitment from Government that the new body will not be a • developer.

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Property Council of Australia Limited

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