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PLANNING AND ENVIRONMENT COMMITTEE 8 FEBRUARY 2012

CAIRNS CITY CENTRE PARKING STATION CONCEPT DESIGN AND FEASIBILITY STUDY REPORT
Sean Lisle SL: 8/20/17-01 #3413473

RECOMMENDATION: That Council: 1 Notes the Final Concept Design and Feasibility Study Report

INTRODUCTION: In April 2011, Council engaged Conrad Gargett Architecture for the preparation of concept plans for the project and completing the necessary feasibility and cost analysis for the Cairns City Centre Parking Station. This report details the Concept Design and Feasibility Study Report and is also attached as Attachment 1. BACKGROUND: The site at 20-30 Grafton Street, Cairns City has been identified by Council as a future development site for a multi story car park to increase supply within the Cairns City Centre. In accordance with the recommendations of the Cairns CBD Car Parking Strategy the intention is to provide a minimum 550 public car parks on the site. Aside from the provision of car parking, Council has recognised the strategic importance and potential of this site where the opportunity exists to create a landmark development given the size and location. The site could be used to create a mixed-use development of significant scale and economic importance. Conrad Gargett Architecture has now completed the concept design and feasibility study and has submitted the final report to Council. COMMENT: Conrad Gargett Architecture have prepared the Concept Design and Feasibility Study Report and sought input from architects, structural and traffic engineers and quantity surveyors. Wilson Parking provided input regarding the feasibility of the project.

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23 The design process undertaken was iterative and resulted in the final design, Concept 4 being the most preferable concept. Concept 4 represents the most user friendly car park to navigate. It comprises of the construction of a multi deck car park over six levels (ground floor and five upper levels) providing a total of 569 spaces. That number of spaces includes 13 accessible spaces; however the car park is designed so that spaces can be modified to make them accessible upon demand in the future. Motorcycle spaces are provided throughout the car park whilst cycling storage and change facilities are provided for on the ground floor. Six commercial tenancies are located on the ground floor. The car park has been designed (ceiling height and turning swathe) to accommodate four-wheel drive vehicles. Vehicle entry and exit will be via Hartley Street, whilst the main pedestrian access will be via Grafton Street adjacent to the main ground floor tenancies. Alterations will need to be made to the surrounding road network to allow for an adequate and efficient entry and exit regime (this aspect will be subject to further investigation at the detailed design stage). The concept design takes into account the outcomes of the Cairns City Centre Master Plan and CairnsPlan in particular, the design of then faade of the car park. The intention of the faade of the car park is the masking of the vehicles beyond whilst providing ventilation through the car park. To achieve this, a screen structure has been recommended. The report provides an example of a layered screen reflecting artistic, scientific and literal abstractions of the Cairns location. However, there is opportunity to further refine this design aspect and incorporate local and / or indigenous artists. The Concept Design and Feasibility Study Report details the future development potential of the car park, identifying the potential construction of a pedestrian bridge connection to the convention centre and the construction of a residential or commercial tower above the car park. It is anticipated that these aspects will occur after the construction of the car park is constructed. The preliminary construction costs for Option 4 are estimated at $25.6million. Variations to the construction cost to incorporate the necessary structural elements to support any future development potential (residential or commercial tower) are estimated at $6.4million. The subsequent costs to construct the residential or commercial tower are $37.3million and $24.5million respectively. It is anticipated that these cost will be further refined during the detailed design phase of the project. Wilson Parking has provided a Feasibility Report as part of the project that identifies the potential operational requirements associated with the car park. There analysis contains the following operational forecasts for the proposed car park:

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24 The revenue forecasts are based on the following assumptions and pricing structures: For hourly parking:

For weekly parking:

For event parking:

It is also anticipated that the six ground floor tenancies would generate approximately $250,000/year assuming the tenancies are fully let at $400/m2 (average market price). A full cost / revenue matrix is provided in the report. Decisions in relation to the provision or location of any off-site car parking associated with the Cairns Entertainment Precinct are to be resolved over the coming months. As the outcomes of these decisions may impact upon the timing of delivery of the Cairns City Centre Parking Station it is recommended that the next phase in the delivery of the Cairns City Centre Parking Station be considered in a future report to Council following the resolution of off-site car parking matters.

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CONSIDERATIONS: Corporate and Operational Plans: The development of the Cairns City Centre Parking Station is aligned with the following goals of Council's Corporate Plan: Goal 3: Delivering Integrated Planning; and Goal 4: Delivering Services and Infrastructure implement strategies to address parking needs in the CBD. Statutory: There are no statutory considerations to consider in the development of this report. However, the concept designs for the car park have taken into account the outcomes of CairnsPlan and the Cairns City Centre Master Plan. The parking station has been designed in accordance with relevant design standards, including Australian Standards for off-street parking and off-street parking for people with disabilities (AS2890) and bicycle parking facilities (AS 2890). Policy: The development of this project is consistent with the policy approach of Council, in particular and as detailed above the Corporate Plan. Financial and Risk: Council will be required to consider the costs associated with the construction of the car park in the future. The Concept Design and Feasibility Study Report includes a full cost / revenue matrix related to the construction and operation of the car park. The preliminary construction costs are estimated at $25.6million. The operation of the car park and leasing of the ground floor tenancies are expected to generate between $600,000 and $680,000 in the first five years. Considering the monthly loan repayment of $107,000 Council may operate an annual net loss of between $800,000 and $860,000 over the first five years of the operation of the car park. The financial assumptions made in the preparation of that cost / revenue matrix are based on Council providing an equity contribution ($8.7million) and drawing a loan to cover the remaining construction costs. Although this conservative assessment has been provided, the construction of the car park is provided for in Councils Capital Works Programme with an allocation of $20mill in the 2012/13 schedule. Councils Economic Development unit have prepared a preliminary economic impact assessment for the construction and first year of the operation of the parking station (car park and retail tenancies).

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26 The table below identifies that the benefits to the Cairns economy from the construction spend associated with the proposed parking station are considerable.

The table below, estimates the one-off stimulus to the Cairns economy from the first year of operational spend directly associated with the car parking element of the proposed parking station.

The table below, estimates the one-off stimulus to the Cairns economy from the first year of operational spend directly associated with the retail tenancies of the proposed parking station.

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27 For the purposes of these estimates: Output refers to the gross value of goods and services transacted, including the costs of goods and services used in the construction or manufacture of the final product. Output impacts can overstate the economic impacts as they count all goods and services used in one stage of production as an input to later stages of production, hence counting their contribution more than once. Direct impacts are assumed to be an annual impact for the given year of the stimulus. Indirect (flow-on) Impacts Indirect impacts may be realised over the given year of the stimulus and further into the future. The indirect impact although not accounted for in full over the first year, will diminish as the years progress. Value added refers to the value of output after deducting the cost of goods and services inputs in the production process. Value added defines the true net contribution made to the economy or Gross Regional Product (GRP). The GRP impact is the preferred measure for the economic impact assessment of a project. Employment refers to the number of new part-time and full-time jobs created by the economic shock (stimulus), both directly and indirectly, and is expressed in terms of full time equivalent (FTE) positions.

Variations to the construction cost to incorporate the necessary structural elements to support any future development potential (residential or commercial tower) are estimated at $6.4million and subsequent costs to construct the residential or commercial tower are $37.3million and $24.5million respectively. These are significant additional costs that require consideration prior to committing to the next phase in the delivery of the Cairns City Centre Parking Station. The need for a car parking station providing a minimum of 550 spaces is identified in the Cairns CBD Car Parking Strategy. The strategic importance of the proposed car park is significant given the increase on parking demand in the CBD. The CBD car parking station would form an integral part of the infrastructure required to support the accessibility to the city centre. Therefore the subsequent risk of not commissioning the parking station is as significant. Parking demand would continue increase placed increase demand on existing infrastructure.

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28 Sustainability: The completed Sustainability Scorecard (extract below), confirmed that the outcomes of this report produce neutral results.

CONSULTATION: Consultation was undertaken with Councils Parking unit and Infrastructure Management branch and Economic Development branch in the preparation of this report. In addition to working closely with Council officers, Conrad Gargett Architecture have consulted the Cairns Urban Design Advisory Board, City Centre Masterplan Steering Committee and Councillors in the preparation of the Concept Design and Feasibility Study Report OPTIONS: That Council: 1. 2. Notes the Final Concept Design and Feasibility Study Report; and Notes that the next phase in the delivery of the Cairns City Centre Parking Station is dependant upon future decisions regrading the location of any required off site car parking associated with the Cairns Entertainment Precinct; or Resolves to seek Expressions of Interest for the design and construction of the car park generally in accordance with the Concept Design and Feasibility Study Report; or

3.

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CONCLUSION: Conrad Gargett Architecture has completed the Concept Design and Feasibility Study Report for the Cairns City Centre Parking Station. The report identifies a preferred concept design. It is proposed that Council proceed with the tender process for the design and construction of the car park. ATTACHMENTS: Attachment 1 - Cairns City Centre Parking Station Concept Design and Feasibility Study Report <<Available separately on Councils Website>>

Sean Lisle Strategic Infrastructure Planner

Peter Boyd Manager Planning Strategies

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