Agenda of Economic Development Committee

Georges River Council – Ordinary Meeting - Monday, 24 April 2017 Page 2

Item: EDC008-17 Economic Development Strategy

Author: Hurstville Place Manager, Craig Edmondson

Directorate: Environment and Planning

Recommendation

(a) That the Advisory Committee notes the progress to date with Georges River Draft Economic Development Strategy.

(b) That the Advisory Committee considers and advises Council on the Draft Vision Statement and Key Actions of the Draft Strategy.

Executive Summary

1. Following the meeting held on Monday 20 February work was undertaken on developing an outline of the Draft Strategy for the meeting on 24 April.

2. To date a Draft Document has been prepared that includes Vision Statement, Key Principles, Key Economic Data on Population, Gross Regional Product, Local Jobs, Journey to Work Data, Employment by Industry, Productivity per Worker, Number of Local Businesses, Local Sales by Industry Sector, and Building Approvals.

3. The Draft Strategy was developed using data which was drawn from Community Profile ID and Economic ID which is now available on Council’s website.

4. For the Committee’s information, from June 2017 data from the 2016 Census will be released in stages. The new information will have an impact on data contained in the Draft Strategy.

Draft Vision for the Committee’s Review

5. The Draft Vision Statement prepared by Council Officers is as follows:

The Georges River Council Local Government Area (LGA) will occupy a key position within the global city of Sydney and the newly designated South District. Council will work closely with our key partners to maximise the advantages of our proximity to the Sydney CBD, Sydney Airport, Port Botany, and the M5 in order to build on its existing business capital and the language and cultural attributes of its local population in order to provide a dynamic, competitive, profitable, sustainable and attractive destination to live, work, visit and invest.

Draft Key Themes and Actions for the Committee’s Review

6. Eight (8) draft Key Themes and associated actions have been prepared by Council Officers and are listed in Table 1 below.

7. The draft Key Themes and associated actions have been prepared for the Committee’s review and input.

Table 1 - Draft Key Themes and Actions

Key Theme 1

Aligning the Council’s Community Strategic Plan and the Economic Development Strategy to Local, State and Federal Government Strategies, Plans, Policies and Opportunities.

Council will develop a coordinated and approach to ensuring that links are made between the following documents:

· Plan for Growing Sydney 2017

· Draft South District Plan 2017

· Georges River Council Community Strategic Plan (In Progress)

· Georges River Council Employment Lands Study – to harmonise zoning of industrial precincts and commercial centres to retain local services and jobs

· Kogarah City Council Employment Lands Study 2013

· Local Environmental Plans – Hurstville and Kogarah

· Transport Plan for NSW

· Georges River Economic Development Strategy

· Hurstville Civic Precinct Masterplan

· Hurstville Urban Design Strategy

· Georges River Council Parking Studies/Strategy.

Action

· Council prioritises, adopts and advocates for the above studies, plans strategies, and proposals and implements and communicates the recommendations to the community and key stakeholders.

Key Theme 2

Understanding the issues and challenges facing local business

Some of the issues facing local business include:

· Government regulations, taxes, fees and charges (federal, state and local);

· Perceived issues regarding the DA approval for local business;

· Perceived issues regarding Increased population and employment and the impact on demand for parking;

· The ability of current retail, commercial and industrial stock to generate economic and employment growth;

· Increased costs for business – labour, utilities and energy i.e. gas, electricity, water, and waste;

· NBN Broadband rollout.

Key Actions

· Council commits to the Service NSW `Easy to do Business Program’ in order to reduce turnaround times for business approvals;

· Council undertakes an Employment Lands Study for the Georges River Council area.

Key Theme 3

Understanding how is the local economy being affected by and federal, state and local government policy

· Kogarah has been designated as a the Major Centre and Hurstville has been classified as a District Centre in the Draft South District Plan;

· Closure of the Australian Tax Office November 2015 – loss of 500 jobs;

· Relocation of the Office of Environment and Heritage to Parramatta 2019 will result in potential loss of a 500 jobs.

Key Actions

· Monitor existing planning controls to ensure quality employment and public domain outcomes are achieved for each centre: (Kogarah CSP);

· Hurstville Urban Design Strategy identifies sites in the Hurstville City Centre for future commercial development to attract a large government or corporate tenant;

Key Theme 4

How can Council assist employment self-containment in the local area?

In 2011, 20.7% of Georges River Council’s residents were employed locally. This proportion has decreased by 1.6% since 2006.Self-containment measures the proportion of employed residents who are employed within the boundaries of the Local Government Area or region. It indicates the propensity of residents to seek employment outside the Local Government Area or region in which they live.

Self -containment is likely to be higher for regional areas and, lower in metropolitan areas and is influenced by:

· The nature of employment opportunities versus the skills and qualifications of residents;

· Transport options available and commuting times;

· Relationship between wages and salaries and house prices in the area; and

· The geographic size of the area.

Employment self-containment data should be viewed in conjunction with detailed Residents place of work data to see where residents are accessing employment, along with Jobs to workers ratio data which provides the theoretical number of jobs which could be provided to residents of the Georges River Council area in the local area, and is updated annually. The Resident workers section will provide the characteristics of the locally available labour force.

Key Actions

· Attracting New Businesses

o Develop a business attraction strategy that focuses on the top three industries (existing) by contribution to local economy Finance and Insurance Services, Construction, Health Care and Social Assistance to provide more opportunities for local residents and people who live in the South District and the Illawarra to work in Georges River.

o Council lobbies the state government to locate the Southern Area Office of the Department of Planning to Hurstville;

o Council develops a targeted business attraction strategy to identify enable Kogarah to achieve its position as health and education super precinct for e.g. investigate the feasibility of encouraging Medibank and the major health funds to open branches in Kogarah;

o Review car parking rates for new development to harmonise requirements across the new LGA.

· Retaining Existing Business

o Anticipate and address skill shortages in local industries Construction, and Manufacturing through the support of education services, training expos, and the promotion of federal and state government programs or grants for apprenticeships, and traineeships;

o Support local business through the development approval process e.g. implement a business concierge;

o Provide high standard of advice, education and support to local business;

o Develop a cooperative and positive culture within Council to assist local business.

Key Theme 5

Ensuring the efficient and effective management of public amenity and public spaces

The Public Domain and the activities that take place within it contribute to the liveability, cultural life, public safety, and economic productivity of the local area. The amenity of the public domain is delivered through strategic public and private investment in new infrastructure, refurbishing older assets and by implementing a well-resourced program of maintenance and cleaning of public spaces benchmarked at a level comparable to City of Sydney, City of Parramatta and other emerging regional centres such as City of Liverpool

Key Actions

· Prioritise the development of coordinated approach to develop a Public Domain vison for the LGA

· Harmonise and adopt Council’s footway approvals policy in order to manage street stalls, outdoor dining, retail trading and temporary commercial activities in the Georges River LGA;

· Prioritise a program of improvements to local centres that will focus on improving wayfinding signage in commercial centres, removal of old shopfront and shop window signage;

· Prioritise service level agreements to agreed benchmarks with regards to, maintenance and cleanliness of public spaces;

· Construction of Hurstville Central Plaza.

Key Theme 6

Encourage tourist accommodation and convention space.

There is anecdotal information to suggest that a 3-4 star hotel is required in the local area to capitalise on demand generated by local economy, local hospitals, local residents (VFR –Visiting Friends and Relatives),and sporting events. There is also anecdotal evidence to suggest that the local area could benefit from improved additional meetings and exhibition space.

Key Action

· Council reviews planning controls with a view to investigating the feasibility of attracting a hotel and convention project to the Georges River area.

Key Theme 7

Encourage cultural diversity.

At the 2011 Census 41.5% of residents were born overseas with 37.1% coming from non-English speaking backgrounds. The countries that have contributed the most numbers of residents are China, Nepal and India. From June 2017 the 2016 Census information will become available in a series of staggered release dates. It is anticipated that the new Census information will demonstrate a strong population increase in the Chinese, Nepalese and Indian communities. It is acknowledged by Council that these new residents have significant language, cultural and economic links overseas. Council also recognises the potential of these communities to generate significant economic activity such as investment, employment and the consumption of goods and services in the local community as businesses establish themselves to cater for the needs of the emerging communities.

Key Action

· Council works closely with Advanced Diversity Services and other relevant groups and agencies to understand, encourage and support local businesses from specific cultural backgrounds (above).

· Council commissions a survey to better understand needs of the overseas student population on the local area.

Key Theme 8

It is understood that Georges River is an aspirational community that places great value and emphasis on education. Many “property for sale” signs mention the fact that properties for sale particularly in the Hurstville City Centre are within the catchment of Hurstville Public School.

Key Action

· Council investigates attracting a University to the local area;

· Council ensures that there are adequate childcare places in the local area to provide for current and future demand;

· Council continues to invest in information and library technology services and resources.

Other Questions to consider as part of this strategy

8. The following is a list of questions that Council Officers will also consider as part of the strategy:

a. What does the current economic profile say about future trends?

b. How can we attract high value businesses to the area?

c. Can we grow employment through education and training?

d. How can we improve access to major centres, suburban centres and industrial zones to improve the free movement of people, products and services within the local area?

e. Developing strategic partnerships with key stakeholders?

f. How can we assist Home Based Businesses?

g. How can we encourage a night time economy?

9. The Committee is requested for ideas and examples from other centres that can be utilised in answering these questions.

Financial Implications

10. No budget impact for this report.

File Reference

D17/53972

Item: EDC009-17 Easy To Do Business Program

Author: Hurstville Place Manager, Craig Edmondson

Directorate: Environment and Planning

Recommendation

(a) That the Committee note the report.

Executive Summary & Introduction

1. Council has signed a Memorandum of Understanding with Service NSW to roll out the program which aims to reduce approval times for new and existing businesses to 90 days. Focussing on people who want to open or expand café’s, restaurants and small bars in the Georges River LGA the program offers an online portal that provides links to relevant legislation and an application process to inform and track the progress of the application process. Other initiatives include a business concierge team to provide specialist support to advise and guide applicants and the appointment local business champions to promote the program.

Media release

2. The media release is being prepared currently and the launch is set down for 19 April. The program will be promoted through Council’s Customer Service Centre, through Social Media, and Council’s websites and through face to face contact with local businesses in the LGA.

Financial Implications

3. No budget impact for this report.

File Reference

D17/54026

Georges River Council – Ordinary Meeting - Monday, 24 April 2017 Page 10

Item: EDC011-17 Update on Planning Proposal to vary Clause 4.4A and Clause 6.6 of Hurstville LEP 2012

Author: Manager Strategic Planning, Catherine McMahon

Directorate: Environment and Planning

Recommendation

(a) That the Committee note the contents of the report.

Executive Summary

1. This report provides a briefing on a Planning Proposal which seeks to amend Clause 4.4A Exceptions to FSR for buildings on land in certain zones and Clause 6.6 Active street frontages, in Hurstville Local Environmental Plan 2012.

2. Council amended the Planning Proposal at its Meeting held 5 September 2016 as a result of the recommendations of the Draft Hurstville Employment Lands Study. The Draft Study recommended that Council proceed with an amended Planning Proposal which differs from the exhibited Planning Proposal in the following ways:

a. Retain Clause 4.4A and reduce the amount of non-residential floor space required from 0.5:1 to 0.3:1, rename the clause and add a clause objective.

b. Not proceed with the proposal to expand the application of Clause 6.6 Active street frontages to land zoned B1 Neighbourhood Centre.

c. Amend Clause 6.6 Active street frontages by including “medical centres” as a land use which satisfies the Active street frontage definition.

3. Council resolved at its Meeting held 5 September 2016 to amend the planning proposal as above and refer it to the Department requesting it’s consideration of the proposed changes to the Planning Proposal and its advice on whether further community consultation is required under Section 57 of the Act.

4. The Department by letter dated 15 February 2017 advised that the additional community consultation (of 14 days) is required for the amended Planning Proposal.

5. The Alteration of Gateway Determination dated 15 February 2017 was reported to the Council Meeting held 3 April 2017. The additional consultation required by the Department will commence on 1 May 2017. The additional community consultation will involve notices in the local paper as well as letters to the St George Business Chamber, Oatley Westside business group, Lugarno Progress Association, and other relevant organisations.

Background

6. The current Hurstville Local Environmental Plan 2012 (Hurstville LEP 2012) took effect on 7 December 2012 and applies to all land in the Hurstville, Mortdale and Peakhurst wards of the Georges River Council (with the exception of Deferred Matter sites in the Hurstville City Centre).

7. Prior to Hurstville LEP 2012 coming into operation, there was a minimum numerical requirement for the amount of non-residential floor space within business zones set at a 1:1 Floor Space Ratio (FSR). The Draft Hurstville LEP 2012 was exhibited inclusive of Clause 4.4A in its current form (including a minimum non-residential FSR of 0.5:1) with the intention of maintaining the integrity of the business zones (B1 Neighbourhood Centre and B2 Local Centre) consistent with the stated objectives of those zones to serve the needs of people who live or work in the surrounding areas. Through the public exhibition process, no submissions were received on this Clause and the minimum non-residential floor space amount of 0.5:1 and the Hurstville LEP 2012 was gazetted accordingly.

8. Court proceedings in 2015 in relation to a Development Application for a boarding house raised questions about the evidence base supporting the non-residential FSR requirement of 0.5:1 under Clause 4.4A.

9. Council resolved on 20 May 2015 to support the Planning Proposal to remove Clause 4.4A with the intention that the minimum non-residential floor space ratio of 0.5:1 would no longer by required for development in the B1 Neighbourhood Centre and B2 Local Centre zones. The reasons given for supporting this change were that it would address any inconsistency between Clause 4.4A and boarding house development where the provisions of the State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARH SEPP) apply. It was also proposed that Clause 6.6 Active street frontages of the Hurstville LEP 2012 be amended by expanding its application to land zoned B1 Neighbourhood Centre.

10. The exhibited Planning Proposal sought to amend the Hurstville LEP 2012 by:

a. Removing Clause 4.4A which requires that a minimum area of non-residential floor space of 0.5:1 be provided in the B1 Neighbourhood Centre and B2 Local Centre zones.

b. Expanding the application of Clause 6.6 Active Street Frontages to land zoned B1 Neighbourhood Centre.

c. The Planning Proposal was given a Gateway Determination on 17 July 2015 and placed on public exhibition from 20 August to 4 September 2015.

11. Two (2) submissions were received during the exhibition period, both from Government Agencies, the Department of Education and Transport NSW. Both submissions raised no issues with the Planning Proposal.

12. In September 2014 the former Hurstville City Council commissioned independent consultants Jones Lang LaSalle and SJB Planning to prepare a Draft Hurstville Employment Lands Study (“draft strategy”) to review all industrial areas (i.e. lands zoned IN2 Light Industrial) and commercial centres (i.e. lands zoned B1 Neighbourhood Centre and B2 Local Centre) under Hurstville LEP 2012.

13. The draft strategy was to provide:

a. A detailed land use survey and analysis of the strengths, weaknesses and opportunities of the employment lands;

b. A market assessment;

c. A review of the NSW State Government’s employment targets; and

d. A review of the effectiveness of the existing planning controls.

14. Initial findings of the Draft Hurstville Employment Lands Study in relation to industrial land were reported to Council in 9 December 2015.

15. The draft ELS considered the role of Clause 4.4A and the minimum level of non-residential floor space that should be required in the B1 Neighbourhood Centre and B2 Local Centre zones of the Hurstville LEP 2012, stating that:

“We have had consideration to the minimum requirement of non-residential floor space in the B1 Neighbourhood and B2 Local Centre zones, currently at 0.5 FSR (although there is planning proposal with the Department to remove this clause). We are of the view this clause is beneficial to the employment lands to ensure a successful employment outcome; however, we believe the rate applied is too difficult to achieve and can prove to be an issue in the feasibility of projects. It is recommended that Clause 4.4A be amended to require a minimum provision of 0.3:1 of non-residential floor space in any development. Consideration was given to the inclusion of an active street front provision. This has not been pursued as the structure of Clause 4.4A provides a much greater level of certainty over the minimum delivery of employment floor space. The implementation of an active street frontage control in addition would simply add to the complexity and diminish the level of flexibility available to designers in preparing design proposals.”

16. Following the formation of the new Georges River Council, work commenced to expand the scope of this work by incorporating land in the former Kogarah Council area to form a comprehensive Georges River Council Employment Lands Study. The recommendations of the Draft Georges River Council Employment Lands Study are the subject of a separate presentation to the Committee.

17. In light of the recommendations of the Draft Hurstville ELS the Planning Proposal was amended as follows:

a. Retain Clause 4.4A and rename the clause “Non-residential floor space ratios”, include an objective to the clause and reduce the amount of non-residential floor space required for development in the B1 Neighbourhood Centre and B2 Local Centre zones from 0.5:1 to 0.3:1,

b. Not proceed with the proposal to expand the application of Clause 6.6 Active street frontages to land zoned B1 Neighbourhood Centre because by retaining a non-residential floor space requirement (at a reduced level of 0.3:1) it is no longer necessary to have active street frontage provisions in these smaller centres. The application of active street frontages in the B1 Neighbourhood Centre zone is also inconsistent with the smaller scale of these centres.

c. The following new amendment is also proposed for Clause 6.6: Clause 6.6 Active street frontages is to be amended by including medical centres as a land use which satisfies the active street frontage definition.

18. Council resolved at its Meeting held 5 September 2016 to amend the planning proposal and refer it to the Department requesting it’s consideration of the proposed changes to the Planning Proposal and its advice on whether further community consultation is required under Section 57 of the Act.

19. The Department by letter dated 15 February 2017 advised that the additional community consultation (of 14 days) is required for the amended Planning Proposal.

20. The Alteration of Gateway Determination dated 15 February 2017 was reported to the Council Meeting held 3 April 2017. The additional consultation required by the Department will commence on 1 May 2017. The additional community consultation will involve ads in the local paper as well as letters to the St George Business Chamber, Oatley Westside business group, Lugarno Progress Association, and other relevant organisations.

The Amended Planning Proposal

21. The following tables indicate the changes to Clauses 4.4A and 6.6 of the Hurstville LEP 2012 – the changes are in red and italics.

Table 1 – Clause 4.4A of the Hurstville LEP 2012

Current Wording of Clause 4.4A in Hurstville LEP 2012

4.4A Exceptions to floor space ratios for buildings on land in certain zones:

(1) Despite clause 4.4, development consent must not be granted for development on land in Zone B1 Neighbourhood Centre or Zone B2 Local Centre unless the non-residential floor space ratio is at least 0.5:1.

(2) In this clause, non-residential floor space ratio means the ratio of the gross floor area of that part of a building used or proposed to be used for any purpose other than a residential purpose in a building on the site to the site area.

Proposed Wording of Clause 4.4A in Hurstville LEP 2012

4.4A Non-residential floor space ratios

(1) The objective of this clause is to encourage an appropriate mix of residential and non-residential uses and ensure a suitable level of non-residential floor space is provided to promote employment and reflect the hierarchy of the business zones.

(2) Despite clause 4.4, development consent must not be granted for development on land in Zone B1 Neighbourhood Centre or Zone B2 Local Centre unless the non-residential floor space ratio is at least 0.3:1.

(3) In this clause, non-residential floor space ratio means the ratio of the gross floor area of that part of a building used or proposed to be used for any purpose other than a residential purpose in a building on the site to the site area.

Reasons

Draft Hurstville Employment Lands Study (2015) found that Clause 4.4A should be retained as it is beneficial for the employment outcomes of the centres. It also aligns well with the stated objectives for the business zones. However, it was also found that the level of non-residential floor space is set too high at 0.5:1 and could be reduced to 0.3:1 for the B1 Neighbourhood Centre and B2 Local Centre zones to address the issue of development feasibility in these centres.

This will still ensure a suitable level of employment floor space continues to be provided in the B1 Neighbourhood Centre and B2 Local Centre zones consistent with the objectives of the zones and the goals and directions of A Plan Growing Sydney (the Metropolitan Strategy) and relevant Section 117 Directions. It is noted that shop top housing and boarding houses are the only forms of residential development permitted in the B1 Neighbourhood Centre and B2 Local Centre zones and that the total maximum floor space ratio allowable in these centres ranges from 1.5:1 to 3:1. Setting the minimum level of non-residential floor space at 0.3:1 equates to a 20% of the total floor space potential of sites with a maximum FSR of 1.5:1 and 10% for sites with a maximum FSR of 3:1.

Table 2 – Clause 6.6 of the Hurstville LEP 2012

Current Wording of Clause 6.6 in Hurstville LEP 2012

6.6 Active street frontages

(1) The objective of this clause is to promote uses that attract pedestrian traffic along certain ground floor street frontages in Zone B2 Local Centre, Zone B3 Commercial Core and Zone B4 Mixed Use.

(2) This clause applies to land identified as “Active street frontage” on the Active Street Frontages Map.

(3) Development consent must not be granted to the erection of a building, or a change of use of a building, on land to which this clause applies unless the consent authority is satisfied that the building will have an active street frontage after its erection or change of use.

(4) Despite subclause (3), an active street frontage is not required for any part of a building that faces a service lane or is used for any of the following:

(a) entrances and lobbies (including as part of mixed use development),

(b) access for fire services,

(5) In this clause, a building has an active street frontage if all premises on the ground floor of the building facing the street are used for the purposes of business premises or retail premises.

Proposed Wording of Clause 6.6 in Hurstville LEP 2012

6.6 Active street frontages

(1) The objective of this clause is to promote uses that attract pedestrian traffic along certain ground floor street frontages in Zone B2 Local Centre, Zone B3 Commercial Core and Zone B4 Mixed Use.

(2) This clause applies to land identified as “Active street frontage” on the Active Street Frontages Map.

(4) Despite subclause (3), an active street frontage is not required for any part of a building that faces a service lane or is used for any of the following:

(a) entrances and lobbies (including as part of mixed use development),

(b) access for fire services,

(5) In this clause, a building has an active street frontage if all premises on the ground floor of the building facing the street are used for the purposes of business premises, retail premises or a medical centre.

Reasons

The Council previously resolved not to amend the expansion of active street frontages through Clause 6.6 to land zoned B1 Neighbourhood Centre. Guidance from the Department of Planning on the application of active street frontages sets out that they are suitable for the B3 Commercial Core and B4 Mixed Use zones and they will be considered in the B2 Local Centre zone only where soundly justified through Council’s strategic planning for local activity centres. Extending the application of active street frontage provisions to the B1 Neighbourhood Centre zone is not in keeping with the objectives of the zone and the smaller scale of these centres.

The only forms of residential accommodation permitted in the B1 Neighbourhood Centre zone in Hurstville LEP 2012 are boarding houses and shop top housing which is defined as one or more dwellings located above ground floor retail premises or business premises. The shop top housing definition ensures the ground floor of any mixed use developments in the zone will feature retail premises or business premises on the ground floor and residential apartments above.

As Medical Centres do not fall within the definition of either “business premises” or “retail premises” they fall outside the definition of “active street frontages” as set out in Clause 6.6 for the Hurstville LEP 2012, which is based on the Standard Instrument LEP. Active street frontages apply to land zoned B2 Local Centre, B3 Commercial Core and B4 Mixed Use. In accordance with Clause 6.6(5), active uses are limited to land uses that fit within the business premises or retail premises land use definitions. It is considered that medical centres adequately satisfy the objective of Clause 6.6 to “promote uses that attract pedestrian traffic along certain ground floor street frontages in Zone B2 Local Centre, Zone B3 Commercial Core and Zone B4 Mixed Use”. In particular, medical centres are considered to satisfy the objective to the same extent as land uses that fit within the business premises definition which include business uses such as post offices, hairdressers and travel agencies.

A precedent has been set in other LEPs where uses on the ground floor facing the street which are considered to constitute an “active street frontage” has been expanded to include a range of specific land uses, including medical centres. No change to the Hurstville LEP 2012 Dictionary will be required as the Dictionary only refers to the Map and the definition of active street frontages is defined in the clause.

Next Steps

22. The report adopted by Council on 3 April 2017 recommended that after exhibition the General Manager be delegated to assess submissions and lodge the Planning Proposal with the Department of Planning & Environment requesting notification.

Financial Implications

23. Within budget allocation.

File Reference

S16/1027

Georges River Council – Ordinary Meeting - Monday, 24 April 2017 Page 18

Item: EDC014-17 Briefing on Draft Employment Lands Study

Author: Manager Strategic Planning, Catherine McMahon

Directorate: Environment and Planning

Recommendation

(a) That the Committee note the report and the separate PowerPoint presentation on the Draft Georges River Employment Lands Study.

Executive Summary

1. The draft Georges River Employment Lands Study (ELS) provides Council with a strategic direction for employment lands across the Georges River Local Government Area (LGA) to ensure that sufficient land is zoned to accommodate future employment growth.

2. The original draft ELS was prepared for the former Hurstville City Council LGA and this was reported to the then Hurstville City Council on 9 December 2015. On 19 May 2016, Georges River Council was proclaimed and amalgamated the former Kogarah City Council and Hurstville City Council LGAs.

3. As the ELS had not been finalised by the former Hurstville City Council, there was an opportunity to expand the study to land within the former Kogarah City Council LGA and have a comprehensive ELS that applied across the whole Georges River LGA.

4. The draft ELS has been prepared by consultants Jones Lang LaSalle (JLL), in conjunction with SJB and Cox Architecture and has been presented to Council in two stages:

a. Stage 1 – Background Report: provides background information and the strategic context of Georges River’s employment lands, including industrial zoned land and business zoned land.

b. Stage 2 – Industrial and Commercial Land Strategy: provides an assessment of the existing IN2 – Light Industrial lands across the Georges River LGA and makes recommendations on the future of these lands; provides an assessment of land zoned B1 – Neighbourhood Centre and B2 – Local Centres in the Peakhurst, Mortdale and Hurstville Wards (former Hurstville Council LGA) and makes recommendations on the future of these lands.

5. Community consultation is now to be undertaken on the draft Study. This includes this briefing to the Economic Development Advisory Committee.

6. During the engagement phase Council Officers will continue to investigate the issues identified in the draft Study, including the zoning, height and FSR, as well as the review of land uses and any appropriate design controls for each of the employment lands precincts (IN2, B1 & B2 lands).

7. Once the consultation phase has concluded, a further report will be presented to Council for consideration.

8. Once endorsed, the Study will be forwarded to the NSW Department of Planning & Environment to be endorsed as a Strategic Study. This will then inform the preparation and assessment of the Planning Proposal for Employment Lands and will assist in the assessment of any proponent led Planning Proposal for employment lands across the LGA.

Background

9. In September 2016, JLL were appointed by Georges River Council to expand the application of the draft Hurstville Employment Lands Study to include land within the former Kogarah City Council LGA (now known as Blakehurst and Kogarah Bay Wards of the Georges River LGA).

10. The key objectives of the ELS are to:

a. Set a clear strategic direction for all employment lands within the Georges River LGA.

b. Review all recent employment and economic studies for the Region.

c. Undertake an analysis of the supply and demand for commercial, retail and residential floor space in the B1 - Neighbourhood Centres and B2 - Local Centres for the former Hurstville LGA and industrial floor space in industrial areas for the IN2 – Light Industrial precincts in the Georges River LGA.

d. Ensure sufficient land is zoned to accommodate existing and potential growth across a range of employment types.

e. Provide recommendations for the B1 - Neighbourhood Centres and B2 - Local Centres for the former Hurstville LGA and IN2 – Light Industrial Precincts in the Georges River LGA.

11. The Study provides an assessment of all employment lands (excluding the Hurstville City Centre) within the former Hurstville City Council LGA and the IN2 – Light Industrial zoned land in the former Kogarah City Council LGA. Due to the size of the draft study, a copy has been circulated under separate cover.

12. The draft Study does not cover the B1 – Neighbourhood Centre and B2 – Local Centre zoned land within the former Kogarah City Council LGA. The former Kogarah City Council had commissioned an Employment Lands and Economic Development Study (SGS Economic and Planning: 2013), and this informed the changes proposed in the recent amendments to Kogarah LEP 2012 (New City Plan), which is currently awaiting finalisation and gazettal by the Department of Planning.

13. The draft Study will inform the preparation of other studies and will be used to inform and support the preparation of a future Planning Proposal for employment lands. Further work will be undertaken by staff to identify the key issues and considerations for each of the Precincts and this will be reported to Council as part of the post exhibition report.

Key findings & Recommendations of the Draft Study

14. The key findings of the Draft Study are:

a. Georges River LGA has a reasonable self-containment level for employment (BTS JTW, 2011). Around 39,000 people come to work in the Georges River LGA from all around Sydney every day; 37% of these workers live in the LGA.

b. The Georges River LGA is becoming increasingly more attractive as a location to live and work as Sydney’s centre of population shifts westwards (Western Sydney Airport and the Broader Western Sydney Employment Area).

c. There is an opportunity to increase housing densities within walking distance of its eleven railway stations and attract young, knowledge based workforce, around the local centres.

d. That the Georges River LGA, which is situated between the South West and the Central Subregions has the opportunity to be recognised as major player in future metropolitan plans given its strategic location and should be included within the Global Economic Corridor (GEC)

e. A need to improve the retail facilities in the Hurstville centre and local centres along the railway corridor in order to make railway related centres more attractive for multi-unit housing.

f. There are opportunities to locate a university campus in the Georges River LGA.

g. The Georges River LGA would benefit from the development opportunity of a business park at Kingsgrove. This needs to be promoted as the primary opportunity for the South Sydney market to have a highly functioning and desirable business park, close to major transport connections and with direct access to the South West and Sydney Airport.

15. The key general recommendations of the study include:

a. Protect employment generating and urban services land (IN2 – Light Industrial) across the LGA.

b. Review the height requirements for B1 – Neighbourhood Centre zoned land to allow realisation of the maximum FSR.

c. Review the height and FSR requirements for land within the B2 – Local Centre zoned land, so as to encourage redevelopment.

d. Review land uses in the IN2, B1 and B2 Zones to broaden the extent of permitted uses.

e. Review the current on-site parking requirements for the B1 and B2 Zones to ensure that they are not an impediment to the viability of development.

f. Review the requirement for non-residential floor space in the B1 and B2 Zones to assist in the feasibility of development, while at the same time ensuring that commercial centres retain some employment generating opportunities.

Overview of the Industrial Precincts

16. Industrial zoned land comprises approximately 2.6% of all land in the Georges River LGA and provides opportunities for local employment and a range of light industries to service the local community including car and boat repair, panel beaters, council depots, and household trades, as well as providing opportunities for other economic facilitating development.

17. The Georges River LGA contains nine (9) industrial precincts (zoned IN2 - Light Industrial zone) ranging from the largest, being the Peakhurst Industrial Precinct (56.1 hectares) to the Penshurst Industrial Precinct – Penshurst Lane (0.4 hectares).

18. In total, the Georges River LGA has approximately 100ha of industrial zoned land, which equates to approximately 2.6% of zoned land across the LGA.

19. The protection of employment generating and urban services land is a key outcome of the draft Study and is consistent with the recommendations of the draft South District Plan.

20. The draft ELS recommends changes to the land use zoning of a number of the Precincts as well as changes to development standards (subdivision, building height, floor space ratios) and the importance of protecting the interface with residential areas. These are outlined in the PowerPoint to be presented to the Committee.

21. The key recommendations for the majority of the IN2 – Light Industrial Precincts is to retain the existing IN2 – Light Industrial zoning and review the height from 10m to 13m to ensure that the 1:1 FSR can be achieved. For those Precincts adjacent to the residential zoned land, it is also recommended that a provision is incorporated into the DCP to address the residential interface.

Overview of the B1 – Neighbourhood Centre zone and B2 – Local Centre Zone (former Hurstville City Council LGA)

22. The Study provides an assessment of the B1 – Neighbourhood Centre and B2 – Local Centre zoned land in the former Hurstville City Council LGA.

23. The draft Study excludes the B1 – Neighbourhood Centre and B2 – Local Centre zoned land within the former Kogarah City Council LGA. The former Kogarah City Council had commissioned an Employment Lands and Economic Development Strategy (SGS Economic and Planning: 2013) as part of the Background Work to the preparation of the amendments to Kogarah LEP 2012 (New City Plan). The Employment Lands and Economic Development Strategy was endorsed by the former Kogarah City Council in April 2013, and the recommendations included in the Strategy were incorporated into the recent amendments to Kogarah LEP 2012 (New City Plan), which is currently awaiting finalisation and gazettal by the Department of Planning.

24. The draft Study identifies a number of key issues which are summarised below:

a. High vacancy rates in some centres.

b. Significant residential activity in some B1 – Neighbourhood Centre Zones is limiting the achievement of the key objective of the zone, which is to provide a range of small scale retail, business and community uses that serve the needs of people who live or work in the surrounding neighbourhood.

c. The low intensity of development in a number of the B1 – Neighbourhood Centre Precincts.

d. Fragmented land ownership in the B1 and B2 Zones make it difficult to secure appropriate sized development sites.

e. Limited availability of on-site parking within developments.

f. Difficulty to attract key retail stores, and particularly supermarkets, within the B2 – Local Centre Zones across the former Hurstville City Council LGA (it should be noted that this was a key issue identified in the Strategy prepared by SGS for the former Kogarah City Council LGA.

25. The draft Study identifies 2 key barriers across all of the commercial centres (B1 and B2 Zoned Centres in the former Hurstville City Council LGA):

a. The restrictive car parking requirements – currently high and are place constraints on the viability of development.

b. Minimum non-residential floor space allocation – should be retained however consideration should be given to reducing the requirement (currently 0.5:1) so as to assist in the feasibility of development, while at the same time ensuring that commercial centres retain some employment generating opportunities.

Further Analysis of Employment Lands

26. Although a draft Employment Lands Study has been prepared, Council’s Officers have not yet undertaken a detailed analysis of each Precinct. As a result, the recommendations presented by the consultants in the draft Study are draft recommendations and may be subject to change.

27. It is proposed that during the consultation phase, further analysis be undertaken by Council’s Strategic Planning staff for each of the Precincts identified in the draft Study. This work will include the development of existing and future character statements and draft criteria for the assessment of the viability of the employment lands and there future employment generation potential.

28. This work, along with the feedback received from property owners will inform the preparation of future recommendations for each of the Precincts, which may include recommendations for the rezoning of land, expansion of land uses, review of development standards and consideration of other appropriate development controls.

29. This additional work will be presented to Council and will form part of the post exhibition report.

Community Consultation

30. Consultation is underway with the owners of affected properties and the broader community.

31. The draft Study provides a detailed analysis of the strengths, weaknesses and opportunities of employments lands across the LGA, however it is considered that further detailed work is required to be undertaken to develop detailed criteria, development controls and recommendations for each of the Precincts.

32. This additional work will be undertaken during the consultation phase, in order to provide owners/stakeholder with the opportunity to provide comment and feedback, and in some cases a more detailed response to the recommendations provided in the draft Study.

Next Steps

33. The draft study will be made available for public comment for a period of no less than 28 days.

34. After the exhibition period a further report will be presented to Council.

Financial Implications

35. Within budget allocation.

File Reference

14/784