Economic Development & Major Projects Committee Meeting 11 February 2016€¦ · Economic Development And Major Projects Committee Meeting 11 February 2016 Adopted Report Index Adopted

712

Adopted Report for the

Economic Development and Major Projects Committee

Meeting held

Thursday 11 February 2016 at

2 pm

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

712thCouncil Meeting 16 February 2016 2 Economic Development And Major Projects Committee Meeting 11 February 2016 Adopted Report

Index Adopted Report

Economic Development and Major Projects Committee Meeting Thursday, 11 February 2016

Item Direct. File Page Subject

1 EDMP CS105/2018/03(P1) 4 Commonwealth Games Venue Update

2 EDMP PD330/275/01(P10) 18 Investment Attraction Program Update Report

General Business

# Changed Recommendation KEY: OCEO - Office of the Chief Executive Officer CI - City Infrastructure GCW - Gold Coast Water CS - Community Services OS - Organisational Services EDMP - Economic Development & Major Projects PE - Planning & Environment

712thCouncil Meeting 16 February 2016 3 Economic Development And Major Projects Committee Meeting 11 February 2016 Adopted Report ADOPTED AT COUNCIL 16 FEBRUARY 2016 RESOLUTION G16.0216.016 moved Cr Grew seconded Cr Gilmore That the Report of the Economic Development & Major Projects Committee’s Recommendations of Thursday, 11 February 2016, numbered ED16.0211.001 to ED16.0211.002, be adopted.

CARRIED ATTENDANCE Cr J Grew (Chairperson) Cr D Gates Cr M Grummitt Cr T Gilmore Cr A Bell arrived 2.24pm Cr R La Castra Cr G Tozer Cr P Taylor Cr G Betts Cr D McDonald Cr W Owen-Jones (visitor) Mr D Scott Director Economic Development and Major Projects Mr R Pascoe Executive Coordinator Commonwealth Games Unit Mr S Krueger Coordinator Venue Design and Infrastructure Ms E Wallace Business and Investment Attraction Officer

712th Council Meeting 16 February 2016 4 Economic Development And Major Projects Committee Meeting 11 February 2016 Adopted Report

ITEM 1 ECONOMIC DEVELOPMENT AND MAJOR PROJECTS COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Refer 7 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of the report is to provide an update regarding Gold Coast 2018 Commonwealth Games™ (GC2018) venue development.

4 PREVIOUS RESOLUTIONS

Refer attachment one

5 DISCUSSION Since the last reporting period, extensive design and development activity has occurred within the GC2018 venue delivery programme. As part of this process, the City’s Commonwealth Games Unit continues to consult with and represent internal and external stakeholders to ensure that venues located within the Gold Coast provide the greatest opportunity and legacy benefit from GC2018. The GC2018 delivery programme is being coordinated and delivered by the Queensland Government to ensure that the GC2018 venues will be completed well before the event in 2018. Completing the venues well ahead of time mitigates risk regarding the GC2018 event by ensuring that venues are available for appropriate testing and overlay programmes. The venues are under strict budgetary constraints that are a result of the funding commitments outlined as part of the GC2018 bid. City officers are continuing to work with GC2018 partners to ensure the venues meet GC2018 requirements while providing the best possible legacy for the Gold Coast community. Carrara Sports Precinct The Carrara Sports Precinct (CSP) is the signature location for GC2018 sport and ceremony activities for the duration of the GC2018 event. The precinct in Games mode includes both City and Queensland Government facilities and will host the badminton, wrestling, weightlifting and athletics events as well as both the opening and closing ceremonies. The legacy benefit of GC2018 includes the significant widening of the City’s venue portfolio through construction of the Carrara Sports and Leisure Centre (CSLC), upgrade of the Carrara Indoor Sports Stadium (CISS), development of elite performance playing fields and the southern precinct community fields. The project has been separated into five separable portions:

· SP1: Carrara Sports and Leisure Centre (CLSC)

· SP2: Carrara Indoor Sports Stadium (CISS)

· SP3: Gold Coast Suns Education, Training and Administration Facility (ETAF)

· SP4: Southern Precinct

· SP5: Carrara (Metricon) Stadium GC2018 upgrade


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) SP1: Carrara Sports and Leisure Centre (CLSC)

Since the last reporting period, significant development has occurred onsite. Structural steel to the competition hall is complete along with the majority of the post tensioned suspended slabs. Works are currently within budget and on track to be completed by October 2016. Upon completion the venue will feature: show court with 5000 retractable seats, 15 multi- purpose community courts, café, offices for the City’s Major Sporting Venues staff, function rooms, multiple meeting rooms, amenities, change rooms and major event catering facilities. Included in this works package are significant improvements to the Precincts outdoor areas including new entry and internal service road, car parking areas, re-establishment of two elite fields and new entry plaza. SP2: Carrara Indoor Sports Stadium (CISS)

The construction design drawings for the CISS are currently being finalised with works expected to begin in August 2016 and be completed in May 2017. Proposed refurbishments will include: replacement of building cladding, additional ventilation, interior finishes and upgraded DDA access throughout SP3: Gold Coast Suns Education, Training and Administration Facility (ETAF)

SP3 is being constructed in conjunction with SP1. The operational agreement and facility lease is continuing to be developed with delegated Council officers. Upon completion the ETAF will feature: training/recovery pool, gym, customer service, high performance/football department, amenities, locker room, altitude room, general administration and players lounge. SP4: Southern Precinct

The Southern Precinct will provide three additional community fields, amenities and club facilities to the precinct that will facilitate the development of community-based sport and events in the precinct. Works are currently within budget and on track to be completed by July 2016 with the community grass fields laid and currently in establishment mode.

Roadworks, car parking (No’s) and associated infrastructure are expected to be completed by March 2016. SP5: Carrara (Metricon) Stadium GC2018 upgrade

The design of the upgraded Metricon Stadium is currently being finalised with works expected to begin in 2017. Event planning for the 2017 Sudirman Cup (World Badminton Teams Championships) is continuing. The City’s Community Venues and Services and City Events are leading the coordination of the event with Tourism Events Queensland and Badminton Australia. The Sudirman Cup will be the CLSC’s first major international event. The Major Sporting Venues and Economic Development teams are continuing to seek other events in the lead up to GC2018, increasing the City’s ability to attract both short and long term economic development opportunities to the Gold Coast.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Coomera Indoor Sports Centre – Coomera Sports Park

The Coomera Indoor Sports Centre will provide an important piece of community infrastructure for Northern Growth Corridor. This new multi-purpose facility will accommodate a range of community facilities and indoor sports such as netball, soccer, gymnastics and basketball.

The venue has been designed to world-class competition standards with potential for elite training and competition use. Key features of the venue design include a gymnastics arena and eight mixed-use sports courts. Construction is on track and on budget at Coomera with the scheduled completion at the end of July 2016. Major milestones include completion of the roof and high level glazing. Works are commencing within the next two weeks on the construction of the East-West Road within the sports park which connects Ford Road with the Sports Centre and provides greater connectivity to all users of the Park. The City is currently looking at potential enhancements to the venue to be included within the project scope. A 130kW solar system will also be installed in order to offset ongoing electrical costs at the venue and improve venue environmental sustainability. Gold Coast Local content as at December 2015 was at 65%. Gold Coast Hockey Centre – Keith Hunt Park

The Gold Coast Hockey Centre upgrade project will provide the Gold Coast with a world-class hockey facility that caters for elite training and competition as well as community use.

Key features of the venue upgrades include realignment of two synthetic hockey pitches to meet international competition requirements and major refurbishment of a shared clubhouse facility, including permanent seating overlooking the two synthetic pitches

The redevelopment of the Gold Coast Hockey Centre is expected to begin at the start of February 2016. The tender assessment has just been completed with the preferred tenderer announcement due at the time of writing this report. Building works will occur from February to September 2016 with the remaining civil and artificial turf fields works commencing in September 2016 at the end of the 2016 Gold Coast Hockey Association regular season. It is anticipated that the site will be completed in time for commencement of the 2017 Gold Coast Hockey Association regular season. An additional artificial turf hockey pitch required for training purposes is currently being constructed at the Runaway Bay Sports Super Centre. Expected completion date for this is March 2016. Gold Coast Cycle Centre and Nerang National Park The tender has been awarded for the refurbishment of the clubhouse, amenities and car parking at the Gold Coast Cycle Centre, with works to begin on site week commencing 1 February and completed by mid-March 2016. The process is currently underway to engage a trail designer for the Mountain Bike trails in the Nerang National Park with works anticipated to begin in September and be completed in December 2016.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Broadbeach Bowls Club

The Broadbeach Bowls Club is now recognised as one of Australia’s leading lawn bowls venues, attracting major lawn bowls events to the Gold Coast including the finals competition of the Australian National Championships from 2015 to 2019 and the World Junior Championships in 2016. Refurbishment works include improvements to the four international standard bowls greens and major building upgrades to the clubhouse and surrounds that will improve access and functionality of the venue. Building works include reconfiguration of offices, amenities and bar/gaming/dining area, installation of high performance area, external dining area, additional storage sheds and upgrade of DDA access and glazing through the venue. In addition to the funding provided through the GC2018 Venue Delivery Program, the Broadbeach Bowls Club are making further contributions to enable further improvements such as air conditioning and improvements to commercial spaces such as the bar and gaming areas.

Additional works including the replacement of glazing to the front windows and doors has been added to the refurbishment works which has extended the delivery timeline to the end of April 2016 (originally scheduled for end March 2016). In addition to this the Broadbeach Bowls Club, with support from City officers has been successful in a Sport and Recreation Services (Queensland Government) Get Playing grant for additional bowling green lighting. Property Services are currently finalising the lease documents that will see the club extend the lease period out to 2026 (currently 2020). Gold Coast Aquatics Centre The Gold Coast Aquatic Centre been open for over 12 months. The defects liability period for the Gold Coast Aquatic Centre has been completed. The facility continues to attract new customers including international, national, state and local events and carnivals, national team training camps and general activity. More recently the venue hosted a round of the FINA Diving Grand Prix and the British Olympic Diving Squad for pre-Olympic training. A Venue Operations Plan has been developed by GOLDOC for the Gold Coast Aquatics Centre (the first venue to be planned in detail). Extensive integration has occurred between the Commonwealth Games Unit and relevant internal stakeholders to inform planning and ensure the City is influencing outcomes during the venue planning process. Training Venues The Ashmore PCYC and Musgrave Sports Park have been formally identified by GOLDOC as training facilities for GC2018. City officers will continue to liaise with GOLDOC and existing lessees in regards to these sites and use prior to and during GC2018.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Theme 1: The best place to live and visit 1.2 We live in balance with nature

1.6 Our modern centres create vibrant communities

1.8 Our city benefits from a great Gold Coast 2018 Commonwealth Games™ Theme 2: Prosperity built on a strong diverse economy 2.3 We have infrastructure that supports productivity and growth 7 COMMONWEALTH GAMES IMPACT The venues identified in this report have direct connection to the GC2018 as competition venues. The design of the venues must consider the GC2018 competition requirements as well the longer term community legacies. The design and development of the venues strengthens the city’s community and event infrastructure providing direct benefit in the form of permanent infrastructure as a result of the City hosting the GC2018. 8 FUNDING AND RESOURCING REQUIREMENTS Funding of GC2018 venues is aligned to the Candidature File (Games Bid), ensuring that both the GC2018 event and the city’s legacy requirements are considered, wherever possible and practical, as permanent works.

Permanent works and GC2018 funding strategies (including use of GC2018 venues contingency) will need to be continually reviewed and negotiated with GC2018 partners to ensure the delivery of assets that offer a long lasting legacy within the city. 9 RISK MANAGEMENT Current risk planning associated with the City’s involvement in GC2018 identified two corporate risks directly relevant:

· Failure to maximise the legacy and community development opportunities associated with GC2018.

· Failure to effectively plan for and manage the operational impacts of GC2018 resulting

in service delivery impacts and reputation damage. 10 STATUTORY MATTERS Council is a co-signatory to the Host City Contract for GC2018 and is required to meet certain guarantees, obligations and reporting requirements.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) 11 COUNCIL POLICIES Not Applicable 12 DELEGATIONS Not Applicable 13 COORDINATION & CONSULTATION

Name and/or Title of the Stakeholder Consulted

Directorate or Organisation Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Richard Pascoe, Executive Coordinator, Commonwealth Games Unit

EDMP, City of Gold Coast Yes

Brett Robinson, Executive Coordinator, Major Sporting Venues & Aquatics

Community Services, City of Gold Coast

Yes

Ron Jacobs, Manager, Parks and Recreational Services

Parks and Recreational Services, City of Gold Coast

Yes

Governance arrangements for GC2018 include cross-directorate working groups, with the former Infrastructure Working Group and the Venues Technical Reference Group supporting the City’s oversight of the GC2018 Venue Delivery Program. 14 STAKEHOLDER IMPACTS A number of important GC2018 activities, as highlighted within this report, will be advanced within 2016. Recognising the importance of these works to the overall success of GC2018, as well as the impact to stakeholders associated with works, strategic engagement processes are being employed. This includes development, completion and implementation of site-specific master plans, consultation with operational and maintenance programmes, regular briefings to Council and relevant Divisional Councillors.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) 15 TIMING Major milestones associated with the projects mentioned in this report include:

· February 2016: Commencement of Gold Coast Hockey Centre works (completion March 2017)

· February 2016: Commencement of Gold Coast Cycle Centre works (completion March 2016)

· April 2016: Completion of Broadbeach Bowls Club works

· June 2016: Completion of Carrara Sports Precinct (Southern) works

· July 2016: Completion of Coomera Indoor Sports Centre construction works.

· August 2016: Commencement of Carrara Indoor Sports Stadium construction works

· October 2016: Completion of Carrara Sports and Leisure Centre and Gold Coast Suns Education and Training Centre construction works.

16 CONCLUSION The GC2018 venue delivery program is currently well underway, with construction for the Carrara Sports Precinct projects, Coomera Indoor Sports Centre and Broadbeach Bowls Club well underway. Construction on the Gold Coast Hockey Centre and Gold Coast Cycle Centre will begin in February 2016. Operational planning for all venues is currently being undertaken to ensure not only a successful GC2018 but also ensure the facilities provide a valuable long term legacy for the Gold Coast. 17 RECOMMENDATION It is recommended that Council resolves as follows: That the report be noted. Author: Authorised by: Scott Krueger Darren Scott Coordinator Venue Design and Infrastructure

Director Economic Development and Major Projects

28 January 2016 TRACKS REF: Document3 COMMITTEE RECOMMENDATION: ED16.0211.001 moved Cr La Castra seconded Cr Taylor That the two elite fields, which are yet to be constructed and are to replace the two original football fields, joint funded by Division 8 LAW and whole of city funding, are only to be used for elite (representative, national/international) football (soccer) as was the original intent, post Commonwealth Games, except where other uses are possible without impacting on the above objective.

CARRIED


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1)

Attachment 1 4 Previous Resolutions

Council at its meeting of 1 September 2015 resolved ED15.0825.003:

That Committee Recommendation ED15.0825.003 be adopted, with a change to Part 1 and addition of Part 4, such that it reads in its entirety as follows: 1 That the report/attachment be deemed non-confidential except for those parts deemed by

the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That the Carrara Sports Precinct vision and high performance sports targets as outlined within this report be endorsed to guide future investment decisions and sports attraction opportunities.

3 That a further update report be provided to Council on the progression of the GC2018 venue infrastructure program in the first quarter of 2016.

That the replacement page (page 73 of committee agenda) be included in the minutes.

Council at its meeting of 17 February 2015 resolved ED15.0212.003:

1. That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2. That a further report be provided to Council on the progression of the GC2018 Venue Infrastructure Program in the last quarter of 2015.

Council at its meeting of 21 May 2014 resolved CG14.0521.002 (in part):

1 That the report/attachment be deemed a confidential document and be treated as such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council supports the changes to the GC2018 Venue Master Plan as outlined in this report.

3 That a further report be provided to Council on the progression of the GC2018 venue infrastructure program by the end of 2014.


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Council at its meeting of 25 February 2014 resolved G14.0225.006:

1. That the attachment be deemed a confidential document and be treated as such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2. That Council note the contents of the report and the GC2018 Live Sites planning report (Attachment 1).

3. That the CEO provide a copy of this report and attachment to the Director General of the Department of Tourism, Major Projects, Small Business and the Commonwealth Games with the Live Sites consultants report attached.

Council at its meeting 17 September 2013 resolved G13.0917.011 (in part)

2. That Council supports continued development of a master plan as described in the report to further inform the development of the site and maximise legacy opportunities.

3. That a further report be provided to Council on the outcomes of the venue master planning processes for the three venues mentioned within this report.

Council at its meeting of 3 September 2013 resolved G13.0903.006 (in part):

2. That Council supports the further design development of the Carrara Sports Precinct and Coomera Regional Sports Park as outlined in this report and the attached updated Concept Master Plan.

3. That city officers, in conjunction with the Games partners, further resolve design and cost implications associated with the proposed venues option identified in this report.

4. That a further report be provided to Council on the outcomes of these investigations.

Council at its meeting of 29 May 2012 resolved G12.0529.005 (in part):

“3 That Council endorses a focus on maximising the legacy value to the city of the 2018

Commonwealth Games in the future negotiations with the State and Federal governments relating to the hosting of the Games.”


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1)

Attachment 2 Carrara Sports Precinct

Carrara Sports and Leisure Centre Aerial view including Southern precinct

Carrara Sports and Leisure Centre


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Coomera Sports and Leisure Centre

Southern Façade View from Dreamworld

Internal works Perspective – Southern Entry

(Long Room)


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Gold Coast Hockey Centre Site Plan Perspective – New field and clubhouse

http://www.statedevelopment.qld.gov.au/images/comm-games/hockey-gallery/hockey-02.jpg


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Broadbeach Bowls Club

Site Plan

Internal Perspective


ITEM 1 (Continued) COMMONWEALTH GAMES VENUE UPDATE CS105/2018/03(P1) Gold Coast Cycle Centre


ITEM 2 ECONOMIC DEVELOPMENT BRANCH INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) Refer 5 page Attachment 1 Refer 6 page CONFIDENTIAL Attachment 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section 275

(1) of the Local Government Regulation 2012 for the reason that the matter involves: (h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to advise on the business and film related investment outcomes of the Investment Attraction Program of the period July - December 2015. 4 PREVIOUS RESOLUTIONS Refer Attachment 1 5 DISCUSSION 5.1 Background In operation since July 2009, the City of Gold Coast Investment Attraction Program incorporates a suite of investment attraction services with one component being a financial assistance package intended to attract companies and new investment to the city. The program provides a significant competitive advantage for the Gold Coast with the Council being the first in the country to commit to such an innovative program at a local Government level with the focus of the program to: a promote the Gold Coast as a highly desirable destination for investment

b target specific industries in knowledge based and future growth sectors that will create sustainable employment for Gold Coast City residents

c attract new capital investment into the city

d attract increased film production which will generate additional economic activity for the city

e attract other significant projects that will have a major economic impact on the economy

f retain highly skilled workers on the Gold Coast

g attract skilled workers and research and development into the city


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 5.2 Investment Attraction Program Outcomes to Date To date, the Investment Attraction Program has received over 320 enquiries which have resulted in: a 41 successes with an assistance payment – 21 companies and 20 film projects

b three sport business investment retention projects

c 39 successes without an assistance payment

d 24 general enquiries

e 10 long term enquiries

f 153 leads on hold

g 59 unsuccessful bids These enquiries have come from a variety of sources including the City of Gold Coast Roadshow Program, Future Gold Coast Program and International Trade and Investment Program, Trade and Investment QLD, through program specific marketing and direct contact to the Economic Development Branch. Enquiries have been received from companies operating in a range of sectors such as: a ICT

b environment

c tourism infrastructure

d food

e manufacturing

f education and training The total value of the enquiries into the Investment Attraction Program is difficult to determine as a number of these enquires have not divulged further information about their plans.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 5.3 Investment Attraction Successes Since the commencement of the program, the activities of the Investment Attraction Program have resulted in 83 successful investment opportunities being realised for the city – inclusive of both company, film investment and sports business retention. For the period July – December 2015:

- Two new companies have been attracted to the city worth close to $1.3 million in capital investment and 47 full time employment positions (projects still confidential)

- One new peak sporting body (Mountain Bike Australia) was attracted to the city who will lease an office at Bond University and create seven new full time employment positions

- Five new film projects will be provided with a rebate – these projects are worth an estimated $123 million and 910 temporary full time employment positions

- Two new sport related business investment / retention projects have been secured

o Retention and expansion of Pizzey Park Tennis Facility to allow for the attraction of new, and the growth of existing tennis events

o Retention of head office and major sporting event in relation to Australian Baseball Federation

Since the commencement of the Investment Attraction Program, the successes that have qualified for assistance payments include 21 companies, 20 film projects and three sport business investment retention projects. Additionally, there have been 39 companies attracted through Council’s Investment Attraction without an assistance payment. Generally these projects have not been eligible for the program due to the nature of their industry (i.e. retail) or have made a commitment before applying for the Investment Attraction Program. A full breakdown of companies and film projects attracted to the Gold Coast (using financial incentives) and milestone payments awarded can be found in Confidential Attachment 2. Under the Gold Coast Sport Plan, the Sport Business Investment Attraction Program has now been in implementation for 18 months. The purpose of this program is to allow the City to analyse and secure opportunities for the attraction of peak sport organisations, high performance training camps, exhibition games and new sport events to the city. Funds are allocated as part of the Investment Attraction Program budget. For the period July – December 2015: - 14 training camps were supported with an economic benefit of $1.28 million

- 20 state and national level sporting were supported with an economic benefit of $8.42 million

A full breakdown of these outcomes will be provided in the Gold Coast Sport Plan, update three in May 2016.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 5.4 Long Term Investment Attraction Leads To date, feedback from companies associated with the Investment Attraction Program is that the timeframes associated with making a significant business relocation or expansion decision can often take up to five years; from initial idea through to the opening of the new facility. This is due to the lengthy due diligence associated with site selection and the assessment of their options. As such the Investment Attraction Program has received a number of long term enquiries; with many companies currently in the initial stages of location short-listing and assessment against their set criteria. The city is actively engaging with these companies and assisting with their due diligence by providing quotes of assistance through the Investment Attraction Program by: a providing further information about the capabilities of Gold Coast relevant to their

industry

b assisting with possible site options

c providing real estate agent and/ or developers contact details

d providing generic city information such as utility costs, population figures, labour force, visitor numbers, industry structure and economy information

5.5 Investment Attraction Guidelines Review The Investment Attraction Program internal and external guidelines were last reviewed in 2014 – as such it is timely to undertake a full review of the guidelines with internal and external stakeholders to ensure relevancy to current projects and economic objectives. It is proposed that this review will be presented to Council in July 2016. The City of Gold Coast was one of the first in the country to develop an Investment Attraction Program. The success of the program has led to a large number of other Councils across Australia replicating this program. In order for the Gold Coast to remain competitive a number of additions to the Investment Attraction program are currently under consideration including:

· addressing infrastructure impediments

· review of incentives to be provided in key industrial and business precincts

· entrepreneur attraction


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN

· Corporate Plan 2020 -

- 2.0 - Prosperity built on a strong diverse economy

· Economic Development Strategy 2013 -2023

- 6.4 – Competitive business, a business environment that is strong and globally competitive

- 6.6 International, a city known as an emerging world class business destination

· Operational Plan

- Economic Development – facilitates long term economic growth for the Gold Coast

7 COMMONWEALTH GAMES IMPACT The Investment Attraction Program provides the opportunity to attract new business and investment to the city relevant to the Commonwealth Games and as part of future legacy. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Council allocated $1.3 million (including carried forward funds) to the Economic Development Branch budget centre ED5600O013, cc1006418 as part of the Investment Attraction Budget Program for 2015-16. To date in 2015-16, $513,750 has been allocated to companies with an additional $1,771 spent on administering the program including lead generation activities, marketing materials etc. The Sport Investment Attraction Program is also funded from budget centre ED5600O013, cc1006418 in order to administer their program. For the period July – December 2015 an allocation of $221,993 was made, resulting in $9.74 million of economic benefit to the city. Since the Sport Business Investment Attraction Program commenced, 98 sport related initiatives including high performance training camps, exhibition games and sporting events have been supported via this program with an estimated direct economic return of $27.44 million for the city. This excludes visiting partner rates and value added media outcomes. Currently $562,546 remains to be allocated to companies, film or sport projects in 2015-16. Should it not be allocated by the end of this financial year, it will be rolled into the 2016-17 Investment Attraction Program budget as carried forward funds in accordance with Council direction (G11.0516.017).


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) Since the commencement of the Investment Attraction Program in July 2009, and following contract monitoring and milestone evaluation, the program has currently committed to provide financial assistance of approximately $4.7 million resulting in almost $614 million in direct capital investment to the city and the creation of 863 full time employment positions with an additional 3570 temporary full time employment positions generated through film productions. Please refer to Confidential Attachment 2 for further information. People and Culture Activities in relation to the Investment Attraction Program are being undertaken by officers within Council’s Economic Development Branch. 9 RISK MANAGEMENT

Risk number CO000427 – Failure to diversify the economy leading to an over reliance on the construction and tourism industries to generate economic growth and prosperity. This project seeks to ensure the economy is built upon a diversified knowledge and export base with infrastructure supporting globally competitive business development and growth. 10 STATUTORY MATTERS The ongoing use of Council’s Beneficial Enterprise Powers is required to enable the effective administration of this program. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS The Director Economic Development and Major Projects has the authority to approve financial assistance packages for firms which are up to $100,000 in value.

13 COORDINATION & CONSULTATION

Name and/or Title of the Stakeholder Consulted

Directorate or Organisation Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Manager Economic Development, Toni Brownie

EDMP YES

Coordinator Economic Development, Annie Norton-Knight

EDMP YES

Business and Investment Attraction Officer, Craig Rowsell

EDMP YES

Industry Development Officer , Clare Leys

EDMP YES

Corporate Finance, Heather Deeley

OCEO YES


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 14 STAKEHOLDER IMPACTS The Investment Attraction Program will continue to work with a number of key internal and external stakeholders including but not limited to: External / community stakeholder Impacts

a) Trade and Investment Queensland

b) Austrade

c) international trade organisations

d) trade consulates

e) commercial property agents

f) relocation specialists

g) migration agents

h) accounting and consulting firms

i) Chambers of Commerce (national and international)

j) partnering international economic development organisations

k) venture capitalists

l) equity partners

m) various business organisations Internal (Organisational) Stakeholder Impacts

a) Directorates of Council as relevant 15 TIMING The Investment Attraction Program was endorsed by Council as an ongoing program of the City in May 2011. This report provides an update on activities of the Investment Attraction Program for the period July - December 2015. 16 CONCLUSION Since the implementation of City of Gold Coast’s Investment Attraction Program, the City has received significant interest from a range of firms seeking to establish a presence in the city. To date, the City has received well over 300 enquiries into the program resulting in a wide range of economic benefits and new investment projects for the city. The attraction and retention of 83 companies and film projects; 44 of which have received or will receive an assistance payment will result over 860 direct full time employment positions with an additional 3570 temporary full time employment positions created through film production attraction. In total, these projects amount to almost $614 million in direct capital investment to the city’s economy, with further benefits to come as these companies continue to grow. A review of the Investment Attraction guidelines will provide Council with the opportunity to consider additions to the program and to increase the city’s competitiveness and the attraction of new and significant projects and investors.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the attachment be deemed a confidential document and be treated as such in

accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council notes the content of this report

3 That an update report including a review of the Investment Attraction Program internal and external guidelines is returned to Council in July 2016

Author: Authorised by: Emma Wallace Darren Scott Business and Investment Attraction Officer Director Economic Development and Major

Projects December 2015 TRACKS REF: #52267203Document3 COMMITTEE RECOMMENDATION: ED16.0211.002 moved Cr Gilmore seconded Cr Tozer 1 That the attachment be deemed a confidential document and be treated as such in


2 That Council notes the content of this report 3 That an update report including a review of the Investment Attraction Program

internal and external guidelines is returned to Council in July 2016 CARRIED

There being no further business, the meeting was declared closed at 2.38pm


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5)

ATTACHMENT 1

Council, at its meeting of Tuesday 28 July 2015, resolved in part (G15.0728.021): 1 That the attachment be deemed a confidential document and be treated as such in


2 That Council notes the content of this report

3 That an update report is returned to Council in December 2015

Council, at is meeting of Friday 28 November 2014, resolved in part (G14.1128.017): 1 That the attachment be deemed a confidential document and be treated as such in


2 That Council notes the content of this report.

3 That Council endorses the updates to the attached Investment Attraction Program external guidelines, internal guidelines and internal operating procedures.

4 That an update report is returned to Council in July 2015.

Council, at its meeting of Tuesday 1 April 2014, resolved in part (G14.0404.015): 1 That Council note the contents of the report.

2 That Council endorses the Film Attraction Program guidelines. 3 That any proposed changes to guidelines in relation to other programs be the subject

of a further report to Council.

4 Council delegate to the CEO the power to approve and enter into agreements with companies for financial assistance packages up to $100,000, as part of the Investment Attraction Incentive Funding program.

Council, at its meeting of Tuesday 3 December 2013, resolved in part (G13.1203.029): 1 That Council notes the content of this report. 2 That a review report on the Investment Attraction Program be presented in March

2014.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) Council, at its meeting of 21 June 2013, resolved in part (G13.0621.024): 1 That Council notes the content of this report. 2 That a further update and outcomes report be presented to Council in

December 2013. 3 That Council adopts the updated internal assessment criteria for the City of Gold Coast

Investment Attraction Program including:

a incentives are removed for existing full time employment positions within companies that are looking to move to the City of Gold Coast from neighbouring Council jurisdictions as indicated in the report

b any financial offers made by City of Gold Coast will lapse within a year of the letter

of offer being made. Council, at its meeting of 4 December 2012, resolved in part (G12.1204.002): 1 That Council notes the content of this report.

2 That a further update and outcomes report be presented to Council in June 2013.

3 That future reports include a status on each of the companies to include capital investment and jobs created.”

Council, at its meeting of 12 June 2012, resolved in part (G12.0612.020): 1 That Council notes the content of this report and the current outcomes of the Investment

Attraction Program and Gold Coast Roadshow Program.

2 That a further update and outcomes report be presented to Council in December 2012.

3 That Council approves the 2012-13 Gold Coast Roadshow Program in principle within

the overall ceiling of the Economic Development Cost Centre 560 budget number 1005161 to the amount of $150,000 with a program to be presented to Council quarterly in advance.

4 That Councillors wishing to be involved in the 2012-13 Gold Coast Roadshow Program within Australia and New Zealand make their interest and reasons for participation known in writing to the Mayor for endorsement.

5 That funds for any Councillor participation in the 2012-13 Gold Coast Roadshow Program be provided from the Councillors Conference Attendance Budget.

Council, at its meeting of 9 December 2011, resolved in part (G11.1209.012): 1 That Council notes the content of this report and the current outcomes of the Investment

Attraction Program.

2 That a further update report be presented to Council in June 2012.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5)

Council, at its meeting of 16 May 2011, resolved in part (G11.0516.017): 1 That Council supports the Investment Attraction Program as an ongoing program of the

Economic Development Branch at a cost of up to $1.3 million per year.

2 That Council approves the recurrent budget of a total of $1.3 million a year, including any carried forward funds, for the Investment Attraction Program as an ongoing program of the Economic Development Branch as part of the 2011-12 special budget process.

3 That Council adopts the updated funding guidelines and assessment criteria established for the Investment Attraction Program.

4 That further update reports regarding the Investment Attraction Program are presented to Council every six months.

5 That Council resolves that it is entering into the Investment Attraction Program as an exercise of its Beneficial Enterprise Powers.

6 That Council continues to support the collaborative approach between EDMP and the Planning Environment and Transport directorates to assist key investment attraction

targets identified within the Investment Attraction program to obtain the benefits as outlined in section 5.9 of this report.

7 That the Director EDMP be given the authority to approve, enter into, vary and discharge agreements with companies for financial assistance packages under $100,000 in value.

8 That the Director EDMP be given delegated power to enter into, vary and discharge financial agreement that exceed $100,000 in value and have been approved by Council. This authority is limited to this contract where Council has provided for the expenditure in its approved budget, and where the contract sum does not exceed the approved amount.

9 That the CEO (Director of Economic Development and Major Projects) convey a copy of

this report to:

· Director Investment Attraction, Invest Queensland

· National Manager Investment, Austrade

· Chairman BusinessGC Advisory Board”

Council, at its meeting of 10 December 2010, resolved in part (G10.1210.012): 1 That Council notes the content of this report and the current outcomes of the

Investment Attraction Program.

2 That a further update report be presented to Council in June 2011.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) Council, at its meeting of 26 July 2010, resolved in part (G10.0726.017): 1 That Council notes the content of this report and the current outcomes of the

Investment Attraction Program.

2 That a further update report be presented to Council in December 2010 and in June 2011.

Council, at its meeting of 15 February 2010, resolved in part (G10.0215.008):

1 That the report/attachment be deemed non confidential except for those parts deemed by the CEO to remain confidential.

2 That Council notes the content of this report and the current outcomes of the Investment Attraction Program.

3 That a further update report be presented to Council in June 2010 and bi-annually in 2010-11.

Council, at its meeting of 19 October 2009, resolved in part (G09.1019.008):

1 That Council supports the funding guidelines and assessment criteria established for the Investment Attraction Incentive Funding Scheme.

2 That Council resolves that it is entering into the Investment Attraction Incentive Funding program as an exercise of its Enterprise Powers. For the purpose of s501(1) (e) the identity of the persons of relevant competence with whom the local government has consulted in exercising an enterprise power are Director Economic Development and Major Projects, Manager Economic Development, and Executive Coordinator Economic Development.

3 That Council supports the collaborative approach between EDMP and the Planning Environment and Transport directorate to assist key investment attraction targets identified within the Investment Attraction program, to obtain prioritised, fast tracked service from Council to streamline potential relocation to the city.

4 That the Director Economic Development and Major Projects be given the authority to approve and enter into agreements with companies for financial assistance packages under $100,000.


ITEM 2 (Continued) INVESTMENT ATTRACTION PROGRAM UPDATE REPORT PD330/275/01(P5) Council, at its meeting of 3 April 2009, resolved in part (G09.0403.011): 1 That Council endorse the following projects as part of the economic stimulus package at

a total cost of $122.02million:

a Surfers Paradise Foreshore Redevelopment including public toilets in Cavill Mall - $25.145million

b Gold Coast Industry Investment Attraction Project - $2.6million

c Stormwater Infrastructure Construction – $1.5million & $2.75million

d Major Roads Projects - $12.35million

e Robina Space Project - $5.465million

f Selected Bikeway Projects - $4.56million

g Export Support for Local Firms - $0.15million

h Southport Broadwater Parklands - $16.8m plus up to $30.7m contingent on state funding

i Carrara Stadium Redevelopment - $20m”

2 That the loan funds required to fund projects a,c,d,e,f and h identified in recommendation 1 above be included in the March budget review and 2009-10 draft budget loan programs, as appropriate.

712thCouncil Meeting 16 February 2016 CONFIDENTIAL 31 Economic Development And Major Projects Committee Meeting 11 February 2016 Adopted Report

UNAUTHORISED RELEASE OF CONFIDENTIAL REPORTS OR INFORMATION may be an offence under the Local Government Act 2009 and other legislation and could result in disqualification from office and a penalty of up to 100 units.

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