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BalancingPublicandPrivateInfluenceinPublicPrivatePartnerships:acasestudyof

MelbourneDocklandsPositionPaper2

CitiesofEconomiesandRegions

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ThesisStatement• Thebalancebetweenpublicandprivateinfluenceinthepublicprivatepartnership(PPP)duringtheredevelopmentofMelbourneDocklandswasswayedtowardsthatoftheprivatesector.Publicopinionandconsultationwassecondarywhenplansanddevelopmentagreementswerebeingformed.Thispaperalsoraisesthequestion:wasthistheonlywaytomaketheregenerationofadisusedindustrialwastelandthatisDocklands,economicallyviable?

MinisterforMajorProjectsMarkBirrell&SenatorRichardAlstonSource:(DocklandsAuthority,1998)

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Background• 220Hectaresofwaterfrontlandandharbour,locatedimmediatelywestoftheoftheMelbourneCBD• Sincethelate1980sDocklandshasundergonesignificantregeneration• JointdevelopmentventurebetweenPublicandPrivatesectors(PPP)• Shapedbyseveraldifferentphases,politicalagendasandeconomicclimates–includingpastredevelopmentattempts(CFM)• “OneofthemostadventurousandambitiouswaterfrontdevelopmentsintheworldandthelargesturbanrenewalprojectinAustralia’shistory”(Petty,2005)

EarlyDocklandshttp://jcstreetrealestate.files.wordpress.com/2009/12/old‐pictures‐of‐melbourne‐docklands‐1800s1.jpg

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PublicPrivatePartnership• “Privatebusinessbecomesinvolvedinfinancing,designing,constructingandowningoroperatingpublicfacilitiesorservices”(Hodge,2004,p.37).• Balancebetweenthis“megacredit‐card”facilityandtheriskgovernmentfaceswhentransferringpublicassetsintoprivatehands

WebbDockBridgeisanexampleofexperimentationinarchitectureandurbandesignSource:(Keeney,2005)

• PPPwaslubricatedbythecreationofasingle‐purposedevelopmentAuthority–TheDocklandsAuthority(DA)• TheDAactedtochannelprivateinvestmentintoDocklands,freefrompoliticalinterference• Influencedbyprivateinterests–TheCommitteeforMelbourne

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Results/Discussion• Privateinfluencedominated‐Marketleddevelopmentideology• ButRemarkableoutcome‐$9BillionofDevelopmenttodate–withlittleimpactonthepublicpurse–undoubtedcommercialsuccess• DocklandsiswhatMelbourne’sCBDneeded–high‐endcorporatespace(MarkBirrell,MinisterforMajorProjects)• Wouldnothavebeendevelopedtotheextendithaswithoutstrongprivateinfluence(AlanStockdale,Treasurer)• Lacksvitalcivicspace(i.e.Townsquare)butTabarts30‐metremargincrucialtoretainingpublicownershipofthewater(MichaelLindell,Consultant)• Stillaworkinprogress,shouldbejudgedaccordingly• TobesociallydesirablefirstneedstobeeconomicallyfeasibleHeavilycontaminatedgasworksinthe1960'sandthesiterebornasDocklandsParkthatnowstoresrainwaterundergroundforirrigationSource:(Gibson,2005)

VictoriaHabourSource:(OwnPhoto,2010)