ORDINARY MEETING OF COUNCIL

24 NOVEMBER 2015

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8.11 ST KILDA TRIANGLE - STAGE 2 - DRAFT ST KILDA TRIANGLE MASTERPLAN

LOCATION/ADDRESS: LOWER ESPLANADE

GENERAL MANAGER: CLAIRE FERRES MILES, PLACE STRATEGY & DEVELOPMENT

PREPARED BY: PETER SAGAR, ACTING EXECUTIVE MANAGER CITY GROWTH

DAMIAN DEWAR, ACTING PROJECT DIRECTOR ST KILDA TRIANGLE

TRIM FILE NO: 66/16/03

ATTACHMENTS: 1. Roadmap for Co-Design

2. Project Timetable (November 2015)

3. Draft St Kilda Triangle Masterplan

PURPOSE This report provides a progress update for St Kilda Triangle Stage 2, and presents:

• A draft Masterplan collaboratively developed through the Masterplan Co-Design workshops (Milestone 5 and 6)

• The next steps for community engagement (Milestone 6a)

• An update on the draft Business Case (Milestone 7).

RECOMMENDATION

That Council:

1.1 Notes the progress and outcomes achieved in the updated Project Timetable (Attachment 2).

1.2 Endorses the updated milestones for St Kilda Triangle Stage 2, including:

• completion of Milestones 5, 6, 6a and 7; and

• commencement of Milestones 6b and 8.

1.3 Endorses the draft St Kilda Triangle Masterplan (Attachment 3) collaboratively developed through the Masterplan Co-Design workshops to be released for community comment.

BACKGROUND 2.

Project Context

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2.1 Council is leading a process to realise the community’s vision for the St Kilda Triangle. On 24 August 2014, Council resolved:

Council will co-design with our community and stakeholders a funded project for the St Kilda Triangle which creates a locally-loved place that the world admires.

2.2 There are six stages to realising a capital project on the St Kilda Triangle, as outlined in the Roadmap for Co-Design (Attachment 1), first presented to Council on 9 December 2014).

Stage Year

St Kilda Triangle 2012 2012, completed

Stage 0 – Background 2013, completed

Stage 1 – Refine the Parameters 2014, completed

Stage 2 – Collaborative Design 2015, this stage

Stage 3 – Detailing and Funding 2016-17

Stage 4 – Implementation 2018-19

Stage 5 – Management 2020

2.3 The Project Timetable presented to Council on 10 March 2015 has been updated (Attachment 2). It depicts a three-phase approach to the project:

• Realising the Vision: to co-design a solution for the St Kilda Triangle that is fundable and deliverable.

• Quick Wins: to undertake early works to enable the site to begin transforming.

• Activate Now: to change perceptions of the site as just being a carpark, test the St Kilda Triangle Cultural Charter and to create an appetite to develop the site.

2.4 Stage 0 – Background developed St Kilda Triangle 2012, a vision and framework for the site, and prepared a number of technical reports to inform forward project planning. St Kilda Triangle 2012 was formally endorsed by Council and released to the public on 28 August 2012. Amendment C106 was prepared in 2012/13, and on 23 July 2013 Council resolved that revisions should be considered at a future Ordinary Meeting of Council. Following a resolution by Council on 10 March 2015, the Minister for Planning has approved the extension to the lapsing date for Amendment C106 to the Port Phillip Planning Scheme. The Minister has advised Council that it is required to decide whether to adopt the amendment by 9 May 2017.

2.5 Stage 1 – Refine the Parameters aimed to improve the understanding between Council and the community about what is preferred and what should be avoided on the site. It also provided an opportunity for Council and the community to explore and understand the financial implications of these choices. The outcomes of Stage 1 were endorsed at an Ordinary Meeting of Council on 9 December 2014. These outcomes included:

• Design Brief

• Draft St Kilda Triangle Cultural Charter

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• Draft Indicative Programming and Activation Plan; and

• Roadmap for Co-Design (including a Statement of Community Participation).

2.6 Stage 2 – Collaborative Design, which is currently underway, has been designed to create the best chance of success and to build the alignment and aspirations of Council, community, industry and government through a co-design process – as no one group can solve and deliver this project in isolation of the other.

2.7 This stage will prepare:

• a Business Case that is a funding proposal to justify public and private investment

• a Concept Design Report that shows the agreed landscape, built form envelopes, uses and a staging plan. This will be developed by co-designing Masterplan Options, Public Realm Options, and Project Options.

• a Delivery Strategy that articulates the path and decisions to secure partners to co-fund and construct the project.

2.8 The St Kilda Triangle project will be considered successful when all four stakeholder groups (Council, community, industry and government) have crossed the line together, having:

• an agreed vision and plan for the site

• activated the site during winter 2015, 2016 and 2017

• completed quick wins and a governance model ready for event and programmed activation

• a committed and funded plan for the site’s redevelopment; and

• implementation of that plan.

Project Milestones

2.9 Officers have prepared the following updated Stage 2 Key Milestones (first presented to Council on 10 March 2015):

Key Milestones

Date approved at 10 March Ordinary Meeting of Council

Revised or Actual Date Status

Phase A – Conceptualise the opportunity

1 Complete Investment Logic Map and Market Soundings March 2015 June 2015 Completed

2 Refine the Design Brief (based on Market Soundings, and Investment Logic Map)

April 2015 June 2015 Completed

Phase B – Collaborate on Solutions

3 Appoint Stage 2 consultants May 2015 June 2015 Completed

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Key Milestones

Date approved at 10 March Ordinary Meeting of Council

Revised or Actual Date Status

4 Commence co-design on Masterplan Options June 2015 July 2015 Completed

4a Interim Masterplan - September 2015 Endorsed

5 Commence co-design on Project Options July 2015 October 2015

Completed (reporting in this Council Report)

6 Commence co-design on Public Space Options August 2015 October 2015

Completed (reporting in this Council Report)

6a Draft Masterplan released for consultation - November 2015

Completed (reporting in this Council Report)

6b Final Masterplan - March 2016 On Track

Phase C – Finalise Business Case

7 Draft Business Case October 2015 October 2015

Completed (reporting in this Council Report)

8 Final Business Case November 2015 December 2015 On Track

2.10 The outcomes of milestones 5, 6, 6a and 7 are outlined in this report and are noted as completed.

PHASE B: COLLABORATE ON SOLUTIONS 3.

Milestone 5: Commence co-design on Project Options

3.1 Following the endorsement of the Interim Masterplan, the project progressed to further test and increase confidence in the viability of built form envelopes.

3.2 This was achieved through market soundings and a workshop with major events and arts and culture organisations. Discussions were also held with local trader representatives. Council officers have continued to engage with State Government agencies about opportunities for cultural facilities or institutions on the site.

Market Sounding

3.3 A St Kilda Triangle Market Sounding Report was prepared by Infrastructure Services Group (ISG Projects) for Council to test:

• the current appetite for the proposed development mix; and

• the commercial parameters for participation.

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3.4 The following is a summary of the feedback from industry:

• Nearly all participants expressed enthusiasm for the Interim Masterplan as having the potential to be a significant benefit and asset to the community.

• The level of attraction for private industry to contribute to development funding is influenced by the limited commercial development components.

• The ability to generate sustainable revenue is dependent on the activation of the whole site.

• The lettable built form along Jacka Boulevard was considered by a number of the interviewees to be problematic, as it is below the public space level and fronts a busy road.

• The food, beverage and retail at the garden/terrace level of the area noted as ‘ancillary activation’ is considered attractive, and could work well with a signature restaurant and outlets servicing those people utilising the park area.

• The developers would not be willing to accept liability for the costs of maintaining the public space once completed.

• The connection to the foreshore was considered important, and a future pedestrian bridge was encouraged to be part of the development.

3.5 It was noted that a number of the above issues require further investigation before investor interest could be encouraged for the whole or part of the site.

Major Events Workshop

3.6 A Major Events Workshop was held on Wednesday 28 October 2015 to:

• share the current vision for the St Kilda Triangle as detailed through the Interim Masterplan; and

• gain input from major events and arts and culture organisations on what the requirements were for the St Kilda Triangle to host local and signature events.

3.7 There was general consensus on the following items:

• a successful site needs high quality architecture and cutting edge artistic direction

• the site needs to be iconic and provide a unique ‘selfie’ opportunity for visitors

• the programming/activation and flexibility of the space is critical to its success

• a site must be accessible for all users and by a range of transport modes; and

• there is a genuine need for auditorium spaces in Melbourne that seat 1,000 to 1,500 people.

Traders Workshop

3.8 Council officers held a workshop with local traders on Thursday 29 October 2015 to:

• share the current vision for the St Kilda Triangle as detailed through the Interim Masterplan; and

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• gain input from local traders on how the St Kilda Triangle site can integrate with and complement local businesses in the area.

3.9 There was general consensus on the following items:

• the site needs to be spectacular and a genuine drawcard to St Kilda

• the Triangle site should be a link between Acland Street, Fitzroy Street and the foreshore

• NGV Contemporary is a great idea, but alternatives should also be explored

• the role of traders / Council / others regarding the management and ongoing care of the site must be considered

• the site should be activated in winter and bring more people to St Kilda during the colder months; and

• the site should be robust and offer flexible uses beyond those currently permitted in Council-managed parks.

Milestone 6: Commence co-design on Public Space Options

3.10 Following endorsement of the Interim Masterplan on 22 September 2015, the project has further explored the pedestrian experience and look, feel and texture of the site’s public space. It also explored refinements to the Draft St Kilda Triangle Cultural Charter.

3.11 Council officers held Public Space – Co-Design Workshop 3 on Sunday 11 October 2015. Of the 38 people registered to attend, 28 people participated and seven people attended the Recap Session earlier in the day.

3.12 Participants explored the experience of the St Kilda Triangle site using the Character Area Plan taken from St Kilda Triangle 2012. The Character Areas (Play, Breathe, Gather, Promenade and Perform) were then applied to the Interim Masterplan. This has informed the development of the public space in the draft Masterplan.

3.13 The response to the exercise established the following consensus:

• Breathe: across the whole pleasure garden and slopes

• Gather: groups of people under trees, with incidental gathering along the site’s active edges, balcony balustrade, roof of ancillary activation and the Palais forecourt. Differing types of gathering require different spaces

• Play: the landscape should be playful rather than encouraging active play. Opportunities for active play exist in nearby areas in the precinct, including the foreshore, O’Donnell Gardens and Peanut Farm Reserve

• Perform: in amphitheatre, Palais forecourt, adjacent to active edges, and potentially during major events with road closures of Jacka Boulevard and Cavell Street

• Promenade: some areas identified include across The Esplanade, across the site to the foreshore; from the amphitheatre to the foreshore promenade; along the Palais towards Jacka along Jacka Boulevard to Cavell Street.

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3.14 Participants were asked to provide their ideas and feedback on the ‘look and feel’ of the site’s public space. There was general consensus on:

• the importance of equality and quality of accessibility across the site

• potential reconsideration of amphitheatre location

• the importance of the role and treatment of Cavell Street

• Catani’s Mediterranean landscape should be referenced, but not replicated. One idea included transitioning landscape colours and art across the site from west to east from Catani (green and brown) to the vibrant rainbow colours of Luna Park

• landscape should consist of an indigenous and exotic mix

• reconsider the use of the massing currently assigned to the hotel

• the site should be uncluttered and uncomplicated

• a flexible space

• a pedestrian bridge across Jacka Boulevard is still an important consideration

• environmental sustainability, in particular water for new public spaces

• the importance of visual iconic attractors to the site

• potential rethinking of the Jacka Boulevard colonnade

• further consideration of public space amenity, landscaping or art to provide shelter and shade for all seasons

• the opportunity for dynamic contemporary art in the landscape, both permanent and temporary, changing over time

• introduction of water elements on the site

• technology embedded in the site, i.e. Wi-Fi, visual projections.

3.15 A key theme discussed at the workshop was the importance of creating key pedestrian connections across the site, linking St Kilda to the beach and vice versa. Feedback included:

• Whilst noting the design complexity, there is a need to provide accessibility from The Esplanade to Jacka Boulevard without relying on lifts.

• A new pedestrian connection is required from The Esplanade onto the landscape building roof, with new attractions, performance, gathering, promenade and new views.

• Improved accessibility from Acland Street, Luna Park and the new Palais Forecourt is required to lead pedestrians across the site to the new crossing at Jacka Boulevard.

• There is an opportunity to reimagine Cavell Street to link Acland Street, Luna Park, the new Palais Forecourt and the foreshore. Whilst the Jacka Boulevard colonnade link at-street level between the new pedestrian connection and Cavell Street was discussed, people were not convinced that this link would be attractive or used.

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Milestone 6a: Draft Masterplan released for consultation

Interim to draft Masterplan

3.16 The Interim Masterplan, endorsed on 22 September 2015, has enabled the project to progress with confidence.

3.17 On 13 October 2015, Council endorsed an exploration with residents, creative industry experts and the State Government to better understand the opportunity of a contemporary gallery of art and design, such as the proposed NGV Contemporary.

3.18 Following the exploration of project options, together with the outcomes of Co-Design Workshop 3 and Council’s decision on 13 October 2015, eight issues were identified for refinement:

Topic Issue in the Interim Masterplan

Proposed response in the draft Masterplan

Accessibility There are not enough quality all-access paths across the site.

A clearer and accessible path and promenade from the corner of Cavell Street and The Esplanade to north west corner of the site have been created.

The colonnade has been removed to create all-abilities access ramp.

Clearer steps have been created from the Palais Forecourt to the terrace and from the terrace to Jacka Boulevard.

Colonnade There is concern about the attractiveness, desirability and workability of the Jacka Boulevard colonnade at-street level.

The colonnade has been generally removed and replaced with new garden slopes that incorporate an all-abilities access ramp from the rooftop park to Jacka Boulevard.

Amphitheatre There is concern about the size of the space that is open to Jacka Boulevard and that it is not appropriate for formal events.

Modifications have been made to the size of the space. The Interim Masterplan shows an option of a one story pavilion. This is shown to activate and anchor the space.

Palais forecourt There is concern about clear desire lines and paths from the Palais Forecourt into the cultural facility or to the rooftop park.

Modifications have been made to the location of steps to the rooftop terrace against the Palais Theatre and to create a clearer and accessible path and promenade from the corner of Cavell Street and The Esplanade to north west corner of the site at The Esplanade.

Address and Presence

There is concern that a landmark facility will want an iconic presence and that the built form is ‘hidden’.

A clearer anchor point on Jacka Boulevard has been included and a new entry has been added near The Esplanade that can connect into the Palais Forecourt to create two iconic entries. Built form around the Palais would form a signature structure.

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Contemporary Catani Landscape

The Interim Masterplan did not present a landscape theme or experience for the public space.

Landscape plans that reference, but not replicate the Catani landscape typology have been included.

There should be transition of landscape colours and art across the site from west to east, from Catani (green and brown) to the vibrant rainbow colours of Luna Park.

St Kilda Triangle Cultural Charter

There are parts of the Draft St Kilda Triangle Cultural Charter that could be refined to remove duplication and improve on clarity of guidance.

A revised St Kilda Triangle Cultural Charter has been prepared and provided to community members who expressed their interest in working with Council to refine it (see Attachment 3).

Single Cultural Institution

Council endorsed the exploration of a single cultural institution.

This would trigger the consideration of scalability in the Interim Masterplan.

Description of draft Masterplan

3.19 The draft St Kilda Triangle Masterplan (Attachment 3) refines the Interim Masterplan. It shows the siting and massing of the built form and the public spaces between them. It is a framework for connections and land uses.

3.20 The draft Masterplan provides clarity on the look, feel and texture of the public realm and visual character as determined by community consultation. It is a not a building design or detailed design. It provides clear parameters for the next stage of the project which would test and solicit public and or private sector ideas to realise the draft Masterplan consistent with the St Kilda Triangle Cultural Charter.

3.21 The draft Masterplan proposes, the following changes from the Interim Masterplan:

Interim Masterplan Draft Masterplan

Open Space

which includes Palais Forecourt, The Lawn, The Terrace, The Slopes, Garden Slopes and Jacka Boulevard Plaza

16,000m2 19,835m2

Built form envelopes

Cultural facility/s

Hotel

Other uses consistent with the St Kilda Triangle Cultural Charter

TOTAL

17,000m2

3,500m2

3,000m2

23,500m2

14,085m2

4,650m2

2,575m2

21,310m2

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Underground carpark and service areas/back of house

TOTAL

13,600m2

2,000m2

39,100m2

17,100m2

0

38,410m2

3.22 The underground service areas of 17,100 m2 outlined in the draft Masterplan includes:

• 350 carparks

• a loading bay; and

• service areas and back of house for the cultural institution, hotel (visitor accommodation) and other uses.

3.23 The Interim Masterplan proposed 13,500 m2 for the carpark and did not explore the loading bay, service areas and back of house.

3.24 It is noted that the carpark area outlined in both the Interim and draft Masterplan is proposed as an underground carpark, i.e. to be constructed below the current Jacka Boulevard ground level.

3.25 The 14,085 m2 of cultural institution/s built form identified in the draft Masterplan is proposed in two buildings. One is located under the Lawn and is proposed as a gallery or exhibition space (10,350 m2), with the other as a performance space (3,960 m2) located behind the Palais Theatre.

3.26 The draft Masterplan envisages a precinct of cultural uses that complements the evening activation of the Palais Theatre. Within the siting and measuring of the built form the location and areas of different uses may vary as a project is confirmed and realised.

3.27 The draft Masterplan can be understood in six parts:

• The Slopes, informal plaza and proposed pavilions

• Extended balcony and Lawn open space

• Carparking

• Built form wrapped around the Palais Theatre and cultural facility

• Public space experience, landscape and connections

• St Kilda Triangle Cultural Charter

• Single cultural institution

The Slopes, informal plaza and proposed pavilions

3.28 The Slopes form a landscaped edge to The Esplanade and are an important topographical element that contributes to St Kilda’s place identity. There are differing opinions amongst the community on whether the Slopes should be changed or not.

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3.29 The Esplanade is 652m from the corner with Fitzroy Street to Cavell Street and the Slopes along it can be read as three distinct sections:

• From Fitzroy Street to Victoria Street (222m), there is a retaining wall or ‘cliff’ that includes the vaults underneath to Victoria Street.

• Victoria Street to Alfred Square (130m) comprises the rockery that includes the volcanic rocks, mixed bushy planting and seats.

• There are grassy slopes from Alfred Square to Cavell Street (300m).

3.30 The draft Masterplan proposes a building on the Triangle site with a grassy rooftop that extends out from The Esplanade between Robe Street and the Palais Theatre, creating a new deck and promenade from The Esplanade. This building has the following impact on the Slopes and differs slightly from the Interim Masterplan:

• the Slopes are unchanged for approximately 52m from the edge of the toilet block towards Robe Street (the Interim Masterplan proposed 86m from the edge of the toilet block to Robe Street)

• the Slopes are changed for approximately 160m along The Esplanade as it is extended out level to create a new grassy rooftop Lawn and Palais Theatre forecourt (the Interim Masterplan proposed to change the Slopes for 126m);

• new slopes are created to exend the idea of the Slopes along the edge of the new Lawn (extended balcony) and along Jacka Boulevard, where new garden Slopes incorporate an accessible ramp.

3.31 Where the unchanged slopes are rounded and extended to create new slopes in the direction of Jacka Boulevard, they create an informal plaza in the north west corner of the site at the Jacka Boulevard level. This is an update to the proposed amphitheatre in the Interim Masterplan.

3.32 Additional, there are opportunities to create small pavilions across the site:

• near the current toilets (in the north corner of the site)

• at the west corner of the Lawn overlooking Jacka Boulevard and the new garden slopes that angle down to Jacka Boulevard; and

• at the east entrance to the Lawn, overlooking the Palais forecourt and cultural facility entrance.

3.33 The single storey ‘potential pavilion’ near Jacka Boulevard proposed in the Interim Masterplan has been retained to activate and anchor the space.

3.34 The pavilions shown in the draft Masterplan are simply artist representations of potential built form. Their actual physical form and potential impact on views will be subject to further detailed design, which is not part of this stage.

Extended balcony and Lawn open space

3.35 At the middle of the site, The Esplanade is extended towards Jacka Boulevard to create a rooftop Lawn that references Catani’s landscape, replacing the Pleasure Garden proposed in the Interim Masterplan.

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3.36 This new open space is on top of a single-level cultural facility located at ground level. Below the cultural facility is a basement carpark for 350 vehicles.

3.37 New views of the foreshore, bay and horizon are created from the Lawn. The existing views of the bay and horizon in this location are already punctuated by foreshore buildings and structures. At The Esplanade, the sense of the panoramic view is maintained. The extended landscaped roof does impact the extent of bay and horizon views when viewed from The Esplanade; however, it will afford greater bay and horizon views when a person moves towards the foreshore.

3.38 The draft Masterplan proposes a change from the Interim Masterplan, with an increase of public open space to 19,835 m2. The Interim Masterplan proposed 16,000 m2. Carparking

3.39 The draft Masterplan accommodates approximately 350 cars in a single-level carpark located below ground. This is consistent with the Interim Masterplan and Design Brief (Revision 1).

3.40 The Design Brief collaboratively developed by the community and Council endorsed on 9 December 2014 provided guidance around carparking on the St Kilda Triangle site:

• obscure any carparking from view through design or landscaping

• remove general carparking on the Lower Esplanade

• rationalise carparking on Cavell Street in a way that reduces its visual dominance

• the design of any underground or partially below ground carpark must leave parts of the site unexcavated to allow for large trees and deep rooting vegetation; and

• ensure sufficient structural capability to allow for substantial deep planting and/or trafficable roofs.

3.41 The Design Brief (Revision 1) endorsed by Council on 28 July 2015 provided additional or clarified working assumptions for Stage 2, namely:

• the entry to any carpark should be located behind the Palais and off Cavell Street

• the carpark will be between 200 - 300 carparks

• the carpark will be underground or partially underground; and

• during Stage 1, closure of the Lower Esplanade was considered.

3.42 To clarify, these assumptions are retained for the draft Masterplan.

3.43 Boom-gated access to the carpark will be from Cavell Street and under the built form located behind the Palais Theatre.

3.44 The proposed carpark is generally consistent with the existing at-grade carparking parking provision.

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Built form wrapped around the Palais Theatre and cultural facility

3.45 To the east of the site, there is a massing of built form around the Palais Theatre. Further built form is provided below the new Lawn. Behind the Palais Theatre, there is greater massing of built form for uses such as a hotel and an additional cultural facility.

3.46 In the draft Masterplan, the Jacka Boulevard colonnade proposed in the Interim Masterplan has been deleted and replaced with concentrated ancillary activation around the Palais Theatre.

3.47 The built form’s frontage is respectful of the Palais Theatre and the Luna Park façade. A new forecourt to the Palais Theatre is created and is proposed to be highly activated. This is consistent with the Interim Masterplan.

3.48 The draft Masterplan is scalable through the amount of built form around the Palais Theatre, and/or the extent of extending the balcony from The Esplanade. This is consistent with the Interim Masterplan.

3.49 The height and tolerance for overshadowing the foreshore and foreshore structures needs to be further tested.

Public space experience, landscape and connections

3.50 The draft Masterplan has been refined following Co-Design Workshop 3 to update the experience descriptions, public realm palette and connections.

3.51 Slopes - The Slopes can be experienced in a variety of ways. They provide a grassed outlook to watch the activity of the plaza space and beach, and provide a casual use space for occupation with a variety of uses. The access ramps are provided within a garden slope, which provides a textual and diverse coastal landscape to walk through to the Lawn. Seating is provided along the edge of this slope garden to enable casual occupancy and encourage outlook to the bay.

3.52 Roof - The rooftop of the cultural institution is primarily a grassed landscape with garden beds and tall mature palms. This roof will be a large Lawn that will stitch seamlessly into the existing Esplanade promenade. A new promenade experience of generous width is created closer to the foreshore to accommodate a number of different uses, including the Esplanade Market. New views are created towards the horizon.

3.53 Palais Theatre forecourt - The Palais Theatre forecourt has been enhanced with an entrance to the cultural institution below, as well as a grand staircase up to the rooftop garden and Lawn. The forecourt is protected from the elements and could become a popular space for street performers. The terraced landscape can function as seating, and the forecourt can spill into the pedestrian focused Cavell Street during large events.

3.54 Landscape - Colours and art across the site are proposed to transition from Catani (green and brown) in the west, to the vibrant rainbow colours of Luna Park in the east. It is proposed that landscape plans reference Catani landscape typology, but introduce contemporary design to modernise the original Catani concept.

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3.55 Connections - The land connections have been updated to create clear pedestrian links between major access points. Equal accessibility has been improved across the site with the introduction of a ramp from Jacka Boulevard, running parallel to the road, up to the Lawn. Both of these amendments respond to external consultation which suggested defined lines of promenade and to improve equality in access across the site.

St Kilda Triangle Cultural Charter

3.56 During Co-Design Workshop 3, participants were asked to revisit the Draft St Kilda Triangle St Kilda Triangle Cultural Charter to refine and enhance it and remove any duplication. Two key messages were heard:

• that the St Kilda Triangle Cultural Charter needs to reflect the layered history of the site and St Kilda; and

• provide more guidance on balancing public and private uses.

3.57 Ten participants nominated to be involved in refining the St Kilda Triangle Cultural Charter.

3.58 Based on this feedback, the draft St Kilda Triangle Cultural Charter was updated and provided to the ten self-nominated participants for review.

3.59 The participants review feedback has been consolidated into an updated St Kilda Triangle Cultural Charter, which has been included in the draft Masterplan (Attachment 3).

Single cultural institution

3.60 A landmark, major cultural institution, such as the National Gallery of Victoria, could develop a facility on the St Kilda Triangle.

3.61 During the Masterplan Co-Design Workshops, there was a preliminary assessment to accommodate 30,000 m2 of built form on the site. Community feedback indicated in-principle support for a single cultural institution.

3.62 It is recognised that a single cultural institution of 30,000 m2 is larger than the 14,085 m2 cultural institution allowed for in the draft Masterplan. A preliminary assessment of the draft Masterplan has been undertaken to determine the areas of scalability to accommodate the additional floor space required for a large cultural institution, with three areas identified, namely:

• at the rear of the Palais Theatre;

• to the side of the Palais Theatre; and

• as an additional excavated basement level.

3.63 This will necessarily mean departing from the built form massing outlined in the Interim and draft Masterplan.

3.64 A landmark cultural institution would increase St Kilda as a visitor destination and provide a catalyst for activation of other parts of the municipality especially the Fitzroy Street and Acland Street precincts. It would deliver benefits both to the state and the local community. It would likely increase visitor yield in Victoria.

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3.65 On 13 October 2015, Council endorsed an exploration with residents, creative industry experts and the State Government to better understand the opportunity of a contemporary gallery of art and design, such as the proposed NGV Contemporary.

3.66 The exploration of 30,000 m2 for an art gallery on the site has illustrated that larger built form may be required behind the Palais Theatre (which was identified in the Interim Masterplan as an area of scalability).

3.67 Inclusion of 30,000 m2 for an art gallery or single cultural institution would include a basement carpark, but would not include a hotel and separate food and beverage offerings.

3.68 The St Kilda location has the opportunity to create a sculptural park that could connect and interact with the foreshore through and across to Luna Park.

Planning Scheme

3.69 The draft Masterplan does not change the planning scheme controls for the site. Future change to the planning scheme will be required to implement the Masterplan.

3.70 Consideration has been given to how the draft Masterplan addresses the existing planning policy provisions within the Port Phillip Planning Scheme.

3.71 Clause 22.09 – St Kilda Foreshore Area Policy applies to the St Kilda Foreshore and includes a range of policy directions in relation to the St Kilda Triangle. It implements the ‘St Kilda Foreshore Urban Design Framework, 2002’, which establishes strategic directions for revitalisation of (primarily public) land within the St Kilda Foreshore area.

3.72 The draft Masterplan supports the implementation of St Kilda Foreshore Urban Design Framework (2002).

3.73 For statutory planning purposes there needs to be careful consideration of the translation of those uses into the planning scheme and to the land tenure of the site.

3.74 In framing planning controls for the site there will need to be consideration for:

• How best to align the role of the St Kilda Triangle Cultural Charter within the planning scheme?

• Whether proposals that are consistent with the approved Masterplan can proceed without further community consultation and statutory notice?

• Where a proposal isn’t consistent with the approved Masterplan what extent and form of community consultation and statutory notice is appropriate?

• The range of possible uses (and what uses are as of right, have conditions and/or require a planning permit) and prohibited for the site.

Future engagement

3.75 The draft Masterplan is proposed to be released for public consultation following the Ordinary Meeting of Council on 24 November 2015.

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3.76 The engagement objective is to receive feedback and gauge acceptance from the St Kilda and Port Phillip community on the draft Masterplan developed through the Stage 2 co-design process.

3.77 The target audience for this engagement is the St Kilda and Port Phillip community. They will be reached through:

• Divercity (60,200 households)

• St Kilda Triangle Update project emails (over 880 registered addresses)

• Have Your Say emails (over 1,500 registered addresses)

• City of Port Phillip social media

• Advertisements (print and online) in the Port Phillip Leader and St Kilda News.

3.78 The public will have an opportunity to provide feedback on the draft Masterplan, primarily via the Have Your Say e-consultation tool, by Friday 29 January 2016.

3.79 This will inform a Council Report in February 2016 that will summarise the submissions received and provide an officers’ recommendation on the direction to amend the draft Masterplan.

Milestone 7: Preparation of a Draft Business Case

3.80 The St Kilda Triangle Draft Business Case has been received by Council and is currently undergoing further development.

3.81 Indicative project costs are significant, given the size and potential significance of the site. Given Council’s affordability constraints, this will require a substantial funding contribution of from private industry and/or State Government.

3.82 The large ‘cultural tourism attractor’ that has emerged in the draft Masterplan will have a significant economic contribution to Victoria, through increased visitor spending. The St Kilda Triangle Business Case will focus on demonstrating the state-wide benefits of the St Kilda Triangle.

3.83 The investment rationale has been framed as:

If one in every ten interstate and international leisure visitors to Victoria could be tempted to stay one extra day, to make time to visit a redeveloped St Kilda Triangle and take in Melbourne’s beaches, this would add between $900 million and $1 billion to the Victorian economy (discounted to present value terms).

3.84 The estimate of the full capital construction cost for the draft Masterplan is estimated at $300-400 million gross.

3.85 In addition to the capital construction costs, there will be recurring revenue and expenditure once development on the site has occurred. An estimate of these will be considered in the final business case, however this will require further analysis subject to finding the right anchor tenant/s commensurate with the opportunity identified in the Draft Masterplan and consistent with the St Kilda Triangle Cultural Charter.

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3.86 The proposed draft Masterplan outcomes could be funded from a number of sources, including Council, State Government and private industry. As outlined above, given the potential economic benefit for the State of a significant ‘cultural tourism attractor’, the focus of the Business Case will be to demonstrate this to State Government.

3.87 A potential funding mix is provided below for illustrative purposes.

Capital and building cost

Recurrent revenue

Recurrent cost Finance

Public space Council

State Government

Cultural facility State Government

Hotel Industry

Ancillary (other built form)

Industry

State Government

Carpark Industry

Other

- Jacka Blvd State Government

- Cavell St Council

3.88 If an end-user for the St Kilda Triangle development could be found that had an economic impact on this scale, it would justify a significant State Government investment.

NEXT STEPS 4.

Milestone 6b: Final Masterplan

4.1 The draft Masterplan will be released for community consultation in November 2015.

4.2 After reviewing comments on the draft Masterplan, a Final Masterplan will be developed. This is expected to be completed in March 2016 to allow time for the consideration of all submissions received and the production of a report to Council. Council will thereafter consider implementation options for the Masterplan to be incorporated into the Port Phillip Planning Scheme.

Milestone 8: Final Business Case

4.3 With the endorsement of the draft Masterplan, Council can continue the development of a robust Business Case to a final version. The Final Business Case will secure alignment of expectations between Council, industry, government and community.

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4.4 The Final Business Case will enable Council to:

• demonstrate the costs and benefits of different Masterplan development consistent with the Interim Masterplan options

• provide the investment rationale for Council, Government and industry; and

• outline the process by which delivery partners will be secured in a future stage of the St Kilda Triangle project.

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FURTHER SUPPORTING INFORMATION

ALIGNMENT TO COUNCIL PLAN AND COUNCIL POLICY 5.

5.1 Continuing to work towards securing a sustainable future for the St Kilda Triangle and Palais Theatre by implementing St Kilda Triangle 2012 and Council Plan Action 4.2.4:

Implement St Kilda Triangle 2012, continuing to work towards securing a sustainable future for the St Kilda Triangle and Palais Theatre.

5.2 Council has devised an Engagement Program that supports a co-design process with its key stakeholders to deliver Stage 2 - a Business Case, Final Masterplan and Delivery Strategy for the St Kilda Triangle.

5.3 The co-design process aims to ensure that the community, industry, State Government and Council’s aspirations for the site are aligned to realise a fundable, deliverable project that is locally-loved and world admired.

CONSULTATION AND STAKEHOLDERS 6.

6.1 Engagement objectives for Stage 2 are:

• To maximise the opportunity for engagement with the three primary stakeholders groups – community, government and industry – in developing the Business Case, Final Masterplan and Delivery Strategy for the St Kilda Triangle

• To ensure all stakeholders and the local community are aware of all opportunities for engagement and clearly understand the engagement and project parameters

• To ensure all stakeholders and the local community have access to information that facilitates their participation and their understanding of a range of views

• To ensure that Council’s industry stakeholders are kept on the journey through this collaborative co-design process

• To raise awareness of early progress and project achievements

• To ensure regular and consistent communications with the St Kilda Seaside Precinct Government Partners group.

6.2 These objectives have guided the development of the proposed Engagement Program, which supports Council’s commitment to a co-design approach with community, government and industry through activities that seek feedback from, collaborate with and inform these three primary stakeholder groups.

6.3 Since mid-2011, Council has led the delivery of three significant and related community engagement strategies.

6.4 The first began with the development of St Kilda Triangle 2012, which involved over 900 community participants providing comment across several consultation events from mid-2011 to mid-2012.

6.5 At the end of this engagement period, around 200 people indicated their interest in staying informed through project update emails.

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6.6 In 2014, Council commenced Stage 1 to 'Refine the Parameters' of St Kilda Triangle 2012. This involved 47 community working group members over an intensive 8-week engagement program.

6.7 Stage 2, through the co-design workshops in 2015, has included Stage 1 participants and people from across the municipality and from across Melbourne.

6.8 The development of the Interim Masterplan involved over 120 unique participants. Workshop participants were invited to attend briefing sessions and information exchanges, provided with information packs and background material to ensure all people were confident and able to participate.

6.9 Today, the project update email database has grown to around 880 recipients from across the municipality and Melbourne, indicating a broad public interest and participation in the project.

6.10 This has been a thorough, open and transparent approach – all material produced and generated at events throughout 2014 and 2015 has been posted online.

LEGAL AND RISK IMPLICATIONS 7.

7.1 A Probity Plan for the St Kilda Triangle project was established in October 2013. All Council employees and contractors are required to sign a Confidentiality and Conflict of Interest disclosure statement and ongoing review with Council’s probity practitioner occurs fortnightly.

SUSTAINABILITY – Triple Bottom Line 8.

8.1 ENVIRONMENTAL IMPLICATIONS

• Stage 1 of the St Kilda Triangle project considered the environmental implications for refining the parameters as outlined in St Kilda Triangle 2012, including a contamination study.

• The Stage 2 co-design process will further consider environmental, due diligence and sustainability impacts when discussing and determining potential design concepts for built form and the public spaces.

• Any resulting project on the site will need to meet Council’s environmental policies and address the built form standards of the Environmental Sustainable Design strategy.

8.2 SOCIAL & CULTURAL IMPLICATIONS

• Stage 2 will continue to explore the level of activation on the St Kilda Triangle and to develop and test the St Kilda Triangle Cultural Charter and Draft Indicative Programming and Activation Plan. It is envisaged that the St Kilda Triangle will be a place for a range of activities, from latent activities that provide enjoyment for people of all abilities, through to activities that attract visitors from Melbourne and beyond.

8.3 ECONOMIC IMPLICATIONS

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• Activation of the St Kilda Triangle site will provide increased visitation to the seaside precinct and help to stimulate the neighbouring Acland Street and Fitzroy Street economies, particularly through quieter winter months.

8.4 FINANCIAL IMPLICATIONS

• The Council Budget 2015/16 was adopted at the 23 June 2015 Ordinary Meeting of Council. The Budget has allocated $700,000 towards the development of a Business Case, Final Masterplan and Delivery Strategy for investment on the St Kilda Triangle.

• Exploring the opportunity of a new contemporary gallery of art and design will inform the development of Project Options for the draft Masterplan.

• Community consultation on the draft Masterplan will commence following this initial exploration.

• Completing the Final Masterplan in March 2016 will not increase the scope of the work and provides the following benefits:

o additional time for an extended and more comprehensive community consultation and engagement approach in response to the draft Masterplan

o additional time to review all submissions received; and

o will better incorporate a wider exploration of project options including the proposed NGV opportunity.

IMPLEMENTATION STRATEGY 9.

9.1 TIMELINE

• After reviewing comments on the draft Masterplan, a Final Masterplan will be developed. This is expected to be completed in March 2016 to allow time for consideration of all submissions received and a Council Report in February 2016. Council will thereafter consider implementation options for the Masterplan to be incorporated into the Port Phillip Planning Scheme.

9.2 COMMUNICATION

• Council will continue to use both traditional and online methods of communicating with key stakeholders and the general public throughout Stage 2, including:

• Direct email notifications

• Council’s website and St Kilda Triangle project website

• ‘Have Your Say’ consultation website

• Council’s social media channels, including Facebook and Twitter.

• Detailed engagement and communications planning will include mechanisms to report back on what was said, where Council has landed and the level of comfort with progress.

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• The success of St Kilda Triangle Stage 2 depends on maintaining Council, community, industry and government alignment throughout each phase.

OFFICER DIRECT OR INDIRECT INTEREST 10.

10.1 No officers involved in the preparation of this report have any direct or indirect interest in the matter.