New Waterfront Hotel Devonport, Tasmania. Information Package Projects + Infrastructure March 2017
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1 New Waterfront Hotel Devonport, Tasmania Information Package Projects + Infrastructure March 2017
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3 1 1. Introduction / Executive Summary LIVING CITY is a transformative urban renewal project at Devonport, Tasmania, being sponsored by Devonport City Council (Council). With Stage 1 now in construction, and scheduled for staged completion from the end of this year, until mid 2018, the transformation of Devonport into a must-see tourist destination is well underway. Local businesses are already responding to this positive change, with a number of new businesses, restaurants and a distillery opening in the last few months. Stage 1 facilities are being delivered as a package intended to stimulate activity, investment and jobs in the local economy. These new facilities include the iconic multi-purpose building and 800 seat conference venue, exciting food pavilion, and a 530 space multi-deck carpark. a view to agreeing terms for the sale of the hotel site and for development of the hotel to occur. In broad terms the objectives sought from the exercise are: To achieve early commencement and completion of the hotel with certainty; For the hotel to be consistent with or of equivalent standard to the concept design; For the hotel to integrate with LIVING CITY generally and particularly with the new: -- conference facilities; -- food pavilion; and -- the Devonport Entertainment Centre/ Art Gallery; and For the sale of the site and outcome to be of value to Council. Stage 1 defines a new retail tourism precinct and creates a vibrant waterfront presence for the city, opening the Devonport CBD to the Mersey River for the first time. The site between the multi-purpose building / conference facility and the water s edge, is earmarked for a waterfront park and hotel. Council will undertake development of the park (community facilities and amphitheatre), and is seeking private sector developers or investors to undertake and deliver the hotel project. Given the strategic importance of this prime site, (arguably the best within Devonport), Council engaged Lyons / Fender Katsalidis to prepare a concept design for the hotel. This concept design enjoys community support and Council endorsement. This process aims to identify suitably capable, experienced and interested parties with whom Council can engage with Independent research conducted by Horwath HTL, indicates a prima facie case for a viable upper-mid scale hotel in the key range. The Lyons / Fender Katsalidis design is intentionally and specifically responsive to the findings of the Horwath HTL study. Council is seeking to identify and engage with private sector parties capable of developing and operating a hotel of this scale and quality. This opportunity may be of interest equally to developers, investors, and/or hotel operators, either singly, or in combination. If proposals are of sufficient clarity, and give certainty in relation to design and the hotel operator, Council is prepared to nominate a preferred proponent/s with whom it will engage, to enter into agreements to sell the site and have the project undertaken. 3
4 02 Background LIVING CITY establishes an exciting new civic, hospitality, tourism, and retail precinct which opens up the Devonport central area to the waterfront. The hotel on a strategic waterfront location, immediately adjacent to the multi-purpose building, food pavilion and waterfront park, is intrinsic to Council s vision. LIVING CITY is divided into three board stages or precincts: Council has engaged Lyons / Fender Katsalidis to prepare concept design for the Hotel. The design delivers 158 hotel rooms, (including twenty 1 bedroom apartments) as well as 12 separate (strata title) residential units. Stage 1 new community and tourism facilities; Stage 2 Waterfront Hotel and waterfront park; and Stage 3 Complementary retail development and further development of the central business area. Details of the scope and reach of the project are available at Food Pavilion and Market Square LIVING CITY 500 space Car Park 4 Council s commitment to LIVING CITY is substantial. It has acquired the necessary sites, and is sponsoring the construction of $70M Stage 1, specifically three major community and tourism buildings in central Devonport. Stage 1 comprises: Multi-Purpose Building including an 800 seat conference venue, LINC and Service Tasmania outlets, as well as Council offices; New food pavilion an exciting tourism destination showcasing the best of Tasmanian products, produce restaurants, and a distillery; and 530 place multi-level carpark. The hotel is extremely well positioned, adjacent to new conference facilities, the attraction and events within the food pavilion, plentiful parking, as well as a Mersey River waterfront location, opposite the Spirit of Tasmania terminal. The Stage 1 facilities, together with the hotel, ensure that Devonport is poised to become a must-see tourist destination. Independent research by Horwath HTL supports a strong case for consistent demand for quality hotel accommodation and a prima facie case for financial viability of an upscale hotel in the room range.
5 LINC/Service Tasmania New Multi-Purpose Building LIVING CITY LIVING CITY Convention Centre 5
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7 3 Council Waterfront Precinct has acquired the retail sites between Rooke Street and Formby Road, and in so doing has opened up an entire precinct, linking LIVING CITY Stage 1 with the Mersey River waterfront. The site for the hotel is around [2,300] m 2, on the corner of Rooke and Best Street. A subdivision will be undertaken to create a separate title for the site. This creates a large clear waterfront precinct between the carpark, food pavilion and multi-purpose building being delivered in Stage 1 and the Mersey River. It is Council s intention for the Waterfront Precinct to be developed to ultimately comprise: A high quality waterfront hotel and apartment building bounding the precinct to the south with its long axis parallel to Best Street; and An extensive waterfront park with open public space for recreation, outdoor entertainment, arts and sculpture; and A marina bounded by the hotel to the south and the waterfront park to the west. The Lyons / Fender Katsalidis design, has an elevated walkway binding the multi-purpose building and conference facilities with the hotel and ultimately extending to the water s edge and the marina. The entire precinct operates to feed people into and from the hotel to the other venues. 7
8 3.1 Waterfront Hotel Devonport, Tasmania s third largest city, is the home port for both Spirit of Tasmania vessels, the only passenger ferry service between mainland Australia and Tasmania. These ships, operated by TT -Line, transport over 400,000 passengers annually. The hotel is a complementary asset to TT-Line operations and will be an important link to both arriving and departing vessels. The City serves a local and regional population of 60,000 people. Devonport is one of the country s principle food bowls, the centre of a district which produces the highest quality fruit and vegetable crops, berries, oils, poppies, dairy production, meats and other food products. Devonport is currently short of quality hotel accommodation. Existing facilities enjoy consistently high occupancy. As the LIVING CITY Stage 1 projects come on stream late in 2017 and early in 2018, this shortage of quality accommodation will become more acute. Demand for a hotel is further underpinned by the inclusion of conference centre meetings rooms within the new multipurpose building. The main conference floor is around 2,000m 2 and has a capacity for 800 attendees in theatre style seating, or a 500 seat banquet. The combination of a hotel and access to the conference / convention centre allows Devonport to compete for its fair share of specialist sector conferences whether medical, educational or government sector. Through the LIVING CITY project Devonport is set to become known as the exciting showcase of Tasmanian foods and cooking. The food pavilion activates the precinct, and provides an alternate venue for hotel visitors to experience local produce and dining and events. In addition to showcasing regional Tasmanian produce, the pavilion includes a television studio and is an ideal venue for unconventional events. The proposed site, bounded as it is by waterfront, conference, and food pavilion is highly suitable for a quality hotel. We anticipate that the hotel will appeal to corporate, leisure, tourism, and conference markets. Horwath indicate an expectation of a stabilised occupancy of 75%. 0 8
9 4 The Design Overview hotel is located on the south of the waterfront park. The concept design enhances the pedestrian and visual connection, by minimising the ground floor footprint of the hotel to activated areas, like lobby, restaurant and bar (and minimal back of house functions). Lifting the room levels above the street on the corner of Rooke Street and Best Street creates a dramatic urban entry to the park and the hotel lobby / restaurant. Views are opened up from the intersection, under the hotel, through the park and out to the lighthouse beacon and Bass Strait. STEEL PÉRGOLA WITH ALUMINIUM CLAD STAIR WELL EQUITONE OR SIMILAR CLADDING AND HIGH PERFORMANCE GLAZING AS PART OF PERFAB ROOM EQUITONE OR SIMILAR CLADDING TO FACIA SOLID FAÇADE ELEMENTS ALUMINIUM OR SHADOW BOX GLAZING ALUMINIUM PRIVACY / SUN FINS ALUMINIUM CLAD CANOPY GLASS, STEEL AND PRECAST LOWER LEVEL FACADES AND FOYERS LARGE PLANK TIMBER CLADDING PRECAST OR ALUMINIUM CLAD FAÇADE WITH VENTILATION TO PLANT AREA IN-SITU OR PRECAST BRIDGE SUPPORT STRUCTURE 9
10 5The Opportunity The waterfront precinct development is an initiative of Council. It will involve collaboration between Council and the private sector on the delivery of the hotel, and the interface between the hotel and the public infrastructure being separately delivered under Council leadership. Public infrastructure includes the waterfront park, elevated walkway and marina. Council is seeking a private party to develop and finance the hotel, to operate or introduce a competent major hotel operator to the project. Council s interests are in the sale of the hotel site, which is being offered as freehold (permanent) tenure. The hotel site is approximately [2,300 ] m2 as appropriate. 5.1 Council s Objectives Council s vision for the site is development and operation of a upper-mid scale / upper scale hotel apartment building in the room range. Council endorses and is pleased with the Lyons / Fender Katsalidis design. Implicit in the objectives for this project is development of a hotel as currently conceived and designed, or a hotel of an equivalent design standard. Council anticipates that the organisations to whom this opportunity will appeal will include: Property developers; Hotel operators; JV Consortia including developers, and hotel operators; Investors interested in ownership of the completed hotel; Council is seeking the successful proponent to be, or include, a major reputable hotel operator, with the skills and experience to manage a hotel of this scale. Ideally the operator will bring to the project its (global) marketing and reservation system, considering the anticipated importance of Chinese and inbound mainland tourism to this project in particular, and Tasmanian tourism in general. In summary, the key objectives of this process are to identify a party or parties that: 1. Can commit to early commencement i.e. within two years; 2. Provide a value for money offer with reasonable terms and conditions to Council for acquisition of the site; 3. Commit to build the hotel, consistent with the concept design or the design principles within the design; 4. Arrange the services and operation of the hotel, consistent with the LIVING CITY principles with strong synergies and collaboration between the hotel, conference venue and food pavilion. 5. Can add value to the City, its activities and attractions. 5.2 Conference Collectively the hotel, conference and food pavilion enable Devonport to offer a substantially improved offering to service both tourism and the conference / meeting markets. The conference facility occupies prime position on the top floor of the multi-purpose building opposite the hotel. The conference venue enjoys uninterrupted views of the Mersey River and the Bass Strait. The entire floor plate is around 2,000 m2, divide between atrium lobby, conference halls, full production kitchen and appropriate (house) facilities. 10
11 In addition to passenger access via lifts and escalators, the conference level is serviced by a large goods lift, allowing the venue to host car or trailer-boat shows, trade or similar large scale exhibitions. The space is capable of hosting: Certainty of early commencement of construction, achievement of completion and operation of the hotel; Quality of the building and/or consistency with the concept design; 800 in theatre style (conference) mode; or 500 in banquet mode. Bringing a hotel operator to Devonport with experience and broad marketing reach; and An appropriate financial return from the sale of land The conference space is divisible into three smaller venues, allowing more than one meeting to take place simultaneously. The entire facility is supported by extensive AV infrastructure. The venue is intentionally designed to host the widest possible range of events and meetings. At an operational level, the conference facility is part of a broader range of venues within the precinct, including: The new food pavilion, with its restaurants and which can of host events or 400 in banquet mode; and Devonport Exhibition and Conference Centre (DECC) with its 400 seat theatre. Council seeks to identify respondents who have an interest in working to achieve the benefits of collaboration between hotel conference and the other venues. 5.3 Access and Tenure Council is offering the hotel site on freehold tenure. However, Council will not allow the site to be purchased and land banked and the hotel not developed in the short to medium term. Council considers the priorities from this approach to the market include: Interior - Providore Place Food Pavilion 11
12 FIRE STAIR BAR DECK OVER RESTAURANT / KITCHEN LOADING HOTEL CARPARK ACCESS PIER WALKWAY OVER PLANTING BUFFER SHARED DRIVE ACCESS TAXI RANK DROP OFF LOBBY / RECEPTION BACK OF HOUSE DIRECT PED ACCESS TO CARPARK APARTMENT CARPARK ACCESS FIRE STAIR/ APARTMENT LIFT ACCESS 12 GROUND LEVEL
13 FIRE STAIR BAR DECK BAR / TAPAS PUBLIC STAIR / LIFT ACCESS GYM / SPA / SAUNA PIER WALKWAY ENTRANCE CANOPY VOID OVER LOBBY / RECEPTION OPEN CONNECTED STAIR HOTEL STORE HOTEL STAFF/BOH BUILDING PLANT / CROSS VENTILATED FIRE STAIR/ APARTMENT LIFT ACCESS CARPARK BELOW 13 LEVEL 1
14 B E S T CLIP ON BALCONY SHADE / PRIVACY FINS SPLIT LEVEL CARPARK FITS WITHIN UNDER LEVEL FACILITIES S T R E E T SHARED WALKWAY POSSIBLE PRE FABRICATED HOTEL ROOMS BASE BRIDGE STRUCTURE SEPARATE BAR DINNING AND SHARED WALKWAY 14
15 1 BR ROOMS TO ENDS TYP 28m2 HOTEL RM SMALL BALCONY TO NORTH ONLY END ROOMS MAINTAIN STANDARD GEOMETRY WITH BALCONY MAKING UP FORM Hotel - Level 1 15
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