ESSENDON AIRPORT HOTEL DEVELOPMENT

ESSENDON AIRPORT HOTEL DEVELOPMENT PRELIMINARY DRAFT MAJOR DEVELOPMENT PLAN MAY 2014 Introduction 1

Figure 1: Essendon Airport aerial view with site of proposed hotel indicated. Indicates location of hotel

Foreword Essendon Airport Pty Ltd (EAPL) is pleased to present this preliminary draft Major Development Plan for the development of a hotel complex on the airport. Essendon Airport remains a vital aviation resource for Melbourne and regional Victoria. It continues to provide excellent facilities to the aviation industry, with a special emphasis on Police and Emergency Services, flight support and the corporate aviation market. In addition, landside development at the airport offers the opportunity to create an integrated business environment unlike anything else in Melbourne. Since privatisation of the airport in 2001, EAPL has demonstrated its commitment to establishing a commercially viable, safe and functional general aviation facility which meets the needs of projected aviation requirements whilst utilising the property s strategic land holdings for high quality commercial development. This preliminary draft Major Development Plan proposes EAPL s single largest commercial development investment to date, to create a high quality hotel and conference facility which will enhance the experience of travellers and airport users as well as offer latest-generation facilities to the surrounding community. We provide this preliminary draft Major Development Plan for contemplation by the public, stakeholders and interested parties and encourage written submissions regarding the proposal. Submissions can be sent by post to: Hotel Major Development Plan Essendon Airport Pty Ltd Level 2, 7 English Street Essendon Fields, Victoria 3041 Or by email to: hotelcomments@essport.com.au Sincerely, Chris Cowan Chief Executive Officer Essendon Airport Pty Ltd

TABLE OF CONTENTS Executive Summary.. 1 1.0 Introduction.. 2 1.1 Essendon Airport 2 1.2 The proposal. 3 1.3 Proponent details.. 3 1.4 Objectives 4 1.4.1 Objectives for the development 4 2.0 Major Development Plan Process 5 2.1 Reasons for this major development plan. 5 2.2 Content of a major development plan. 6 2.3 Indicative timelines.. 7 2.4 Public consultation 8 2.4.1 Approach to consultation.. 8 2.4.2 Stakeholder consultation 9 2.4.3 Views of Civil Aviation Safety Authority and Airservices Australia. 9 2.4.4 The public comment period. 10 3.0 Project Description 11 3.1 Location 11 3.2 Subject site. 11 3.3 Needs of users of the airport. 13 3.3.1 Civil aviation users.. 14 3.3.2 Other users of the airport.. 16 3.4 Hotel 19 3.4.1 Design concept. 19 3.4.2 Hotel specifications and facilities 21 3.4.3 Building height.. 21 3.4.4 Building material and finishes 22 3.4.5 Risk and hazard management 22 3.4.6 Equity of access. 22 3.5 Building services and facilities.. 23 3.6 Landscaping and site planning. 23 3.7 Signage.. 24 3.8 Construction.. 25 3.9 Operation and maintenance. 25 3.10 Impact on aviation. 25 3.10.1 Prescribed airspace. 25 3.10.2 Wind shear 26 3.10.3 Navigational aids and radar.. 26 3.11 Management of aircraft noise intrusion.. 27 4.0 Environment and Heritage 28 4.1 Approach to assessment.. 28 4.4.1 Sources of information. 28 4.1.2 Environmental impacts 28 4.1.3 Management of environmental issues during construction. 28 4.2 Site conditions. 29 4.2.1 Soil conditions 29 4.2.2 Site contamination. 29 4.3 Hydrology and Water Quality 30 4.3.1 Hydrology.. 30 4.3.2 Groundwater.. 31 4.4 Noise and vibration.. 31 4.4.1 Construction noise.. 31 4.4.2 On airport noise 31 4.5 Wind 32 4.6 Air quality 32 4.7 Flora and fauna 33 4.8 Waste management. 33 4.9 Visual impact and landscape.. 34 4.10 Cultural heritage.. 35 4.10.1 European heritage 35 4.10.2 Indigenous heritage. 35 4.11 Potential construction impacts of the project. 36 4.11.1 Construction traffic.. 36 4.11.2 Pedestrians 36 4.11.3 Water quality 36 4.11.4 Air quality and dust management. 36 4.11.5 Erosion and sediment control.. 37 4.11.6 Airport operations 37 4.11.7 Construction waste.. 37 4.11.8 Hazardous materials 37 4.11.9 Cultural heritage 37 4.12 Environment Management System.. 38 5.0 Car Parking and Traffic Flows. 39 5.1 Road network and public transport links.. 39 5.1.1 Road network. 39 5.1.2 Trams 40 5.1.3 Buses. 40 5.1.4 Train.. 40 5.1.5 Taxi. 40 5.2 Car parking. 41 5.2.1 Hotel guests. 41 5.2.2 Conference facility.. 41 5.2.3 Hotel employees.. 42

5.2.4 Nomad Street car park. 43 5.3 Traffic flows 44 5.4 Vehicle access.. 44 5.4.1 Vehicle access for hotel guests. 44 5.4.2 Vehicle access for conference facility 44 5.4.3 Service vehicle access.. 44 5.5 Pedestrian and bicycle access.. 46 6.0 Community and Economic Impact.. 47 6.1 Employment.. 47 6.2 Economic Impact 48 6.3 Social impact. 49 7.0 Statutory Context.. 50 7.1 Commonwealth environmental impact assessment.. 51 7.2 Development and building approvals.. 51 7.3 Consistency with the state planning schemes. 51 7.3.1 Consistency with Plan Melbourne Metropolitan Planning Strategy. 52 7.3.2 Consistency with Moonee Valley Planning Scheme 54 7.3.2.1 State Planning Policy Framework 54 7.3.2.2 Local Planning Policy Framework. 56 7.3.3 Conclusion. 57 7.4 Master Plan.. 58 7.5 Consistency with Land Use Plan. 58 7.6 Environment Strategy 59 7.7 Airport Lease. 60 7.8 Pre existing interests.. 60 Appendices Appendix A Consistency of the MDP with statutory requirements.. 62 Appendix B Hotel Concept Plans. 64 List of Figures 1. Essendon Airport aerial view 2. Process for approval of this MDP.. 7 3. Essendon Airport location plan.. 12 4. Hotel site location plan. 12 5. Site location in the Essendon Market Area 17 6. Hotel concept rendering corner English Street & Larkin Street.. 20 7. Hotel concept rendering Larkin Street elevation 20 8. Subject site and external road network... 39 9. Proposed car park access and location plan 42 10. Proposed vehicle access 45 11. Proposed pedestrian access.. 46 List of Tables Table 1: Forecast peak usage for Nomad Street car park 43 Table 2: Summary of impacts of the Essendon Fields hotel and convention facility 48 Table 3: Estimated impact of business output by sector and region.. 48 8.0 References.. 61

EXECUTIVE SUMMARY The proposal described in this preliminary draft Major Development Plan seeks to establish a new hotel on a vacant site of approximately 7700 m 2 in size within the Essendon Airport landholding. The site is to accommodate a new hotel building of up to 180 rooms (most likely 150) and up to 11,000m 2 gross floor area with associated car parking, food and beverage facilities, conference facilities and landscaping. The hotel is an integral component of the Essendon Airport aviation, commercial and retail hub and will be sited at the prime entry to the Essendon Fields commercial precinct abutting one of Melbourne s most significant arterial connections the Tullamarine Freeway. The hotel facilities will complement the aviation and commercial functions of the airport, meeting the needs of users of the airport including passengers & businesses located on the airport site, local businesses and other travelers to the region In accordance with the Airports Act 1996 (the Act), a Major Development Plan (MDP) must be prepared where a major airport development is proposed. Section 89 of the Act defines a major airport development as, amongst other things, constructing a new building, where: the building is not wholly or principally for use as a passenger terminal; and the cost of construction exceeds $20 million or such higher amount as is prescribed. As the proposed development s cost of construction will exceed $20 million, Essendon Airport Pty Ltd (EAPL) is required to prepare an MDP. Section 91 of the Act defines the contents of a major development plan and all issues which must be addressed in such a report. The proposed development has been assessed by EAPL in relation to all statutory requirements and it is considered that the development will appropriately comply with all relevant requirements. Essendon Airport is a strategically located parcel of land which, while providing obvious aviation based facilities, also provides a unique opportunity to reinforce its increasing employment precinct function by realising non aviation development potential. The Essendon Airport Master 2013 Plan sets out that the existing commercial areas around English Street are to be redeveloped and that EAPL envisages that an on airport hotel could occur within the precinct during the next five years. The specific detail of the proposal and its assessment against all necessary statutory documentation is contained within this document. Page 1

1.0 INTRODUCTION 1.1 ESSENDON AIRPORT Essendon Airport is a general aviation aerodrome situated on 305 hectares in the suburb of Essendon Fields, 11 kilometres northwest of Melbourne s Central Business District and 7 kilometres southeast of Melbourne Airport. Essendon Airport commenced operations in 1919 as an all over field and was officially designated an international airport in 1950, operating as Melbourne s main airport until 1971 when international and domestic flights were transferred to a new international and domestic airport at Tullamarine (Melbourne Airport). Today, Essendon Airport operates a two runway system supporting a mix of charter, corporate, emergency services and general aviation users. The Airport is a base for Victoria s Police Air Wing and Air Ambulance, along with the Royal Flying Doctor Service and other emergency air transport. Regional Passenger Transport (RPT) services also operate from Essendon Airport, in addition to regular closed charter Fly In Fly Out (FIFO) flights servicing the mining and energy sectors across Australia. Essendon Airport s Master Plan (EAPL, 2013a) forecasts growth in these aviation services over the next twenty years, largely due to the Airport s proximity to the Melbourne Central Business District and access to local labour markets. The Essendon Airport Master Plan also identifies land and facilities which are surplus to projected aviation requirements and these present the opportunity to create employment and add economic activity to the airport, community and the state of Victoria. Essendon Airport comprises a mixture of non aviation uses which include commercial, retail and light industrial activities. The Essendon Airport site hosts over 4,200 direct jobs and was recognised in March 2014 as a site of state significance due to its role as a growing employment precinct and an important piece of aviation infrastructure. Page 2

1.2 THE PROPOSAL EAPL proposes to develop a hotel at Essendon Airport, situated on the north eastern side of the intersection of English Street and the Tullamarine Freeway. The standard proposed for the hotel is international upper midscale. The proposal is in its conceptual stage and is proposed to accommodate a building of up to 46.5 metres in height and up to 180 hotel rooms. In addition, ancillary facilities are proposed to include food and beverage facilities, a restaurant, conference centre and car parking. The total gross floor area for the multi level building will be a maximum of 11,000 m 2. An on airport hotel was identified in the Essendon Airport 2013 Master Plan as a development which could occur within the English Street precinct during the first five years of the Master Plan. The proposal was also foreshadowed in the earlier 2008 Master Plan. The hotel and its attendant facilities are an entirely new initiative and would occupy a currently vacant parcel of land of approximately 7,700 m 2. The building will be designed and constructed to meet applicable Airservices Australia and Civil Aviation Safety Authority (CASA) requirements. The proposal will also be designed to comply with relevant aspects of the Building Code of Australia in order to obtain a building permit from the Commonwealth Government s Airport Building Controller. Related facilities include overflow parking for conference guests at an existing car parking site on Nomad Street, diagonally opposite the hotel site. Preliminary design for the project has been undertaken following extensive market research and analysis by EAPL. Negotiations for a preferred hotel Operator are currently being finalised following an exhaustive international Expression of Interest process commanding high levels of interest. EAPL will engage the services of an experienced hotel management company to operate the hotel to establish Essendon Airport/Essendon Fields as a high yield destination for domestic and international business and leisure guests. 1.3 PROPONENT DETAILS As Essendon Airport is located on Commonwealth land, major developments on airport sites are subject to the Airports Act 1996 and associated Regulations. Essendon Airport Pty Ltd (EAPL) is an Airport Lessee Company (ALC) pursuant to the provisions of the Airports Act 1996 and is the proponent for this proposed Major Development Plan. Page 3

1.4 OBJECTIVES EAPL s vision for Essendon Airport as stated in the 2013 Master Plan (EAPL 2013a) is: To establish a commercially viable, safe and functional general aviation facility which meets projected aviation requirements whilst utilising the property s strategic land holdings for high quality commercial development. EAPL has established the following development objectives to achieve this vision in its Master Plan: To improve and maintain safe, secure and efficient airport operations; To add value to the airport by realising and taking advantage of development opportunities; To increase market awareness of development opportunities at the airport; To improve the integration of the airport with its surrounds; and To consolidate airport operations and aviation requirements to ensure efficient and sustainable land use. 1.4.1 Objectives for the development In addition to achieving its wider Master Plan objectives, EAPL s objectives for the hotel development include: Servicing the forecast aviation activity Providing high quality accommodation facilities on the airport which support current and projected levels of aviation users. Use of the airport by corporate jets is forecast to increase, with increases in regional passenger services also likely. Accommodating regional passengers and aircraft crews, in addition to other nonaviation tenants of the airport, many of whom have business travel needs. Improving the range of services and facilities available at Essendon Airport to the on airport workforce, travellers and visitors Meeting the demand for accommodation facilities from business and residents in the immediate area surrounding the airport; Offering quality conference and function facilities to all users of the airport and the surrounding community. These facilities are currently not available in the local area; Enhancing the food, beverage and dining options for all users of the airport; Contributing to employment levels at the airport Providing a net direct economic benefit to the City of Moonee Valley municipal area and the state of Victoria. Creating high quality built form at the gateway to the airport Adding to the sense of arrival and making an important visual statement at the main entrance to the airport. Page 4

2.0 MAJOR DEVELOPMENT PLAN PROCESS 2.1 REASONS FOR THIS MAJOR DEVELOPMENT PLAN Essendon Airport is located on Commonwealth land and is therefore subject to the Airports Act 1996 (the Act) and associated Regulations. This Major Development Plan has been prepared as required by Section 89(1)(e) of the Act as construction of a new building is proposed where: (i) The building is not wholly or principally for use as a passenger terminal; and (ii) The cost of construction exceeds $20 million or such higher amount as is prescribed The Act requires at Section 90 that a major airport development, must not be carried out except in accordance with an approved major development plan. In addition, construction of the project will be subject to the Essendon Airport Planning Policy Framework as set out in the Essendon Airport Land Use Plan and submission of an Application for a Building Permit to the Airport Building Controller (ABC) in accordance with the Airports (Building Control) Regulations 1996. Page 5

2.2 CONTENT OF A MAJOR DEVELOPMENT PLAN Pursuant to Section 91(1) of the Airports Act 1996, a major development plan or a draft of such a plan must set out: (a) the airport lessee company s objectives for the development; and (b) the airport lessee company s assessment of the extent to which the future needs of civil aviation users of the airport, and other users of the airport, will be met by the development; and (c) a detailed outline of the development; and (ca) whether or not the development is consistent with the airport lease for the airport; and (d) if a final master plan for the airport is in force whether or not the development is consistent with the final master plan; and (e) if the development could affect noise exposure levels at the airport the effect that the development would be likely to have on those levels; and (ea) if the development could affect flight paths at the airport the effect that the development would be likely to have on those flight paths; and (f) the airport lessee company s plans, developed following consultations with the airlines that use the airport, local government bodies in the vicinity of the airport and if the airport is a joint user airport the Defence Department, for managing aircraft noise intrusion in areas forecast to be subject to exposure above the significant ANEF levels; and (g) an outline of the approvals that the airport lessee company, or any other person, has sought, is seeking or proposes to seek under Division 5 or Part 12 in respect of elements of the development; and (ga) the likely effect of the proposed developments that are set out in the major development plan, or the draft of the major development plan, on: (i) (ii) (iii) traffic flows at the airport and surrounding the airport; and employment levels at the airport; and the local and regional economy and community, including an analysis of how the proposed developments fit within the local planning schemes for commercial and retail development in the adjacent area; and (h) the airport lessee company s assessment of the environmental impacts that might reasonably be expected to be associated with the development; and (j) the airport lessee company s plans for dealing with the environmental impacts mentioned in paragraph (h) (including plans for ameliorating or preventing environmental impacts); and (k) if the plan relates to a sensitive development the exceptional circumstances that the airport lessee company claims will justify the development of the sensitive development at the airport; and (l) such other matters (if any) as are specified in the regulations. A checklist indicating the consistency of this MDP with the above statutory requirements is contained in Appendix A. Page 6

2.3 INDICATIVE TIMELINES The following diagram summarises the process being followed for the approval of this Major Development Plan: EXPOSURE DRAFT EAPL chose to provide an exposure draft of this Major Development Plan to the Australian Government s Department of Infrastructure and Regional Development (DIRD). DIRD provided EAPL with comments regarding the exposure draft, including comments from the Airport Environment Officer, Airservices Australia and the Civil Aviation Safety Authority (CASA). PRELIMINARY DRAFT EAPL prepared a preliminary draft Major Development Plan based on comments received regarding the exposure draft. This preliminary draft is for public exhibition during the public comment phase of 60 business days commencing 28 May 2014. During the public comment phase, members of the public and stakeholders can give written submissions to EAPL regarding this proposal. The last day for written comments to be received by EAPL is 20 August 2014. DRAFT Following the public comment phase, EAPL will prepare a draft Major Development Plan for submission to the Federal Minister for Infrastructure and Regional Development. When submitting the draft to the Minister, EAPL must demonstrate to the Minister how due regard has been given to the written comments received. Following receipt of the draft Major Development Plan, the Minister normally has up to 50 business days to either approve or refuse to approve the plan. The Minister may also request further information during this period which would stop the clock. APPROVED MAJOR DEVELOPMENT PLAN If the Major Development Plan is approved by the minister, EAPL must publish the plan within 50 business days after the approval. The requirements for publication are prescribed in the Airports Act 1996 which include a notice in a newspaper and copies of the approved Major Development Plan being made available for purchase or inspection, in addition to being available free of charge on the airport s website. Figure 2: Process for approval of this MDP Page 7

2.4 PUBLIC CONSULTATION 2.4.1 Approach to Consultation EAPL undertakes regular and ongoing consultation to improve information sharing and strengthen planning and development outcomes related to Essendon Airport. Groups regularly consulted by EAPL include: Federal Government and agencies; Victorian Government and agencies; Local government; and the community For this MDP process, the consultation strategy includes the following stages: Stage 1: Preparatory consultation Initial consultations with stakeholders during the formulation of the proposal and preparation of an exposure draft MDP. Stage 2: Formal and Statutory consultation Notification to the Victorian planning minister, department and authorities; and Advertising and making available copies of the preliminary draft Major Development Plan throughout the public comment period. Stage 3: Finalisation of the draft MDP for submission to the Minister EAPL gives due regard to issues raised during the public comment period and prepares a report for the Minister demonstrating how regard has been had to the written submissions. Stage 4: Advertising and making available copies of the MDP after approval by the Minister Publication of the approved MDP within 50 business days of approval. Page 8

2.4.2 Stakeholder Consultation EAPL has consulted with the following stakeholders in relation to the proposal: CASA Airservices Australia Victorian Minister for Planning Victorian Department of Transport, Planning and Local Infrastructure Metropolitan Planning Authority Moonee Valley City Council Essendon Airport Community Aviation Consultation Group Airport Building Controller Airport Environment Officer A regular consultation process is also in place with the Department of Infrastructure and Regional Development. EAPL has recently undertaken stakeholder consultation for the Essendon Airport 2013 Master Plan, which was approved by the Minister on the 23 rd April 2014. Like the 2008 Master Plan that preceded it, the 2013 Master Plan specifically refers to the hotel concept. Stakeholders have been afforded the opportunity to comment on any matters pertaining to the hotel during the various community and departmental consultation phases of the draft Master Plan. The hotel proposal was mentioned in seven submissions regarding the recent draft Master Plan and due regard was given to those comments as required by Section 79(2)(b)(iii) of the Airports Act 1996. Whilst EAPL acknowledges that a detailed outline of the hotel proposal is not included in the Master Plan, the hotel is not considered to have significant community impact as evidenced by the comparatively low number of submissions which referenced the hotel concept. 2.4.3 Views of Civil Aviation Safety Authority and Airservices Australia The proponent has met with senior officials from CASA and Airservices in Canberra to present the hotel proposal in detail and is currently assisting both organisations in their formal assessments of the proposal. EAPL will continue to engage with Airservices throughout the planning, construction and implementation phases of the development, and seek and obtain all necessary permissions to ensure any concerns raised by Airservices are appropriately managed, monitored and/or mitigated. Page 9

2.4.4 The public comment period Pursuant to Section 92(2A) of the Act, the public comment period for a major development plan is: (a) a period of 60 business days after the publication of the notice; or (b) a shorter period (of not less than 15 business days after the publication of the notice) that is approved by the Minister. The consultation period for this MDP is 60 business days. During the public comment period the proponent will: publish notices on the airport s website and in a newspaper circulating generally in Victoria with details as required by Section 92(1)(a) of the Airports Act 1996 and inviting members of the public to give written comments about the draft MDP within the consultation period; make copies of the draft version of the MDP available for inspection and purchase by members of the public in accordance with the notice; and make copies of the draft version of the MDP available free of charge to members of the public on the airport s website. Copies of this Preliminary Draft Major Development Plan are available for inspection or purchase at the office of Essendon Airport Pty Ltd, Level 2, 7 English Street, Essendon Fields, Victoria. This document can also be downloaded free of charge at www.essendonairport.com.au for the duration of the public comment period. In addition, as required by Section 92(1A) of the Airports Act 1996, EAPL will advise in writing the following persons of its intention to give the Minister the draft major development plan: the Victorian Planning Minister; the Victorian Department of Transport, Planning and Local Infrastructure; Moonee Valley City Council; Page 10

3.0 PROJECT DESCRIPTION 3.1 LOCATION The hotel site is located within Essendon Airport at Essendon Fields, on the north eastern side of the intersection of English Street and the Tullamarine Freeway. The airport comprises 305 hectares of Commonwealth land, which is situated approximately 11 kilometres northwest of Melbourne s Central Business District (CBD) and approximately 7 kilometres southeast of Melbourne Airport. The hotel site is located within Essendon Airport s English Street precinct which forms the main gateway and boulevard for the airport. The English Street precinct is the main location for office activities at the airport and has gained recognition as a desirable business district in Melbourne s north. This central precinct now contains in excess of 100,000 m 2 of leased building area, including a neighbourhood shopping centre and two supermarkets. Essendon Fields is located in an established urban area surrounded by industrial, commercial and residential uses and the suburbs of Airport West, Essendon, Niddrie, Tullamarine and Strathmore. There is a range of existing office and retail uses located in immediate proximity to the subject site to the south and east. The DFO shopping Centre and Homemaker Hub are also located in the Essendon Fields precinct and are situated in the south east section of the airport. To the west of the site, on the west side of the Tullamarine Freeway is the Airport West Principal Activity Centre. This centre comprises a mix of retail, commercial, industrial and residential uses. Westfield Shopping Centre and Skyway Tavern are situated to the north of this centre. Towards the east of the centre is a range of retail premises along Matthews Avenue and to the south and west are residential areas and community facilities such as schools and public open spaces. The site is well connected to the metropolitan arterial road network. The road network provides excellent access to Melbourne International Airport and Melbourne CBD, as well as connections to the Western Ring Road, Calder Freeway and neighbouring suburbs. 3.2 SUBJECT SITE The hotel site comprises approximately 7,700 m 2 and is located at the north eastern side of the intersection of English Street and the Tullamarine Freeway, as shown in Figure 4. The site is bounded by English Street to the south, Larkin Street to the east and the Tullamarine Freeway to the west. The site is currently vacant, grassed, has quality perimeter edge treatment and is well serviced. Page 11

Figure 3: Essendon Airport location plan Figure 4: Hotel site location plan Page 12

3.3 NEEDS OF USERS OF THE AIRPORT Development of the hotel will encourage further use of airport facilities and services but will not adversely affect airport users. In 2013, EAPL commissioned research from specialist hotel consultancy firm, AHS Advisory, to conclude earlier work resolving the market demand and inputs to feasibility for a new residential hotel with ancillary facilities and services. The study indicated that the largest demand segments are corporate travellers, accounting for 56% of guests. Leisure travellers are expected to account for 38%. Prior to this formal research being conducted, EAPL had directly surveyed over 100 business users within Essendon Fields (which contains the majority of the Airport site) and off airport, particularly in the suburb of Airport West and its environs which indicated strong support for the establishment of a new residential hotel and associated facilities. AHS Advisory identified the following market wide trends underpinning support for the proposed development: The existing economic and demographic base of the Essendon Fields precinct and surrounds, as verified by its diverse existing commercial and retail precincts; The existing aviation related, commercial and retail businesses operating within Essendon Fields; The site s location on a major transport corridor, linking Melbourne International Airport and the CBD and connecting to various regional Victorian hubs; The site s excellent visibility; Convenience to amenities including local shopping and services, major retail and fresh food offers; The existing Auto Centro vehicle dealership hub; The existing fly in fly out businesses and range of commercial air operations including substantive training accommodation needs to support the Qantas air training facility opposite and the Ansett training facility in Tullamarine; Spill over from well established and growing needs for corporate, leisure and crew at nearby Melbourne Airport; Creating a contemporary product as an alternative to more expensive CBD accommodation for business and leisure travellers; Creating a new contemporary product to complement the range of accommodation provided for in Melbourne s north west corridor. An Expression of Interest campaign conducted by EAPL to select an Operator resulted in high levels of interest from local and international Operators, confirming the research. Further details as to how the development will meet the needs of airport users are contained below: Page 13

3.3.1 Civil aviation users Essendon Airport operates a two runway system supporting a mix of charter, corporate, emergency services and general aviation users. The airport is a base for Victoria s Police Air Wing and Air Ambulance, along with the Royal Flying Doctor Service and other emergency transport. The Erickson Air Crane fire fighting helicopter is also located at Essendon Airport during bushfire season, before being dismantled and transported to the northern hemisphere for their summer. The proposed hotel will offer convenient accommodation for emergency services flight crews and maintenance staff. In particular, Air Ambulance management has advised that their organisation often needs to arrange accommodation for crews when flights are delayed by bad weather. Regional Passenger Transport (RPT) services also operate from Essendon Airport, with regular flights operated by Sharp Airlines to Hamilton, Portland and Flinders Island. In 2014, Par Avion Airlines commenced regular flights between Essendon and Griffith, NSW. Convenient and high quality hotel accommodation at the airport will support existing RPT services and should also promote growth in this sector as envisaged in the Essendon Airport Master Plan. Essendon Airport also hosts regular closed charter Fly In Fly Out (FIFO) operations servicing the mining and energy sectors across Australia. EAPL considers that the airport hotel will support continued growth in this sector and assist in achieving its forecasts in the Master Plan. Whilst not on the airport site, the Qantas Melbourne Flight Training Centre is located on Matthews Avenue, Airport West less than 400 metres from the hotel site. The centre is one of only two Qantas Flight Training Centres in Australia and comprises flight simulators for pilot and crew training. The Melbourne training centre currently includes four simulators, including one for the Airbus A330 200. In August 2013, Qantas announced that its Melbourne training centre would be home to Jetstar s new 787 flight simulator. The proposed hotel will be perfectly located to accommodate flight crews visiting Melbourne to complete their training. Regarding aircraft activity, the Essendon Airport 2013 Master Plan(EAPL, 2013a) provides aircraft movement projections to the year 2033. EAPL envisages a decline in single and twin engine use of the airport, but a notable shift towards increasing use of the airport for: corporate and charter jets; helicopter operations. Page 14

EAPL s analysis in its 2013 Master Plan establishes that over the next 20 years : Single Propeller aircraft movements are likely to continue to decline by 2% to 3% per annum; Twin Propeller aircraft movements are likely to continue to decline by 2% per annum; Twin Turboprop movements are likely to increase by 1% per annum; Jet movements are likely to increase by 2% to 3% per annum; and Rotary Wing movements are likely to increase by 2% per annum. Whilst modest growth in aviation movements is predicted from approximately 54,000 aircraft movements in 2012 to approximately 57,000 aircraft movements in 2033, the trend is clearly towards higher value aircraft and higher passenger numbers. Accordingly, the proposed hotel will meet the needs of the expanding business and regional travel sectors and assist with the delivery of the Master Plan. Finally, non aviation developments on land surplus to aviation requirements contribute to the overall financial viability of the airport. EAPL also considers an on airport hotel is necessary to remain competitive and grow its aviation operations. Page 15

3.3.2 Other users of the airport Analysis by Street Ryan & Associates (2013) found there are currently 174 active businesses within Essendon Fields representing 14 of the 19 major industry sectors, employing 4247 persons and representing 13% of all jobs within Moonee Valley. A further 908 jobs are expected to be created on the airport in the next 5 years. Over 92% of total business turnover in Essendon Fields is from businesses that have located in the precinct since 2001, highlighting the suburb s rapid growth. Essendon Airport comprises numerous non aviation tenants, particularly within the airport s English Street Precinct which is the main location for commercial activities and currently comprises over 100,000m 2 of building area. Major tenants include: Linfox Corporate Head Office The Good Guys Store Support Centre Insurance Australia Group Ltd (IAG) S&R Fashions Armaguard Victoria Police WorkSafe Victoria VicRoads Many of the airport s tenants have business travel needs, particularly those companies with nation wide operations. The proposed hotel will offer airport tenants convenient high quality accommodation which is currently not available within the locality. The airport site is also well patronised by other users, with over one million people living within a 15 minute drive of Essendon Airport and 2.6 million people living within 30 minutes. The site is therefore a prime location to offer accommodation and hospitality services to the surrounding community and presents an alternative to the Melbourne CBD. Regarding the wider market area, Essendon Fields is located within the local government area of Moonee Valley where there are currently 10,295 local businesses in the municipality employing 41,751 people. These businesses have a combined gross regional product of $4.11 billion per annum (Street Ryan 2013). Moonee Valley covers an area of 44.3 km 2 of which approximately 10.5% is parkland. The city of Moonee Valley is primarily residential but has major retail centres at Moonee Ponds, Essendon and Airport West. Essendon town centre, located just minutes from the Essendon Fields, is a cosmopolitan precinct offering an array of fashion outlets, delis,eateries and is conveniently situated close to rail and tram services Page 16

Figure 5: Site Location in the Essendon Market Area The proposed hotel site at Essendon Airport is well located in relation to surrounding commercial and industrial areas. This concentration of nearby businesses is the reported source of the captured demand from corporate travellers to the area, in addition to demand for aviation related training and meeting space. Market wide, room nights sold is anticipated to grow by 3.5% between 2012 and 2020 (AHS Advisory 2013). Furthermore, EAPL recognises that the growth of both existing and new aviation and other businesses within the precinct should be encouraged and supported by the important facilities and services found in a new hotel. In terms of supply, the hotel market relevant to the proposed hotel has remained constant over the past four years with only marginal variations to room stock. Conversely, between July YTD 2009 and July YTD 2013, captured demand grew yearly resulting in average occupancy growth of 5.1% %. (AHS Advisory, 2013) Page 17

The proposed hotel is not expected to have adverse impacts for the current local accommodation market. Historic market occupancy in the Essendon Market area has been estimated at 80% for the 2010, 2011, and 2012 calendar years. (AHS Advisory, 2013) Furthermore, AHS considers the stabilised market wide occupancy for the Essendon Fields and surrounding area competitive market is approximately 78%. Occupancy at this level strongly suggests that the market is ready for new development. A new Quest serviced apartment hotel comprising 97 keys is currently under construction at Melbourne Airport and expected to open in October 2014. This development is located outside of the Essendon market area and targeted towards a different market category servicing users of Melbourne Airport. The proponent has the capacity to develop and own the property in their own right and regards the establishment of the property as a strategic imperative for the future growth and sustainability of Essendon Airport. This is consistent with the object of the Airports Act 1996 contained at Section 3(c) to promote the efficient and economic development and operation of airports. Page 18

3.4 HOTEL 3.4.1 Design Concept The proponent is responsible for building design, fittings and equipment, construction and ownership of the completed building. The hotel operator will provide their own technical services team providing advice on consistency with brand standards. In developing its concept plans for the hotel, EAPL has taken into consideration the policies and objectives for the English Street Precinct contained within the Essendon Airport Land Use Plan. Creation of an appropriate entry statement is a policy of particular importance and the proposed hotel will complement and enhance the entry to the airport whilst reinforcing the boulevard character of English Street. The building will be designed consistent with the high architectural standard of Essendon Airport s new facilities and respectful heritage treatment of older recycled buildings. The architectural vocabulary is respectful of neighbours in the surrounding precinct but adopts a contemporary design approach and latest international accommodation trends. Given the site is at the gateway to the airport, and provides an important marker for those travelling the high volume Tullamarine Freeway, the hotel will have a significant bearing on the airport s continuing regeneration. The exact location, alignment and shape of the building on the site may change during the design phase which is occurring in parallel to the consultation period for this MDP. However, the design will be within the maximum height provided in this preliminary draft MDP and EAPL will liaise with Airservices and CASA regarding the design throughout the design process. Page 19

Figure 6: Hotel concept rendering corner English Street & Larkin Street Figure 7: Hotel Concept Rendering Larkin Street elevation Page 20

3.4.2 Hotel specifications and Facilities It is anticipated the hotel development will consist of: up to 180 rooms but most likely 150 rooms; flexible space conference centre; restaurant and bar with associated service area; guest and service lifts; reception & lobby area; meeting rooms; and gymnasium/health club. The project will include supporting infrastructure such as multiple access areas for private & commercial vehicles, convenient pedestrian access to the Terminal and other elements of the neighbourhood and high quality landscaping. The project will be designed to meet relevant building standards. The proposal includes food and beverage facilities for use by hotel guests, travellers and local patrons. Hotel reception will be staffed seven days a week to provide the requisite level of service. 3.4.3 Building height The maximum height of the building will be 122.5 metres AHD including roof vents, lift over runs and plant and equipment. This is below the obstacle limitation surface (OLS) and below the critical PANS OPS surface. To fit within these constraints, the maximum building height will be 46.5 metres above ground level. Page 21

3.4.4 Building material and finishes The design of the building envelope will have regard to the existing building forms at Essendon Airport and be of a character responsive to other high quality buildings more recently constructed at the Airport. External finishes All external finishes will be non glare finishes and are likely to be as follows: Roof Metal deck External walls Masonry/reinforced concrete with selected applied finishes, glazing and feature composite or metal panels Windows Clear or tinted toughened glass in powder coated aluminium frame Paving Tiled, stone or concrete paving consistent with materials used throughout the airport s English Street precinct. Internal finishes Floors Generally carpeted throughout with tiles to back of house and wet areas. Walls Generally plaster board or similar, with high quality wall feature finishes likely to be provided within the lobby, food and beverage areas. Ceilings Generally plaster board with some feature lighting and finishes. 3.4.5 Risk and hazard management The proposal will be designed to adhere to the Building Code of Australia (BCA) and other relevant codes and standards. Work health and safety requirements within and adjacent to the project will be managed in accordance with the Victorian Occupational Health and Safety Act 2004 and associated Regulations. 3.4.6 Equity of Access Provisions for equity of access will comply with the applicable codes, including the Premises Standards and equity of access provisions of the BCA. Page 22

3.5 BUILDING SERVICES AND FACILITIES The Airport site is serviced to the boundary by all utilities, as such the project will: be connected to an electricity supply adequate to support the building and its services; be connected to the airport water supply provided by City West Water which is adequate and readily available; be connected to the existing wastewater and sewage reticulation systems in the airport which has available capacity; be connected to the proponent s private telecommunications network which includes fibre optic connection for modern telecommunications and internet services. include the installation of energy efficient light fittings internally and externally, where appropriate. External light fittings will be installed to comply with air safety requirements outlined in Chapter 9 of Manual of Standards Part 139. include heating, ventilation & air conditioning plant and equipment suitable for a development of this type. 3.6 LANDSCAPING AND SITE PLANNING The proponent is responsible for the design, construction and management of all landscaping on the airport site. Landscaping will be consistent with the high standards established on the airport site for other completed projects. In accordance with EAPL s Protection of Aviation Activity Policy contained within the Essendon Airport Land Use Plan, EAPL will have regard to the potential for bird strikes. Suitable landscaping species will be selected having regard to their potential to attract birds with a view to minimising bird strikes. The management of rubbish will be undertaken in a similar manner to that implemented in other buildings on airport to ensure no bird attraction or foreign object debris risk exists. Page 23

3.7 SIGNAGE Signage of the completed building will be generally consistent with other signage throughout the airport and will include: Identification and branding signage on the building. Concept design renderings exhibit some notional draft treatment but are not intended to represent the signage package. In particular the entire parapet of the roofline will be made available for appropriate branding and locale identification Tenant signs; Ground transport and traffic signage; Safety and hazard signage; and Any other signage as required In approving signage for the development, EAPL will consider the Decision Guidelines in Clause 52.05 2 of the Essendon Airport Land Use Plan which state the Airport Operator should consider: Such guidelines, rules or policies that the Airport Operator may issue from time to time; The effect of the sign on the amenity of the area including the need to avoid visual disorder or clutter of signs; The effect of the sign on the built environment or the landscape, with particular thought to its effect on any objects of scenic, historic, architectural, scientific or cultural interest; The need for identification and the opportunities for adequate identification on the site and nearby; The advertising pattern and theme in the area and the number of signs of the same type; The effect of the sign on existing signs; The size and likely impact of the sign having regard to the size of the premises on which it is to be displayed and the scale of surrounding buildings; The effect of the sign on the safety, warning and security of premises and public areas; The effect of the sign on the appearance and efficiency of a road, railway, waterway or other public way, having regard to the sign s colour, brightness and location; and The views of the Roads Corporation if the sign is an animated, floodlit, internally illuminated, panel, reflective or sky sign to be displayed within 60 metres of, or to project over, a freeway, state highway, metropolitan bridge or other road declared under the Road Management Act 2004. Page 24

3.8 CONSTRUCTION EAPL has considerable experience in managing construction projects of a large scale and will be oversee the construction contractor during the construction phase. Minimal earthworks are required to accommodate building foundations as no basement is required. Sufficient laydown and lay by areas for construction activities will be provided and access to and through the precinct will be maintained with minimal disturbance. During the construction period it is anticipated a peak construction workforce in the order of 90 personnel could be on site. 3.9 OPERATION AND MAINTENANCE The project will be owned and maintained by the proponent in the foreseeable future, with a competent Operator engaged to operate and maintain the hotel on a day to day basis consistent with requirements contained in the Hotel Management Agreement (HMA). The HMA provides for both programmed maintenance of the building and furniture, fixtures and equipment replacement. 3.10 IMPACT ON AVIATION EAPL has had regard to PANS OPS surfaces, wind shear and navigational aids on the site to ensure there are no impacts on flight paths at the Airport. 3.10.1 Prescribed Airspace Obstacle Limitation Surfaces (OLS) are a series of planes associated with each runway at an aerodrome that defines the desirable limits to which objects may project into the airspace around the aerodrome so that aircraft operations at the aerodrome may be conducted safely. (CASA 2011 p. 1 10) The purpose of the OLS is to ensure both the safe operation of aircraft in the vicinity of the airport and the operational viability of all runways. Building heights on and around the Airport are limited by application of the OLS. The relevant parameters for the subject site are as follows: OLS at highest point of building RL 123.5 metres Highest ground level point RL 76.0 metres Any structure associated with this project will not exceed RL 122.5 metres The OLS is at the inner horizontal surface across the project site. At the highest point of the building, and the most critical point for OLS, the OLS is RL 123.5 metres, which provides a clearance of 1 metre from any part of the building to the OLS. The final design of the building will again be checked against the OLS to ensure the OLS is not exceeded at any point. Page 25

The PANS OPS surface lies above the OLS. Consequently, as the building will not exceed the OLS, it also lies below the PANS OPS. As the building height will be less than the OLS there is no likely impact on aircraft operations. Should cranes be required during construction and penetrate prescribed airspace, clearances will be sought as required by the Airports (Protection of Airspace) Regulations 1996. EAPL will engage with Airservices regarding these matters prior to construction commencing. The proponent will continue to interact with CASA and Airservices as design progresses to ensure that the built form of the hotel meets the requirements of CASA and Airservices regulations. 3.10.2 Wind Shear EAPL has taken into account wind shear from the proposed development and its effect on the wind conditions for aircraft operations. The National Airports Safeguarding Advisory Group (NASAG) has released Guideline B for the effect of building on wind shear and turbulence for aircraft, NASAG (2012). According to the NASAG draft guidelines, to be of concern, a proposed building needs to be in a zone of influence extending 900 metres upstream, 500 metres downstream and 1200 metres laterally from the runway threshold. As the hotel site is inside the assessment zone, EAPL commissioned a report by CPP (2014) to determine the influence of the proposed development on the wind characteristics for landing aircraft at Essendon Airport using NASAG (2012). The proposed development does not exceed the NASAG (2012) criteria for building generated wind shear for all four approaches (Runways 08/26, 17/35) under normal operating conditions. In accordance with NASAG, the proposed development will have no impact on aircraft operations throughout the year. 3.10.3 Navigational aids and radar The site for the proposed hotel is at the western boundary of the airport, with no navigation aids nearby. The proponent is currently assisting Airservices with its assessment of the proposal to ensure there is no impact on navigational aids or radar as a result of the project. Page 26

3.11 MANAGEMENT OF AIRCRAFT NOISE INTRUSION Pursuant to Section 5(1) (Definitions) of the Airports Act 1996 (the Act), significant ANEF levels means a noise above 30 ANEF levels. The Essendon Airport 2033 ANEF, as endorsed for technical accuracy by Airservices on 4 July 2013, indicates that the site of the proposed hotel is located between the ANEF 25 and ANEF 30 contours. Specific management of aircraft noise intrusion is therefore not required under the Act. However, the primary guidance with respect to appropriate internal amenity associated with aircraft operations is Australian Standard AS2021:2000 Acoustics Aircraft Noise Building Siting and Construction. This standard provides assessment methodology, appropriate and inappropriate uses within ANEF areas and design internal aircraft noise levels for differing uses. According to Table 2.1 of the standard, development of a hotel on a site within a 25 to 30 ANEF zone is conditionally acceptable with appropriate aircraft noise reduction. The standard sets out at Table 3.3 the following indoor design sound levels applicable to a hotel: Relaxing, sleeping 55 db(a) Social activities 70 db(a) Service activities 75 db(a) Page 27

4.0 ENVIRONMENT AND HERITAGE 4.1 APPROACH TO ASSESSMENT 4.1.1 Sources of information Sources of information referenced in the preparation of this MDP include the Essendon Airport Master Plan 2013 (including Land Use Plan), the Essendon Airport 2013 2018 Environmental Strategy, various flora and fauna studies noted in the Environment Strategy and also regard to the Significant impact guidelines 1.1, Environment Protection and Biodiversity Act 1999 (Department of the Environment, 2013). 4.1.2 Environmental impacts In assessing the environmental impacts that might reasonably be expected to be associated with the hotel development, the proponent has considered the following matters: Site conditions; Hydrology and water quality; Noise and vibration; Wind; Air quality; Flora and fauna; Waste management; Visual impact and landscape; and Cultural heritage. Further information about these matters may be developed by the proponent when submitting a building application for the project. 4.1.3 Management of environmental issues during construction Pursuant to Part 4.01(1) of the Airports (Environment Protection) Regulations 1997, the operator of an undertaking at an airport must take all reasonable and practical measures: (a) to prevent the generation of pollution from the undertaking; or (b) if prevention is not reasonable or practicable to minimise the generation of pollution from the undertaking. The Construction Environment Management Plan (CEMP) for the site will contain procedures for the management of environmental issues for the site and will be consistent with the requirements of the Page 28

Victorian EPA Construction Techniques for Sediment Pollution Control (1991) and Environmental Guidelines for Major Construction Sites. The CEMP will be a requirement on the Principal Contractor and will be subject to approval by the proponent. 4.2 SITE CONDITIONS 4.2.1 Soil conditions The airport site is comprised of high expansive volcanic clays underlain by Quatermany Age Basalt the upper surface of which has weathered to the high plasticity clays. The soil conditions of the subject site are consistent with this description. It is noted that the project will be built on land that has not been developed previously, other than for temporary buildings associated with the construction of the Tullamarine Freeway, therefore the proponent is not expecting to discover contamination. Geotechnical assessment (including a preliminary contamination assessment) will be undertaken prior to detailed design as required for structural purposes. 4.2.2 Site contamination Known contaminated areas at Essendon Airport are recorded on an Environmental Site Register, in which details of the contaminants and the remedial status of the site are kept. The Environmental Site Register is reviewed annually and the majority of contamination present at the airport is due to activities of past tenants. There is no known contamination on the site of the proposed hotel and the site history for this location would indicate that there is a low risk of contamination being identified during the geotechnical assessment. If a contamination source is encountered, risk assessments are used to prioritise clean up actions and the AEO will be advised. Further treatment and testing of the site will depend upon the type of contamination and expert advice. EAPL policy is to manage areas of known or suspected contaminated sites according to regulatory requirements and where practical remediate soil contamination. It is EAPL policy to prevent the contamination of soil from airport activities and for EAPL s dangerous and hazardous goods to be disposed of promptly and correctly when no longer required. The storage and handling of dangerous goods and hazardous substances is not covered by Commonwealth legislation for Airports. Therefore, the relevant legislation for Essendon Airport is the Dangerous Goods Act 1985 and the Dangerous Goods (Storage and Handling) Regulations 2012. It is not envisaged that any hotel operations will have an adverse impact on the soils underlying or surrounding the site. The site specific CEMP will provide guidance around contamination prevention Page 29

during the project s construction phase. During the operational phase, the hotel will be operated in accordance with the overarching Essendon Airport Environmental Strategy. For any hazardous substances used in the hotel operations, appropriate controls will be in place to ensure that no soil contamination occurs. 4.3 HYDROLOGY & WATER QUALITY 4.3.1 Hydrology Stormwater at Essendon Airport is collected via a network of underground drains that collect surface runoff from the runways, buildings, roads and other impervious areas at the airport. As part of the ongoing redevelopment of areas of Essendon Airport, water sensitive urban design (WSUD) features have been, and continue to be, incorporated as part of the design and construction of buildings and infrastructure. In addition to protecting receiving waters and conserving water on site, Essendon Airport s WSUD features function as an aesthetic feature to the developments undertaken. Stormwater from the hotel site will be captured via bio retention swales and directed into the existing piped disposal system to the Moonee Valley City Council main outfall system. EAPL maintains a comprehensive environmental management program in relation to stormwater quality where stormwater discharged from the airport site is regularly sampled to verify that it is of a satisfactory quality. The incorporation of WSUD features and devices in redevelopment have ensured that stormwater runoff quality is of a quality acceptable to the Essendon Airport Environmental Strategy. Moonee Valley City Council and Melbourne Water are responsible for the management of storm water once it leaves the airport. It is not envisioned that any hotel operations will have an adverse impact on the localised hydrology at or surrounding the site. The site specific CEMP will provide guidance around contamination prevention during the project s construction phase, while during the operational phase the hotel will be operated in accordance with the overarching Essendon Airport Environmental Strategy. It should be noted that once the hotel commences operations: All liquid wastes from the facility will be discharged via a sewer to an appropriate treatment facility under a trade waste agreement. Discharges to sewer will be managed by the relevant water authority who may require regular details relating to discharge volumes and concentrations; and Stormwater runoff from the new development will be discharged via the existing stormwater network at Essendon Airport. Design of the discharge system will, where possible, incorporate Page 30

the water sensitive urban design aimed at protecting the receiving waters off site. Stormwater discharged off site is regularly sampled to verify it is of a satisfactory quality. 4.3.2 Groundwater As noted in the Essendon Airport Environmental Strategy 2013, groundwater is located between 23 to 29 metres below the surface level within the Newer Volcanics Basalts. The groundwater quality is saline and is estimated to flow in a southerly direction towards the Maribyrnong River. The proponent maintains a network of groundwater monitoring points and will continue to monitor tenant activities and assess groundwater in order to ensure compliance with Airport Regulations. It is unlikely that there would be any significant impact on groundwater quantity levels or quality as a result of this project. Given the depth to groundwater it is not expected that it would be intersected during this period. 4.4 NOISE AND VIBRATION 4.4.1 Construction noise Construction noise will be managed in accordance with the CEMP and every reasonable effort will be made to screen noise and vibration to the general public during the construction of the project. 4.4.2 On airport noise Whilst the hotel site lies on the airport s western perimeter, the hotel s environs are generally exposed to noise impacts from fixed and rotary wing operations, both from aircraft taking off and landing and from ground manoeuvres into and out of aircraft parking positions airside at or around the Terminal and apron areas. Deliveries to the project will be generally light vehicles to the loading dock. It is noted that traffic on the Tullamarine Freeway at the hotel site s western boundary, is expected to be a far more significant noise source than any traffic associated with airport operations due to its status as a major arterial freeway and heavy vehicle route. Whilst the functions and services provided by the hotel will increase ground traffic, as an overall proportion of regional traffic the impact of this project is expected to be very small. During construction, it is likely that some people working in the project may be subject to general aircraft noise exposure (as with all patrons and workers at Essendon Airport and its diverse range of land uses) for relatively short periods while walking to and from car parking areas, public transport or other buildings or facilities in Page 31

the precinct. This situation exists for people who currently work or visit the airport and its various commercial and retail precincts where there are no adverse occupational health and safety issue resulting as a consequence. 4.5 WIND As the proposed hotel is inside the assessment zone, a wind shear assessment has been conducted by Dr Graeme Wood of CPP Wind Engineering & Air Quality Consultants (CPP 2014) to test the effect of the proposed hotel on the wind conditions for aircraft operations adopting guidelines developed by the National Airports Safeguarding Advisory Group (NASAG). The report has concluded that the proposed hotel does not exceed the NASAG 2012 criteria for building generated wind shear for all approaches (runways 08/26 and 17/35) under normal operating conditions and that in accordance with NASAG the proposed development will have no impact on aircraft operations throughout the year. The proponent has undertaken consultation with Airservices and CASA in relation to the assessment and has provided the CPP report them. During development of the design, EAPL will review the impact of wind shear and further wind study checks will be undertaken on the final design in consultation with government agencies, as required. 4.6 AIR QUALITY Air quality is not expected to change with this project, and the impact of air quality during the construction phase has been assessed by EAPL as negligible. During construction works, especially during excavation, there is the potential for air quality to be impacted through the generation of dust. The CEMP for the works will contain measures for minimising the potential for dust generation (i.e. water carts spraying the soil on a regular basis and placing covers on loads) Page 32

4.7 FLORA AND FAUNA EAPL has conducted a number of studies focused on the flora and fauna at the site, in consultation with State and Federal conservation bodies to identify areas of environmental significance. A report in 1998 which covered the entire Airport site concluded the area is of low biological value. More than 70 years of clearance within the airport grounds and rapid urbanisation of surrounding areas has contributed to elimination of most native vegetation in the area. No environmentally significant areas were found within the airport s grounds. As noted in the Essendon Airport Environment Strategy 2013, in June 2008 Natural Temperate Grasslands of the Victorian Volcanic Plain Community were listed on the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The Natural Temperate Grasslands were listed on the EPBC Act because it provides habitat for many threatened species, such as the golden sun moth and the striped legless lizard. The flora and fauna study completed in 1998 found that exotic grassland is the most widespread fauna habitat at Essendon Airport and that Very few indigenous plant species remain and all have low cover. Grassland is maintained at 5 10cm height by regular mowing. In regard to the striped legless lizard, the study reported The exotic grasslands of the airport are not considered suitable habitat for the species and it is very unlikely that the species would occur at the airport. (Ecology Australia 1998) A survey of the entire undeveloped land was conducted in 2012 to determine the presence of the Golden Sun Moth. No Golden Sun Moths were detected during the targeted surveys. The survey concluded that development of the airport site is not likely to have an impact on this species (Biosis Research 2012). As the project site is currently levelled and grassed there is no expected impact of the project on native flora and fauna. A further flora and fauna assessment of the subject site in May 2014 confirmed that there are no patches of native vegetation communities, no threatened communities and species and no matters of National Environmental Significance that require consideration under the EPBC Act. (Jacobs SKM, 2014) 4.8 WASTE MANAGEMENT The operation of the building is likely to result in the generation of some solid waste. However, there is unlikely to be a significant impact on the waste stream generated by the airport and so no changes to existing waste management and monitoring processes that apply to the airport will be required. EAPL will require the Operator of the hotel to take reasonable measures to minimise waste impacts, through recycling, etc. Page 33

4.9 VISUAL IMPACT AND LANDSCAPE The entry to Essendon Airport and the English Street precinct is a tapestry of well preserved and more contemporary medium scale built forms set in a highly specified and fastidiously maintained landscape. On grade car parking facilities and vehicular connections are well defined and supported by the soft landscape treatment. The precinct landscaping to the Terminal is mature and the hotel project will add to the developing built environment on English Street between the Tullamarine Freeway and the Terminal. The design will create positive visual impacts in key view lines along the Tullamarine Freeway (from both directions) and in particular from the English Street axis. EAPL is engaged in ongoing consultation with VicRoads to improve access and visual approaches into the airport. A widening of the Tullamarine Freeway into the VicRoads road reserve was recently announced by the Victorian Government and EAPL will engage further with VicRoads regarding this matter. Page 34

4.10 CULTURAL HERITAGE Under the Airports Act 1996, EAPL was required to prepare an Airport Environment Strategy to protect the airport s environment, including its heritage values. Under the Essendon Airport Environment Strategy 2005 2009 a Heritage Management Strategy (HMS) was prepared by Godden Mackay Logan (2006) and is read and applied in conjunction with the Environment Strategy. The HMS considers the Commonwealth Heritage management principles in schedule 7B of the EPBC Act in regard to the maintenance and management of the Commonwealth Heritage values of the Essendon Airport. The HMS has guided the assessment of the proposed hotel in respect of the identified heritage values of the proposed site. 4.10.1 European Heritage The hotel site is located in the Essendon Airport Register of the National Estate Precinct, which is noted as having Heritage Value Rankings of mixed levels from Some through Moderate to High. The assessment of this Precinct notes that it contains many open space areas, structures and features that are of Low or NO identified heritage value along the boundary of the airport. There are no specific or non specific references to the proposed site within the HMS and no identification of the site as having any heritage value. 4.10.2 Indigenous Heritage Aboriginal Affairs Victoria has advised that it holds no records for any Aboriginal archaeological sites on Essendon Airport. Whilst there are no records or expectation of finding any artefacts operators of construction equipment will be briefed on any possibility of Aboriginal artefacts and in the unlikely event archaeologically significant material is uncovered during construction works or future land management works, those matters will be reported to Essendon Airport and the AEO and an appropriate management strategy developed. Page 35

4.11 POTENTIAL CONSTRUCTION IMPACTS OF THE PROJECT The following potential impacts have been identified for the construction phase of the hotel. Should these impacts occur, they will be managed in accordance with the CEMP. 4.11.1 Construction traffic Construction traffic associated with the works includes the delivery of the building materials and equipment and vehicle movements associated with the construction workforce. The construction workforce will park in nearby car parks within the airport which have ample capacity. The volume of construction traffic is expected to occur outside of peak times and be insignificant relative to the daily traffic volumes on English Street which provides important road access to the site and the precinct. For example, construction workers typically arrive on site at approximately 7am and depart by 4pm which does not conflict with the majority of other users of the precinct arriving and departing for normal business hours. Construction traffic will predominantly access the airport from English Street throughout daylight hours and have alternative access to the airport site via Wirraway Road and Vaughan Street. 4.11.2 Pedestrians Very few pedestrians currently pass the proposed construction site, nonetheless a pedestrian management plan for the construction cycle will be incorporated in information provided to the ABC. 4.11.3 Water quality The CEMP for the site will contain procedures for the management of stormwater runoff from the site and will be consistent with the requirements of EPA Victoria s Construction Techniques for Sediment Pollution Control (1991) and Environmental Guidelines for Major Construction Sites (1996). 4.11.4 Air quality and dust management The CEMP for the site will contain procedures for the management of dust generation associated with soil excavation. Page 36

4.11.5 Erosion and sediment control If not managed properly, there is potential for low levels of erosion and sedimentation during construction. While any erosion is expected to be minimal due to the site s flat topography, a sediment control plan will be developed in consultation with the AEO prior to construction to mitigate against erosion and sedimentation. 4.11.6 Airport operations Crane penetrations through the OLS, if required during construction, will be managed to ensure there is no impact on airport operations. A notice to airmen (NOTAM) will be issued if required. All construction and related works will be managed in accordance with the regulations set out in Manual of Standards Part 139 Aerodromes (CASA 2011). There is not expected to be any impact on the operation of runways and taxiways at the airport during or post construction of the project. As stated at Chapter 3.10.1, EAPL will seek permission from Airservices for any temporary penetrations through the OLS required during construction. 4.11.7 Construction waste The proponent will impose conditions on contracted parties for the management of construction waste which is to be recycled where economically and commercially practical or disposed of at a legally operating waste refuge. 4.11.8 Hazardous materials Hazardous materials will be managed in accordance with State and Federal legislation, and will include suitable storage, management and disposal techniques. 4.11.9 Cultural heritage The CEMP will include policies to manage any cultural heritage items unearthed during construction. This includes requirements to report any suspected Aboriginal sites to EAPL and Aboriginal Affairs Victoria. Construction work will stop in the event that works may deface or damage an Aboriginal relic until the issue is resolved appropriately in accordance with the procedures prescribed under the Aboriginal Relics Preservation Act 1972. Page 37

4.12 ENVIRONMENT MANAGEMENT SYSTEM (EMS) EAPL is the airport lessee company and as such is responsible for the management and planning of most airside and landside facilities at Essendon Airport. EAPL is also responsible for the environmental management of the airport, including ground based air and noise emissions. Construction Environmental Management Plans (CEMPs) are prepared to manage potential environmental risks associated with the development of buildings, car parks and other major developments, covering the following aspects: Stormwater Run off Waste Contaminated Soil Noise Page 38

5.0 CAR PARKING AND TRAFFIC FLOWS 5.1 ROAD NETWORK AND PUBLIC TRANSPORT LINKS 5.1.1 Road Network Essendon Fields is well connected to the metropolitan arterial road network. The proposed hotel will be afforded direct access to the Tullamarine Freeway via the interchange with English Street / Matthews Avenue to the immediate west. The Tullamarine Freeway provides direct and efficient access to the Melbourne International Airport to the north west, the Melbourne CBD to the south east and further connections to the freeway corridors (Western Ring Road and Calder Freeway). The Tullamarine Freeway also provides connection to neighbouring suburbs via the following interchanges: Essendon via Bulla Road Coburg and Pascoe Vale via Bell Street Airport West via Wirraway Road and Matthews Avenue Figure 8 shows Essendon Airport and the proposed hotel site in the context of the wider road network. Figure 8: Subject site and external road network Page 39

5.1.2 Trams The number 59 Airport West to City tram route operates along Matthews Avenue directly opposite the hotel site. The tram route also links to Essendon Station, an 11 minute ride away. 5.1.3 Buses The following bus routes operate along streets on or close to Essendon Fields: 478 Moonee Ponds Melbourne Airport via Essendon, Airport West, Niddrie; 477 Moonee Ponds Broadmeadows via Essendon, Airport West, Gladstone Park; 479 Sunbury Moonee Ponds via Melbourne Airport, Airport West; 501 Moonee Ponds Niddrie via Strathmore The Green Orbital 902 SmartBus currently runs from Chelsea to Airport West via Springvale, Glen Waverley, Nunawading, Eltham, Greensborough, Keon Park, Broadmeadows and Gladstone Park. 5.1.4 Train The nearest train stations to Essendon Fields are: Essendon Station approximately 8 minutes 4.5km south (tram, bus interchange); Glenbervie Station approximately 8 minutes 4.2km southeast; 5.1.5 Taxi Taxis and hire car services are also readily accessible and the hotel will manage these requirements consistent with industry best practice. Page 40

5.2 CAR PARKING 5.2.1 Hotel Guests Car parking for hotel guests is to be accommodated within an at grade car park on the hotel site. The statutory requirements for the provision of car parking are set out in Clause 52.06 of the Essendon Airport Land Use Plan, with parking rates set out in Clause 52.06 5. The statutory parking rate for Residential Hotel use is 1 space per lodging room. However, pursuant to Clause 52.06 1 of the Land Use Plan, approval may be given to reduce or waive the number of car spaces required by the table. Car parking demand for the proposed hotel (guests and staff) has been assessed by traffic engineers at 0.32 spaces per room, which for example, equates to a peak car parking demand in the order of 58 car spaces based on 180 rooms (GTA Consultants, 2014). EAPL will provide on the hotel site a minimum of 0.32 car spaces per lodging room. The hotel Operator will be responsible for the efficient management of the hotel car park and may use discretion to accommodate parking for conference guests or visitors in the hotel car park at times when the car park is under utilised. 5.2.2 Conference Facility The use of the conference facility will generally be that of an ancillary use to the hotel, typically infrequent in nature and occur outside of peak parking times for the current uses at Essendon Airport. The primary car parking location for guests of the conference facility is to be the Nomad Street car park which is located directly opposite the hotel site and accessible from Larkin Street and Nomad Street. (See Figure 9) With regard to the conference facility, the Land Use Plan identifies a parking rate of 0.3 spaces to each seat or each square metre of net floor area (whichever is the greater). For example, application of this rate to the estimated 200 patrons anticipates the conference facility has a requirement to provide 60 car parking spaces, which has been assessed by traffic engineers as appropriate. (GTA Consultants, 2014) The Nomad Street car park is to become a paid car park with fees charged on a daily basis. The Nomad Street Car Park and its available capacity are discussed further in Chapter 5.2.4. Conference facility patrons will also have the option of parking in the surrounding road network free of charge for up to three hours. There are also more than 700 car spaces in the Shopping Centre car park located within 400 metres from the hotel site where parking will be available free of charge for up to three hours. Page 41

Figure 9: Proposed car park access and location plan 5.2.3 Hotel Employees The primary car parking location for hotel employees is to be the Hotel Car Park (See Figure 9). Car parking demand for the proposed hotel (guests and staff) has been assessed by traffic engineers at 0.32 spaces per lodging room, which EAPL is providing on the hotel site. If demand requires, the hotel Operator has the option to direct its employees to use the Nomad Street car park located opposite the site. This is consistent with EAPL s strategy for all day and long term car parking to be accommodated off street, leaving short term parking on street and within the shopping centre for visitors and retail customers. The Nomad Street Car Park and its available capacity are discussed further in Chapter 5.2.4. Page 42

5.2.4 Nomad Street Car Park The Nomad Street Car Park is a temporary at grade car park which currently provides additional parking to office users in the nearby 7 English Street (Essendon Fields House) and 15 Vaughan Street developments. As car parking demand within the English Street precinct increases with future development, EAPL has plans for these car spaces to be accommodated in a larger multi deck car park to be constructed on part of that site or within the immediate area. The Nomad Street Car Park currently has a capacity of 279 spaces, of which 100 spaces are leased to tenants of 15 Vaughan Street and 179 spaces are unreserved and available for public use. The car park is currently utilised by office workers on business days from 8am to 6pm and generally vacant outside this period. Current occupancy for the publicly available spaces currently averages approximately 75 cars during business hours. The forecast peak usage for the Nomad Street Car Park is summarised in the Table 1 below: TABLE 1 FORECAST PEAK USAGE FOR NOMAD STREET CAR PARK Current Demand (179 public car spaces available) Post Hotel Completion (179 public car spaces available) Tenants of 7 English Street 75 75 Hotel Conference Guests 0 60 Total Peak Usage During Business Hours 75 (42%) 135 (75%) The above analysis is based on peak usage when car parking demand from a conference event overlaps with demand from office workers during normal business hours. The table demonstrates that the Nomad Street Car Park can accommodate hotel demand during peak times, with available capacity for hotel staff if required. It should also be noted that conference attendees have the option to park free of charge for up to three hours on the surrounding road network and within the shopping centre car park. Page 43

5.3 TRAFFIC FLOWS The traffic generated by the project is not expected to have a significant impact on the internal Essendon Airport street network which is currently operating below design capacity. Peak hour traffic impact from hotel guests has been assessed at a rate of 0.4 vehicle movements per hotel car parking space (resulting in up to 23 peak hour vehicle movements based on 58 spaces). This equates to approximately one movement every two to three minutes. (GTA Consultants, 2014) Hotel users typically have tidal peaks with the majority of motorists exiting the hotel during the morning peak and entering in the afternoon peak. These movements are contrasting to the tidal nature of the current uses at Essendon Airport and will be afforded the available capacity within the network. Traffic engineering advice confirms that the food and beverage and conference facilities typically have start and finish times outside of the AM and PM network peaks and as such its traffic movements will also be able to be absorbed outside of peak times. Further, these uses are considered to be ancillary to the hotel and patrons will typically be already onsite in the hotel. On this basis, it has been assessed that the traffic generated by the hotel and conference facility will not have any materially adverse impact on the road network, both within Essendon Fields and the surrounding local network. 5.4 VEHICLE ACCESS 5.4.1 Vehicle access for hotel guests A dedicated hotel pick up/drop off area is proposed to be provided in front of the hotel, with access via a direct connection to English Street. Vehicle access to the hotel guest car park at the rear of the site is proposed via a separate connection to Larkin Street. 5.4.2 Vehicle access for conference facility Patrons of the Conference Centre will be provided with set down access from Larkin Street prior to parking those vehicles in the Nomad Street Car Park. Page 44

5.4.3 Service vehicle access Vehicle access to a loading area to the rear of the site will be via a connection to Larkin Street. Figure 10: Proposed vehicle access Page 45

5.5 PEDESTRIAN AND BICYCLE ACCESS Sealed footpaths are provided on both sides of English Street that provide connections to Essendon Fields and Matthews Avenue bus and tram services. Figure 11 demonstrates that pedestrian access by footpaths will be available from the site to bus stops, car parks, the Terminal, neighbourhood shopping centre and commercial premises. A new sealed footpath will be constructed on the Larkin Street boundary of the site with a pedestrian crossing across Larkin Street to the car park. Figure 11: Proposed pedestrian access The hotel will be situated approximately 380 metres from the front of the terminal and approximately 200 metres from the Essendon Fields Shopping Centre, with direct on grade pedestrian access available through a high quality, landscaped boulevard. Footpath access within the airport is also provided to an off airport pedestrian bridge over the Tullamarine Freeway which links the airport to a tram stop in Matthews Avenue, Airport West. At grade access for cyclists to the project site will be along the internal road system. Page 46

6.0 COMMUNITY AND ECONOMIC IMPACT The proposed development is estimated to have a total project cost of up to $41.9 million, based on a development of up to 180 hotel rooms. Employment and economic impact assessments for this preliminary draft Major Development Plan have been prepared by Street Ryan & Associates Pty Ltd (Street Ryan & Associates, 2014) based on the maximum project size. 6.1 EMPLOYMENT The airport site contains approximately 174 businesses providing over 4,200 jobs (this represents 12% of jobs within the City of Moonee Valley) with an additional 908 direct jobs expected to be created over the next five years. A further 83 indirect jobs are expected to be created within the City of Moonee Valley and 954 indirect jobs within Victoria. Essendon Airport, in assessing its long term development capacity, determined the long term employment capacity to be approximately 18,000 jobs. Based on developments to date, the estimated net direct economic benefit derived from businesses that have located at Essendon Airport since privatisation in 2001 is: For the City of Moonee Valley, an additional $484.6 million per annum For Victoria, additional $173 million per annum (excluding $43 million from net wages paid to FIFO workers). In March 2014 the Victorian Government announced a new employment precinct and site of state significance encompassing the suburbs of Essendon Fields and Airport West. The announcement recognises the precinct s capacity to create a thriving centre for aviation, technology and retail comprising approximately 25,000 jobs when complete. This has reinforced Essendon Airport s status as a significant transport and employment precinct. Capital investment in the hotel is expected to be made over a 15 to 16 month + period and is forecast to result in around 335 jobs (full time, part time, casual and contract) during the construction phase Total annual employment associated with the facility is estimated at 160, covering management, administration, reception, housekeeping & cleaning, porters, kitchen, restaurant, bar, maintenance and outdoor staff. This equates to an estimated 72 full time equivalent jobs. Around 60% of staff are assumed to be part time or casual. (Street Ryan & Associates, 2014) Page 47

6.2 ECONOMIC IMPACT The annual economic contribution to the community is likely to be derived from accommodation takings, restaurant, bar and personal accessory sales to result in: a net direct economic contribution to the Moonee Valley economy of $10.7 million per year, a net direct economic contribution to the Victorian economy of $7.7 million per year. (Street Ryan & Associates, 2014) The above estimates provide an indication of the extent to which the hotel contributes to a net expansion in the size of the Moonee Valley and Victorian economies by attracting additional investment that is sourced from beyond their respective boundaries. Economic outcomes are summarised below in Table 2 (Street Ryan & Associates 2014). TABLE 2 SUMMARY OF IMPACTS OF THE ESSENDON FIELDS HOTEL AND CONVENTION FACILITY Once Off Short Term Impacts Construction Costs ($m) $41.9 Construction Jobs (includes employees, 335 contractors and sub contractors, & professional & technical consultant inputs) Annual Impacts Essendon Fields Moonee Valley Victoria Net Direct Economic Benefit ($m) $10.7 $7.7 Direct Annual Jobs 160 167 241 Direct Annual Jobs (FTE) 72 75 109 Employment Multipliers 1.04 1.51 The estimated impacts on business output by sector are summarised below in Table 3 (Street Ryan & Associates 2014). TABLE 3 ESTIMATED IMPACT ON BUSINESS OUTPUT BY SECTOR AND REGION Sector Moonee Valley Victoria Electricity, Gas, Water & Waste Services $ 0.7 $ 2.7 Construction $ 0.0 $ 0.1 Manufacturing $ 0.6 $ 0.6 Wholesale/Retail $ 1.9 $ 2.3 Transport, Storage & Warehousing $ 3.6 $ 0.2 Services $ 3.6 $ 8.2 Household Sector $ 4.3 $ 19.5 Total Business Output $ 11.3 $ 33.6 Page 48

6.3 SOCIAL IMPACT More generally, the hotel project is expected to have a positive social impact on both those using the Airport and those within the vicinity. Facilities such as a restaurant, bar, and function and meeting spaces will be a hospitable addition to the airport site and surrounding areas. EAPL expects that the development will improve the social fabric of the airport by providing a meeting place and dining options for those employed at Essendon Airport and surrounding businesses in Airport West. The hotel facilities are also expected to appeal to the wider community, enhancing the options within the locality for large scale function spaces and quality accommodation. Page 49

7.0 STATUTORY CONTEXT A major development, as defined under the Airports Act 1996 (the Act), requires the preparation of an MDP which must be approved by the Minister. The contents of an MDP are set out in section 91 of the Act. Appendix A to this preliminary draft MDP sets out the consistency of this MDP with the requirements of the Act and demonstrates this MDP is consistent with these requirements. As EAPL holds a long term lease over Essendon Airport from the Commonwealth Government, all building and development activities are regulated by Commonwealth legislation consisting of, but not limited to: Airports Act 1996 (Cth); Airports Regulations 1997 (Cth); Airports (Building Control) Regulations 1996 (Cth); Airports (Environmental Protection) Regulations 1997 (Cth); Environment Protection and Biodiversity Conservation Act 1999 (Cth); Airport (Protection of Airspace) Regulations 1996 (Cth); and Civil Aviation Safety Authority Manual of Standards Part 139 Aerodromes 7.1 COMMONWEALTH ENVIRONMENTAL IMPACT ASSESSMENT The Environment Protection and Biodiversity Conservation Act 1999 (Cth) (the EPBC Act) provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places defined in the Act as matters of national environmental significance which include: World Heritage properties; National Heritage properties; Wetlands of international importance; Nationally threatened species and communities; Migratory species; Nuclear actions; Commonwealth marine environment; and Any additional matters raised by the regulations. The project will not affect any matters of national environmental significance. However given the Airport is located on Commonwealth land, the project is subject to the provisions of the EPBC Act. Page 50

7.2 DEVELOPMENT AND BUILDING APPROVALS In addition to any MDP requirements, construction of the project is subject to: The submission of an application for a Building Permit to the ABC in accordance with the Airports (Building Control) Regulations 1996; and The submission and acceptance of a Construction Environmental Management Plan (CEMP) to the proponent. There is no requirement for any airspace approval under Part 12 of the Act for the project on completion, and all building permits will be obtained in accordance with Provision 5 of the Act. An Application under Part 12 of the Act may be required for temporary obstacles (cranes) during construction of the Hotel, and the need for any such approval will be determined following consultation with Airservices, CASA and the Department of Infrastructure and Regional Development. 7.3 CONSISTENCY WITH THE STATE PLANNING SCHEMES The Essendon Airport site is on Commonwealth land where state planning legislation, in particular, the Victorian Planning and Environment Act 1987 does not apply. However, pursuant to Section 91(1)(ga)(iii) of the Airports Act 1996, this MDP includes an analysis of how the proposed developments fit within the local planning schemes for commercial and retail development in the adjacent area. Urbis was engaged by EAPL to assess the proposed hotel development against the local planning schemes for the area adjacent to the hotel site. In particular, the hotel proposal has been assessed against the Plan Melbourne Metropolitan Planning Strategy, State Planning Policy Framework and the Moonee Valley Planning Scheme. The proposed development s fit within each of these planning strategies is discussed below. Overall, the analysis demonstrates that the proposed use and development supports the existing hierarchy of activity centres and local employment precincts serving the region and is consistent with the relevant planning frameworks. (Urbis 2014) Page 51

7.3.1 Consistency with Plan Melbourne Metropolitan Planning Strategy The Plan Melbourne Metropolitan Planning Strategy (Plan Melbourne) was released in May 2014 and is detailed as being the Victorian Government s Vision for the City of 2050. Melbourne s Growth Melbourne is expected to grow to a city of 7.7 million by 2051 (an increase of 3.4 million) (Plan Melbourne, 2014) given its rapid growth over the past number of years and the projections of future population growth. To accommodate the growing population, Plan Melbourne acknowledges the need for new employment opportunities and expects a demand for approximately 1.7 million new jobs. These employment opportunities will be required in the CBD as well as the inner and outer suburbs. Plan Melbourne also acknowledges that existing, future and proposed transport corridors reinforce existing and proposed employment concentrations. EAPL considers that the proposed hotel development will contribute to this expected growth and provide for new employment opportunities to the region. The economic impact and employment assessment for the proposed hotel is discussed in detail at Chapter 6. Tourism Plan Melbourne identifies that Melbourne s strong position in tourism is expected to continue to grow. This growth is expected to drive the demand for short stay accommodation. EAPL considers that Essendon Airport is an ideal location for a hotel development. To the west of the site, on the opposite side of the Tullamarine Freeway is the Airport West Principal Activity Centre which also comprises a range of services and amenities. Visitors of the proposed hotel will have access to a range of services and facilities within Essendon Fields and Airport West, including retail, cafes and restaurants. Visitors will also have direct access to the Melbourne CBD via public transport options or by road. Page 52

Future of Melbourne s Airports Plan Melbourne acknowledges the importance of supporting the expansion of airports given that they are key economic assets to the region that support the Government s intention of growing new industries and employment. Plan Melbourne states that Essendon Airport in Melbourne s north provides for regular passenger transport, small to medium airfreight, a base for emergency services and a range of commercial and retail activities. As well as providing these important services, it has good transport access and is close to other industry and retail uses in Airport West. Opportunities exist to maintain these services, as well as to increase development and employment opportunities. (Plan Melbourne, 2014) EAPL considers that the increasing development of employment clusters such as Essendon Fields requires various key land uses to supply the employment and economic needs of the centre. The proposed hotel, which will include a dedicated conference facility, a bar and restaurant will contribute to the long term growth and development of Essendon Airport and help address the importance of developing these employment clusters. A new Employment Precinct for Melbourne s North On 19 March 2014 the Victorian Government announced that the Metropolitan Planning Authority, Monee Valley City Council and Essendon Airport are working in partnership to prepare and develop a framework plan which will incorporate Essendon Airport s Master Plan and Moonee Valley s Airport West Structure Plan. The final version of Plan Melbourne now includes a short term strategy to prepare a structure plan linking Essendon Airport and Airport West (Essendon Technology Precinct) that identifies the opportunities for urban renewal and increased development and employment. Several early development projects were identified in the Victorian Government s announcement in March 2014, including a 150 room hotel and conference centre on airport land, subject to approval by the Federal Government. Page 53

7.3.2 Consistency with Moonee Valley Planning Scheme The Moonee Valley Planning Scheme regulates the development of various land uses and activities that surround the airport site. It is noted that the State and Local controls of the Moonee Valley Planning Scheme do not address the development of Essendon Airport specifically. However, Clause 18.01 (Transport) and Clause 21.07 (Economic Development) are policies that note the development potential of the airport. Clause 21.07 (Economic Development) lists the Essendon Airport Master Plan as a reference document. The following sections assess how consistent the proposed hotel use is against the State and Local Planning Policies of the Moonee Valley Planning Scheme. 7.3.2.1 State Planning Policy Framework State Planning Policy recognises the importance of providing for a strong and innovative economy, where all sectors of the economy are critical to economic prosperity. Planning is to contribute to the economic well being of communities and the State as a whole by supporting and fostering economic growth. This will be done by providing land, facilitating decisions and resolving land use conflicts, so that each district may build on its strengths and achieve its economic potential. EAPL considers that this project will achieve the important State objectives of promoting growth and economic development, as outlined below. Activity Centre Planning Essendon Airport is not listed as a designated Activity Centre in the Moonee Valley Planning Scheme. However, it is located adjacent to the Airport West Principal Activity Centre and is considered to be an employment centre which provides various facilities to the aviation industry and the surrounding area. EAPL considers that given its strategic location, Essendon Fields provides the opportunity to create an integrated business environment and the potential to create significant employment opportunities, through the enhancement and expansion of the range of services and facilities currently located in the area. Page 54

Urban Environment Clause 15.01 (Urban Environment) sets out strategies for new development to contribute to the community by improving safety, diversity and choice, the quality of living and working environments, accessibility and environmental sustainability. EAPL considers that the proposal furthers this policy by locating a high quality designed hotel on the Essendon Airport site. It will provide ground level activity to the street frontage, passive surveillance to the public realm and more generally enhance the experience of the area. Economic Development Policy at Clause 17.01 1 (Business) seeks to encourage development which meets the community s needs for retail, entertainment, office and other commercial services and provides net community benefit in relation to accessibility, efficient infrastructure use and aggregation and sustainability of commercial facilities. Tourism development is encouraged at Clause 17.03 1 (Facilitating tourism) to maximise the employment and long term economic, social and cultural benefits of the State. The strategies at this Clause seek to ensure that tourism facilities have access to suitable transport infrastructure and be compatible with, and build upon the assets and qualities of surrounding urban or rural activities and cultural and natural attractions. EAPL considers that the proposed hotel will contribute to the economic well being of the local area and region. The proposed hotel will contribute to the economic wellbeing of the adjacent Airport West Principal Activity Centre, as well as the existing employment centre of Essendon Fields. The significant economic benefits for the municipality and state are detailed in Chapter 6. Airport Development An objective at Clause 18.04 2 (Planning for airports) is to strengthen the role of Victoria s airports within the State s economic and transport infrastructure and protecting their ongoing operation. It includes strategies that recognise Essendon Airport s current role as providing specialised functions related to aviation, freight and logistics and its potential future role as a significant employment and residential precinct that builds on current functions. The strengthening and rejuvenation of Melbourne s airports is a key platform within State planning policy and EAPL considers that the proposed hotel will serve to respond to such policy by contributing to the expansion of the airport facilities and employment growth of the centre. The proposal will not adversely affect the ongoing operation of the airport and will meet the needs of users of the airport as detailed in Chapter 3.3. Page 55

7.3.2.2 Local planning policy framework The Local Planning Policies of the Moonee Valley Planning Scheme seek to implement the objectives and strategies of Council s Municipal Strategic Statement which include a focus on growing populations, the built form, economic development, community facilities and transport and access. The proposed hotel will support the development of the City of Moonee Valley, as outlined below. Vision for the Municipality The vision for the Municipality of Moonee Valley detailed at Clause 21.02 is to provide a safe community which has ready access to services and facilities for wellbeing, embraces its local heritage and cares for the environment, supporting individuals and groups to be involved in their community. Objectives and strategies for land use planning in the municipality focus on sustainability, housing, the built environment, activity centres, economic development and transport and access. The Strategic Framework Plan at Clause 21.02 2 details the subject site s location as an employment node. Moonee Valley City Council has recently acknowledged the ongoing operation and development of the airport and seeks to work with EAPL and the Metropolitan Planning Authority to develop a framework plan for Essendon Fields and Airport West. This framework plan will guide the future development of the precinct as an important employment centre for the area. The proposed hotel and its associated facilities will contribute to Council s vision of a city which has ready access to services and facilities. Built Environment Clause 21.03 1 (Sustainable Environment) encourages contemporary and innovative, environmentally sustainable designed buildings. This policy also recognises that local employment, education and training opportunities are fundamental to the sustainability of the future of the municipality of Moonee Valley. Clause 21.05 (Built Environment) identifies the community s demand for high quality architectural and design outcomes and seeks to achieve contemporary development that is innovative, legible and designed in a manner that responds to its location and context. EAPL considers that the proposed hotel will make a positive contribution to the surrounding area. The design will incorporate sustainable design initiatives into its contemporary and innovative design that will respond positively to its context. Page 56

Development Potential of Essendon Airport Clause 21.06 (Activity Centres) identifies the role and functions of the various activity centres in Moonee Valley. Airport West is identified as a Principal Activity Centre, which is located adjacent to the subject site on the western side of the Tullamarine Freeway. The Airport West Structure Plan identifies how Airport West will evolve to the year 2030. The plan seeks to consolidate land uses in and around the shopping centre, encourage new development that contributes positively to the image of the centre and ensuring the centre is well connected locally and regionally by various modes of transport. Although the proposed hotel development is not located directly within the boundary of the Airport West Activity Centre, it is submitted that the proximity of the subject site to this centre renders the policy relevant to this analysis. Policy at Clause 21.07 (Economic Development) identifies that the redevelopment of the Essendon Airport site into a large scale business/retail park is a unique economic opportunity for Moonee Valley. A specific objective at Clause 21.07 2 for employment is to create a city that is a leading destination for people to live, work, invest and prosper. The strategies at this policy seek to attract high value adding businesses to the main employment nodes. EAPL considers that the proposed hotel development will complement the existing uses in and around the precinct and will further enhance the strong employment base of not only the Airport West Principal Activity Centre but also the role of Essendon Fields as an employment node. Access and Infrastructure Clause 21.09 2 (Objectives and strategies Transport and Access) encourages new development to be located within close proximity to public transport. The location of the proposed hotel within close proximity to public transport will reduce the need for users of the facility to rely on private vehicle use to access the facility. It will also ensure users of the facility have direct access to the CBD and surrounding regions and a range of services. 7.3.3 Conclusion Based on the above assessment, it is evident that the site is strategically located to support the development of a hotel and associated facilities on the site. The proposal is consistent with the relevant state and local planning considerations within the Moonee Valley Planning Scheme as well as the overarching strategic direction provided in the Plan Melbourne Metropolitan Planning Strategy. Page 57

7.4 MASTER PLAN The project is consistent with the 2013 Master Plan (EAPL, 2013a) and also the previous 2008 Master Plan. The 2013 Master Plan is the current master plan for Essendon Airport which was approved on 23 April 2014 by the Minister for Infrastructure and Regional Development. The 2013 Master Plan lists a 140 180 room hotel with associated conference, food and beverage facilities as a development proposed to occur in the airport s English Street precinct over the next five years. An on airport hotel and general accommodation was also noted in the previous 2008 Master Plan as a development proposal for the airport s English Street precinct, with a strong possibility of occurring during the next five years. 7.5 CONSISTENCY WITH LAND USE PLAN Essendon Airport s Master Plan (EAPL 2013a) includes a detailed Land Use Plan in order to provide a clear planning framework for the use and development of Essendon Airport. The proposed hotel development is located within the English Street Precinct. The policy basis for the English Street Precinct is: English Street and its immediate surrounds form the main gateway to Essendon Airport and therefore provide visitors with important first impressions. English Street is the main airport boulevard and its status within the airport road hierarchy is to be reinforced. Creation of an appropriate entry statement, which announces Essendon Airport, is of particular importance. Due regard has to be given to the types of uses and activities which occur, the scale, form and design of the buildings, and the relationship of buildings to the street and surrounds to create an open campus style setting. As the gateway to the airport the use and development of land on either side of English Street must complement and enhance the entrance to the site and the Boulevard character of English Street. Page 58

It is policy in the Land Use Plan that: the precinct will be promoted and developed as the main location for office activities; architectural expression promotes and reinforces the campus style theme of the airport; building frontage setbacks should complement and reinforce the boulevard character of English Street and Office Boulevard; view corridor opportunities into the site from Matthews Avenue and the commencement of English Street should be promoted and enhanced; and development on areas not directly fronting English Street or Office Boulevard also reinforce the campus style character of the precinct. EAPL has had regard to the Land Use Plan and its policies in formulating the proposal and this Major Development Plan. The proposed development is considered to achieve the intent of the Essendon Airport Master Plan by: Improving the range of services and facilities available at Essendon Airport to the onairport workforce, travellers and visitors; Servicing the expected growth in aviation activity; Contributing to employment levels at the airport and providing a net direct economic benefit to the City of Moonee Valley municipal area and the State; Creating high quality built form at the gateway to the airport which makes an important visual statement; Reinforcing the English Street Precinct s status as the main location for office activities and higher value commercial development; Enhancing the scenic amenity and boulevard character of English Street; Addressing the needs of car parking demands for the proposal; Meeting the requirements of the airport s Environmental Strategy; and Providing a development that achieves EAPL s overall vision for the airport and the development objectives. 7.6 ENVIRONMENT STRATEGY The Essendon Airport Environment Strategy (EAPL 2013b) prepared under Part 6 of the Airports Act 1996 was approved along with the 2013 Master Plan on 23 April 2014. This project is consistent with the 2013 Environment Strategy. Page 59

7.7 AIRPORT LEASE The hotel proposal is consistent with the airport lease. The Commonwealth retains ownership of Essendon airport, which is leased to EAPL for 50 years with a 49 year option. As Lessee, EAPL is required by the Commonwealth to provide for the use of the airport site as an airport and for access to the airport by interstate and intrastate transport. The lease also provides: Throughout the term the Lessee must develop the Airport Site at its own cost and expense having regard to: a) the actual and anticipated future growth in, and pattern of, traffic demand for the Airport Site; b) the quality standards reasonably expected of such an airport in Australia; and c) Good Business Practice. The construction of the project is in response to the needs of airport users and the current and anticipated future growth in aviation activity at the airport. (Refer Chapter 3.3 Needs of users of the Airport) 7.8 PRE EXISTING INTERESTS In preparing this Major Development Plan, EAPL has considered all interests in the land existing at the time the airport lease was created, including leases, sub leases, licences and easements. There are no conflicts or inconsistencies existing between these interests and the proposals in this Major Development Plan. Page 60

8.0 REFERENCES AHS Advisory (2013) Market Feasibility Update Report Proposed Essendon Fields Hotel, October 2013. Australian Government Department of the Environment (Department of the Environment 2013) Significant impact guidelines 1.1, Environment Protection and Biodiversity Act 1999, 2013. Australian Standard (1994) AS2021 1994 Acoustics Aircraft Noise Intrusion Building Siting and Construction. Biosis Research (2012) Essendon Fields: Golden Sun Moth Survey, February 2012. Civil Aviation Safety Authority (CASA 2011) Manual of Standards Part 139 Aerodromes Version 1.6, June 2011. CPP (2014), Qualitative Wind Assessment for Essendon Hotel, March 2014. Ecology Australia (1998) Essendon Airport Survey for Significant Flora and Fauna, January 1998. EPA Victoria (1991) Construction Techniques for Sediment Pollution Control, 1991. EPA Victoria (1996) Environmental Guidelines for Major Construction Sites, February1996. Essendon Airport Pty Ltd (EAPL) (2013a) Essendon Airport Master Plan, 2013. Essendon Airport Pty Ltd (EAPL) (2013b) Essendon Airport Environmental Strategy 2013 2018, 2013 Godden Mackay Logan (2006) Essendon Airport: Heritage Management Strategy, September 2006. GTA Consultants (2014) Essendon Fields Hotel Major Development Plan, April 2014. Jacobs SKM (2014) Essendon Fields English Street Precinct Flora and Fauna Assessment, May 2014. State Government of Victoria (Plan Melbourne, May 2014), Plan Melbourne Metropolitan Planning Strategy, May 2014. Street Ryan & Associates (2013) Assessment of the Economic and Employment Contributions of Essendon Fields Master Plan Developments to 2012 & Planned New Developments, May 2013. Street Ryan & Associates (2014) Essendon Airport Hotel Development Impact Assessment, May 2014. Urbis (2014), Essendon Airport Hotel Major Development Plan Planning Assessment, March 2014. Page 61

APPENDIX A Consistency of the MDP with Statutory Requirements Section 91 of the Airports Act 1996 Relevant Section of MDP (1A) The purpose of a major development plan in relation to an airport is to establish the details of a major airport development that: (a) relates to the airport; and (b) is consistent with the airport lease for the airport and the final master plan for the airport. (1) A major development plan, or a draft of such a plan, must set out: (a) the airport lessee company s objectives for the development; and (b) the airport lessee company s assessment of the extent to which the future needs of civil aviation users of the airport, and other users of the airport, will be met by the development; and (c) a detailed outline of the development; and (ca) whether or not the development is consistent with the airport lease for the airport; and (d) if a final master plan for the airport is in force whether or not the development is consistent with the final master plan; and (e) if the development could affect noise exposure levels at the airport the effect that the development would be likely to have on those levels; and (ea) if the development could affect flight paths at the airport the effect that the development would be likely to have on those flight paths; and (f) the airport lessee company s plans, developed following consultations with the airlines that use the airport, local government bodies in the vicinity of the airport and if the airport is a joint user airport the Defence Department, for managing aircraft noise intrusion in areas forecast to be subject to exposure above the significant ANEF levels; and (g) an outline of the approvals that the airport lessee company, or any other person, has sought, is seeking or proposes to seek under Division 5 (Building Control) or Part 12 (protection of air space around airports) in respect of elements of the development; and 1.2 The Proposal 1.4 Objectives 1.2 The Proposal 1.4 Objectives 7.4 Master Plan 7.5 Consistency with Land Use Plan 7.7 Airport Lease 1.4 Objectives 3.3 Needs of Users of the Airport 3.0 Project Description 7.7 Airport Lease 7.4 Master Plan 7.5 Consistency with Land Use Plan 4.4 Noise and Vibration 3.10 Impact on Aviation 3.11 Management of aircraft noise intrusion 3.10 Impact on Aviation 4.11 Potential Construction Impacts of the Project 2.0 Major Development Plan Process (ga) the likely effect of the proposed developments that are set out in the major development plan, or the draft of the major development plan, on: (i) traffic flows at the airport and surrounding the airport; and 5.3 Traffic Flows (ii) employment levels at the airport; and (iii) the local and regional economy and community, including an analysis of how the proposed developments fit within the local planning schemes for commercial and retail development in the adjacent area; and (h) the airport lessee company s assessment of the environmental impacts that might reasonably be expected to be associated with the development; and (j) the airport lessee company s plans for dealing with the environmental impacts mentioned in paragraph (h) (including plans for ameliorating or preventing environmental impacts); and 6.1 Employment 6.2 Economic Impact 7.3.2 Consistency with Moonee Valley Planning Scheme 4.0 Environment & Heritage 4.0 Environment & Heritage

(k) if the plan relates to a sensitive development the exceptional circumstances that the airport lessee company claims will justify the development of the sensitive development at the airport; and (l) such other matters (if any) as are specified in the regulations. Not applicable. 7.8 Pre existing interests 3.10.2 Wind Shear 4.5 Wind (2) Paragraphs (1)(a) to (k) (inclusive) do not, by implication, limit paragraph (1)(l). Noted. (3) The regulations may provide that, in specifying a particular objective, assessment, outline or other matter covered by subsection (1), a major development plan, or a draft of such a plan, must address such things as are specified in the regulations. 7.8 Pre existing interests. 3.10.2 Wind Shear 4.5 Wind (4) In specifying a particular objective or proposal covered by paragraph (1)(a), (c) or (ga), a major development plan, or a draft of a major development plan, must address: (a) the extent (if any) of consistency with planning schemes in force under a law of the State in which the airport is located; and (b) if the major development plan is not consistent with those planning schemes the justification for the inconsistencies. 7.3 Consistency with the State planning schemes 7.2 Consistency with the State planning schemes (5) Subsection (4) does not, by implication, limit subsection (3). Noted. (6) In developing plans referred to in paragraph (l)(f), an airport lessee company must have regard to Australian Standard AS 2021 2000 ( Acoustics Aircraft noise intrusion Building siting and construction ) as in force or existing at that time. 2.3 Hotel 3.11 Management of aircraft noise intrusion (7) Subsection (6) does not, by implication, limit the matters to which regard may be had. Noted. Page 63

APPENDIX B Hotel Concept Plans Page 64