Liverpool Health and Education Precinct Development Strategy

Development Strategy A proposal to Regional Development Australia Sydney from Strategic Economics and SGS Economics and Planning 29 June 2012

Any representation, statement, opinion or advice expressed or implied in this proposal is made in good faith but on the basis that Strategic Economics is not liable to any person for any damage or loss that has occurred or may occur in relation to that person taking or not taking action in respect of any representation, statement, opinion or advice referred to above. A proposal to Regional Development Australia Sydney P a g e 2

CONTENTS 1 Introduction 4 2 The Project 5 3 Work program 8 4 Budget and timetable 12 5 Our team 13 6 Relevant projects 17 7 Insurance 19 A proposal to Regional Development Australia Sydney P a g e 3

1 INTRODUCTION Graham Larcombe, Strategic Economics, with selective inputs from SGS Economics and Planning Pty Ltd (SGS), is pleased to provide Regional Development Australia Sydney with a proposal to undertake the Liverpool Health and Education Precinct Development Strategy Stage 1. The two organisations have a long history of collaboration in major projects including in health and education precincts, the Metropolitan Strategy for Sydney and Sustainable Sydney 2030. The brief is clear on the context, expectations and requirements for the study. The project team assembled for this study is committed to providing the RDA Sydney with a report that is both rigorously researched, engages key stakeholders and innovative and answers all of the requirements of the brief. We will approach the study as a true collaboration between the client and project teams, keeping the client team updated on research findings and informed about all aspects of our approach to the work. A proposal to Regional Development Australia Sydney P a g e 4

2 OUR UNDERSTANDING OF THE PROJECT RDA Sydney and Liverpool City Council has identified the Liverpool Health and Education precinct as an opportunity to promote the economic development of Liverpool through building on the education and health assets and surrounding amenities that are concentrated in the city centre. The Sydney Metropolitan Strategies designates Liverpool as a regional centre, the primary centre for South Western Sydney, one of the most rapidly growing regions in Australia. The Health and Education Precinct, encompassing public and private assets stretching north Liverpool railway Station along Bigge Street, bordered to the east by the Georges River and integrated into Liverpool CBD to the west, is a key strength of the Liverpool economy, and has the potential to substantially increase employment and social benefits for the South West region. Strategic opportunities include: Building on the emerging health industry cluster and Liverpool Hospital Stage 2 redevelopment to support the rapidly growing and diverse population needs of South West Sydney. Identifying value added opportunities associated with health and education including opportunities for growing research capabilities, health infrastructure and biotechnology spinoffs, including creating opportunities to expand the Ingham Institute. Working with South West Sydney Institute of TAFE to identify further opportunities and extend vocational education in health, strengthen links to higher education, and response to emerging health and education needs of the regional catchment. Collaboration between education and health including programs, IT and shared facilities to strengthen Liverpool as a health and education centre; Levering health and education assets to increase public and private sector investment, including health administration and management, allied health and consultant specialists, and commercial health businesses, eg health insurance back and middle-offices. Enhancing the role of heritage including the Francis Greenway building and natural assets including Bigge Park and the Georges River to improve character, amenities, and social capital in the centre; and Securing and identifying opportunities for strategic sites to support the growth of activities associated with health and education. The study is to be undertaken in three stages. 1. Stage 1 Precinct definition and overview; identification of and initial engagement of key stakeholders. 2. Stage 2 Engagement of stakeholders around the formulation of a Liverpool Health and Education Precinct Development Strategy (including an industry development strategy and jobs strategy). 3. Stage 3 - Implementation This proposal is concerned with Stage 1. The Strategic Economics/SGS team would like to also put forward a proposal to undertake Stage 2 at the appropriate time. Stage 1 is concerned a data profile of the precinct A proposal to Regional Development Australia Sydney P a g e 5

and its development path in the context of changing health and education policy and priorities, contribution to the centre and local economies and demographic change and population growth of the South West Sydney regional economy. It looks at preliminary opportunities to strengthen a high value integrated medical technology and knowledge employment cluster. The initial engagement of stakeholders is critical. We see this as an opportunity to build stronger local partnerships between health, education, industry and government agencies, including Liverpool City Council. The design and facilitation of the oneday workshop, including the provision of quality data and options in relation to development opportunities, is the central component of the project. The aim should be to test support and lock-in key stakeholders to be actively involved in Stage 2 and Stage 3 of the project. Stage 1 will support the overall objectives of the project: Engagement of key stakeholders (Liverpool Hospital, research institutions, universities, TAFE, local business, NSW Government, DEEWR) around the design and implementation of a Liverpool Health and Education Precinct Development Strategy. A local industry development strategy for biotechnology and the health services supply chain. A jobs strategy for Liverpool with a focus on health and education services and with a specific aim of providing opportunities for local disadvantaged job seekers. The rapid growth of Western Sydney has resulted in a substantial increase in resources for major health infrastructure, particularly hospitals such as Liverpool, and increased demand for aged care facilities, community health facilities and services linked to Liverpool public and private hospitals. The focus is to develop action-based partnerships (what we call clusters or networks) with health, education, research, industry and community organisations, and individuals such as doctors, medical researchers and academics to advance economic and social outcomes in the precinct that will strengthen its role as a specialised centre. RDA Sydney seeks the following deliverables from Stage 1. 1. A mapped profile of the precinct, including but not exclusively: A profile of Liverpool hospital including its area(s) of expertise, staffing profile, journey to work patterns of staff, the measure of demand for the facility, future development plans, its relationship with universities, research institutes and TAFE, the interrelationship with the rest of the precinct and Liverpool especially in relation to the health and community care industry supply chain. A profile of educational institutes, including TAFE, in the precinct (including those with a virtual rather than a physical presence). The profile will include area(s) of expertise, staffing, journey to work patterns of staff, the measure of demand for the facility, future development plans, their relationship with other educational institutes, the hospital and the rest of the precinct and Liverpool in general. 2. An analysis of What s being done elsewhere good practice with established hospitals and their wellness precincts. 3. The delivery of a workshop of key stakeholders to present findings of above research and discussion of next step options. A proposal to Regional Development Australia Sydney P a g e 6

4. The write up of the profiling exercise and the outcomes of the workshop discussion, including a proposed action plan. The proposed Strategic Economics/SGS team for this engagement has an extensive track record of work in health and medical precincts and economic development, including design, planning and infrastructure, economic and innovation strategies, governance and leadership, and workforce development. The team will be led by Graham Larcombe, of Strategic Economics, who will draft the report. The team includes inputs from Pat Fensham of SGS Economics and Planning, a long term associate of Strategic Economics, who will manage inputs relating to data analysis, mapping and quality review. The consultants have completed or are working on assignments associated with the health and education precincts at Nepean and Westmead, integrated into the other regional cities. There are a number of complementarities between the three models and we believe there may be opportunities for collaboration to build a much stronger Western Sydney Health cluster around the region s three principal hospitals. State 1 gives particular emphasis on drawing on best practice experiences in planning and implementing strategies to create health and medical research precincts. The initial meeting will confirm the Australian case studies, possibly drawing on projects the consultants have worked on. This includes: Princess Alexandra Hospital Precinct (PAH) in Brisbane, Gold Coast Health and Knowledge Precinct, Douglas Smart Community (incorporating James Cook University and Townsville Base Hospital). Monash Health Research Precinct Melbourne Parkville strip UNSW/Prince of wales Nepean Health and Education Precinct (particularly in relation to governance models) A proposal to Regional Development Australia Sydney P a g e 7

Gold Coast Health and Knowledge Precinct Princess Alexandra Hospital precinct A proposal to Regional Development Australia Sydney P a g e 8

Penrith and its links to the Health and Education precinct A proposal to Regional Development Australia Sydney P a g e 9

3 WORK PROGRAM Our proposed Work Program is outlined below. Summary of tasks and deliverables Step Task Deliverables Days 1 Work planning and project management 2 Literature review and analysis of best practice case studies Meet with RDA Sydney and LCC project team to confirm work program and Stage 1 deliverables, exchange materials, confirm case studies and coordination. The consultants will provide a succinct presentation of current best practice models to illustrate the process of transforming health assets into an innovation precinct. Snapshot report of recent contributions to debates on health and education precincts and their relationships with high value added business development. Review of international best practice case studies in health and medical innovation precinct planning. Case studies may include: Parkville strip Monash Health Research Precinct University of NSW/Prince of Wales specialised centre Princess Alexandra Hospital smart community Gold Coast Smart Community university hospital/griffith University Nepean Health and Education precinct Westmead 1 2 3 Economic Data analysis Collate and analyse time series ANZSIC and TDZ data Socio-economic data, projections and impacts on health and wellbeing. Data trends and analysis of industry and future health and associated industry developments Summary of the activities and (if available) major private and public stakeholders in health and wellbeing industries and activities, their functions and interrelationships. Quantification of contribution of health and education precinct to local and regional economies. 4 Institutional profiles Collation and analysis of employment, student, patient, and services data for Liverpool Hospital and educational institutions, including analysis of occupational profiles. 5 Stakeholder consultation Face to face meetings with all key stakeholders: South West Sydney Local Area Health District, Liverpool Hospital, Liverpool Private Hospital, LHD, specialists, UNSW and other universities, TAFE, Ingham Institute for Applied Medical Research, NSW Health Infrastructure and NHMRC, Commonwealth and NSW Department of Health. 2 4 4 A proposal to Regional Development Australia Sydney P a g e 10

6 Cluster mapping Maps setting out possible precincts and strategic directions. 2 7 Stakeholder workshop 2 8 Preparation of paper Succinct paper on critical issues, analysis of data, case studies and cluster maps, analysis and recommendations, including a proposal for stage 2. 2 9 Incorporate client amendments and submit final report Rework report reflecting client and stakeholder priorities and programs, and, if accepted, draft stage 2 work program. 0.5 A proposal to Regional Development Australia Sydney P a g e 11

4 BUDGET AND TIMETABLE This proposal is only concerned with Stage 1. The total cost of Stage 1 is $28,291 (excluding GST). We are prepared to offer the client a discount to ensure all of the deliverables are met. The client has not set a timetable for all of the deliverables. The consultants will be guided by the client regarding timetable for deliverables and incorporate it into the work program following the inception meeting. We propose the following payment schedule: 20% on commissioning 50% on receipt of draft report 30% on completion The consulting charge-out rates are set out below. Graham will be project manager, principal researcher, organize consultations with all key stakeholders and facilitate the workshop. Pat will participate in the workshop, including designing and developing strategic directions, with Graham, emanating from the workshop. Mathew will be responsible for data analysis and projections. Liam will prepare diagrams and maps. We propose that RDA Sydney and LCC support organisation of the meetings and the workshops, and where possible, send a representative to face to face meetings. CONSULTANT CHARGE OUT RATES (EXCL. GST) Graham Larcombe Pat Fensham Liam Walsh Matthew Oberklaid Hourly Rate $300 $400 $115 $95 Daily Rate $2,500 $3,000 $863 $713 Days 7 1 2 5 Total $20,000 $3,000 $1,726 3,565 A proposal to Regional Development Australia Sydney P a g e 12

5 OUR TEAM 5.1 Strategic Economics The Strategic Economics team has an outstanding reputation for working with local communities, both in Australia and overseas, to strengthen local capacities and improve community, economic and employment development outcomes. The team has a strong background in: Local and regional economic development strategies Industry economics - eg agriculture, mining, manufacturing, tourism, business services, retail, health, ICT, sports and culture, education. Workshop facilitation and stakeholder consultation. Planning for high tech centres and health and education precincts. Local and Regional Labour Market Dynamics Asset Based Community Development Small area data assessments and forecasting. Investment evaluation. GRAHAM LARCOMBE Master of Commerce (Economics), University of Melbourne, 1991 Master of Urban Studies, Macquarie University, 1981 Bachelor of Economics, University of Sydney, 1973 Honorary Senior Research Fellow, Central Queensland University Chairman, Liverpool Workplace Learning Partnership 2004-2010 Economics Project Adviser, OECD Local Employment and Economic Development Group Specialist Economist and Member, NSW Government Employment Lands Taskforce The team will be led by Director Graham Larcombe. Graham is a recognised leader in local and regional economic development. He has extensive experience in working with local councils. Graham was the originator of the State of the Regions Report. For many years he was the prime author of this highly regarded annual report on Australia s Regions, prepared for the Australian Local Government Association. He is also the author the NSW Local Government and Shires Association Framework for Whole of State Development. This report is the NSW LGSA s policy framework for local economic development, providing strategic guidance on how to achieve local economic development outcomes across NSW. He has prepared a number of projects relevant to this assignment. Graham was appointed as an Honorary Senior Fellow at Central Queensland University for his contributions to local and regional economic development. Graham works extensively in city localities and regions, which are facing challenges of high unemployment, business competitiveness and infrastructure and skills deficits. He was an adviser for the Sydney Metropolitan Strategy and worked as Director Economy and Employment Department of Planning with responsibility for drafting the economic strategy for Sydney, the centres revitalisation (strengths and A proposal to Regional Development Australia Sydney P a g e 13

planning instruments for town centres including Parramatta) and coordinated the Employment Lands Task Force report to the NSW Government. This included reports on identified strategic centres including Westmead and Prince of Wales/UNSW and St. Leonards/RNS. He provided economic input into the Regional Cities Taskforce. He drafted the Economic Development Framework for the City of Sydney, prepared a report on the impacts of the Global Financial Crisis on the Greater Metropolitan Region for the NSW Government, and prepared a report on Innovation Sectors (with Dr John Mitchell and Professor Jane Marceau) for the Department of Education and Training and the Department of State and Regional Development. In 2010, he undertook a detailed study of Queensland s three major health and education precincts on behalf of the Queensland Government: Princess Alexandra hospital, Gold Coast and Townsville hospital/jcu. He has extensive private and government experience in Asia and Africa. 5.2 SGS Economics and Planning SGS is a firm of urban and regional economists and planners. The firm has been in continuous operation for 20 years. SGS is dedicated to helping businesses and governments make successful policy and strategy decisions. Directors and staff take pride in contributing to good management and good governance through rigorous research, creative analysis of policy options and sound advice on policy implementation. Our advice is based on high quality information and expert understanding of the economic and social environment. SGS specialises in: Property market demand studies Strategic land use planning Cost Benefit Analysis Project evaluation and impact assessment Financial feasibility assessment Infrastructure funding and coordination policy Stakeholder consultation Statistical analysis via primary and secondary forms of data collection Experience Skills Innovation Service Cutting edge analysis Cost effectiveness SGS is one of the longest-established specialist urban economics strategic and policy planning firms in Australia. Our clients are Australia-wide and overseas, and cover the public, private and non-profit sectors. Consultants at SGS have complementary qualifications and wide experience in both the public and private sectors. The firm employs financial analysts, economists, urban and regional planners, sociologists and statisticians. We design our approach to each project creatively, using a range of disciplines to open new insights to policy and strategy issues. Our senior personnel are directly involved in projects and readily accessible to clients. We are leading contributors to debate on economic development, urban management, strategic planning and housing policy. SGS is large enough to offer a comprehensive range of services, but is not weighed down by bureaucratic structures. We keep our overheads low and our fees competitive. A proposal to Regional Development Australia Sydney P a g e 14

PAT FENSHAM Master of Science in Urban Planning Studies (Oxford Polytechnic) Bachelor of Town and Regional Planning - First Class Honours (University of Melbourne) Patrick is a Principal and Partner with SGS Economics and Planning based in the firm s Sydney office, and has dual qualifications in urban planning. Since 1990 Patrick has been an important part of the SGS Economics and Planning consultant team. He has developed specialist expertise in numerous areas including metropolitan and strategic planning, infrastructure planning and funding analysis, cultural development, regional economic development, development feasibility analysis and facilities audits and planning. Pat has lived and worked in Melbourne, Brisbane and Sydney in his career with SGS Economics and Planning. He has worked internationally and in all states of Australia, for private sector clients as well as for all levels of government. Patrick was also seconded to the NSW Department of Planning as the Director Strategic Development on the Sydney Metropolitan Strategy through 2004 until its launch in December 2005. As well as coordinating input across all disciplines he led the Centres and Corridors and Economy and Employment sections of the Strategy. He was the principal consultant on SGS s 2004 report on Sydney s Economic Geography: Trends and Drivers for the Department of Infrastructure, Planning and Natural Resources, which is a landmark study on Sydney s urban economy. During 2007 and 2008 Patrick led a multi-disciplinary team of consultants preparing the City of Sydney s highly acclaimed Sustainable Sydney 2030 strategy. This won PIA s National President Award in 2009. LIAM WALSH Bachelor of Planning (Hons), MPIA Liam is an urban and regional planner with experience in market assessment, economic analysis, employment lands development and audit management. Liam holds a Bachelor of Planning degree from the University of New South Wales with first class honours. Prior to joining SGS in 2010, Liam completed a one year internship at the NSW Department of Planning working in major development assessment, planning policy reform and delivery of the Western Sydney Employment Area. Since joining SGS, Liam has been involved in a range of projects for public and private sector clients. Major projects Liam has facilitated and assisted with recently, include: Preparation of a market assessment and land use strategy for a major proposed mixed use development in Wollongong CBD Preparing a housing market assessment and redevelopment staging strategy for Housing NSW sites at Rosemeadow and Claymore Secondment as Project Coordinator for the City of Sydney 2012 Floor Space and Employment Survey Preparation of a full business case for the Sydney Royal Botanic Gardens A proposal to Regional Development Australia Sydney P a g e 15

Preparing a review of the St Marys Employment Development Strategy for the ADI site at North Saint Marys Undertaking an economic analysis and market assessment for Transport Construction Authority owned sites adjacent to the M2 Motorway MATTHEW OBERKLAID Bachelor of Urban Planning and Development (Hons) (University of Melbourne) Matthew is an urban planner with experience in strategic planning, policy reviews and GIS data analysis and mapping. Since commencing at SGS Matthew has worked on a variety of projects which has included an assessment of best practice infrastructure funding for transport projects for Auckland Regional Council. Matthew has also recently been involved in the Melbourne Airport Economic and Social Impact Assessment Study. Matthew has undertaken a number of research tasks including extensive literature reviews and data analysis. Recent project work has included contributing to the Development of a project Brief for a Social Impact Assessment for the Latrobe Valley, Ballarat Affordable Housing Review and providing GIS support for an Industrial Land Review for Southern Tasmania. A proposal to Regional Development Australia Sydney P a g e 16

6 RELEVANT PROJECTS TO THIS BRIEF In 2010, Strategic Economics was commissioned by the Queensland Government, through the Department of Employment, Economic Development and Innovation (DEEDI), to prepare reports on the three designated Smart Communities to support knowledge-based economic growth in selected health and education precincts and to explore ways in which these knowledge-based areas can be better integrated into broader economic and social development opportunities. Three priority smart communities reports were prepared for: Princess Alexandra Hospital (PAH) Precinct in Brisbane; Gold Coast Health and Knowledge Precinct, Gold Coast, and Douglas Smart Community (Townsville Hospital, JCU) in Townsville. Strategic Economics and SGS Economics and Planning have recently completed the Westmead Economic Development Study Stage 1 report for Parramatta City Council. In 2010, Strategic Economics prepared the Penrith Health and Wellbeing Economic Strategy for Penrith Business Alliance, which resulted in the designation of the Penrith Health and Education Precinct as a potential specialised centre. In 2004, Graham Larcombe prepared the Liverpool Economic Development Strategy. The centerpiece was analysis of the Liverpool Education and Health Precinct, resulting in planning and consolidation around key activities. Graham has undertaken a number of major projects on high technology park developments in NSW (Moorebank and Westmead), South East Queensland (Griffith University) and Victoria (Monash University). The Westmead Economic Development Strategy was undertaken for the Office of Western Sydney when Graham was Director National Economics National Institute of Economic and Industry research. Pat Fensham and Graham Larcombe drafted the key sections of the Sydney Metropolitan Strategy 2005 including the centre typology designating Westmead as a specialised centre. SGS prepared a study of the feasibility of health related uses in the Randwick Education and Health Precinct for Randwick Council. Other recent reports from Strategic Economics include: The Economy and Employment Strategy and Centres and Corridors Strategy for the Sydney Metropolitan Strategy, on behalf of the NSW Government, 2005. Strategic Centres of the Greater Metropolitan Region, including analysis of employment, infrastructure and commercial and retail activities and forecasts, for the NSW Department of Planning, 2009. Four reports for Employment Strategies for North West and West Central Subregions (2008), including Sydney s Macroeconomic Geographies, Industry dynamics, Population and employment forecasts 2030 and Spatial Analysis, for Western Sydney Regional Organisation of Councils, 2008. Regional Cities Taskforce working on economic analysis and the Vision documents for designated regional cities in the GMR, 2006. A proposal to Regional Development Australia Sydney P a g e 17

Western Sydney Employment Lands Investigation Area Industry and Employment Futures, for Department of Planning, 2008 and Business Park Cabinet Minute. The NSW TAFE Profile Review, an analysis of industry and occupational dynamics and forecasts for the NSW TAFE Institute catchment areas, including the Western Sydney Institute, for NSW TAFE, 2007 and 2008. Economic Development Strategy for Wollondilly, for Wollondilly Shire Council, 2007. Employment Lands Task Force Report to the Minister for Planning, 2006. Employment Lands Sub-markets report, for Landcom, 2007. Feasibility of an Intermodal facility at Menangle Park, Landcom, 2006. An Economic Development Strategy for Liverpool, prepared by Graham Larcombe for Liverpool City Council, 2004. An Economic Development Framework for the City of Sydney, for City of Sydney Council, 2007 and Sustainable Sydney 2030, led by SGS, with responsibility for Economic and Cultural Strategies, for City of Sydney, 2008. Sustainability and skills, for the NSW Department of Education and Training (with Workplace Research Centre and Energy Solutions), 2007. Adelaide s future a Robust Economy, for the Metropolitan Local Government Group, 2007. A proposal to Regional Development Australia Sydney P a g e 18

7 INSURANCE Allianz Australia Insurance Limited Policy number: 09-R014845-COM Public and Private liability $20,000,000 Effective date: 21/07/2011 Expiry date: 21/07/2012 (NB rolled over during project duration) A proposal to Regional Development Australia Sydney P a g e 19