Smart Cities Plan. Lake Macquarie City Council Submission

Smart Cities Plan Lake Macquarie City Council Submission

1. Summary Lake Macquarie City Council supports the intent of the Australian Government s Smart Cities Plan to create liveable cities through improved planning, investment and technology. Local government is critical to the delivery of the Smart Cities Plan. The Australian Government should specifically extend its invitation to partner with relevant local authorities, such as Lake Macquarie City Council, to deliver City Deals. Lake Macquarie City Council proposes a partnership with the Australian and NSW governments, and other key stakeholders, to pilot a Hunter City Deal. Key benefits of a Hunter-based pilot are: 2 Significant economic and employment gains in a location ideally situated to become an international gateway; Reduced growth pressures in Sydney and other areas where relevant per capita costs are higher; and A test bed to refine ideas that may later be applied in more complex or larger scale situations, such as parts of Australia s capital cities.

2. Background Lake Macquarie City is part of the Hunter region of NSW, approximately 150 km north of Sydney s CBD (Figure 1). The Hunter is the 7th largest city/region in Australia and outranks cities such as Darwin, Hobart and Canberra in terms of population and economic contribution. Within the Hunter, Lake Macquarie is the largest regional area with a population of 204,166 distributed across 9 town centres and 90 villages. The City offers an incredible lifestyle, with world-class infrastructure, engaged and connected communities, a strong and diversified local economy, and superb natural beauty. Lake Macquarie City Council is a modern, progressive organisation that is responsive to change, and contributes to a fairer society. Council advocates for the Lake Macquarie community and is a capable partner for government and other stakeholders. Council is committed to transforming the way it delivers key services, by supporting innovation, and nurturing collaboration. The Lake Macquarie community values this approach, reporting 93% satisfaction with the level of service Council provides. The Hunter's population growth will create the need for 115,000 new homes and 66,000 new jobs by 2030. Lake Macquarie is expected to make the largest individual contribution with 36,000 new dwellings and 12,200 new jobs. Lake Macquarie City Council has well-developed plans to accommodate and support this growth, within the framework set by the Lower Hunter Regional Strategy. A City Deal for the Hunter will accelerate delivery of these targets and improve access to further growth areas within the lower Hunter. Council is aware that continuing to rely on approaches that have served the City well in the past are unlikely to be sufficient to meet the challenges of the future. Council welcomes the Smart Cities Plan as an important contribution to creating more equitable and liveable cities across the country. A Hunter City Deal provides an opportunity to relieve growth pressure in Sydney, as well as assisting to create a world-class, tier two city in the Hunter. MOTORWAY/ HIGHWAY RAILWAY HUNTER VALLEY COAL CHAIN Moree TAMWORTH AIRPORT Tamworth PORT MACQUARIE AIRPORT Port Macquarie Ulan NEW ENGLAND HIGHWAY CORRIDOR Armidale OXLEY HIGHWAY CORRIDOR to Brisbane TO BRISBANE HUNTER REGION Denman Scone GOLDEN H WAY CORRIDOR Gloucester Muswellbrook Dungog Singleton PACIFIC HIGHWAY CORRIDOR Taree Forster Tuncurry Cessnock M1 CORRIDOR NEWCASTLE AIRPORT PORT OF NEWCASTLE HUNTER CITY LAKE MACQUARIE CENTRAL COAST Gosford NEW SOUTH WALES SYDNEY AIRPORT SYDNEY PORT BOTANY Figure 1 Locality plan 3

3. Proposed Pilot City Deal 3.1 Concept plan Lake Macquarie City Council offers the geographic centre of the lower Hunter as a core element of a pilot Hunter City Deal. This area (Figure 2) has existing underdeveloped land and appropriate land use planning to support highdensity residential, commercial and industrial activity, but lacks the coordinated infrastructure investment across private and government sectors needed to achieve the full potential economic uplift in this area. The relevant site has all of the elements required to create national and local benefits under the Smart City Plan, while drawing valuable lessons that could be applied in other cities. The site includes: An emerging major centre, where job clustering is already occurring and concept designs are completed for a major public transport node (Lake Macquarie Transport Interchange); Land that is already zoned for high density residential, commercial and industrial activity; Proximity to the proposed high speed rail corridor and potential Hunter station; Proximity to the Main Northern Railway; Detailed area plans for urban renewal, including areas which have now been fully remediated following previous industrial acticity; Proximity to significant sport, recreation and cultural facilities; Proximity to leading health centre, university and other tertiary education Proximity to international sea port, airforce base and international airport; and Proximity to Sydney. Growth of the Glendale Regional Centre Improved Transport Accessibility Residential Intensification Enhanced Environment and Recreation Areas Indicative development outcomes over 10 years: 75,000m 2 retail 20,000m 2 light industrial 1250 houses Private capital investment $790m Glendale Warners Bay Cardiff Charlestown Mt Hutton Toronto Belmont Morisset LAKE MACQUARIE Swansea Figure 2 Hunter City Deal Pilot Precinct Plan 4

Infrastructure required to support economic uplift within the Hunter City Deal pilot area, centred on north Lake Macquarie (Figure 3), includes: A new railway station and bus interchange at Glendale, the Lake Macquarie Transport Interchange; A further 11 public and active transport projects; 13 recreation and cultural facility projects; and 9 road infrastructure projects. Public Transport, Cycling and Walking 12 projects $196m Recreation and Cultural Facilities 13 projects $184m Road Infrastructure 9 projects $116m Public infrastructure Investment $496m Glendale Warners Bay Cardiff Charlestown Mt Hutton Toronto Belmont Morisset LAKE MACQUARIE Swansea Figure 3 Hunter City Deal Pilot Infrastructure 5

3.2 Project partners IIn addition to Lake Macquarie City Council and the Australian Government, partners in the Hunter City Deal pilot include: The NSW Government, as the owner of road and rail infrastructure, and planning authority for large-scale development, and owner of substantial undeveloped land holdings within the pilot area; 6 Regional Development Australia, Hunter; Hunter Councils Inc, the regional organisation of councils and its members; Utilities including Hunter Water Corporation, Telstra, Ausgrid and Jemena; The administrator of now remediated lands; and A number of major retail developers including Stockland, with already approved or welldeveloped proposals for the area.

3.3 Conceptual projected economic uplift High-level concept analysis (Table 1) indicates that the infrastructure investment, from both the private and public sectors, to deliver the Hunter City Deal Pilot would be $1.2 billion over 10 years. This infrastructure is expected to accelerate development of the area, leading to further private sector investment in residential, commercial and industrial assets of $790 million. This investment is expected to lead to around 10,700 new jobs, 7,650 new dwellings and a total output of $4.2 billion per annum. Table 1 High-level concept economic analysis of Hunter City Deal Pilot Total Public Private Estimated capital investment $1.3 billion $496 million $790 million Estimated direct jobs 4,770 670 4,100 Estimated total jobs 10,700 2,200 8,500 Estimated output $4.2 billion $1.0 billion $3.2 billion 7

"In the Hunter, the employment market is in transition, from a heavy reliance on mining and mining related services to a more diversified economy based on manufacturing, construction, mining, real estate, financial services and retail trade."

4. Specific Comments on the Smart Cities Plan 4.1 Promoting job clusters Council supports the Australian Government s proposal to create economic centres at the heart of 30-minute cities. In the Hunter, the employment market is in transition, from a heavy reliance on mining and mining related services to a more diversified economy based on manufacturing, construction, mining, real estate, financial services and retail trade. Lake Macquarie City is situated within 90 minutes of Sydney CBD, 40 minutes from an airport that is soon to commence international flights, and 25 minutes to an international port (Figure 4). The City currently has access to 2.1 million people within 90 minutes, providing a wide range of skilled workers just beyond a reasonable daily commute. Improved transport infrastructure can deliver a 30-minute city. 60 minutes to Sydney on the M1 25 minutes to international harbour 40 minutes to domestic airport #3 regional city in NSW by population $17.8 billion total output estimate 75% households connected to broadband 13,000 thriving businesses 1 million visitors each year 8000 new businesses in past five years 36,000 City target for new dwellings 2000+ development applications approved each year 50ha+ industrial land available Figure 4 Key economic statistics for Lake Macquarie City 9

Lake Macquarie City s economic development company, Dantia, has identified seven key industries that the City is concentrating on developing (Table 2). Development of these key industries will rely on strong collaboration among local businesses and industry bodies, the support of local research institutions, particularly the world-class University of Newcastle, supply of skilled labour from the region, and enabling policy frameworks and investment by all three levels of government. The existing commercial centre of Charlestown and the emerging centres of Glendale and Morisset are ideal locations for the development of job clusters that support the national economy. Glendale, in particular, is both the demographic and geographic centre of the lower Hunter and has the potential to deliver sustained employment growth to support the region Table 2 Competitive advantages of priority industries in Lake Macquarie City Industry Engineering and manufacturing Logistics Tourism Competitive advantages Main Northern rail line provides quick and easy access to Australia s busiest freight and transport corridor. Proximity to the Hunter Valley, Central Coast, Newcastle and Sydney population centres make it an ideal strategic location. World-class infrastructure, from certified industrial sites and centres, to reliable utilities designed to support manufacturing industries. Workforce development that is proactive in matching industry needs with skilled and experienced talent and job-ready programming is on offer at local educational institutions. Local government is demonstrating a strong commitment to the manufacturing sector with master-planned industrial parks. State, private and local roads support truck movements and could provide improved access to potential manufacturing and logistics chains. Land values are extremely competitive for developers and operators wanting to take advantage of the ideal location and infrastructure the City has to offer. A growing population base creating increasing demand for logistics services. The Hunter has the potential to operate as an international gateway to Sydney and service centre for northern NSW Northern Lake Macquarie is the geographic and demographic centre of the lower Hunter, and the logical centre for improved freight and public transport services. The City s is close to international air and sea routes and has impressive natural assets that include: Lake Macquarie - Australia's largest saltwater lake. Watagan National Park - a bushwalker's haven. Beaches, rocky points and cliff tops - along the majestic east coast of NSW. Creeks, estuaries, outcrops and beaches tailor-made for fishing adventures. Multiple conservation reserves - offering diverse camping and bushwalking alternatives. 10

Industry Retail and commercial Education Health Technology Competitive advantages The City has nine main town centres serving as hubs for the local communities that circle Lake Macquarie. Each of these centres has its own uniquely identifiable and community-based retail and commercial precincts. Geographic dispersal makes each independently viable and successful, and facilitates access to economically and socially-diverse markets around the Lake. The City has a well-established hub for commercial and retail activities at Charlestown, and emerging growth centres at Morisset and Glendale. The City and surrounds have substantial areas of un- or under-developed lands, zoned for commercial development, that have the potential to relieve growth pressure in Sydney. Population growth, combined with a growing proportion of residents attaining trade and industry-related post-secondary school qualifications, is placing unprecedented demands on private and public sector education infrastructure in the City. This infrastructure is critical to transforming the region to a knowledgebased economy. A simultaneously growing and ageing population increases demand and opportunities across a broad healthcare spectrum. A population spread around 9 town centres, as opposed to a centralised population density, provides for a range of diverse, smaller-scale and decentralised healthcare investment opportunities. The City already nurtures a strong work ethos and willingness to embrace technology. By the close of 2016, the National Broadband Network will service about 52 per cent of business and residential premises in the City. Internet connectivity will become standard and the local workforce will expect innovative and technologyfocused business investment. An extremely diverse City-wide economy has created an entrepreneurial business base with more than 13,000 prospering businesses. Council actively monitors both supply and demand for employment land, and ensures that land use planning and development assessment processes do not create unnecessary barriers to development of those lands. The most recent assessment of employment lands identified that the existing regional centre of Charlestown and the emerging regional centres of Glendale/Cardiff and Morisset should be a focus for federal, state, as well as local, government investment. Significant demand for employment lands exists in those areas, in part supported by the City s natural assets, existing employment strengths and proactive approach to local governance 11

"Council supports the aim of the Smart Cities Plan to deliver affordable housing close to employment centres and improve connectivity between housing and employment centres"

4.2 Delivering affordable housing The supply of affordable housing is a critical issue across the nation, and Lake Macquarie City is no exception. Lake Macquarie City has a wide range of housing affordability, with median suburb house prices between 4 and 18 times median city household income (Figure 5). Council supports the aim of the Smart Cities Plan to deliver affordable housing close to employment centres and improve connectivity between housing and employment centres. Council has been active in this space since introduction of the City s first longterm strategic land use plan in 2000. In NSW, government policy focus to date has been on rental accommodation, which has been assisted by the Australian Government s National Rental Affordability Scheme, but has not addressed creation of an affordable purchase market. Potential policy responses to delivering affordable properties for purchase, at both the local and NSW Government levels, could include: Increasing the supply of more affordable housing land for purchase, such as in Lake Macquarie where housing and most other costs of living are considerably more affordable than Sydney; Making housing cheaper through the use of manufactured housing; Limiting the ability of developers to set restrictive covenants that demand minimum dwelling floor areas and limited, often more expensive, building materials; Providing land and dwellings to low and medium income families via Community Housing Authorities; and Assisting financially through low-interest housing loans to low and moderate income families. MULTIPLICATION FACTOR OF CITY MEDIAN HOUSEHOLD INCOME TO SUBURB MEDIAN PROPERTY SALE PRICE VERY LOW (4.11-6.7) LOW (6.71-8.1) MEDIUM (8.11-10.2) HIGH (10.21-13.2) VERY HIGH (13.21-18.3) Glendale Warners Bay Cardiff Charlestown Mt Hutton Toronto Belmont Morisset LAKE MACQUARIE Swansea Figure 5 Suburb level median property sale price compared to median city household income 13

4.3 Improving accessibility and liveability through transport and infrastructure Transport and infrastructure are critical to delivering the Australian Government s aspirations for more liveable cities. Council supports the concept described in the Smart Cities Plan for accessibility to be driven by demand management and investment in an integrated suite of private, public and active transport infrastructure. At present, there is no integrated public transport network for the Hunter. The Lower Hunter Transport Strategy identifies the need for proactive, integrated and co-ordinated approach to transport infrastructure. Key recommendations for integrated transport in the Hunter include: Completing the Lake Macquarie Transport Interchange, which involves construction of a new train station and bus interchange at Glendale, and is central to the delivery of integrated public transport in the region; Establishing a Hunter Transport Authority with clear brand identification, integrated ticketing and coordinated timetabling across transport modes; and Retaining all gazetted rail and tram corridors for future system flexibility. The Mayors of the Hunter councils have identified the Lake Macquarie Transport Interchange as the highest priority infrastructure project for the region. When constructed, it is expected to be the region s main public transport node. Council recognises the need for high-speed connections between capital and regional cities. The proposed high-speed rail line between Melbourne and Brisbane traverses Lake Macquarie City, and the City provides the logical location for a station to service the Hunter region (Figure 6). This location, at Killingworth, is situated adjacent to the M1, Hunter bypass and New England Highway. It also has excellent road links to Newcastle sea port and airport and regional centres in Lake Macquarie. It could be readily integrated with existing public transport networks through construction of a public transport route to the lower speed transport network via the Lake Macquarie Transport Interchange. 14

LAKE MACQUARIE LGA PROPOSED HIGH SPEED RAIL LINE PROPOSED KILLINGWORTH HIGH SPEED RAIL STATION LAKE MACQUARIE TRANSPORT INTERCHANGE Glendale Warners Bay A15 Cardiff Charlestown Mt Hutton M1 Toronto B53 Belmont Morisset LAKE MACQUARIE Swansea A43 Figure 4 Proposed rail augmentation projects in Lake Macquarie City 15

4.4 Increasing liveability and sustainability through urban design Council supports the Australian Government s commitment to quality urban design that is articulated in the Smart Cities Plan. As noted in the Plan, regional cities can have advantages in terms of green space and amenity. Council has recognised that the City's prosperity, natural assets, and community are essential elements of residents quality of life. Each of the City s nine town centres has their own unique identify and services, that provide a sound foundation for application of the 30-minute city concept. Council s long-term strategic land use plan, Lifestyle 2030, provides direction for the future urban and rural land use pattern, based on achieving the principles of sustainability. Lifestyle 2030 describes Council s aspirations for the City to be a place: where the environment is protected and enhanced; where the scenic, ecological, recreational, and commercial values and opportunities of the Lake and coastline are promoted and protected; with a prosperous economy and a supportive attitude to balanced economic growth, managed in a way to enhance quality of life and satisfy the employment and environmental aims of the community; that recognizes, encourages, develops its diverse cultural life and talents, protects, and promotes its heritage; that encourages community spirit, promotes a fulfilling lifestyle, enhances health and social well-being, encourages lifestyle choices, and has opportunities to encourage participation in sport and recreation; that promotes equal access to all services and facilities and enables all citizens to contribute to and participate in the City's economic and social development; and that promotes affordable housing. These aspirations are embedded in the City s planning controls, and seek to create one of the most liveable places in Australia. 16

4.5 Driving smart investment through innovative funding Lake Macquarie City Council acknowledges that innovative funding models and improved collaboration among key stakeholders are required to address the growing infrastructure backlog across the country. Some of the advantages of the City Deals model are that it devolves decision-making about prioritisation and subsequent investment to the local level, provides certainty about the quantum of funding available to deliver a Deal, and reduces the administrative effort required to distribute infrastructure funds. The complexities experienced in UK City Deals have primarily revolved around agreeing on the metrics used to determine actual value captured through that targeted investment. There are a range of existing funding mechanisms in NSW that could be more effectively used to capture value associated with infrastructure investment in targeted locations including voluntary planning agreements, special rates, developer contributions, parking fees, environmental upgrade agreements, and various elements of the taxation system (land tax, payroll tax, stamp duty, GST, sales taxes etc). Some of these methods require legislative amendment to make them more amenable for use in an Australian City Deal. 17

4.6 Delivering smart policy Lake Macquarie City Council supports the Australian Government s proposal to streamline the planning and development process to create more liveable Australian cities. Local government plays a crucial role, through policy and leadership, in facilitating development at the city scale. It is the level of government most connected to communities of place, and the level of government most trusted to deliver local aspirations. Collaboration among all three tiers of government, as capable and respected partners, is critical to the success of the Smart Cities Plan. The location of the Hunter City Deal pilot within one LGA, with strong collaborative relationships with regional councils and higher levels of government, simplifies development and delivery of a pilot deal. Council has a proven record of policy performance in relation to identifying emerging issues for the City and developing significant programs to address them. In the early 2000s, Council developed its first long-term strategic land use plan, Lifestyle 2020. This plan, developed with extensive input from the Lake Macquarie community, articulated the City s core values of sustainability, equity, efficiency, and liveability. This plan has been recently superseded by Lifestyle 2030, which reaffirms those core values and informs both the 10 year Community Strategic Plan and the citywide Local Environmental Plan. Council developed its first Community Strategic Plan in 2008, two years ahead of the then NSW Department of Local Government s timeframe for implementation of its Integrated Planning and Reporting Framework. Council subsequently developed a Long Term Financial Plan and a range of asset management, social and environmental plans to guide investment in essential works and services. These strategic plans provide a sound foundation for identification of priority infrastructure projects that benefit both the City and the region. Council has a proven record delivering major infrastructure projects including the first part of the Lake Macquarie Transport Interchange and the northern NSW football facility. 18

4.7 Encouraging smart technology Lake Macquarie City Council supports the Australian Government s proposal to apply new technologies to improve the efficiency, sustainability and serviceability of our cities. Innovative application of new technology is inherently local. It relies on creative, connected communities supported by digital infrastructure and open, supportive, flexible government. Local government plays a crucial role in facilitating this innovation through the efficient and sustainable provision of infrastructure, facilities and programs that enable and empower people to connect, learn, create and innovate. Council has adopted a digital economy strategy, Lake Mac Smart City, Smart Council, and established a dedicated position to drive the strategy. Council s digital strategy seeks to achieve very similar outcomes (Figure 7) for Lake Macquarie City to those articulated in the Smart Cities Plan. Council would welcome the opportunity to participate in a national smart communities acceleration program to recognise and facilitate the pivotal role of local government in creating local conditions conducive to technology and knowledgedriven economic development, consistent with the National Innovation and Science Agenda. Council is particularly interested in the Australian Government s commitment to driving the use of energy efficient technologies. Council established greenhouse gas emission reduction targets in 2008 for its own operations and for the City. In working towards these targets, Council aims to support its community to reduce energy waste, save money, and make an equitable contribution to mitigating climate change. #2 #1 Online Government Connected and participation communities #5 Great places #3 Innovation and investment #4 Digital literacy and inclusion Figure 5 Lake Mac Smart City strategic outcomes 19