Canberra Outlet Centre - Planning Report - ACT Government

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Canberra Outlet Centre - Planning Report - ACT Government
Canberra Outlet Centre
Planning Report

Client:
Balmain Asset Management

5 May 2016
Canberra Outlet Centre - Planning Report - ACT Government
Contact:
Roz Chivers
roz@elton.com.au
(02) 6274 3302

Canberra
Phone: 02 6274 3300
Fax: 02 6274 3333
25 Lennox Crossing
Acton ACT 2601

www.elton.com.au
consulting@elton.com.au
Sydney | Canberra | Darwin
ABN 56 003 853 101

Prepared by     Roz Chivers

Reviewed by     Matt Meyer, Rob Taylor

Date            5 May 2016

Document name   Planning Report

Version         3
Canberra Outlet Centre - Planning Report - ACT Government
Contents

1       EXECUTIVE SUMMARY                                          6

PART B –DESCRIPTION OF THE PROPOSED PLAN VARIATION                 8

2       BACKGROUND                                                 9
2.1     The proponent                                              9
2.2     Location                                                   9

3       THE PROPOSED TERRITORY PLAN VARIATION                     14
3.1     Current and proposed land tenure arrangements             14
3.2     The intended development                                  15
3.3     The form of the required variation                        17

PART C - JUSTIFICATION OF THE PROPOSED PLANNING POLICY
CHANGE                                                            19

4       NEED FOR THE PROPOSED POLICY CHANGE                       20
4.1     Objectives of the proposed plan variation.                20
4.2     Current viability of the Canberra Outlet Centre           21
4.3     Development trends in Outlet Centres across Australia     21
4.4     Evolution of Fyshwick                                     22
4.4.1   Change in use of floorspace                               22
4.4.2   Employment Growth                                         24
4.6     Estimated catchment                                       30
4.8     Light rail                                                32
4.9     Demand for alternate uses permitted under existing zone   33
4.10    Alternate sites                                           35
4.11    Other potential uses of the site                          35

PART D – STRATEGIC PLANNING POLICY CONTEXT                        38

5       STRATEGIC PLANNING POLICY CONTEXT                         39
5.1     The Territory Plan                                        39
5.1.1   The Statement of Strategic Direction                      39
5.1.2   IZ2 Industrial Mixed Use Land Use Zone                    46
5.1.3   Fyshwick Precinct Map and Code                            48
5.1.4   Overlay Zone: MAAR - Main Avenues and Approach Routes     49
5.1.5   Commercial Zone Development Code                          49

PART E – PRELIMINARY CONSULTATION                                 53
Canberra Outlet Centre - Planning Report - ACT Government
6       CONSULTATION SUMMARY                                       54
6.1     Consultation process                                       54
6.2     Staged approach                                            54
6.2.1   Market research                                            54
6.2.2   Community Information Sessions                             55
6.2.3   Correspondence                                             55
6.3     Outcomes of consultations                                  55
6.3.1   Market research outcomes                                   55
6.4     Community Information Sessions                             63
6.5     Correspondence                                             66
6.6     Findings of the Consultation                               66

PART F – POTENTIAL IMPACTS                                         67

7       PHYSICAL FEATURES, INFRASTRUCTURE AND BUILT FORM IMPACTS   68
7.1     Typography                                                 68
7.2     Soils and geology                                          68
7.3     Hydrology                                                  69
7.4     Physical Infrastructure                                    69
7.4.1   Traffic                                                    69
7.4.2   Parking                                                    70
7.4.3   Public Transport                                           71
7.4.4   Utilities                                                  71
7.5     Hazards                                                    71
7.6     Built Form                                                 72
7.7     Amenity of the area                                        72

8       NATURAL FEATURES AND VALUES                                73
8.1     Ecological values                                          73

9       SOCIAL AND CULTURAL CONTEXT                                74
9.1     Communities of interest                                    74
9.2     Impact on social infrastructure                            74
9.3     Cultural and Heritage Environment                          74
9.4     Economic environment                                       74

10      NET COMMUNITY BENEFIT AND OPPORTUNITY COSTS                77

APPENDICES

A       Community Information Session Advertisements               80
B       Community Information Session Posters                      81
C       Correspondence to Canberra Business Chamber                83
Canberra Outlet Centre - Planning Report - ACT Government
FIGURES

Figure 1 Location map for the Canberra Outlet Centre showing surrounding major arterial routes   10
Figure 2 Detailed map of the location of the Canberra Outlet Centre                              11
Figure 3 Aerial photograph of the Canberra Outlet Centre highlighting adjacent developments
             and surrounding undeveloped land.                                                   12
Figure 4 The Symonston-Jerrabomberra Valley part of the Eastern Broadacre area.                  13
Figure 5 Current floor plan for the Canberra Outlet Centre.                                      16
Figure 6 Proposed floor plan for the homemaker hub demonstrating location of the supermarket     17
Figure 7 Worker Trade Area surrounding the Canberra Outlet Centre                                25
Figure 8 Eastern Broadacre Study Area Map                                                        27
Figure 9 Bus stop immediately outside of the Canberra Outlet Centre                              32
Figure 10 Light Rail Corridors Draft Network showing proposed Park and Ride near Canberra
             Outlet Centre                                                                       33
Figure 11 Zoning of Fyshwick                                                                     46
Figure 12 Fyshwick Precinct Map                                                                  48
Figure 13 Typography of site prior to development                                                69
Figure 14 Canberra Outlet Centre car park 1.30pm Friday 27/6/14                                  71

TABLES

Table 1 Amount and Use of Floorspace in Fyshwick and South Canberra 2011                         23
Table 2 Employment distribution in Canberra 1981-2006                                            24
Table 3 Canberra Outlet Centre Worker Trade Area- worker population profile 2011                 26
Table 4 Canberra Outlet Centre - estimated total additional employment levels                    28
Table 5 Floorspace (m2) by district in Canberra September 2011 compared to population size.      29
Table 6 South Canberra Population Projections 2001-2021                                          30
Table 7 Location of supermarkets near Fyshwick                                                   30
Table 8 Canberra Outlet Centre- Supermarket estimated sales potential                            31
Table 9 Current IZ2 land being marketed by the Land Development Agency                           34
Table 10 Industrial land release by industrial area (site in m2)                                 34
Table 11 Permitted uses and compatibility with the existing development                          37
Table 12 Consistency with the Statement of Strategic Direction                                   46
Table 13 Zone specific controls area RC2 industrial mixed use zone                               48
Table 14 Canberra Outlet Centre - supermarket impact analysis 2016/17*                           76
Canberra Outlet Centre - Planning Report - ACT Government
1            Executive Summary

Block 8 Section 48 Fyshwick (337 Canberra Avenue Fyshwick) was sold by the ACT Government by
restricted auction in December 2005 for one or more of the following purposes: (i) Bulky Goods
Retailing; (ii) Non Retail Commercial Use; (iii) Restaurant; and (iv) Shop.
A Direct Factory Outlet (DFO) and Homemaker Hub opened for trading on the site in 2008 boasting
space for 100 fashion stores, 24 homemaker stores and approximately 1800 car spaces.
Since its earliest days of trading DFO has struggled to find and retain tenants in part due to the
absence of strong anchor tenants and competition with other Centres offering a multi-purpose
offering. As a result DFO was placed in receivership in March 2012.
The vacancy rate is expected to increase sharply in the near future as a result of the significant
number of tenancies (14,118m2) either on holdover or with leases maturing in the next six to 12
months.. Over 30% of the Centre’s tenancies are at risk, with the bulk refusing to recommit to the
Centre without a clear strategy to underpin the Centre’s attraction.
The financial viability of the Centre would suffer further with additional store closures and loss of
employment the clear flow on effects. The Centre currently provides employment (permanent and
casual) for around 850 people (tenants and centre management staff) and approximately 100
contractors.
Additional store closures may mean that it is no longer financially viable to keep the entire Centre
open. If the Centre was to close it would send a negative message to the business and broader
community about the strength of the ACT economy, and also potentially result in a derelict building on
a major avenue and approach route in Canberra.
To avoid this outcome, the Asset Manager on behalf of the Receiver, wishes to reposition the asset.
As the building is of a high quality and less than ten years old assessments of potential uses of the
existing building have been undertaken. The result of these assessments is that there is limited
capacity for uses other than retail, leisure or entertainment.
Consequently it is proposed to incorporate into the existing building envelope a small supermarket
(1000m2) to underpin the future financial viability of the Centre and increase employment within the
Centre.
However, Block 8 Section 48 falls within the RC2 area on the Fyshwick Precinct Map (IZ2 Mixed Use
Industrial Land Use Zone) which restricts the maximum gross floor area of a supermarket to 200m2.
Without the removal of this restriction the inclusion of a supermarket will not be feasible as a 200m2
supermarket is not sustainable and would not assist in tenant retention and attraction. Balmain Asset
Management on behalf of Direct Factory Outlets Pty Ltd (Receivers & Managers appointed) is
therefore seeking a site specific Territory Plan variation.
The variation will make Canberra Outlet Centre a multi-purpose shopping destination – discount
outlet, homemaker component and supermarket & fresh food – providing significant community
benefits including
» Additional and sustained employment of over 50 people directly employed by the supermarket and
  an additional 50 people employed indirectly as a result of the supplier induced multiplier effect
  (100 jobs created)
» Greatly improving the range of retail facilities including fresh food and groceries available for the
  12,700 plus strong Fyshwick workforce, shoppers and the growing population in South Canberra.

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Canberra Outlet Centre - Planning Report - ACT Government
» Improving the underutilised floorspace at the Canberra Outlet Centre
» Facilitating Fyshwick growth as a retail destination and attracting shoppers from outside of the ACT
  – the Outlet component is the only discount retail outlet between Essendon in Melbourne and
  Homebush in Sydney
» Supporting the range of community facilities currently on offer at the Canberra Outlet Centre and
  facilitating the establishment of other community facilities e.g. child care, indoor recreation facility
» Enhancing the ongoing financial viability of the Centre, ensuring that the standard of the building is
  maintained
» Increasing the attractiveness of land on the land release program in Fyshwick and Symonston by
  improving convenience for employees and employers
» Improving lease negotiations and most importantly tenant retention and attracting new tenants,
  based on increased sales rate per sqm and attracts retailers that like to be in centres that have
  supermarkets
» Improves the ability to hold shoppers already at Canberra Outlet Centre (over 4.2 million visitors
  per year)
The repositioning of the Centre may also involve the inclusion of a Park and Ride facility for 100 cars
and a Bike and Ride facility in the basement car park. This will potentially increase the patronage of
public transport due to the amenity and convenience of the facility.

                                                             Canberra Outlet Centre Elton Consulting         7
Canberra Outlet Centre - Planning Report - ACT Government
PART B –DESCRIPTION OF THE
PROPOSED PLAN VARIATION

 8   Canberra Outlet Centre Elton Consulting
Canberra Outlet Centre - Planning Report - ACT Government
2            Background

This proposal to vary the Territory Plan relates to Block 8, Section 48 Fyshwick (337 Canberra Avenue
Fyshwick). This significant site is the location of the Canberra Outlet Centre, formerly Direct Factory
Outlet (DFO) Canberra.

2.1          The proponent
The original lessee and signatory to the Crown Lease was Glenshine Pty Ltd. Direct Factory Outlets
Canberra Pty Ltd subsequently acquired the site and became the new Lessee. Direct Factory Outlets
Canberra Pty Ltd developed the site into the DFO and Homemaker Hub.
Direct Factory Outlets Canberra Pty Ltd was placed into receivership in March 2012.
Presently the Lessee is:
Direct Factory Outlets Pty Ltd (Receivers & Managers appointed)
C/O: Balmain Asset Management,
L39, 140 William Street,
Melbourne Vic 3000
ATTN: Rob Taylor
The Proponent for this proposal is:
Balmain Asset Management on behalf of Direct Factory Outlets Pty Ltd (Receivers & Managers
appointed)
Level 39,140 William Street,
Melbourne Vic 3000
ATTN: Rob Taylor

Elton Consulting have been authorised by Mr Rob Taylor of Balmain Asset Management to prepare
and submit this Planning Report.

2.2          Location
The Canberra Outlet Centre is located at Block 8, Section 48 Fyshwick (337 Canberra Avenue,
Fyshwick). This 68,843m2 site is bounded by Canberra Avenue to the south, Newcastle Street to the
west and Iron Knob Street to the north. Hindmarsh Drive commences immediately northwest of the
site (see Figure 1). This intersection is a major entry point to Fyshwick and prominent visually from
both directions along Canberra Avenue, Hindmarsh Drive and Newcastle Street. As a result it is
identified as a Major Avenue and Approach Route under the National Capital Plan.
The site is 8.7km to Civic, 9.2km to Queanbeyan and 10km to Woden Town Centre. It is 4km to the
nearest South Canberra Group Centres at Manuka (Forrest) and Kingston (Figure 2).

                                                           Canberra Outlet Centre Elton Consulting      9
Canberra Outlet Centre - Planning Report - ACT Government
Figure 1 Location map for the Canberra Outlet Centre showing surrounding major arterial
           routes
Source: Google Maps https://www.google.com.au/maps/@-35.3307017,149.1765638,15z Downloaded 11/2/16)

10     Canberra Outlet Centre Elton Consulting
Figure 2 Detailed map of the location of the Canberra Outlet Centre
Source Google Maps https://www.google.com.au/maps/place/Canberra+Outlet+Centre/@-
35.3376162,149.178141,17z/data=!4m2!3m1!1s0x6b164c3c2e9700ff:0xa240891ebdb4459 downloaded 11/2/16

Fyshwick is an existing light industrial suburb. There has been significant recent development
immediately adjacent to Block 8, Section 48 Fyshwick along Iron Knob Street mostly for bulky goods
retailing. This has included Baby Bunting, Anaconda, Mercedes Benz Canberra and the Master Builders
Australia ACT headquarters and training centre (Figure 3).
Parts of Section 47 are on the land release program for 2016-17 (30,000m2) and forward years. The
eastern edge of Fyshwick and the land to the south east is undeveloped and the subject of the
Eastern Broadacre Study and strategic assessment (Figure 4).
A 90 car capacity park and ride facility currently exists on Tom Price Street primarily to service
commuters from Queanbeyan.

                                                               Canberra Outlet Centre Elton Consulting   11
Figure 3 Aerial photograph of the Canberra Outlet Centre highlighting adjacent
           developments and surrounding undeveloped land.
Source: https://www.google.com.au/maps/place/Iron+Knob+St,+Fyshwick+ACT+2609/@-
35.3371803,149.1766263,890m/data=!3m1!1e3!4m2!3m1!1s0x6b164c3b8d11bc3d:0x674af122725972e1 downloaded
15/2/2016

12    Canberra Outlet Centre Elton Consulting
Figure 4 The Symonston-Jerrabomberra Valley part of the Eastern Broadacre area.
Source: http://www.planning.act.gov.au/topics/current_projects/studies/eastern_broadacre_planning_project downloaded
15/2/2016

                                                                     Canberra Outlet Centre Elton Consulting           13
3             The proposed Territory Plan
              Variation

3.1           Current and proposed land tenure arrangements
Block 8 Section 48 Fyshwick (Deposited Plan No 10183) is leased land with a 99 year lease
commencing 16 December 2005. Lease and Development Conditions for the block were approved on
15 September 2005. The Crown Lease was granted 3 February 2006.
The Lease Purpose as the time it was granted was as follows:
To use the land for one or more of the following purposes
(i) Bulky Goods Retailing;
(ii) Non Retail Commercial Use;
(iii) Restaurant; and
(iv) Shop
PROVIDED ALWAYS THAT the combined gross floor area of any non-retail commercial use shall not
exceed 2,000 square metres AND FURTHER PROVIDED THAT the maximum gross floor area for any
supermarket or shop selling food shall not exceed 200 square metres, and for any other shop, except
bulky goods retailing, shall not exceed 3,000 square metres.
In 2016 as part of the repositioning of the Centre a lease variation was sought to allow for the
inclusion of a small (400m2 GFA) entertainment precinct in the Centre. The development application
for the lease variation has been approved and the issue of the new lease is imminent (subject to
payment of the lease variation charge). The lease variation will add the following two further uses to
the Lease (as defined by the Territory Plan):
»    Indoor recreation facility; and
»    Indoor entertainment facility.
To allow the proposal for the inclusion of a 1000m2 supermarket in the Centre to precede a new
variation to the Crown Lease will be required in addition to the Territory Plan Variation. This will be
sought via a Development Application consistent with the requirements of the Planning and
Development Act 2007 once the Territory Plan has been varied.
The variation to the Crown Lease will be as follows:
Lease Purpose: To use the land for one or more of the following purposes
(i) Bulky Goods Retailing;
(ii) Non Retail Commercial Use;
(iii) Restaurant;
(iv) Shop;
(v) Indoor recreation facility; and
(vi) Indoor entertainment facility.

14     Canberra Outlet Centre Elton Consulting
PROVIDED ALWAYS THAT the combined gross floor area of any non-retail commercial use shall not
exceed 2,000 square metres AND FURTHER PROVIDED THAT the maximum gross floor area for any
supermarket or shop selling food shall not exceed 1000 square metres, and for any other shop, except
bulky goods retailing, shall not exceed 3,000 square metres.
The proposed variation does NOT change the gross floor area of the development above that
specified in the lease i.e. ‘the combined gross floor area of all buildings erected on the land shall not
be less than 50,000 square metres and shall not exceed 60,000 square metres’.
The proposed supermarket will be located in the entertainment precinct for operational reasons. The
entertainment precinct is unlikely to exceed 1500m2 as the precinct is not considered destination but
ancillary to the existing retail offering.
The land tenure will not change as a result of this variation.
This is purely another use within the existing building envelope to enable a supermarket
of 1,000m2 that will underpin the future financial viability of the Centre and increase
employment within the Centre.
In terms of the proposed Territory Plan Variation it is anticipated that public consultation on the draft
Territory Plan variation will commence in late May 2016. It is hoped that the Minister will approve the
variation in time to allow it to be tabled in the Legislative Assembly as a disallowable instrument on 2
August 2016. It is not anticipated that the variation will be referred to the Planning, Public Works and
TAMS standing committee. It is expected that the variation will commence in August 2016.
It is proposed that a development application for the lease variation be lodged concurrently with the
draft Variation under Division 7.32A of the Planning and Development Act 2007. It is anticipated that
a supermarket will be trading in the building by late 2016. The proposed Park and Ride and Bike and
Ride could be operational within the same period.

3.2          The intended development
Canberra Outlet Centre, formerly the Discount Factory Outlet and Homemaker Hub, opened for
trading in 2008 boasting space for 100 fashion stores, 24 homemaker stores and approximately 1800
car spaces.
The Centre comprises a single storey retail building with a basement car park under. All shops front
an internal, circular mall system with cut throughs which ensure effective circulation and linkages
throughout the Centre.
There are two main sections in the Canberra Outlet Centre. One section primarily houses the discount
factory outlets and the food court (20,632m2). Most tenancies in this area are typically small. The
other section, the homemaker hub (24,576m2), involves tenancies with large floor plates reflecting
their bulky goods nature (figure 5). The total NLA for the centre is 45,208m2.
This proposal does not relate to the factory outlet section of the building. Any changes proposed for
this end of the building are minor in nature and aimed to improve shopper’s convenience. The
proposal relates to changes within the homemaker hub section of the building.
The proposal is to develop a small supermarket of 1,000m2 (GFA) in the homemaker hub
end of the centre within the existing building envelope (figure 6).
The homemaker component of the Centre will be internally reconfigured to include the supermarket.
The total floorspace of the centre will not be increased and the current building envelope will not
change. The façade of the building is unlikely to change except for the signage. The façade re-work
will be consistent with the original lease and development conditions and the Main Avenue and
Approach Routes policy from the National Capital Plan.

                                                             Canberra Outlet Centre Elton Consulting    15
The supermarket will take up a significant portion of the 4000m2 entertainment precinct (recent lease
variation) as the Centre layout and a number of existing long term tenants preclude it from going
anywhere other than in the entertainment precinct.
It is intended to utilise one of the existing loading dock areas to service the supermarket.
The ability to amend the current floor layout without major structural works is the result of the non-
load bearing structural walls within the centre and the current level of vacancies and short term
tenancies (lease term < 12 months) in the centre.

Figure 5 Current floor plan for the Canberra Outlet Centre.

16    Canberra Outlet Centre Elton Consulting
Figure 6 Proposed floor plan for the homemaker hub demonstrating location of the
           supermarket

3.3           The form of the required variation
To enhance the sustainability of the Canberra Outlet Centre, Balmain Asset Management on behalf of
Direct Factory Outlets Pty Ltd (Receivers & Managers appointed) (the proponent hereafter) is seeking
a site specific Territory Plan Variation for Block 8 Section 48 Fyshwick to allow the gross floor area of
a supermarket to increase from 200m2 to 1000m2.
Currently, Block 8, Section 48 Fyshwick is zoned IZ2 Industrial Mixed Use. It falls within the RC2 area
in the Fyshwick Precinct Map and Code. While a SHOP is a permitted use in the IZ2 Zone, the RC2
area has a rule which limits the floor area as follows:

 Rules                                                  Criteria

 2.1 SHOP - floor area limit

 R2                                                     This is a mandatory requirement. There is no
 The maximum gross floor area per shop                  applicable criterion.
 complies with all of the following:
 a) SHOP selling food or supermarket , except
 produce market – 200m2
 b) SHOP, except bulky goods retailing – 3000m2
Fyshwick Precinct Map and Code: Effective 31 May 2013

                                                             Canberra Outlet Centre Elton Consulting   17
Conscious of the retail hierarchy the proponent does not seek a variation that applies to the entire
RC2 area. Instead it is proposed that the variation applies only to Block 8, Section 48 Fyshwick and is
applied as a new area (RC5) on the Fyshwick Precinct Map.
The proponent seeks to have this rule changed as follows:

 Rules                                               Criteria

 2.1 SHOP - floor area limit

 RX                                                  This is a mandatory requirement. There is no
 The maximum gross floor area per shop               applicable criterion.
 complies with all of the following:
 a) SHOP selling food or supermarket , except
 produce market – 1000m2
 b) SHOP, except bulky goods retailing – 3000m2

The proponent is not seeking to have the overlay zone (MAAR) changed or any other controls
changed.

  In summary, the proponent is seeking a site specific variation for Block 8 Section 48 Fyshwick
  allowing the gross floor area limit for a supermarket on the subject block to increase from 200m2
  to 1000m2. The changes will exclude the subject block from the RC2 area and place it in a newly
  created RC5 area on the Fyshwick Precinct Map along with a new planning provision for a
  supermarket of 1000m2 in the Fyshwick Precinct Code.

18    Canberra Outlet Centre Elton Consulting
PART C - JUSTIFICATION OF THE
PROPOSED PLANNING POLICY CHANGE

                  Canberra Outlet Centre Elton Consulting   19
4             Need for the proposed policy
              change

This section outlines the objectives of the proposed plan variation. It also highlights a range of
factors that have changed since the opening of the Discount Factory Outlet that necessitate a policy
change. It should be read in conjunction with chapter 6 which outlines the impacts of the proposal.

4.1           Objectives of the proposed plan variation.
There are a number of objectives that will be achieved by granting the request to vary the Territory
Plan for Block 8 Section 48 Fyshwick to increase the maximum allowable gross floor area for a
supermarket. Supermarkets strengthen poor performing precincts and assist with tenant retention as
they are destinational and more frequently visited.
Other objectives of the proposal include:
»    Making the Canberra Outlet Centre a multi-purpose shopping destination – discount outlet,
     homemaker component and supermarket & fresh food – providing additional and sustained
     employment and community benefits.
»    Improving the amenity and diversity of services available to the significant workforce located in
     Fyshwick. This workforce of 12,700 people does not have easy access to supermarket facilities.
     This workforce will continue to expand with the proposed release of employment land in
     Symonston.
»    Providing convenient access to supermarkets for the residents of Symonston and surrounding
     suburbs (including the vulnerable residents of the long stay caravan park and visitors staying at
     the Canberra South Motor Park).
»    Providing convenient access to groceries for users of the Park and Ride and proposed Bike and
     Ride (both the one in Tom Price Street and potentially its replacement or a second facility in the
     Canberra Outlet Centre). This will have an additional advantage of increasing NSW resident’s
     expenditure in the ACT.
»    Providing convenient access to groceries for commuters along Canberra Avenue and Hindmarsh
     Drive. This will have an additional advantage of increasing NSW resident’s expenditure in the ACT.
»    Increasing the choice in supermarket operators for the people of South Canberra.
»    Providing shoppers with the greater diversity of experiences at the Centre and allowing them to
     access daily needs at one location.
»    Providing new employment opportunities and increasing the proportion of jobs in the private
     sector in Canberra.
»    Stemming the exodus of existing traders from the Centre by introducing new anchor tenants.
»    Enhancing the sustainability of the Centre, helping to ensure its ongoing viability. If this is not
     achieved there is a significant risk of losing tenants, increased unemployment, possible Centre
     closure and potentially adverse impacting on the aesthetics of the Canberra Avenue corridor.
»    Increasing weekday visits to the Centre thereby increasing vibrancy and sustainability

20     Canberra Outlet Centre Elton Consulting
4.2          Current viability of the Canberra Outlet Centre
The retail scene in Canberra, particularly bulky goods retailing, has changed significantly since the
Discount Factory Outlet (DFO) Canberra opened for trade in 2008 boasting space for 100 fashion
shops, 24 homemaker stores and an 1800-space car park. When the Centre opened, Fyshwick was
predominantly comprised of light industrial and industrial showrooms.
Over the following eight years Fyshwick has become a major commercial and retail precinct providing
substantial employment including Anaconda (rear of subject), Baby Bunting (rear of subject),
Domayne and Bunnings (immediately north of the subject); Paul’s Warehouse and Chemist
Warehouse (directly opposite to the north) and Captain Snooze, Harvey Norman and Officeworks all
within 500m – 750m of Canberra Outlet Centre. This represents a substantial shift in land use pattern,
and consequently an increased employment base in the area. The Canberra Outlet Centre alone
provides employment (permanent and casual) for around 850 people (tenants and Centre
Management staff) and approximately 100 contractors.
DFO went into receivership in 2012 following a spike in vacancies and a corresponding breach of
financial covenants by the former owners.
Whilst the direct factory outlet component of the Centre is trading at a reasonable level the
homemaker hub is continuing to struggle to find and retain tenants particularly in light of the recent
opening of IKEA Canberra which has further diluted the bulky good spend in Canberra. Vacancies are
expected to increase sharply in the near term in the homemaker hub with a significant number of
tenancies (14,118m2) either with leases expiring within the next six to 12 months or on holdover (i.e.
lease has expired). The financial viability of the Centre would then further suffer with store closures
and loss of employment the clear flow on effects. At this point it may no longer be financially viable to
keep the entire Centre open. This will send a negative message to the community about the strength
of the ACT economy and also potentially result in a derelict building on a major avenue in Canberra.
It is proposed to incorporate a small supermarket in the Centre as a further anchor tenant and an
impetus for tenants on short term licences/holdover to convert to long term tenure. A small
supermarket will provide convenience grocery shopping for customers and Centre/tenant staff and
expand the shopping experience of the Centre’s customers.

4.3          Development trends in Outlet Centres across
             Australia
Contemporary outlets centres across Australia have in recent years expanded their range of services
to offer ‘one stop shopping’. This is in response to consumer demand and efforts to increase
patronage during the working week (peak trading time for Outlet Centres is typically the weekend).
The majority of Outlet Centres include full – line supermarkets as follows:
» Spencer Outlet Centre, Melbourne - Coles 2497m2
» Harbour Town Adelaide - Woolworths - 3500m2
» Harbour Town Gold Coast - Woolworths - 3888m2
» Birkenhead Point - Coles 3200 m2
» Cairns DFO - Coles 2900 m2

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4.4         Evolution of Fyshwick
4.4.1       Change in use of floorspace
Fyshwick was originally intended as an industrial area. However, from the late 1960s its function
began to expand. By the mid-1980s, Fyshwick was recognised as a major retail destination particularly
for activities requiring low rent extensive floorspace such as furniture and hardware stores (ACTPLA,
2009a).
In 1989 the changed role of Fyshwick was acknowledged in the Fyshwick Policy Plan. The Plan did not
limit the amount of retailing, but effectively excluded major supermarkets, discount department stores
and department stores being developed in the area.
In 2003 the planning restrictions were eased to further accommodate market demands by removing
the floorspace limit on bulky goods retailing (ACTPLA, 2009 a). This allowed for the establishment of
the Discount Factory Outlet and other bulky goods retailers such as Bunnings, Harvey Norman and
Domayne.
By 2007, Fyshwick was the location of an estimated 250,000m² of retail floorspace, 28 percent of the
retail space in Canberra. By 2011 this had increased to 31 percent of Canberra’s total retail
floorspace, the largest proportion of retail floorspace in Canberra. The average retail
floorspace per premise in Fyshwick (598m2) is almost twice the size of an average premise in
Commercial Centres (312m2) (ISG ,2011).
An inventory of the amount and use of floorspace in commercial and industrial areas was undertaken
in August and September 2011 for the ACT Government by ISG (2011). The results for Fyshwick and
South Canberra are detailed in the table 1.

22    Canberra Outlet Centre Elton Consulting
Description                                            Fyshwick                 South Canberra

Dept. & Variety                                 2            20,245        0             0
Food – Supermarket                              3*           1,987         9             9,070
Food – Other                                    69           36,457**      40            3,225
Clothes/Shoes                                   106          31,114        42            3,402
Textile/Furniture                               115          90,616        4             8,196
Appliance/Hardware                              88           54,167        11            866
Other Retail                                    115          63,060        49            6,952

Vacant                                          187          82,084        52            6,571

Finance/Insurance                               20           7,813         21            4,059
Restaurants/Cafes                               16           2,484         85            15,724

Health/Welfare/Education                        36           34,356        86            14,633

Business/Property/Travel                        165          5,972         99            13,786
Other Services                                  79           47,493        83            15,678

Petrol Stations                                 7            2,590         3             1,015
Motor – Other                                   155          87,966        0             0

Community facilities                            5            2,570         2             208

Offices (n.e.c)                                 47           61,835        12            1,849
Other (manufacture etc)                         454          282,137       13            3,591

TOTAL                                           1,69         964,946       611           108,825
Table 1 Amount and Use of Floorspace in Fyshwick and South Canberra 2011
Source: ISG 2011

Notes: *”Supermarkets” are in fact convenience or speciality stores. They are Quix Food Store on
Canberra Avenue, Southside Store in the Southside Caravan Park and T&E Asian Groceries at the
Fyshwick Fresh Food markets. ** Fyshwick Fresh Food Markets
In terms of services, 19 percent of Canberra’s services floorspace is in Fyshwick. Services in industrial
areas often serve the metropolitan level catchment and include computing services, repairing services,
etc. (ISG, 2011). In all by November 2011 Fyshwick had 31% of total commercial
floorspace and 31% of total retail floorspace in Canberra (ISG, 2011).
Fyshwick’s predominance as the location for extensive, low rent, floorspace to accommodate uses
such as bulky goods and big box retailing has in the past provided the Territory with the flexibility to
respond to unanticipated changes in demand generated by the greater mobility and affluence of the
population. With the proposed land releases at Symonston for industrial purposes (still to be zoned)
the reliance on Fyshwick has lessened.

                                                            Canberra Outlet Centre Elton Consulting    23
4.4.2         Employment Growth
The reports Employment location in Canberra (ACTPLA, 2009c) and Employment – growth, change
and location (ESDD, 2011) revealed that significant growth in employment in Fyshwick between 1981
and 2006 (last data available). This growth is outlined in the table below and contrasted with other
areas:

                     1981          1986          1991         1996           2001          2006

 Fyshwick            8,800         10,250,       12,150       12,980         12,245        12,230

 Central             63,700        78,600        79,230       76695          78,665        95,260
 Canberra

 Woden Town          10,100        13,450        12,545       12,865         13,500        14,235
 Centre

 Belconnen           8,700         10,800        9,475        11,580         11,960        12,900
 Town Centre

 Tuggeranong         0             0             5,180        7,985          8,890         9,280
 Town Centre

 Gungahlin           0             0             0            0              770           1,650
 Town Centre

 Bruce               1,800         2,050         4,185        4,200          4,655         5,590

 Hume                250           500           745          1,335          1,690         2,230

 Mitchell            800           1,350         2,450        3,415          3,265         3,180
Table 2 Employment distribution in Canberra 1981-2006
Source: ACTPLA (2009c) and ESDD (2011)

This table reveals that the largest workforce is concentrated in Central Canberra, reflecting the
concentration of Federal Government departments in this location. The workforce in Fyshwick rivals
that of the town centres. However, unlike employees in these town centres who typically have access
to a number of large supermarkets, workers at Fyshwick do not have ease of access to a
supermarket. This accessibility issue disadvantages the Fyshwick workforce and increases workers
reliance on cars to have basic needs met during the working day. It also results in productivity loss
from employees within the Centre and across Fyshwick who have to travel to local centres to obtain
basic necessities that should otherwise be available within the Centre. Survey results have indicated
that most people travel to Queanbeyan due to parking issues at the surrounding ACT local and group
centres.

2011 Working Population
MacroPlanDimasi (2015) modelled the worker trade area for the Canberra Outlet Centre using Journey
to work data collected from the ABS Worker Profile 2011. It is estimated that in 2011 that around
10,109 people worked in the Fyshwick sector and an extra 2,564 worked in the area to the south,
labelled the Symonston Sector. Canberra Outlet Centre is ideally placed to serve workers and
businesses within this area, in terms of both general retail needs as well as the fresh food and grocery
needs of the worker population.

24     Canberra Outlet Centre Elton Consulting
Figure 7 Worker Trade Area surrounding the Canberra Outlet Centre
Source: MacroPlanDimasi (2015) Economic Impact Assessment

ABS Worker Profile 2011 allows for the generation of a profile of workers within the immediate trade
area. Table 3 details the key characteristics of the worker population, compared with the average for
the ACT and Australia. The key highlights are as follows:
» The worker population of the trade area is dominated by males, at 69% of the population overall.
» The age profile of the trade area workforce is comparable to the broader ACT workforce.
» Income levels of the trade area workforce are skewed towards the lower ranges, as compared with
  the ACT Benchmarks.
» By far the mode of transport mostly commonly used by the trade area workforce is car driver.
The trade area workforce includes much higher than average proportions of tradespersons and
technicians as well as labourers and transport workers, compared with the broader ACT workforce.

 Characteristics                    Fyshwick       Symonston   Total         ACT           Australia
                                                               Worker
                                    Sector         sector                                  Avg.

 Worker population                  10,109         2,564       12,673        207,900       10,058,325

 Gender
 Male                               71.3%          61.9%       69.4%         50.2%         53.4%
 Female                             28.7%          38.1%       30.6%         49.8%         46.6%

                                                               Canberra Outlet Centre Elton Consulting   25
Characteristics                     Fyshwick        Symonston   Total    ACT      Australia
                                                                 Worker
                                     Sector          sector                        Avg.

 Age distribution
 15-19                               5.6%            1.1%        4.7%     5.6%     5.6%
 20-29                               25.5%           17%         23.8%    23.1%    20.8%
 30-49                               43.3%           52.6%       45.2%    45.7%    45.2%
 50-64                               22.5%           27.1%       23.4%    23.2%    25.1%
 65+                                 3.1%            2.2%        2.9%     2.4%     3.2%
 Average age                         39.8            42.6        40.4     40.1     41.0

 Occupation
 Managers                            17.8%           16.2%       17.5%    16.7%    13.1%
 Professionals                       12.7%           39.6%       18.1%    30.7%    21.7%
 Clerical & service workers          19.2%           24.9%       20.3%    30.0%    24.9%
 Sales workers                       14.6%           0.9%        11.9%    6.8%     9.5%
 Tradespeople & technicians          21.3%           13.0%       19.7%    9.2%     14.4%
 Labourers & transport               14.3%           5.4%        12.5%    6.5%     16.3%
 workers

 Personal income
 Less than $20,799                   9.4%            1.9%        7.9%     11.1%    16.4%
 $20,800-$41,599                     23.9%           8.7%        20.9%    16.5%    27.5%
 $41,600-$64,999                     31.9%           20.1%       29.5%    23.9%    25.9%
 $65,000-$103,999                    24.4%           45.4%       28.6%    31.3%    20.0%
 $104,000 or more                    10.4%           23.9%       13.1%    17.3%    10.3%
 Average income                      64,415          96,024      70,807   76,742   59,378

 Mode of transport
 Train                               0.0%            0.0%        0.0%     0.1%     6.3%
 Tram (and light rail)               0.0%            0.0%        0.0%     0.0%     0.5%
 Bus                                 1.7%            2.3%        1.8%     6.3%     3.5%
 Car driver                          79.9%           79.1%       79.7%    63.2%    60.2%
 Car passenger                       5.1%            5.1%        5.1%     7.1%     5.3%
 Bicycle                             0.5%            1.6%        0.8%     2.3%     1.0%
 Other                               3.9%            2.7%        3.7%     7.6%     8.6%
 \non- travel                        8.9%            9.0%        8.9%     13.4%    14.6%

Table 3 Canberra Outlet Centre Worker Trade Area- worker population profile 2011
Source: ABS Worker Population Profile 2011, MacroPlanDimasi

Eastern Broadacre planning project
The working population in the area is likely to continue to grow in the short to medium term. The
eastern area of the ACT was identified in The Canberra Spatial Plan (2004) as a future potential
employment corridor for the growth of industrial, broadacre commercial, tourism, recreation and
transport-related land uses. The Eastern Broadacre area extends from the Majura Valley to Hume and
includes Symonston and the Jerrabomberra Valley (Figure 9).

26       Canberra Outlet Centre Elton Consulting
In 2010 the ACT Eastern Broadacre Economic and Strategic Direction Study (also known as the
Eastern Broadacre Planning Study) was undertaken. The Study and a subsequent discussion paper
identified ten potential development areas for further investigations. In response to the public
comments and further consideration, the Pialligo and Mount Majura investigation areas were
withdrawn and are not being progressed further under this study.
A Strategic Assessment under the Environmental Protection and Biodiversity Conservation Act (the
EPBC Act) is currently underway. The extent of the areas for development and conservation will be
determined through this process. Parts of Symonston have been included in the ACT Indicative Land
Release Program for the years 2016-17 onwards. Zoning of this land is subject to a Territory Plan
Variation.
Over time, the development of new employment areas in the Eastern Broadacre will help provide an
adequate supply of employment land (particularly industrial) for the ACT and region, more than
adequately ameliorating the impact of the proposed change of use at the Canberra Outlet Centre. It
is estimated that there will be between 20 and 50 jobs per hectare created from the release of
Eastern Broadacre land. This employment generated will support the diversification of the ACT
economy and further justify the provision of a 1,000m2 supermarket at a convenient, easy to access
location for the workforce of the area.

Figure 8 Eastern Broadacre Study Area Map
Source: http://www.planning.act.gov.au/topics/current_projects/studies/eastern_broadacre_planning_project

                                                                      Canberra Outlet Centre Elton Consulting   27
Additional employment
The addition of a supermarket at Canberra Outlet Centre will create a number of new ongoing jobs,
which will benefit the local economy of the region. Table 4 below presents an estimate of the likely
additional employment that would be directly generated by the proposed supermarket. Based on the
amount and nature of the floor space, which in the most part will replace the existing vacant floor
space at the Centre, MacroPlanDimasi estimate that 38 net ongoing jobs will be created by the
addition of a supermarket at the centre.
The estimated 38 new retail jobs at Canberra Outlet Centre will result in a further 15 jobs created
directly in the community from supplier induced multiplier effects (based on the appropriate ABS
input/output multipliers). Jobs created include both full time and part time positions.
While the employment creation estimated to be directly attributable to the incorporation of the
supermarket within Canberra Outlet Centre is estimated to be in excess of 50 jobs, there would be
additional employment generating benefits that would flow indirectly from the supermarket’s addition.
In particular, it is expected that the incorporation of the small supermarket would stimulate additional
leasing for the remaining vacant space within the centre, which amounts to around 3,000 m2 over and
above the space to be occupied by the proposed supermarket.

                                 Direct employment1      Supplier                    Total
                                                         employment
                                                         multiplier effect

 Centre employment2              38                      15                          53

 1. Indicates net employment at the proposed supermarket, estimated at 40 employees per 1000m2 and includes
 an allowance for reduced employment levels at impacted centres, estimated at 5% of the total increase
 2. Indicates the estimated number of net additional ongoing jobs as a result of the proposed development
Table 4 Canberra Outlet Centre - estimated total additional employment levels
Source: MacroPlanDimasi (2015)

The addition of a supermarket is also highly likely to improve the prospects of the Centre retaining
tenants which are currently on holdover or which face an expiring lease in the next six months. In
total, the incorporation of a small supermarket is likely to increase employment at the Centre by more
than 100 new positions.

4.5           Population growth in South Canberra and
              accessibility to supermarket facilities
In Canberra, retailing has historically occurred in the context of a metropolitan structure based on
accommodating growth in separate urban districts (towns). The associated centres hierarchy of Civic
(city), town, group and local centres (introduced following the development of Canberra Central) has
been designed to offer residents of each district convenient and equitable access to goods, services
and facilities. The hierarchy is based on meeting three basic types of shopping trips:
» trips to local centres to provide goods bought daily
» trips to group centres for weekly grocery shopping
» trips to town centres to primarily meet the needs for higher order goods which were bought less
  frequently and for which customers would travel further.
The hierarchy has been used as a management tool for allocating commercial activity to achieve retail
objectives. Its intention has not been to protect individual businesses from competition but to:

28     Canberra Outlet Centre Elton Consulting
» provide certainty to commercial investors about where to invest,
» ensure good accessibility to retail facilities,
» coordinate infrastructure and to provide certainty to home occupiers that the amenity of their
  residential area will not be threatened by retail and commercial developments that have
  unacceptable noise and traffic impacts
Over time, the hierarchy has been modified to respond to social and economic changes for example to
allow for large supermarkets, big box retailing, (ACTPLA, 2009a). The hierarchy is weak at the group
centre level (low supermarket provision per capita) in Central Canberra (table 5). The majority of
supermarkets in the inner north and south are provided at the local centre level. The ‘group’ centres
in the inner south closest to Fyshwick - Kingston (IGA) and Manuka (Coles) -have a limited
supermarket offer compared to group centres in Belconnen, Woden, Weston Creek and Tuggeranong
which typically have two or more supermarkets.

                    Canberra       Canberra   Belconnen   Woden/     Tuggera-    Gungahlin     Majura    Total
                    North          South                  Weston     nong

 Supermarket        15,147         9,070      32,931      18,982     30,514      12,561        0*        119,205

 Population         49,917         25,068     94,696      57,005     89,134      49,734        0         360,753
Table 5 Floorspace (m2) by district in Canberra September 2011 compared to population
           size.
Source: ISG (2011) and ABS (2011

Note: The largest Woolworths in the Australia has subsequently been opened at Majura Park. A
Supabarn is also proposed on the site of the car park in Kingston.
The population of the inner south is anticipated to continue to grow (Table 6) as infill development
occurs in line with the ACT Planning Strategy. This growing population will put more pressure on the
existing supermarket facilities in the area unless more are developed or floor spaces increased.

                 Year                       South Canberra
                 2001                           23,300

                 2002                           23,400

                 2003                           23,450
                 2004                           23,450
                 2005                           23,950

                 2006                           24,700

                 2007                           25,300
                 2008                           25,650
                 2009                           26,000

                 2010                           26,750

                 2011                           27,450
                 2012                           28,000
                 2013                           28,550
                 2014                           28,850

                                                             Canberra Outlet Centre Elton Consulting    29
2015                                 29,000
                   2016                                 29,200

                   2017                                 29,400

                   2018                                 29,650
                   2019                                 29,950
                   2020                                 30,250

                   2021                                 30,600

Table 6 South Canberra Population Projections 2001-2021
Source: ACT Demographer (Chief Minister’s Directorate).
http://www.cmd.act.gov.au/policystrategic/actstats/projections/actdivisions

As highlighted in earlier sections of the report Fyshwick is an employment node with intensive activity
(12,700 employees). At present there is no easy access for this substantial workforce to convenience
shopping and personal services such as can be obtained in a supermarket. Table 7 details the
distance to convenience shopping. This lack of ready access has both productivity implications and
health implications due to a lack of access to healthy, fresh foods.

                                            Canberra Outlet Centre

 Distance to Town Centre                    Woden 9.2km
 (furthest point)                           Civic 11.9km

 Distance to Group Centre                   Kingston 4.5km – IGA 1,140m2 plus new supermarkets under
                                            development (Supabarn/Coles)
                                            Manuka 5.2km – Full line Coles 3,480m2

 Distance to Local Centre                   Griffith 3.1km 800m2 independent supermarket
                                            Narrabundah 2.3km 960m2 IGA
Table 7 Location of supermarkets near Fyshwick

4.6            Estimated catchment
MacroPlanDimasi (2015) analysed the key market segments which a future supermarket at Canberra
Outlet Centre is expected to serve, together with estimates of sales potential the supermarket is
considered likely achieve from each segment. The analysis highlighted:
» There are 12,700 workers within close proximity of Canberra Outlet Centre, who generate a total
  of $90.6 million of food, grocery and packaged liquor (FLG) expenditure. Around 10% of this
  expenditure is expected to be directed to a future supermarket at Canberra Outlet Centre, having
  regard to the size of the proposed supermarket.
» Local Businesses in Fyshwick are also expected to use a future supermarket in the local area, with
  supermarket sales from businesses estimated at around $1.1 million.
» Existing users of the outlet centre are also expected to shop at a new supermarket at the Centre.
  There are currently (end 2015) around 4 million visitors per annum at Canberra Outlet Centre.
  Around 2.5% of these visitors are estimated to patronise the future supermarket, spending an
  average of $15 each visit.

30      Canberra Outlet Centre Elton Consulting
In summary, the sales potential of a 1,000m2 supermarket at Canberra Outlet Centre is estimated to
be around $11.6million in 2016/17 (in constant 2014/15 dollars and including GST) (table 8). The
supermarket would mainly serve local workers and local businesses.

 Market segments                                No.               Est FLG      Estimated     Estimated
                                                                  spend        market        sale
                                                                  ($M)         share         potential
                                                                               (%)           ($m)

 Workers                                        12,700            90.6         10.0%         9.1
              1
 Businesses                                     760               1.9          56.0%         1.1

 Existing/future outlet centre shoppers
 No of Centre visitors2                         4,000,000                                    1.5
 % of visitors est. to use supermarket          2.5%
 Avg. spend at proposed supermarket             $15

 TOTAL                                                                                       11.6

 1. Number of employing businesses in Fyshwick/Symonston. Businesses are assumed to spend an average of
 $2,500 p.a ($50 per week) on FLG.
 2. Based on late 2015 visitor numbers to the Centre
Table 8 Canberra Outlet Centre- Supermarket estimated sales potential
Source: MacroPlanDimasi 2015

4.7           Park and Ride at Fyshwick
A key initiative in the Transport for Canberra Policy is the establishment of Park and Ride Facilities. At
the present time, a network of Park and Ride and Bike and Ride facilities is being built along the
ACTION Rapid bus routes, and at selected group centres to connect with peak hour bus services.
Park and Ride facilities provide people with flexibility in designing a journey that suits their needs by
allowing them to combine bus travel with a drive in a car. Park and Ride aims to reduce car only trips
and in turn the need for additional road capacity and demand for parking in the city and major
employment centres. It also aims to reduce the level of congestion on ACT roads.
A 90 car capacity Park and Ride Station exists in Fyshwick on Tom Price Street. It is serviced by Red
Rapid Buses and caters for commuters from Queanbeyan predominantly.
The Feasibility Study for this facility was undertaken prior to the announcement of paid parking in the
Parliamentary Triangle. It is likely that there will be additional latent demand for Park and Ride now
that paid parking has been introduced.
Important factors in the success of Park and Ride is that it is attractive and convenient for commuters
and that commuters are protected from the environment, (particularly rain and wind), they and their
vehicles are safe and that the area is well lit.
The inclusion of the supermarket at the Canberra Outlet Centre will add amenity and convenience for
commuters using the Fyshwick Park and Ride facility. It may encourage more people to use the facility
thereby reducing road congestion. Queanbeyan commuters, given the opportunity to grocery shop on
the way home from work at the Canberra Outlet Centre would be contributing to the ACT economy.
There is also an opportunity to utilise spare capacity within the car park at the Canberra Outlet Centre
for Park and Ride Facilities. This could be for ‘overflow’ parking for the Tom Price Street Facility or

                                                            Canberra Outlet Centre Elton Consulting       31
could replace the Tom Price Street facility allowing the Government to include it in the Land Release
Program. The latter would increase IZ2 Mixed Use Industrial land (ie. free up Tom Price Street Park
and Ride facility).

An undercover Bike and Ride facility could also be incorporated in the basement carpark at the Centre.
Cyclists and their bikes will be protected from the environment, (particularly rain and wind), in a safe
and secure area that is well lit. They could access the proposed supermarket to obtain their
convenience needs during their commute.

Figure 9 Bus stop immediately outside of the Canberra Outlet Centre

4.8          Light rail
In 2015 the ACT Government released a draft Light Rail Network (figure 10) for community discussion
about where light rail should go after Stage One between Gungahlin and the city and potentially to
Russell. The Eastern Connection (Fyshwick and Airport) was identified as a high priority corridor as it
» Capitalises on our key economic flows between City, Russell, Barton, Fyshwick and Majura
» Supports growth in tourism and future direct international flights from Canberra Airport
» Infrastructure Australia data says these corridors are under pressure
» Supports compact growth in our eastern residential and commercial areas – Kingston, Eastlake,
  Fyshwick and Eastern Broadacre
» Investment leads urban renewal and development along the corridors at key transit nodes

32    Canberra Outlet Centre Elton Consulting
The draft network map (Figure 9) highlights a Park and Ride near or at the Canberra Outlet Centre.
The advantages listed in the section above related to Park and Ride for buses equally apply for the
light rail.

Figure 10 Light Rail Corridors Draft Network showing proposed Park and Ride near
           Canberra Outlet Centre
http://haveyoursay.planning.act.gov.au/Light-rail-network (downloaded 22/2/2016)/

4.9            Demand for alternate uses permitted under
               existing zone
The ACT Government’s Indicative Land Release Program 2014-15 to 2017-18 (Economic Development
Directorate, 2014) indicated that the slower than average take up of industrial land in recent years is
expected to continue in the short term. The report reveals that based on recent industrial land sales,
demand continues to exist for mixed use industrial land (IZ2) while there is limited demand for
general industrial land (IZ1).
According to the 2014-15 to 2017-18 Land Release Program the supply of unsold industrial land
consisted of:

                                                                     Canberra Outlet Centre Elton Consulting   33
» 15 private sector industrial blocks (67,485 m2)
» 15 industrial blocks (80,487 m2), which have been released and are available for purchase.
Based on an average annual take up rate of 47,000m2 of industrial land over the past nine years, this
level of supply is equivalent to 3.1 years of demand.
The slow demand for industrial land is borne out by the sale figures for industrial land sales in 2014-
15. The Canberra Times (23/105/15) reports that of the 106,000m2 of industrial land released to the
market in the previous twelve months IKEA took up two thirds (69,100m2). The rest of the land
released was in Hume, where four blocks totalling 37,000m2 were released to market. The Canberra
Times also indicated that the release of industrial land fell short of the LDA’s target for the year.
The 2015-16 to 2018-19 Indicative Industrial Land Release Program includes a release target of
230,283m2 of industrial land over the next four years. The report highlights that over the four years
from 2008–09 to 2011–12, the Government released approximately 140,000m2 of industrial land. In
addition, the private sector released 361,552m2 in Hume and Beard. These releases have resulted in
an inventory of available industrial land. New precincts in Fyshwick and Symonston have also been
identified to accommodate large format retailing and mixed-use industrial development. Planning is
also underway to expand the available land in Majura.
In terms of mixed use industrial land (IZ2) the Land Development Agency are currently marketing the
New West Industrial Park at Hume, a total offering of 18,933m2. This includes a variety of block sizes
as follows:

 Parcel                                                      Size

 Block 2 Section 30 Hume                                     2613m2

 Block 4 Section 30 Hume                                     1682m2

 Block 6 Section 30 Hume                                     2037m2

 Block 7 Section 30 Hume                                     1974m2

 TOTAL                                                       8,306m2

Table 9 Current IZ2 land being marketed by the Land Development Agency

Source: http://www.lda.act.gov.au/developments/?location[]=12&land_type=Commercial&availability[]=1 downloaded
18/6/14.

It is worth noting that these blocks remained on the market on 22 February 2016 (21 monthly after
data originally analysed for this report).

 Location          2014-15*            2015-16             2016-17             2017-18             2018-19

 Fyshwick          0                   61,662              30,000              11,000              12,000

 Hume              45,646              0                   68,600              22,930              29,618

 Symonston         0                   0                   7,650               8,000               6,000

 Pialligo          78,000*             0                   0                   0

 Mitchell          0                   2,823               0                   0

 TOTAL             123,646             64,485              76,250              41,930

Table 10          Industrial land release by industrial area (site in m2)

34     Canberra Outlet Centre Elton Consulting
Source: * Economic Development Directorate, 2014, pp17 and Economic Development Directorate Indicative Land Release
Program 2015-16 to 2018-19 and Economic Development Directorate, 2014, pp20, 22, 24 and 26
* Land set aside for IKEA
On top of the land currently available and scheduled for land release over the next four years there is
also a significant amount of industrial property for sale in the ACT. In Fyshwick alone there was
156,3501m2 of industrial properties for sale in late June 2014. These varied in size from quite small
units (43m2) to larger developments (10,600m2) spread across both the IZ1 General Industrial and
IZ2 mixed use industrial zone.

4.10          Alternate sites
No alternate sites for a supermarket at Fyshwick have been considered. The subject site block 8,
section 48 Fyshwick is the location of an existing retail centre. The building on the site is less than
ten years old and of high quality as is befitting a development on a main avenue and approach route
in the National Capital. The height, massing and spatial arrangements of the buildings and design of
the built form of the Centre reflects the strategic importance and prominence of the site.
The Centre has ample parking and is serviced by public transport with bus stops immediately adjacent
to the building and a Park and Ride nearby. There is also the possibility of providing Park and Ride
Facilities at the Canberra Outlet Centre servicing both the bus network and light rail network and
reducing congestion on Canberra Avenue.
The objective of the proposed variation to the Territory Plan is to allow for the inclusion of a small
supermarket (1000m2) into the existing building envelope to underwrite the future financial viability of
the Centre and increase employment within the Centre.

4.11          Other potential uses of the site
The proposal to add a supermarket of approximately 1,000m2 within the existing building envelope of
the Canberra Outlet Centre (Block 8, Section 48 Fyshwick) does not reduce the amount of mixed use
industrial (IZ2) land available.
The Canberra Outlet Centre’s building is less than 10 years old with the building opening for trade in
2008. Given the age and quality of the building the proponent is not seeking to demolish the building
and undertake a new land use. Instead they are seeking to include a land use within the existing
building envelope that is compatible with the existing uses and tenants.
The IZ2 Industrial Mixed Used Development Code lists a range of permitted uses (all merit
assessment track). Table 8 details these uses and the outcomes of an assessment as to whether they
are applicable to incorporate into the existing Canberra Outlet Centre building. It can be seen from the
table that many of the uses permitted in the IZ2 zone are not compatible with the existing
development at Section 8, Block 48 Fyshwick. Many others are fully or partially compatible and may
be considered for other vacant areas in the centre to support the sustainability of the retail offer.
This assessment effectively limits the other uses of the Canberra Outlet Centre to retail, leisure or
entertainment.

 Permitted Use in IZ2 zone                         Compatibility
 ancillary use (to the primary use of the          Yes – Retail purposes
 land)
 bulk landscape supplies                           Not compatible
 bulky goods retailing                             Yes – current purpose of the development

                                                                   Canberra Outlet Centre Elton Consulting            35
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