ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014

 
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
ESSENDON AIRPORT
HOTEL DEVELOPMENT

  MAJOR DEVELOPMENT PLAN
APPROVED 27 NOVEMBER 2014

                          |
                   Introduction 2
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
Indicates location of hotel

Figure 1: Essendon Airport aerial view with site of proposed hotel indicated.
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
Foreword

Essendon Airport Pty Ltd (EAPL) is pleased to present this Major Development Plan for the development
of a hotel complex on the airport.

Essendon Airport remains a vital aviation resource for Melbourne and regional Victoria. It continues to
provide excellent facilities to the aviation industry, with a special emphasis on Police and Emergency
Services, flight support and the corporate aviation market. In addition, landside development at the airport
offers the opportunity to create an integrated business environment unlike anything else in Melbourne.

Since privatisation of the airport in 2001, EAPL has demonstrated its commitment to establishing a
commercially viable, safe and functional general aviation facility which meets the needs of projected
aviation requirements whilst utilising the property’s strategic land holdings for high quality commercial
development.

This Major Development Plan proposes EAPL’s single largest commercial development investment to
date, to create a high quality hotel and conference facility which will enhance the experience of travellers
and airport users as well as offer latest-generation facilities to the surrounding community.

EAPL has prepared this Major Development Plan following a public exhibition process and after giving
due regard to all written comments received. This Major Development Plan was approved on 27
November 2014 by the Deputy Prime Minister and Minister for Infrastructure and Regional Development,
the Hon Warren Truss MP.

Sincerely,

Chris Cowan
Chief Executive Officer
Essendon Airport Pty Ltd
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
TABLE OF CONTENTS
Executive Summary ………………………………….. 1                     3.11 Management of aircraft noise intrusion.. 28

1.0 Introduction ……………………………………….. 2                    4.0 Environment and Heritage …………………… 29
1.1 Essendon Airport …………………………………… 2                   4.1 Approach to assessment ……………………….. 29
1.2 The proposal …………………………………………. 3                          4.4.1 Sources of information ……………………. 29
1.3 Proponent details ………………………………….. 3                       4.1.2 Environmental impacts …………………… 29
1.4 Objectives ……………………………………………… 4                           4.1.3 Management of environmental issues
      1.4.1 Objectives for the development ……… 4                   during construction …………………………. 29
                                                        4.2 Site conditions ………………………………………. 30
2.0 Major Development Plan Process ………… 5                     4.2.1 Soil conditions ………………………………… 30
                                                              4.2.2 Site contamination …………………………. 30
2.1 Reasons for this major development plan. 5
                                                        4.3 Hydrology and Water Quality ………………… 31
2.2 Content of a major development plan……. 6
                                                              4.3.1 Hydrology ……………………………………….. 31
2.3 Indicative timelines ……………………………….. 7                     4.3.2 Groundwater ………………………………….. 32
2.4 Public consultation ………………………………… 8                 4.4 Noise and vibration ……………………………….. 32
      2.4.1 Approach to consultation ……………….. 8               4.4.1 Construction noise ………………………….. 32
      2.4.2 Stakeholder consultation ………………… 9                4.4.2 On‐airport noise ……………………………… 32
      2.4.3 Views of Civil Aviation Safety Authority
                                                        4.5 Wind ……………………………………………………… 33
           and Airservices Australia …………………. 9
      2.4.4 The public comment period ……………. 10
                                                        4.6 Air quality ……………………………………………… 33
                                                        4.7 Flora and fauna ……………………………………… 34
3.0 Project Description ……………………………… 11                 4.8 Waste management ………………………………. 34
3.1 Location ………………………………………………… 11                     4.9 Visual impact and landscape …………………..35
3.2 Subject site ……………………………………………. 11                  4.10 Cultural heritage ………………………………….. 36
                                                              4.10.1 European heritage ………………………… 36
3.3 Needs of users of the airport …………………. 13
                                                              4.10.2 Indigenous heritage ………………………. 36
      3.3.1 Civil aviation users ………………………….. 14
      3.3.2 Other users of the airport ……………….. 16      4.11 Potential construction impacts of the
3.4 Hotel ……………………………………………………… 19                           project …………………………………………………. 37
      3.4.1 Design concept ………………………………. 19                 4.11.1 Construction traffic …………………………..37
      3.4.2 Hotel specifications and facilities …… 21       4.11.2 Pedestrians ……………………………………… 37
      3.4.3 Building height ……………………………….. 21               4.11.3 Water quality …………………………………… 37
      3.4.4 Building material and finishes ………… 22          4.11.4 Air quality and dust management ……. 37
      3.4.5 Risk and hazard management ………… 22              4.11.5 Erosion and sediment control ………….. 38
      3.4.6 Equity of access ………………………………. 22               4.11.6 Airport operations …………………………… 38
                                                            4.11.7 Construction waste …………………………..38
3.5 Building services and facilities ……………….. 23
                                                            4.11.8 Hazardous materials ………………………… 38
3.6 Landscaping and site planning ………………. 23                4.11.9 Cultural heritage ……………………………… 38
3.7 Signage ………………………………………………….. 24                    4.12 Environment Management System …….. 39
3.8 Construction ………………………………………….. 25                  4.13 Environmentally sustainable building
3.9 Operation and maintenance …………………. 25                    design initiatives…………………………………… 39
3.10 Impact on aviation ………………………………. 25
      3.10.1 Prescribed airspace ………………………. 25
                                                        5.0 Car Parking and Traffic Flows ………………. 40
      3.10.2 Wind shear …………………………………… 26
      3.10.3 Navigational aids and radar ………….. 26
                                                        5.1 Road network and public transport links .. 40
      3.10.4 Line of sight ……………………………………27                 5.1.1 External Road network ………………………. 40
      3.10.5 National Airports Safeguarding                 5.1.2 Trams ………………………………………………… 41
      Framework ………………………………………………. 27                      5.1.3 Buses …………………………………………………. 41
                                                            5.1.4 Train ………………………………………………….. 41
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
5.1.5 Taxi ……………………………………………………. 41                 7.8 Pre‐existing interests …………………………….. 61
    5.1.6 Internal road network………………………… 41
5.2 Car parking ……………………………………………. 42                   8.0 References ………………………………………….. 62
    5.2.1 Hotel guests ………………………………………. 42
    5.2.2 Conference facility …………………………….. 42          Appendices
    5.2.3 Hotel employees ……………………………….. 43
                                                        Appendix A – Consistency of the MDP with
    5.2.4 Nomad Street car park ………………………. 44
                                                        statutory requirements ……………………………….. 63
5.3 Traffic flows …………………………………………… 44
      5.3.1 Traffic flows associated with the hotel
                                                        Appendix B – Hotel Concept Plans ………………. 65
      proposal ………………………………………………….. 44                 Appendix C – Conditions of Ministerial Approval
      5.3.2 Traffic flows associated with the longer    …………………………………………………………………….. 74
      term growth of Essendon Airport ……………..45
5.4 Vehicle access ……………………………………….. 46
      5.4.1 Vehicle access for hotel guests ………. 46     List of Figures
      5.4.2 Vehicle access for conference facility 46   1. Essendon Airport aerial view
      5.4.3 Service vehicle access …………………….. 46        2. Process for approval of this MDP …………….. 7
5.5 Pedestrian and bicycle access ……………….. 47           3. Essendon Airport location plan ……………….. 12
                                                        4. Hotel site location plan ……………………………. 12
6.0 Community and Economic Impact ……….. 48              5. Site location in the Essendon Market Area 17
6.1 Employment ………………………………………….. 48                    6. Hotel Concept Rendering – South West
6.2 Economic Impact …………………………………… 49                       Elevation ………………………………………………… 20
6.3 Social impact …………………………………………. 50                  7. Hotel Concept Rendering – North East
                                                            Elevation ………………………………………………… 20
7.0 Statutory Context ……………………………….. 51                 8. Subject site and external road network …... 40
7.1 Commonwealth environmental impact                   9. Proposed car park access and location
     assessment ………………………………………….. 51                       plan ………………………………………………………… 43
7.2 Development and building approvals …….. 52          10. Proposed vehicle access ………………………… 46
7.3 Consistency with the state planning                 11. Proposed pedestrian access ………………….. 47
     schemes ………………………………………………. 52
      7.3.1 Consistency with Plan Melbourne
           Metropolitan Planning Strategy ………. 53       List of Tables
      7.3.2 Consistency with Moonee Valley
                                                        Table 1: Forecast impact of hotel on existing
           Planning Scheme ………………………………55
      7.3.2.1 State Planning Policy Framework … 55
                                                                  traffic movements ……………………….. 45
      7.3.2.2 Local Planning Policy Framework …. 57     Table 2: Summary of impacts of the Essendon
      7.3.3 Conclusion ………………………………………. 58                        Fields hotel and convention facility 49
7.4 Master Plan ………………………………………….. 59                   Table 3: Estimated impact of business output
7.5 Consistency with Land Use Plan ……………. 59                      by sector and region …………………….. 49
7.6 Environment Strategy …………………………… 60
7.7 Airport Lease …………………………………………. 61
ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
EXECUTIVE SUMMARY

The proposal described in this Major Development Plan seeks to establish a new hotel on a vacant site
of approximately 7700 m2 in size within the Essendon Airport landholding. The site is to accommodate a
new hotel building of up to 180 rooms (most likely 150) and up to 11,000m2 gross floor area with
associated car parking, food and beverage facilities, conference facilities and landscaping.

The hotel is an integral component of the Essendon Airport aviation, commercial and retail hub and will
be sited at the prime entry to the Essendon Fields commercial precinct abutting one of Melbourne’s
most significant arterial connections – the Tullamarine Freeway.

The hotel facilities will complement the aviation and commercial functions of the airport, meeting the
needs of users of the airport including passengers & businesses located on the airport site, local
businesses and other travelers to the region.

In accordance with the Airports Act 1996 (the Act), a Major Development Plan (MDP) must be prepared
where a major airport development is proposed. Section 89 of the Act defines a major airport
development as, amongst other things, constructing a new building, where:
       the building is not wholly or principally for use as a passenger terminal; and
       the cost of construction exceeds $20 million or such higher amount as is prescribed.

As the proposed development’s cost of construction will exceed $20 million, Essendon Airport Pty Ltd
(EAPL) is required to prepare a MDP. Section 91 of the Act defines the contents of a major development
plan and all issues which must be addressed in such a report.

The proposed development has been assessed by EAPL in relation to all statutory requirements and it is
considered that the development will appropriately comply with all relevant requirements.

Essendon Airport is a strategically located parcel of land which, while providing obvious aviation based
facilities, also provides a unique opportunity to reinforce its increasing employment precinct function by
realising non‐aviation development potential. Non‐aviation developments on land that is surplus to
aviation requirements support the economic viability of the airport.

The Essendon Airport Master 2013 Plan sets out that the existing commercial areas around English
Street are to be redeveloped and that EAPL envisages an on‐airport hotel could occur within the precinct
during the next five years.

The specific detail of the proposal and its assessment against all necessary statutory documentation is
contained within this document.

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ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
1.0 INTRODUCTION

1.1 ESSENDON AIRPORT

Essendon Airport is a general aviation aerodrome situated on 305 hectares in the suburb of Essendon
Fields, 11 kilometres northwest of Melbourne’s Central Business District and 7 kilometres southeast of
Melbourne Airport.

Essendon Airport commenced operations in 1919 as an all‐over field and was officially designated an
international airport in 1950, operating as Melbourne’s main airport until 1971 when international and
domestic flights were transferred to a new international and domestic airport at Tullamarine
(Melbourne Airport).

Today, Essendon Airport operates a two‐runway system supporting a mix of charter, corporate,
emergency services and general aviation users. The Airport is a base for Victoria’s Police Air Wing and
Air Ambulance, along with the Royal Flying Doctor Service and other emergency air transport.

Regional Regular Passenger Transport (RPT) services also operate from Essendon Airport, in addition to
recent closed‐charter Fly‐In‐Fly‐Out (FIFO) flights which serviced the mining and energy sectors across
Australia. Essendon Airport’s Master Plan (EAPL, 2013a) forecasts growth in these aviation services over
the next twenty years, largely due to the Airport’s proximity to the Melbourne Central Business District
and access to local labour markets.

The Essendon Airport Master Plan also identifies land and facilities which are surplus to projected
aviation requirements and these present the opportunity to create employment and add economic
activity to the airport, community and the state of Victoria. Essendon Airport comprises a mixture of
non‐aviation uses which include commercial, retail and light industrial activities.

The Essendon Airport site hosts over 4,200 direct jobs and was recognised in March 2014 as a site of
state significance due to its role as a growing employment precinct and an important piece of aviation
infrastructure.

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ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
1.2 THE PROPOSAL

EAPL proposes to develop a hotel at Essendon Airport, situated on the north eastern side of the
intersection of English Street and the Tullamarine Freeway. The standard proposed for the hotel is
international upper midscale.

The proposal is in its conceptual stage and is proposed to accommodate a building of up to 46.5 metres
in height and up to 180 hotel rooms. In addition, ancillary facilities are proposed to include food and
beverage facilities, a restaurant, conference centre and car parking. The total gross floor area for the
multi‐level building will be a maximum of 11,000 m2.

An on‐airport hotel was identified in the Essendon Airport 2013 Master Plan as a development which
could occur within the English Street precinct during the first five years of the Master Plan. The proposal
was also foreshadowed in the earlier 2008 Master Plan. The hotel and its attendant facilities are an
entirely new initiative and would occupy a currently vacant parcel of land of approximately 7,700 m2 .

The building will be designed and constructed to meet applicable Airservices Australia and Civil Aviation
Safety Authority (CASA) requirements. The proposal will also be designed to comply with relevant
aspects of the Building Code of Australia in order to obtain a building permit from the Commonwealth
Government’s Airport Building Controller.

Related facilities include overflow parking for conference guests at an existing car parking site on Nomad
Road, diagonally opposite the hotel site.

Preliminary design for the project has been undertaken following extensive market research and
analysis by EAPL. Negotiations for a preferred hotel Operator are currently being finalised following an
exhaustive international Expression of Interest process commanding high levels of interest. EAPL will
engage the services of an experienced hotel management company to operate the hotel to establish
Essendon Airport/Essendon Fields as a high yield destination for domestic and international business
and leisure guests.

1.3 PROPONENT DETAILS

As Essendon Airport is located on Commonwealth land, major developments on airport sites are subject
to the Airports Act 1996 and associated Regulations.

Essendon Airport Pty Ltd (EAPL) is an Airport Lessee Company (ALC) pursuant to the provisions of the
Airports Act 1996 and is the proponent for this Major Development Plan.

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ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
1.4 OBJECTIVES

EAPL’s vision for Essendon Airport as stated in the 2013 Master Plan (EAPL 2013a) is:
“To establish a commercially viable, safe and functional general aviation facility which meets projected
aviation requirements whilst utilising the property’s strategic land holdings for high quality commercial
development.”

EAPL has established the following development objectives to achieve this vision in its Master Plan:
      To improve and maintain safe, secure and efficient airport operations;
      To add value to the airport by realising and taking advantage of development opportunities;
      To increase market awareness of development opportunities at the airport;
      To improve the integration of the airport with its surrounds; and
      To consolidate airport operations and aviation requirements to ensure efficient and
         sustainable land use.

     1.4.1 Objectives for the development

In addition to achieving its wider Master Plan objectives, EAPL’s objectives for the hotel development
include:

        Servicing the forecast aviation activity
                 Providing high‐quality accommodation facilities on the airport which support
                    current and projected levels of aviation users. Use of the airport by corporate jets is
                    forecast to increase, with increases in regional passenger services also likely.
                 Accommodating regional passengers and aircraft crews, in addition to other non‐
                    aviation tenants of the airport, many of whom have business travel needs.

        Improving the range of services and facilities available at Essendon Airport to the on‐airport
         workforce, travellers and visitors
               Meeting the demand for accommodation facilities from business and residents in
                  the immediate area surrounding the airport;
               Offering quality conference and function facilities to all users of the airport and the
                  surrounding community. These facilities are currently not available in the local area;
               Enhancing the food, beverage and dining options for all users of the airport;

        Contributing to employment levels at the airport
                Providing a net direct economic benefit to the City of Moonee Valley municipal area
                   and the state of Victoria.

        Creating high quality built form at the gateway to the airport
                Adding to the sense of arrival and making an important visual statement at the main
                   entrance to the airport.

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ESSENDON AIRPORT HOTEL DEVELOPMENT - MAJOR DEVELOPMENT PLAN APPROVED 27 NOVEMBER 2014
2.0 MAJOR DEVELOPMENT PLAN PROCESS

2.1 REASONS FOR THIS MAJOR DEVELOPMENT PLAN

Essendon Airport is located on Commonwealth land and is therefore subject to the Airports Act 1996
(the Act) and associated Regulations. This Major Development Plan has been prepared as required by
Section 89(1)(e) of the Act as construction of a new building is proposed where:
     (i)     The building is not wholly or principally for use as a passenger terminal; and
     (ii)    The cost of construction exceeds $20 million or such higher amount as is prescribed

The Act requires at Section 90 that a “major airport development”, must not be carried out except in
accordance with an approved major development plan.

In addition, construction of the project will be subject to the Essendon Airport Planning Policy
Framework as set out in the Essendon Airport Land Use Plan and submission of an Application for a
Building Permit to the Airport Building Controller (ABC) in accordance with the Airports (Building
Control) Regulations 1996.

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2.2 CONTENT OF A MAJOR DEVELOPMENT PLAN

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

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2.3 INDICATIVE TIMELINES

The following diagram summarises the process followed for the approval of this Major Development
Plan:

                                             EXPOSURE DRAFT
       EAPL chose to provide an exposure draft of this Major Development Plan to the Australian
        Government’s Department of Infrastructure and Regional Development (DIRD).
       DIRD provided EAPL with comments regarding the exposure draft, including comments from the
        Airport Environment Officer, Airservices Australia and the Civil Aviation Safety Authority (CASA).

                                         PRELIMINARY DRAFT
       EAPL prepared a preliminary draft Major Development Plan based on comments received
        regarding the exposure draft.
       The preliminary draft was exhibited for public comment for a period of 60 business days
        commencing 28 May 2014.
       During the public comment phase, members of the public and stakeholders were invited to give
        written submissions to EAPL regarding the proposal. The last day for written comments to be
        received by EAPL was 20 August 2014.

                                                 DRAFT
       Following the public comment phase, EAPL prepared a draft Major Development Plan for
        submission to the Federal Minister for Infrastructure and Regional Development.
       When submitting the draft to the Minister, EAPL must demonstrate to the Minister how due
        regard has been given to the written comments received.
       Following receipt of the draft Major Development Plan, the Minister normally has up to 50
        business days to either approve or refuse to approve the plan. The Minister may also request
        further information during this period which would stop the clock.

                               APPROVED MAJOR DEVELOPMENT PLAN
        This Major Development Plan was approved by the Minister on 27 November 2014. EAPL must
        publish the plan within 50 business days after the approval.
       The requirements for publication are prescribed in the Airports Act 1996 which include a notice
        in a newspaper and copies of the approved Major Development Plan being made available for
        purchase or inspection, in addition to being available free of charge on the airport’s website.
Figure 2: Process for approval of this MDP

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2.4 PUBLIC CONSULTATION

        2.4.1 Approach to Consultation

EAPL undertakes regular and ongoing consultation to improve information sharing and strengthen
planning and development outcomes related to Essendon Airport.

Groups regularly consulted by EAPL include:
    Federal Government and agencies;
    Victorian Government and agencies;
    Local government; and
    the community

For this MDP process, the consultation strategy includes the following stages:

Stage 1: Preparatory consultation
     Initial consultations with stakeholders during the formulation of the proposal and preparation of
        an exposure draft MDP.

Stage 2: Formal and Statutory consultation
     Notifications to the State as required by Section 92(1A) of the Airports Act 1996.; and
     Advertising and making available copies of the preliminary draft Major Development Plan
        throughout the public comment period as required by Section 92(1) of the Airports Act 1996.

Stage 3: Finalisation of the draft MDP for submission to the Minister
     EAPL gives due regard to issues raised during the public comment period and prepares a report
        for the Minister demonstrating how regard has been had to the written submissions.

Stage 4: Advertising and making available copies of the MDP after approval by the Minister
     Publication of the approved MDP within 50 business days of approval.

                                                Page | 8
2.4.2 Stakeholder Consultation

EAPL has consulted with the following stakeholders in relation to the proposal:
    The community
    CASA
    Airservices Australia
    Victorian Minister for Planning
    Victorian Department of Transport, Planning and Local Infrastructure
    Victorian Department of State Development, Business and Innovation
    VicRoads
    Metropolitan Planning Authority
    Moonee Valley City Council
    Essendon Airport Community Aviation Consultation Group
    Airport Building Controller
    Airport Environment Officer

A regular consultation process is also in place with the Federal Department of Infrastructure and
Regional Development.

EAPL has recently undertaken stakeholder consultation for the Essendon Airport 2013 Master Plan,
which was approved by the Minister on the 23rd April 2014. Like the 2008 Master Plan that preceded it,
the 2013 Master Plan specifically refers to the hotel concept. Stakeholders have been afforded the
opportunity to comment on any matters pertaining to the hotel during the various community and
departmental consultation phases of the draft Master Plan.

The hotel proposal was mentioned in seven submissions regarding the recent draft Master Plan and due
regard was given to those comments as required by Section 79(2)(b)(iii) of the Airports Act 1996. Whilst
EAPL acknowledges that a detailed outline of the hotel proposal is not included in the Master Plan, the
hotel is not considered to have significant community impact as evidenced by the comparatively low
number of submissions which referenced the hotel concept.

    2.4.3 Views of Civil Aviation Safety Authority and Airservices Australia

The proponent has met with senior officials from CASA and Airservices in Canberra to present the hotel
proposal in detail and is currently assisting both organisations in their formal assessments of the
proposal.

EAPL will continue to engage with Airservices throughout the planning, construction and
implementation phases of the development, and seek and obtain all necessary permissions to ensure
any concerns raised by Airservices are appropriately managed, monitored and/or mitigated.

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2.4.4 The public comment period

Pursuant to Section 92(2A) of the Act, the public comment period for a major development plan is:
    (a) a period of 60 business days after the publication of the notice; or
    (b) a shorter period (of not less than 15 business days after the publication of the notice) that is
        approved by the Minister.

The consultation period for this MDP is 60 business days.

During the public comment period the proponent:
     published notices on the airport’s website and in a newspaper circulating generally in Victoria
        with details as required by Section 92(1)(a) of the Airports Act 1996 and inviting members of the
        public to give written comments about the draft MDP within the consultation period;
     made copies of the draft version of the MDP available for inspection and purchase by members
        of the public in accordance with the notice; and
     made copies of the draft version of the MDP available free of charge to members of the public
        on the airport’s website.

Copies of the Preliminary Draft Major Development Plan were available for inspection or purchase at the
office of Essendon Airport Pty Ltd, Level 2, 7 English Street, Essendon Fields, Victoria. The document
could also be downloaded free of charge at www.essendonairport.com.au for the duration of the public
comment period.

In addition, as required by Section 92(1A) of the Airports Act 1996, EAPL advised in writing the following
persons of its intention to give the Minister the draft major development plan:
     the Victorian Planning Minister;
     the Victorian Department of Transport, Planning and Local Infrastructure;
     Moonee Valley City Council; and
     Moreland City Council

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3.0 PROJECT DESCRIPTION

3.1 LOCATION

The hotel site is located within Essendon Airport at Essendon Fields, on the north eastern side of the
intersection of English Street and the Tullamarine Freeway. The airport comprises 305 hectares of
Commonwealth land, which is situated approximately 11 kilometres northwest of Melbourne’s Central
Business District (CBD) and approximately 7 kilometres southeast of Melbourne Airport.

The hotel site is located within Essendon Airport’s English Street precinct which forms the main gateway
and boulevard for the airport. The English Street precinct is the main location for office activities at the
airport and has gained recognition as a desirable business district in Melbourne’s north. This central
precinct now contains in excess of 100,000 m2 of leased building area, including a neighbourhood
shopping centre and two supermarkets.

Essendon Fields is located in an established urban area surrounded by industrial, commercial and
residential uses and the suburbs of Airport West, Essendon, Niddrie, Tullamarine and Strathmore. There
is a range of existing office and retail uses located in immediate proximity to the subject site to the
south and east. The DFO shopping Centre and Homemaker Hub are also located in the Essendon Fields
precinct and are situated in the south east section of the airport.

To the west of the site, on the west side of the Tullamarine Freeway is the Airport West Principal Activity
Centre. This centre comprises a mix of retail, commercial, industrial and residential uses. Westfield
Shopping Centre and Skyway Tavern are situated to the north of this centre. Towards the east of the
centre is a range of retail premises along Matthews Avenue and to the south and west are residential
areas and community facilities such as schools and public open spaces.

The site is well connected to the metropolitan arterial road network. The road network provides
excellent access to Melbourne International Airport and Melbourne CBD, as well as connections to the
Western Ring Road, Calder Freeway and neighbouring suburbs.

3.2 SUBJECT SITE

The hotel site comprises approximately 7,700 m2 and is located at the north‐eastern side of the
intersection of English Street and the Tullamarine Freeway, as shown in Figure 4.

The site is bounded by English Street to the south, Larkin Street to the east and the Tullamarine Freeway
to the west. The site is currently vacant, grassed, has quality perimeter edge treatment and is well
serviced.

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Figure 3: Essendon Airport location plan

Figure 4: Hotel site location plan

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3.3 NEEDS OF USERS OF THE AIRPORT

Development of the hotel will encourage further use of airport facilities and services but will not
adversely affect airport users.

In 2013, EAPL commissioned research from specialist hotel consultancy firm, AHS Advisory, to conclude
earlier work resolving the market demand and inputs to feasibility for a new residential hotel with
ancillary facilities and services. The study indicated that the largest demand segments are corporate
travellers, accounting for 56% of guests. Leisure travellers are expected to account for 38%.

Prior to this formal research being conducted, EAPL had directly surveyed over 100 business users within
Essendon Fields (which contains the majority of the Airport site) and off‐airport, particularly in the
suburb of Airport West and its environs which indicated strong support for the establishment of a new
residential hotel and associated facilities.

AHS Advisory identified the following market‐wide trends underpinning support for the proposed
development:
      The existing economic and demographic base of the Essendon Fields precinct and surrounds,
         as verified by its diverse existing commercial and retail precincts;
      The existing aviation‐related, commercial and retail businesses operating within Essendon
         Fields;
      The site’s location on a major transport corridor, linking Melbourne International Airport and
         the CBD and connecting to various regional Victorian hubs;
      The site’s excellent visibility;
      Convenience to amenities – including local shopping and services, major retail and fresh food
         offers;
      The existing Auto Centro vehicle dealership hub;
      The existing fly‐in fly‐out businesses and range of commercial air operations including
         substantive training accommodation needs to support the Qantas air training facility opposite
         and the Ansett training facility in Tullamarine;
      Spill‐over from well‐established and growing needs for corporate, leisure and crew at nearby
         Melbourne Airport;
      Creating a contemporary product as an alternative to more expensive CBD accommodation for
         business and leisure travellers; and
      Creating a new contemporary product to complement the range of accommodation provided
         for in Melbourne’s north‐west corridor.

An Expression of Interest campaign conducted by EAPL to select an Operator resulted in high levels of
interest from local and international Operators, confirming the research. Further details as to how the
development will meet the needs of airport users are contained below:

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3.3.1 Civil aviation users

Essendon Airport operates a two‐runway system supporting a mix of charter, corporate, emergency
services and general aviation users.

The airport is a base for Victoria’s Police Air Wing and Air Ambulance, along with the Royal Flying Doctor
Service, AeroRescue and other emergency transport, including closed‐charter transport of organs for
transplant. The Erickson Air Crane fire‐fighting helicopter is also located at Essendon Airport during
bushfire season, before being dismantled and transported to the northern hemisphere for their
summer. The proposed hotel will offer convenient accommodation for emergency services flight crews
and maintenance staff. In particular, Air Ambulance management has advised that their organisation
often needs to arrange accommodation for crews when flights are delayed by bad weather.

Regional Regular Passenger Transport (RPT) services operate from Essendon Airport, with regular flights
operated by Sharp Airlines to Hamilton, Portland and Flinders Island. In 2014, Par Avion Airlines
commenced regular flights between Essendon and Griffith, NSW. Convenient and high‐quality hotel
accommodation at the airport will support existing RPT services and should also promote growth in this
sector as envisaged in the Essendon Airport Master Plan.

Closed‐charter flights operate from Essendon Airport, including charters for tourist groups and special
events. (i.e. AFL finals, Australian Open tennis, Melbourne Cup Carnival and regional racing). Essendon
Airport also hosts regular closed‐charter Fly‐In‐Fly‐Out (FIFO) operations servicing the mining and energy
sectors across Australia. EAPL considers that an airport hotel will support continued growth in the
closed‐charter sector and assist in achieving its forecasts in the Master Plan.

Other civil aviation uses at the airport include a regional light freight service, light maintenance and
three flight training schools (circuit training is not permitted over Essendon Airport).

Whilst not on the airport site, the Qantas Melbourne Flight Training Centre is located on Matthews
Avenue, Airport West less than 400 metres from the hotel site. The centre is one of only two Qantas
Flight Training Centres in Australia and comprises flight simulators for pilot and crew training. The
Melbourne training centre currently includes four simulators, including one for the Airbus A330‐200. In
August 2013, Qantas announced that its Melbourne training centre would be home to Jetstar’s new 787
flight simulator. The proposed hotel will be perfectly located to accommodate flight crews visiting
Melbourne to complete their training.

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Regarding aircraft activity, the Essendon Airport 2013 Master Plan (EAPL, 2013a) provides aircraft
movement projections to the year 2033. EAPL envisages a decline in single and twin engine use of the
airport, but a notable shift towards increasing use of the airport for:
      corporate and charter jets; and
      helicopter operations.

EAPL’s analysis in its 2013 Master Plan establishes that over the next 20 years :
      Single Propeller aircraft movements are likely to continue to decline by 2% to 3% per annum;
      Twin Propeller aircraft movements are likely to continue to decline by 2% per annum;
      Twin Turboprop movements are likely to increase by 1% per annum;
      Jet movements are likely to increase by 2% to 3% per annum; and
      Rotary Wing movements are likely to increase by 2% per annum.

Whilst modest growth in aviation movements is predicted from approximately 54,000 aircraft
movements in 2012 to approximately 57,000 aircraft movements in 2033, the trend is clearly towards
higher value aircraft and higher passenger numbers. Accordingly, the proposed hotel will meet the
needs of the expanding business and regional travel sectors and assist with the delivery of the Master
Plan.

Finally, non‐aviation developments on land surplus to aviation requirements contribute to the overall
financial viability of the airport. EAPL also considers an on‐airport hotel is necessary to remain
competitive and grow its aviation operations.

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3.3.2 Other users of the airport

Analysis by Street Ryan & Associates (2013) found there are currently 174 active businesses within
Essendon Fields representing 14 of the 19 major industry sectors, employing 4247 persons and
representing 13% of all jobs within Moonee Valley. A further 908 jobs are expected to be created on the
airport in the next 5 years. Over 92% of total business turnover in Essendon Fields is from businesses
that have located in the precinct since 2001, highlighting the suburb’s rapid growth.

Essendon Airport comprises numerous non‐aviation tenants, particularly within the airport’s English
Street Precinct which is the main location for commercial activities and currently comprises over
100,000m2 of building area. Major tenants include:
     Linfox Logistics Head Office
     The Good Guys Store Support Centre
     Insurance Australia Group Ltd (IAG)
     S&R Fashions
     Armaguard Head Office
     Victoria Police
     WorkSafe Victoria
     VicRoads

Many of the airport’s tenants have business travel needs, particularly those companies with nation‐wide
operations. The proposed hotel will offer airport tenants convenient high‐quality accommodation which
is currently not available within the locality.

The airport site is also well‐patronised by other users, with over one million people living within a 15
minute drive of Essendon Airport and 2.6 million people living within 30 minutes. The site is therefore a
prime location to offer accommodation and hospitality services to the surrounding community and
presents an alternative to the Melbourne CBD.

Regarding the wider market area, Essendon Fields is located within the local government area of
Moonee Valley where there are currently 10,295 local businesses in the municipality employing 41,751
people. These businesses have a combined gross regional product of $4.11 billion per annum (Street
Ryan 2013). Moonee Valley covers an area of 44.3 km2 of which approximately 10.5% is parkland. The
city of Moonee Valley is primarily residential but has major retail centres at Moonee Ponds, Essendon
and Airport West. Essendon town centre, located just minutes from the Essendon Fields, is a
cosmopolitan precinct offering an array of fashion outlets, delis, eateries and is conveniently situated
close to rail and tram services

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Figure 5: Site Location in the Essendon Market Area

The proposed hotel site at Essendon Airport is well‐located in relation to surrounding commercial and
industrial areas. This concentration of nearby businesses is the reported source of the captured demand
from corporate travellers to the area, in addition to demand for aviation‐related training and meeting
space.

Market‐wide, room nights sold is anticipated to grow by 3.5% between 2012 and 2020 (AHS Advisory
2013). Furthermore, EAPL recognises that the growth of both existing and new aviation and other
businesses within the precinct should be encouraged and supported by the important facilities and
services found in a new hotel.

In terms of supply, the hotel market relevant to the proposed hotel has remained constant over the past
four years with only marginal variations to room stock. Conversely, between July YTD 2009 and July YTD
2013, captured demand grew yearly resulting in average occupancy growth of 5.1%. (AHS Advisory,
2013)

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The proposed hotel is not expected to have adverse impacts for the current local accommodation
market. Historic market occupancy in the Essendon Market area has been estimated at 80% for the
2010, 2011, and 2012 calendar years. (AHS Advisory, 2013) Furthermore, AHS considers the stabilised
market‐wide occupancy for the Essendon Fields and surrounding area competitive market is
approximately 78%. Occupancy at this level strongly suggests that the market is ready for new
development.

A new Quest serviced apartment hotel comprising 97 keys is currently under construction at Melbourne
Airport and expected to open in October 2014. This development is located outside of the Essendon
market area and targeted towards a different market category servicing users of Melbourne Airport.

The proponent has the capacity to develop and own the property in their own right and regards the
establishment of the hotel as a strategic imperative for the future growth and sustainability of Essendon
Airport. This is consistent with the object of the Airports Act 1996 contained at Section 3(c) ‘to promote
the efficient and economic development and operation of airports.’

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3.4 HOTEL

3.4.1 Design Concept

The proponent is responsible for building design, fittings and equipment, construction and ownership of
the completed building. The hotel operator will provide their own technical services team providing
advice on consistency with brand standards.

In developing its concept plans for the hotel, EAPL has taken into consideration the policies and
objectives for the English Street Precinct contained within the Essendon Airport Land Use Plan. Creation
of an appropriate entry statement is a policy of particular importance and the proposed hotel will
complement and enhance the entry to the airport whilst reinforcing the boulevard character of English
Street.

The building will be designed consistent with the high architectural standard of Essendon Airport’s new
facilities and respectful heritage treatment of older recycled buildings. The architectural vocabulary is
respectful of neighbours in the surrounding precinct but adopts a contemporary design approach and
latest international accommodation trends.

Given the site is at the gateway to the airport, and provides an important marker for those travelling the
high volume Tullamarine Freeway, the hotel will have a significant bearing on the airport’s continuing
regeneration.

The exact location, alignment and shape of the building on the site may change during the design phase
which is occurring in parallel to the consultation and assessment period for this MDP. However, the
design will be within the maximum height provided in this MDP and EAPL will liaise with Airservices and
CASA regarding the design throughout the design process.

Since exhibition of the preliminary draft MDP, the design concept has progressed concurrently. An
enhanced design is now included in this MDP in response to EAPL’s ongoing design process and written
comments received. The current design is within the physical parameters of the exhibited design and is
not inconsistent. The concept plans are provided in Appendix B to reflect the style of the proposed
urban design.

The design cannot be detailed and finalised until a hotel operator is formally appointed, which will occur
after the Minister’s decision regarding this MDP. International hotel operators have specific brand
standards which may necessitate changes to the current concept design. EAPL will continue to liaise with
Airservices Australia as the design develops.

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Figure 6: Hotel Concept Rendering – South West Elevation

Figure 7: Hotel Concept Rendering – North East Elevation

                                           Page | 20
3.4.2 Hotel specifications and Facilities

It is anticipated the hotel development will consist of:
       up to 180 rooms but most likely 150 rooms;
       flexible‐space conference centre;
       restaurant and bar with associated service area;
       guest and service lifts;
       reception & lobby area;
       meeting rooms; and
       gymnasium/health club.

The project will include supporting infrastructure such as multiple access areas for private & commercial
vehicles, convenient pedestrian access to the Terminal and other elements of the neighbourhood and
high quality landscaping. The project will be designed to meet relevant building standards.

The proposal includes food and beverage facilities for use by hotel guests, travellers and local patrons.
Hotel reception will be staffed seven days a week to provide the requisite level of service.

        3.4.3 Building height

The maximum height of the building is 122.5 metres AHD including roof vents, lift over‐runs and plant
and equipment. This is one metre below the obstacle limitation surface (OLS) and also below the critical
PANS OPS surface. To fit within these constraints, the maximum building height is 46.5 metres above
ground level.

The height of the current building design is 108.4 metres AHD including roof vents, lift over‐runs and
plant and equipment. This is 15.1 metres below the OLS surface and 57.4 metres below the PANS OPS
surface. Any increase to this building height will be assessed by CASA and Airservices Australia.

The final height and configuration of the building within the maximum parameters is subject to the final
design process as explained in Chapter 3.4.1 of this MDP. International hotel operators have specific
brand standards which may necessitate changes to the current concept design. The design cannot be
detailed and finalised until a hotel operator is formally appointed, which will occur after the Minister’s
decision regarding this MDP.

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