What research and modelling has been completed?
LIVING CITY is well researched and modelled. With fifteen years of planning and research behind the project, LIVING CITY is supported by a range of comprehensive documents including a Project Financial Model, Cost Benefit Analysis, Regional Benefits Analysis and Risk Management Plan.
Council has used external consultants to confirm that LIVING CITY is an economic reality for the Region.
Regional Benefits Study
Hill PDA is a Sydney based, highly regarded Economic Consultancy Firm. In late 2014, Council together with the Department of Economic Development engaged Hill PDA to complete an independent study into the likely benefits and opportunities of LIVING CITY to the broader North West region of Tasmania.
This report quantified that LIVING CITY represents approximately $280 million in construction value over a 5-8 year period. This represents 801 direct construction job years and 2148 indirect job years. Each job year represents one full-time job for one year.
The report also estimated that LIVING CITY will generate $112 million in additional output annually into the economy and 830 full time on-going operational jobs and significant indirect on-going jobs.
Cost Benefit Analysis
Hill PDA were also engaged (requirement of Federal Funding grant) to estimate the Cost Benefit of the project.
A Cost Benefit Analysis (CBA) differs from an Economic Impact Assessment in that it quantifies both the external economic, social and environmental costs and benefits (or welfare impacts) of a project.
Hill PDA calculated that LIVING CITY will have a positive net benefit to the whole of the NW Region.
Full copies of these reports can be obtained from Council’s Customer Service Centre or on the Documents page
Project Financial Model
A complex financial model has been developed for LIVING CITY Stage 1. It includes details for each of the four specific elements that make up the project.
This model has been built by Council’s Development Consultants, Projects & Infrastructure (P+i) to fully articulate the financial implications of Stage 1. It assesses the project in its own right to ensure the proposed works are viable and sustainable from a funding perspective, without relying on income from Council’s existing revenue streams.
In addition to the Project Funding Model, Council incorporated the funding model details into its Long Term Financial Plan.
All financial data relating to Stage 1 was independently reviewed by consulting firm KPMG.
How will Stage 1 of LIVING CITY be funded?
Stage 1 of LIVING CITY is a significant financial decision for Devonport City Council.
As the project is an intergenerational commitment, the decision to fund LIVING CITY needs to be assessed at both a project level and for its long term financial impact on Council (and therefore ratepayers).
Project Funding Model
The project funding model demonstrates the viability of the Stage 1 development in its own right. Stage 1 is expected to cost approximately $70M. This is made up of $10M from the Federal Government, $13M from the State Government and the remainder by Council.
Of the Council contribution, $11M will be contributed from cash reserves and the remainder (up to $39M) will be borrowed from the ANZ Bank.
The funding model clearly demonstrates that the project will be able to service this level of debt using income generated through the project. Income includes tenancy rentals, car parking fees, and conference centre hire.
How will LIVING CITY be staged?
LIVING CITY will occur in three stages.
Stage 1 (Civic Precinct) is the catalyst for the whole project and enables the remainder to occur by releasing land to be used in later stages. Stage 1 of LIVING CITY consists of the following four major elements:
- Four level multi-purpose civic building including a new LINC over two floors, Service Tasmania, Council offices and an 800 seat multi-purpose conference facility/function space;
- Food Pavilion (Providore Place) specialising in local produce;
- Multi-level Carpark with approximately 500 spaces; and
- Market Square and precinct landscaping.
Stage 1 facilitates the Retail Precinct development, by releasing land currently occupied by the LINC for privately funded retail development.
The project also facilitates the Waterfront Precinct development, by providing a new retail space for Harris Scarfe, thereby freeing up the land required for a hotel and public space.
Works in the Southern CBD Precinct will occur upon market demand and can continue to be undertaken concurrently with other stages.
How did Council go about selecting a construction firm to build Stage 1 of LIVING CITY?
Fairbrother Pty Ltd has been selected by Council as the preferred construction firm to build Stage 1 of LIVING CITY.
The selection of a construction contractor for Stage 1 was undertaken in a two-step process. Phase One involved a public expression of interest process to identify potential building contractors. Three constructions firms were selected from Phase One, to proceed to Phase Two.
Phase Two involved the short listed contractors preparing a guaranteed maximum price, design and construct tender submission. Request for tender documentation were issued to the three tenderers on 4 November 2015 and tenders closed on 14 January 2016.
Council staff, together with its Development Consultants assessed the three tender submissions received and awarded the tender in 2016.
Given the magnitude of this contract Council engaged legal firm Page Seager as probity advisors to oversee the tender process independent from Council.
Page Seager’s role involved overseeing tender documentation, selection methodology, general due process and legislative compliance.
What will happen with Devonport's public transport?
What are the incentives for young people to return to Devonport?
What are the plans for the old Devonport maternity hospital?
When will work on LIVING CITY start?
LIVING CITY Forum - Population Issues & Marina Concerns