ordinary council meeting - 27 june 2016 - item 1 - draft

Council Meeting Agenda 27/06/16

1 Draft Economic Development and Tourism Strategy - Approval for Public Consultation

Abstract A draft Economic Development and Tourism Strategy 2016-2021 (draft Strategy) contained in Attachment 1 has been developed to replace the current Economic Development Strategy 2009-2016, which is due to expire in December 2016. Consultants were commissioned to work in collaboration with Council to prepare the Strategy. The strategic objective of the draft Strategy is: ’To provide a blueprint for enhancing the vibrancy and sustainability of the local economy and its influence on the liveability of Boroondara as a whole.’ The draft Strategy’s development has included an analysis of the local economy; benchmarking economic development initiatives occurring across Australia and around the world; a review of Council and State Government policies, plans and strategies that relate to economic development; consultation with traders associations and business groups, key industry groups, business owners, corporate headquarters and Council officers, which took place between March and May 2016. Through this process, five themes have been identified:

Best in class shopping centres Boroondara as a tourism destination Ready for business Helping business establish and grow Civic leadership and partnerships

The draft Strategy proposes five themes, objectives and related strategies which reflect a combination of current Council initiatives and a series of new initiatives that will need to be developed during the life of the Strategy.

Officers' recommendation That Council resolve to: 1. Endorse the draft Economic Development and Tourism Strategy 2016-2021 to

be placed on public exhibition for community consultation from 1 July 2016 to 29 July 2016 (Attachment 1).

2. Consider any submissions regarding the draft Economic Development and

Tourism Strategy 2016-2021 and adopt the Strategy at the Council meeting scheduled for Monday 22 August 2016 (or such other date as Council decides).

Document information

City of Boroondara Economic Development & Tourism of 47


Responsible director: Marilyn Kearney

Corporate Services ___________________________________________________________________ 1. Purpose

The purpose of this report is to seek Council’s endorsement of the draft Economic Development and Tourism Strategy 2016-2021 (draft Strategy) for the purpose of community consultation.

2. Policy implications and relevance to council plan

The draft Strategy will form part of Council’s integrated planning framework and will align with the following strategies of the Council Plan 2013-2017: Strategy 1 Communication and engagement ‘We will develop and offer a range of communication and engagement opportunities to meet differing and emerging community needs’. Strategy 2 Community inclusion ‘We will monitor and plan for the community’s changing needs, aspirations and opportunities to contribute to community life’. Strategy 3 Local Business ‘We will facilitate a positive business and community spirit by welcoming appropriate business investment and supporting existing commerce and neighbourhood shopping centres’. The draft Strategy is aligned with theme 2 of the Boroondara Public Health and Wellbeing Plan 2013-2017 (BPHWP), Strategic objective 2 (Liveable, sustainable, health promoting City) which states that Council will ‘enhance and develop our neighbourhoods to support health and wellbeing’.

3. Background

A draft Strategy 2016-2021 has been prepared to replace the current Economic Development Strategy 2009-2016, which is due to expire in December 2016. The draft Strategy will provide a blueprint for enhancing the vibrancy and sustainability of the local economy and its influence on the liveability of the City of Boroondara (the City) as a whole. Council’s draft Strategy provides the framework and directions for economic development within the City, with the focus being on five key themes, objectives and a suite of related strategies that Council will work toward achieving over the next five years. Council has commissioned consultants to assist in the preparation of the draft Strategy.



The draft Strategy’s development has included an analysis of the local economy, benchmarking economic development initiatives occurring across Australia and around the world, a review of Council and State Government policies, plans and strategies that relate to economic development and consultation with traders associations and business groups, business owners, corporate headquarters, and key industry groups such as Swinburne University, Melbourne East Regional Development Australia, Tourism Victoria, Destination Melbourne, Creative Victoria and Council officers, which took place between March and May 2016. The draft Strategy defines ‘economic development’ as the continuous process of growing an area’s level of income and capital (wealth) and distributing that wealth (through local expenditure and jobs) to the community. Typically measured in terms of income and employment, economic development is also measured by improvements in education, skills, health, culture, community wellbeing, place and the environment.1 Tourism is highlighted in the draft Strategy as it has been identified that the City has a significant ‘hidden’ visitor economy which is defined by food and entertainment, art and cultural attractions, sporting and recreation facilities and events, all supported by an emerging accommodation sector.

4. Outline of key issues/options

In terms of facilitating economic activity and jobs growth, the City’s key strategic industry clusters have been identified as: 1. Business services; 2. Retail; 3. Tourism; 4. Education and health; 5. Property services; and 6. Transport and communications. The City’s key strategic industry clusters are defined in Attachment 1 (Section 2). The City is home to a community with people who are typically highly educated, together with relatively high levels of disposable income, a highly skilled workforce and a strong sense of community. These factors, combined with an attractive environment with high levels of residential amenity and good public transport connectivity to the Central Business District attracts people and businesses to the area. The population supports a quality network of shopping centres (The City’s network of 54 shopping centres is made up of activity centres (Camberwell Junction, Glenferrie Road, Hawthorn and Kew Junction), neighbourhood and local shopping centres), schools and a broad range of other local services.

1 Source: Sasha Lennon and Associates Pty Ltd.



Development of the draft Strategy has identified other key attributes as:

the City’s shopping centres ; educational facilities – notably Swinburne University and the significant

clustering of independent primary and secondary schools; the prevalence of corporate head offices located within the City; the area’s tourism potential.

The City’s economy does face a number of challenges including facilitating jobs growth in the context of rapid population growth. Recent data2 suggests that employment growth in the City has been slow moving since 2011, whereas the local population has been growing strongly over this period. In addition, strong housing demand may also be placing pressure on employment land uses to be used for housing. If this pattern continues, the City’s reliance on jobs located outside the municipality will increase over time, potentially increasing pressure on transport modes. Other challenges facing the City include;

maintaining strong engagement of all segments of the local population in the economy, including a broad range of demographic and cultural groups;

the wider retail environment is changing in the face of competition from other retail forms, including online shopping as well as the more traditional competition facing retail strips from shopping malls and other shopping centres in neighbouring municipalities and the Central Business District;

high business operating costs, has undoubtedly affected a number of businesses in the City, leading to a less varied and unique business mix and some vacant shopfronts in key retail strips3;

a lack of investment by some landlords and/or business owners leading to shopping centres looking tired, and the level of amenity declining;

increasing traffic and parking demand; limited access to broadband and Wi-Fi infrastructure.

The challenges facing the City’s economy bring with them opportunities for Council to reinvigorate the existing economy, and promote new businesses and new ways of working. There are opportunities for:

greater engagement with home based businesses; leveraging the digital, ‘green’ and creative economies; potential for significant growth in the night time economy, particularly in

centres such as Camberwell and Kew Junctions, where extended trading hours and increased options for dining and entertainment have the potential to increase the vitality and vibrancy of the retail offer;

2 Data sources for the commentary within the report include Economy ID, Forecast ID and Profile ID Online. Economic data is provided by National Institute of Economics and Industry Research (2014). 3 A Knight Frank Melbourne Retail Prime Strip Market Overview ranks Burke Rd, Camberwell and Glenferrie Road Hawthorn as 3rd and 8th respectively from 11 strips for vacancy rates in 2015.



significant improvements in the amenity of shopping centres

incorporating better ambient and inspiring gathering and social spaces, preserving heritage elements, parking considerations and reflecting a strong sense of place, in order for these locations to maintain their significant contribution to the local economy;

increased levels of engagement with business, commercial landlords and industry clusters such as the education sector and student population, head offices and innovation and start-up sectors;

more effective leveraging off the latent tourism potential in the form of heritage, parks and gardens, shopping, dining, cultural, events and associated accommodation segments;

creation of local work opportunities that align with the skill sets of the diverse range of people who live in the City; and

partnering with Swinburne University, there is a significant opportunity to leverage off the expertise and capabilities of the various university faculties (for example, the digital aquarium, Melbourne Design Factory and Living Lab).

While the opportunity to enhance amenity and increase the vibrancy of shopping centres is a strength, there is a level of concern in the community that some forms of economic development will negatively impact on residential amenity levels, predominantly through increased traffic congestion and parking issues. Council faces a balancing act between encouraging appropriate business development and maintaining the high levels of residential amenity currently enjoyed in the City.

The draft Strategy proposes five themes, objectives and related strategies which reflect a combination of current Council initiatives and a series of new initiatives that will need to be developed during the life of the Strategy. Once the draft Strategy is adopted, the objectives and related strategies will be translated into an action plan with nominated timeframes, stakeholder relationships and identification of resources required. Best-in-class Shopping Centres Objective 1: Council will facilitate the development of best- in- class shopping centres in the City. The City’s network of 54 shopping centres consists of activity centres, neighbourhood centres and local centres and is a core element of the local economy and highly valued part of the social fabric that is synonymous with life in the City. They are a place that people feel a strong sense of connection to and sense of ‘ownership’ over as they provide a much loved sense of liveability. The City’s shopping centres are underpinned by the retail and service sectors and provide a diverse range of social opportunities, commercial and community services and provide a source of local employment. Given the importance of these shopping centres to the community, it is critical that they be supported to become recognised as ‘best-in-class’ examples of how a shopping centre can be so much more than just a place to shop.



Council already provides a range of services to support this objective including the governance of eight special rate and charge schemes to support marketing and development initiatives in shopping centres, coordination and funding of the shopping centre improvement plan, development and implementation of various parking and integrated transport initiatives. Boroondara as a Tourism Destination Objective 2: Council will identify, showcase and promote the City’s tourism assets to facilitate growth in tourist visitation and spending. Boroondara has a ‘hidden’ visitor economy which is defined by food and entertainment, arts and cultural attractions, sporting and recreation facilities and events, all supported by an emerging accommodation sector. Council already supports a range of visitor destinations including parks and gardens, recreation and arts and cultural facilities, markets and shopping centres. Ready for Business Objective 3: Council will facilitate provision of quality economic enablers in the City. The City has a successful and diversified local economy that has well-developed ‘enablers’ of economic and tourism development, including quality infrastructure (for example, buildings, roads, utility suppliers), facilities, a skilled workforce and world-class education and service sectors. Despite the overall positive context, gaps or issues emerge (from the perspective of business) in some enablers, such as gaps in National Broadband access. Helping Business Establish and Grow Objective 4: Council will facilitate business establishment and growth, investment attraction and industry development. The City’s economy accommodates a diverse range of businesses within six strategic industry clusters. The economy will continue to evolve over time and will require ongoing business establishment, growth and investment to be sustained in order to support a healthy local economy. Council has a key role to play in facilitating and supporting the process of investment and business establishment and growth, particularly in the small business sector. Council already provides a broad range of business support services through the Business Boroondara program. These services include networking, events and specialist workshops, access to relevant business information and resources and free business mentoring services. Civic Leadership and Partnerships Objective 5: Council will continue to provide leadership and foster partnerships which contribute to economic and tourism development within the City.



Council is the lead agency for a range of local services and activities including local economic development and tourism activities. Other agencies at regional, State and Federal levels have broader geographic interests and/or specific sectoral interests, however, they can play a critical role in collaborating to deliver specific local outcomes. Effective local economic and tourism development, therefore requires leadership, the formation of partnerships and collaboration. Given the high concentration of quality education facilities within the City, highly educated and engaged community and Council’s own aspirations for excellence in innovation, the organisation is well positioned to demonstrate leadership in promoting the City as a ‘knowledge city’. A ‘knowledge city’ is a community that has a knowledge based economy that nurtures knowledge and fosters knowledge creation. Council currently has relationships with Swinburne University and through strengthening and leveraging strategic partnerships like this into the future Council has the opportunity to partner to reimagine new ways of working to enhance the local economy and the City’s liveability.

5. Consultation/communication

In preparing the draft strategy Council acknowledges the contribution made by a diverse range of stakeholders including trader associations and business groups, business owners, Rotary, corporate headquarters, Swinburne University of Technology, Regional Development Australia Melbourne East, Tourism Victoria, Destination Melbourne, Creative Victoria, Councillors and Council officers, during the period between March and May 2016. General feedback from business owners and the broader community was facilitated by:

an online “Have your Say” submission form which was uploaded onto the business pages on Council’s website and promoted via the website (Submissions were sought between 15 March and 15 April 2016;

promotion on www.boroondaralife.com.au; Progress Leader council advertisements; mail and email communications with key stakeholders.

It is proposed that the draft Strategy 2016-2021 be placed on public exhibition from Friday 1 July and Friday 29 July 2016 (inclusive). This will provide all stakeholders with a further opportunity to contribute to the development of the new Strategy. It is anticipated that, Council officers will consider all submissions received during this period, and present a report to Council on Monday 22 August 2016 (or such other date determined by Council) seeking adoption of the new Strategy, having had regard to the submissions received.

6. Financial and resource implications

The financial and resource implications of the draft Strategy will be considered within the context of Council’s annual budgeting preparation process. Implementation of the Strategy in year 1 (2016-2017) will occur through a combination of operating and priority funding.



7. Governance issues

The implications of this paper have been assessed in accordance with the requirements of the Victorian Charter of Human Rights and Responsibilities. The officers responsible for this paper have no direct or indirect interests requiring disclosure.

8. Social and environmental issues

The draft Strategy has been developed with a view to maintaining and enhancing the existing state of health of the local economy in recognition of the key role the local economy plays in contributing to the liveability and community wellbeing enjoyed by the community as a whole.

9. Evaluation and review

It is proposed that a plan to monitor and evaluate the outcomes achieved through implementation of the draft Strategy will be developed in year one.

Manager: Fiona Banks, Economic Development Report officer: Lucinda Bakhach, Team Leader Economic Development


Attachment 1

Council Meeting Agenda 27/06/16______________________________________________________________________________________

______________________________________________________________________________________City of Boroondara Economic Development & Tourism of 47

Council Meeting Agenda 27/06/16______________________________________________________________________________________

______________________________________________________________________________________City of Boroondara Economic Development & Tourism of 47

ordinary council meeting - 27 june 2016 - item 1 - draft

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