kobus, jonathan aquis unsolicited bid meeting monday 16 ... · date: thursday, 12 november 2015...

From: Kobus, JonathanTo: Gilding, Louise; Goth, Kathy; Jones, Greg; Kalleske, Mark; Snowden, David; Engele, SamSubject: Aquis Unsolicited Bid meeting Monday 16 NovemberDate: Thursday, 12 November 2015 9:34:25 AMAttachments: BM1-2736 Attachment A - AQUIS Unsolicited bid IPG5.pdf

BM15-2736 Brief Aquis IPG Proposal.docximage001.jpg

Hi All Thank you for agreeing to participate in the meeting Monday to help advance the unsolicited bidthat has been submitted by Aquis covering the redevelopment of the Canberra Casio andsurrounding precinct. Attached is some background information on the project as well as a covering brief forwarded tothe Chief Minister that provides additional context. It is important that this information remains commercial in confidence at all times despite theproject being made public by Aquis.

who is known to most of you , is consulting to Aquis representing the Elton Group.

will attend the first part of the meeting and deliver an overview presentation of the project.In relation to this working group he will also focus on several important components of theproposal and what they are asking of Government . This includes changes to gaming regulations ,gaming taxation rates, detail around the economic analysis applied etc. There will be time to askquestions and gain additional info from The next stage in the Unsolicited Bid process is the development of a detailed business case byAquis. Once departs the working group will discuss key issues that need to be addressed toenable the project to proceed to this stage and how these matters need to be resolved. I can provide more context on Monday, however please call / email me if you need. RegardsJonathan Jonathan Kobus| Senior Manager, Invest CanberraPhone +61 (02) 6205 3185| Fax +61 (02) 6207 0123|Mobile +61 418 499297|investcanberra.comChief Minister, Treasury and Economic Development Directorate | ACT GovernmentNara Centre, 1 Constitution Avenue, Canberra City| GPO Box 158 Canberra ACT 2601 Australia|EDS_INV_CBR_CMYK

Commercial in Confidence 1

Trim No: BM15/2736

To: Chief Minister

Subject: Aquis Entertainment Investment Proposal

Critical date and reason

1. To brief you on a proposal submitted to the ACT Government by Aquis Entertainment under the Investment Proposal Guidelines (IPG) process, for the redevelopment of Casino Canberra and surrounding precinct. A copy of the Proposal is provided at Attachment A.

Recommendations 2. That you:

• Note the contents of this brief;

NOTED/PLEASE DISCUSS

• Agree to the ACT Government undertaking further assessment of relevant

issues relating to the development proposal such as land use, tax, gaming regulation and investment potential, prior to inviting Aquis Entertainment to progress to Stage 2 of the IPG process, which involves preparation of a detailed business case for consideration by the ACT Government.

AGREED/NOT AGREED/PLEASE DISCUSS

Andrew Barr MLA .....................………........ / /

Commercial in Confidence


Supporting Reasoning

Development overview

3. On 21 August 2015, Aquis Entertainment provided its proposal for redevelopment of Casino Canberra and integrated entertainment precinct - for local, interstate and international visitors. The proposal was submitted under the Investment Proposal Guidelines (IPG) program, for unsolicited private investment bids.

4. The proposal was formally presented to Senior ACT Government Officials on Thursday 27 August 2015, as per Phase 1 of the IPG process.

5.

8. The existing Casino will remain open during Stage 1 construction.

9. Aquis Entertainment claims will bring substantial long term economic benefits to the ACT,

including new full time jobs, increased domestic and international tourism, and jobs and opportunities for local businesses during the construction phase.

10.



c.

13. Aquis Entertainment claims it will be a world class offering not currently available in Canberra.

IPG process

14. The IPG provides guidance and clarity to proponents when advancing proposals that do not have clearly defined established Government processes in place. It is not intended to duplicate or replace other existing Government processes.

15. The Aquis proposal was deemed to be suitable for progression through the IPG process and as a result the proponent was invited to make a presentation to relevant Directors-General in the ACT Government.

16. The objective in Phase 1 is to provide sufficient information for the ACT Government’s to make an informed decision to proceed with consideration of a detailed investment proposal.

17. Should a decision be taken to progress the proposal, the proponent will then be invited to develop a detailed business case (that is, enter Phase 2).

18. The objective of Phase 2 is to determine whether to in-principle:

• Make available the government support requested by the proponent; and

• If not previously determined, decide whether the government support will be made available through exclusive negotiations with the proponent or through a competitive process.

19. In Phase 2, an Assessment Panel will be established. Assessment Panels will be chaired by the Director-General of Economic Development and comprise of senior executive representatives from other relevant directorates.

20. Following its establishment, an Assessment Panel will negotiate a non-binding Participation Agreement with the proponent.

21. The Assessment Panel will make one of the following recommendations to the Executive based on ‘The Assessment Criteria’ and, more specifically, its assessment of the business case in terms of any project-specific measures set out in the project’s Participation Agreement:

• that the proposal should progress to Phase 3, including advice in relation as to which commercial relationship option should be used for the provision of Government support; or

• to not proceed with the project.



Consultation and Communication

22. Aquis Entertainment presented the initial development concept to senior ACT Government officials including

• David Nicol, Under Treasurer • Gary Byles, Director-General, Territory and Municipal Services Directorate • Dorte Ekeland, Director-General, Environment and Planning Directorate • Greg Jones as CEO, Gambling and Racing Commission • Geoffery Rutledge, Executive Director, Strategic Policy and Cabinet • David Dawes, Director-General, Economic Development • Gary Rake, Deputy Director-General Arts, Business, Events, Sport and

Tourism • Jonathan Kobus, Senior Manager, Invest Canberra

23. The ACT Government has not consulted with representatives of the Clubs sector in relation to the Aquis Entertainment Proposal.

24. Aquis Entertainment has conducted some initial stakeholder engagement outside of the ACT Government. This includes a meeting with the Shadow Minister for Racing and Gaming, Brendan Smyth MLA.

Financial

25. Nil for the purposes of this brief.

Management of Other Risks

26. The Aquis Entertainment development proposal requires consideration of a range of issues by multiple areas of Government.

27. As a result, prior to inviting Aquis Enterntainment to progress to Stage 2, further consultation will be managed with relevant Directorates to ensure that matters

are appropriately considered. Working groups may be established to discuss specific elements of the proposal, particularly where decisions are required to enable the project to progress.

28. The appointment of a probity advisor will be considered. The role of probity advisor will involve provision of advice and assistance before and during the implementation of the project and addressing probity issues as they arise.



29. It is also recommended that an independent evaluation is conducted to verify the economic and financial presented by Aquis Entertainment and associated benefits to the ACT resulting from the development.

30. Community consultation will be important particularly with the residents in the nearby area and users of Glebe Park.

31. It should also be noted that the Director General of the Environment and Planning Directorate (EPD) has declared a conflict of interest in regards to the development. The Deputy Director General will manage matters relevant to EPD where delegation permits.

Senior Clearing Officer: Ian Cox

Action Officer: Jonathan Kobus Phone: 53185

From: Cox, IanTo: Dawes, David; Hill, Ian; Engele, Sam; Ponton, BenCc: Kobus, Jonathan; Gilding, Louise; Mehrton, Andrew; Maher, EllisSubject: FW: BM15/2736 - Signed Brief - Aquis Entertainment Investment ProposalDate: Monday, 9 November 2015 11:05:19 AMAttachments: 20151109093425096.pdf

AQUIS IPG process brief came back this morning with CM notes on it / as per discussion thismorning Ian

From: Kennedy, Karen Sent: Monday, 9 November 2015 10:49 AMTo: Kobus, JonathanCc: Cox, Ian; Gilding, Louise; MACC; Morgan, AnnelieseSubject: BM15/2736 - Signed Brief - Aquis Entertainment Investment Proposal Hi Jonathan, Please find attached signed Brief noting comment by CM for discussion please and furthercomment at point no. 29. MACC, can you please add to agenda for the next CM meeting please. ThanksKK Karen Kennedy | Directorate Liaison Officer | Economic DevelopmentPhone 02 6205 8332Office of Minister Rattenbury MLAChief Minister, Treasury and Economic Development Directorate I ACT GovernmentPO Box 1020 Canberra City ACT 2601|www.act.gov.au

From: Engele, SamTo: Kalleske, MarkSubject: FW: Confidential - Aquis brief re. next stepsDate: Tuesday, 22 December 2015 12:01:44 PMAttachments: BM15-3090 BRIEF Aquis IPG Stage 2 Progression (clean) (2).docx

BM15-3090 Attachment A Director General letter to Aquis (clean) (2).docxBM15-3090 Attachment B Summary of Gaming Issues.docximage001.jpg

From: Kobus, Jonathan Sent: Tuesday, 22 December 2015 12:01 PMTo: Engele, SamSubject: Confidential - Aquis brief re. next steps Hi SamAs discussed this morning, attached is the final brief that went to CM re. Aquis proposal.Thanks for your assistanceJK Jonathan Kobus| Senior Manager, Invest CanberraPhone +61 (02) 6205 3185| Mobile +61 418 499 297|investcanberra.comChief Minister, Treasury and Economic Development Directorate | ACT GovernmentNara Centre, 1 Constitution Avenue, Canberra City| GPO Box 158 Canberra ACT 2601 Australia|EDS_INV_CBR_CMYK

1

Trim No: BM15/3090

To: Chief Minister

Subject: Aquis Entertainment (Aquis) Casino Canberra Redevelopment Proposal – Progression to Phase 2 under the Investment Proposal Guidelines (IPG process)

Critical date and reason

1. Timely. To brief you on the proposed next phase of negotiation with Aquis on their unsolicited proposal for redevelopment of Canberra Casino and surrounding precinct.

Recommendations 2. That you:

• Note the contents of this brief;

NOTED/PLEASE DISCUSS • Note the key issues of this proposal listed under point 6.


• Note the letter at Attachment A to be sent to Aquis

Entertainment, from David Dawes, Director-General Economic Development, confirming progression to Phase 2.


• Note the criteria being used in paragraph 7 to assess the merits of the proposal.


Andrew Barr MLA .....................………........ / /

Supporting Reasoning

3. In August 2015 Aquis submitted a proposal and presented a concept to the Director-General Economic Development and other officials for redevelopment of Casino Canberra and the neighboring precinct, initiating Phase 1 of the IPG process (outlined below).

2

4. In November 2015 Invest Canberra convened two working groups to canvas the issues that would need to be considered in progressing this proposal.

Aquis was invited to present to each working

group.

5. Preliminary screening consensus is that the proposal meets the guidelines for progression under the IPG process (being eligible, completed with appropriate initial information, and not having been previously rejected) and has the capacity to meet assessment criteria tests of public interest, public value and feasibility. In particular, the proposal:

• Is not expected to require a Territory Plan variation; and

• Appears consistent with City to the Lake project, and may spur local urban renewal.

6. The proposal put forward by AQIS seeks the following:

•

•

•

•

•

•

•

•

•

3

7.

8. As part of the working group presentation process, Aquis clearly stated that they will not invest in a detailed Phase 2 business case without an enhanced degree of confidence that the ACT Government will facilitate their requests

Aquis is seeking a ‘degree of comfort’ from the ACT Government to progress more detailed development work.

9. Proposed correspondence from David Dawes, Director-General, Economic Development, setting out the process required is at Attachment A. While this letter does not give the degree of comfort sort, it does encourage continued engagement by Aquis.

IPG process

10. The IPG provides process guidance for multi faceted proposals that do not have other clearly defined established Government processes in place.

11. The objective in Phase 1 is to provide sufficient information for the Director-General of Economic Development to make a timely decision to proceed with consideration of a detailed proposal.

12. The objective in Phase 2 is to determine whether to in-principle make available the support requested by the proponent, and decide whether this will be through exclusive negotiations or a competitive process.

13. In Phase 2, an Assessment Panel (largely at Director-General level) will be established. A probity adviser will be appointed to assist.

14. The Assessment Panel will negotiate a non-binding Participation Agreement (akin to an MOU), detailing topics to be covered in the detailed business case, information protocols and project specific measures in relation to assessment criteria.

15.

16.

17. Following this mandate, Phase 3 would involve settling final commercial terms.

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Criteria for assessing benefits of the development

23. The redevelopment of the casino and surrounding precinct stands to provide a range of benefits to the ACT economically and socially. The benefits provide a sound basis for supporting the facilitation of the proposal to the next phase of the IPG process, involving the development of a detailed business case.

•

• New full time jobs following the completion of the project direct and indirectly. • Capacity to provide inbound demand to support the business case for direct

international services. • A foundation project to support the next phases of the City to the Lake project. •

• Flow on benefits to other hotels and tourism and hospitality business in the ACT resulting from the development of demand driving infrastructure.

5

•

• Catalyst for urban renewal in the south of the city • The integration of the surrounding precinct with Glebe Park that will create the

opportunity to host new events as well as the possibility of supporting existing events such as Floriade and the Multi Cultural festival

•

• A strong signal to foreign investors about Canberra’s potential as a place to invest

and do business.

Consultation and Communication

24. Aquis has undertaken initial consultation including with Glebe Park Apartments and Shadow Minister for Racing and Gaming, Brendan Smyth MLA, and claims favorable reception with no major concerns raised. To our knowledge, the only concern raised by residents of the Glebe Apartments relates to the placement of the access road to avoid any impact to access to the apartments.

25. The Canberra Business Chamber has indicated its support, hosting a dinner on Wednesday 19 November 2015 (sponsored by Aquis) to present the proposal.

26. Business and residents’ views could be tested in community consultation.

27. Subject to confidentiality, the Queensland Government may be consulted during Phase 2 for its experiences with Aquis’ other proposed casino near Cairns.

28. ClubsACT has indicated opposition to gaming machines at the casino.

Financial

29. To be determined.

30.

31. Further briefing will be provided in Phase 2.

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Management of Other Risks

32. ClubsACT opposes allowing the casino to acquire gaming machines on the basis the casino is for-profit and foreign owned, and unless local access restrictions are in place the proposed casino expansion will disrupt club business models and reduce community contributions. On 30 November 2015 an article appeared in The Canberra Times where the Chief Executive of the Raiders Group stated the planned $18 million expansion of its Gungahlin club would be halted if the casino is allowed access to gaming machines.

33.

34.

35.

36. Experience elsewhere indicates that there is a risk of cost overruns in casino development/redevelopment proposals, and any agreements may wish to address this possibility to protect the Territory’s interests. For example, in the redevelopment of SKYCITY Auckland, the government faced considerable pressure to provide additional funding to complete the project. Ultimately, the government did not agree to provide additional funding and as a result the final product was downscaled to fit within available funding.

37. Aquis supports the proposal to relocate Floriade to Glebe Park.

Director-General: David Dawes

Executive Clearance: Ian Cox

Date: 14 December 2015

Action Officer: Jonathan Kobus Phone: x 53185

SENSITIVE ATTACHMENT B

1 SENSITIVE

AQUIS CASINO CANBERRA DEVELOPMENT PROPOSAL – GAMING ISSUES

Current •

What is requested? •

Action required •

•

•

•

Current •

What is requested? •

Action required •


3 SENSITIVE

•

Current • Most of the harm-minimisation measures that apply to the casino are set out in the

Gambling and Racing Control (Code of Practice) Regulation 2010 (the Code). The Code is established under section 18 of the Gambling and Racing Control Act 1999.

• The Code requires the casino to : o record problem gambling incidents and provide records to the Commission upon

request; o use the ACT Exclusion Database to monitor venue access by people who have been

excluded from ACT gambling venues; o have procedures for exclusion of patrons experiencing problem gambling; o have a Gambling Contact Officer available; o maintain adequate lighting and clocks in the venue; and o make available information relating to rules of games, relevant legislation, gambling

contact officer details, cash payment limits, support services available, exclusion programs etc.

What is requested? • The Aquis proposal states a commitment to honouring existing requirements and

consideration of harm minimisation elements. •

Comments •

• Existing harm minimisation measures at the casino should be retained at a minimum. • Consideration should be given to the application of measures including: o hours of operation; o win/bet limits, load limits; o game frequency limits (spin rate etc); o cheque payout limits; and o predictive modelling technology as required for the SKYCITY Auckland expansion.

• Various harm minimisation arrangements apply to casinos operating in other jurisdictions.

• The introduction of additional harm minimisation initiatives could be considered, such as those required for the SKYCITY Auckland expansion:


4 SENSITIVE

o

o doubling number of Host Responsibility staff (e.g. Gambling Contact Officers) that must be on site 24/7;

o predictive modelling technology to be introduced to analyse player data and identify customers most at risk of harm;

o voluntary pre-commitment program – can set both time and amount to be spent over a period; and

o trial use of further measures, including facial recognition technology, to identify and prevent barred problem gamblers from gaining entry to casino.

•

o

o

o

• The opening of Crown Casino in Melbourne was found to ‘have had a combination of expansionary and redistributive impacts on tourism, entertainment and leisure.’ The Casino attracted new international and interstate visitors. A small number of other accommodation providers obtained a small benefit.

• The complex did have, however, ‘a strongly redistributive effect on local entertainment and leisure expenditures’, with an immediate negative impact on other providers across Melbourne.1 The opening of Star City in Sydney had a similar impact on city area clubs.

• It is not possible to accurately quantify the impact on individual ACT clubs as this is dependent on individual club business decisions.

1 Australian Institute for Gambling Research in conjunction with School of Leisure, Sport and Tourism (UTS) and Department of Hospitality, Tourism and Leisure (RMIT), The Impact of the Expansion of Gaming on the Tourism, Entertainment and Leisure Industries: Project Report, March 2000, p185.


5 SENSITIVE

•

•

•

1

MINUTE

Date 25 August 2015 TRIM No: BM15/2187

File No:

To Director-General, Economic Development

• Deputy Director-General, Arts, Business, Events, Sport and Tourism

From Executive Director/Director, Innovation Trade and Investment

Subject Aquis Casino Canberra Redevelopment Proposal

Critical date and reason 1. Thursday 27 August 2015 at 3pm – Representatives of Aquis will present the Aquis

Casino Canberra Redevelopment Proposal to Directors-General.

Background 2. On 21 August 2015 Aquis provided its proposal for redevelopment of the Casino

Canberra and integrated entertainment precinct - for local, interstate and international visitors (Attachment A).

3. This follows a meeting Aquis held with the Chief Minister in May 2015 to outline their redevelopment proposal, as per BM15/974 (Attachment B).

4.

5.

7. The existing Casino will remain open during Stage 1 construction.

Issues 8. Aquis claims

will bring substantial long term economic benefits to the ACT, including new full time jobs, increased domestic and international tourism, and jobs and opportunities for local businesses during the construction phase.

9.

2

10.

12. Aquis claims it will be a world class offering not currently available in Canberra.

Consultation 13. In addition to within the Chief Minister, Treasury and Economic Development

Directorate (VisitCanberra, Treasury and the Land Development Agency), the proposal will require consultation and coordination with the ACT Gambling and Racing Commission, Environment and Planning Directorate and others as required.

Financial 14. To be determined. Aquis is seeking in kind support, rather than a cash contribution.

Risks/ Sensitivities 15. Stakeholder considerations will need to be taken into account, such as the impact

on other businesses; social impacts; and on

Media 16. N/A.

Recommendations That you:

• note the above information; and


• note that Invest Canberra will provide investment facilitation and coordination through the unsolicited bids process and investment partnership group.


Jonathon Kobus (for Ian Cox) Action Officer: Oliver Harrap

Phone: 6205 3147

David Dawes..............................………........ / /

kobus, jonathan aquis unsolicited bid meeting monday 16 ... · date: thursday, 12 november 2015...

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