memorandum of understanding - creation of the win convention & entertainment centre through the...
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-
7/25/2019 MEMORANDUM OF UNDERSTANDING - Creation of the WIN Convention & Entertainment Centre through the Refur
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MEMORANDUM OF UNDERSTANDING
Between
Coalition
of Parties
for
Creation
of the
WIN
Convention
Entertainment
Centre through the
Refurbishment of the
WIN
Entertainment
Centre
1. Purpose
The
purpose
of the Memorandum
of Understanding
(MOU)
is
to:
facititate
cooperation, advocacy and coalition
between
parties
for
the
purpose
of
promoting
the
position
identified
betow;
promote
a
consistent
position
for
the
refurbishment
of the WIN Entertainment Centre
(wEC)
:
o
regional
cottaborative
support
for
the refurbishment of the
WEC
from a
venue
hosting
entertainment
and
sporting events
to
a
fier 2
Convention Centre
hosting
exhibitions, entertainment, conventions, sporting
and
other anciltary
activities.
(see
Appendix
1)
As
a
Tier 2
convention venue
this witt
provide
the opportunity
to create
further
momentum
and
market
share
for the region,
justifying
a [onger term
btueprint
for
a
new
purpose
buitt facitity.
ln
the
medium
to tong term, a master vision be
estabtished across
the city
centre which
assembtes,
promotes
and activates the arts, entertainment
and
cuttural
aspects
of our city as wett as
meeting facitities,
and
hightights
the
strategic
nature
of this and
other
sites;
and
Provide
a signed
copy
of the
MOU
to the
parties
and
to
Venues
NSW for
utitisation
in
advocacy and
grant
and
funding
opportunities.
A[[
parties
are committed
to cottaborating
and
supporting
the
purpose
of the MOU
a
a
o
o
a
MOU Between
Coalition
of
Parties for
Convention
and Entertainment
Centre
1
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2. Parties
The
parties
to this MOU
are:
.
Wottongong
City
Councit
.
lltawarra
Business
Chamber
.
WIN Corporation
.
Property
Counci[
-
ltlawarra
Branch
o
DestinationWotlongong
.
lttawarra
Joint
Pilot Organisation
.
Regionat Devetopment
Australia
-
lltawarra
.
University
of Wotlongong
3.
Background and Rationale
The
refurbishment
of
the
WEC
from
a venue hosting
entertainment
and
sporting
events
to a
Convention and
Entertainment
Centre
which hosts
exhibitions,
entertainment, conventions,
sporting
and other
anciltary
events
woutd
provide
significant
benefits
to the
Region
and State,
by attracting
visitors
to
NSW
and contributing to
Destination
NSW's visitation
targets.
The following
justifications
are
presented
in
support
of
the
business
case
for
that
refurbishment:
a.
Strategic
Alignment
NSW Government
lllawarra
and Shoalhaven Regional
Plan
The lttawarra and
Shoalhaven Regional Plan
Goal
I
-
Grow
the
nationol
competiveness
of
metro Wollongong
to
provde
housing
and
jobs
identifies
that the city's
growng
vitalty
is
enhancing
its
appeol
to
tourists and as a
place
to
host
event ond exhibitions. This
statement
supports
the
requirement
for
the
refurbishment
of the WEC
atong
with
the
Plan's
specific Action 1.1.1
-
Create new
ond
innovative
opportunities
for
commercal
development n
the
commercial core
by
making it more
attractive
for
investment
ond
business.
This is
evidenced
by
the
recent
release
of
Destination
NSW's
year
ended December
2015
Travel to lttawarra
Sub
Region
report, which identifies visitor nights
for
business
in
the
ltlawarra
has
grown
by 132%.
b.
Refurbishment
vs New Purpose Built
Facility
The funds required
to
refurbish
the WEC
are
significantly
less
than the
funds required
for
a new
purpose
buil.t
facitity
The
current site
-
On
the
Beach
-
in
the
City '-
is an ideal
site
for
a Convention/
Conference
location,
being
situated near
the ocean and beaches and adjacent to retail
and
restaurants,
just
one
btock
away
in the
CBD.
The
opportunity
to
refurbish
an existing
State
asset
(The
WEC
is
18
years
old and in
need
of a major refurbishment,
but
is
structuralty
sound)
a
a
a
MOU Between
Coalition
of
Parties for
Convention and Entertainment
Centre
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Avaitabte
market
-
currentty
Wottongong/lllawarra
could
not
support
a new
purpose
built Convention/Conference Centre as we[[
as an
Entertainment
Centre.
To
activate
the WEC
precinct
by supporting
cafs and
restaurants,
bars and
accommodation
and supporting the
Woltongong
City
Council 'City
Life'
objectives,
along the Foreshore
c.
Economic
Outcomes
The
WIN Convention
and Entertainment Centre business
case
maintains this
project
will
resutt in
the
fottowing
benefits
for the
city and
region:
a
a
a
a
Attract
at
least an additionat 80 events
(a
total
of
40,000 visitors) to
Wollongong/ltlawarra
annualty.
The
new Centre witl
increase visitation
and
overnight
accommodation
-
ptus
provide
an
impetus
for
new businesses
opening
up in
convention
support,
accommodation
(hotets),
dining
and
tours.
Create a
range
of regional
economic
benefits vatued at
512
miltion
per
year,
in
addition
to
the
current
annuat 527
mittion
regional economic benefits generated
by
the WEC
(resulting
in
5g
mittion
per
year).
This
is based on average
detegate
spends
of
SZSO
per
day
(inctuding
accommodation,
meats, transport, shopping, tours,
attractions
and
venue/event
spends).
Construction
lmpact:
o
The
tabte
betow
shows the impact
over a 3
year period
for
the upgrade
works
of the
WEC into
a Convention
centre
and
the
construction
of
an associated
carpark.
a
lmpact
Summary
Direct Effect
lndustriat
Effect
Consumption
Effect
Totat
Effect
Output
(SM)
Emptoyment
(Jobs)
s40.000
45
532.367
88
s10.732
39
s83.099
172
Totat Effect
a
Ongoing
Employment
o The
WEC
currently supports
270
full-time
equivalent
positions.
Additional
direct
and
indirect
emptoyment
of between
240 and 287 ongoing
jobs
wit[
be
generated
across
a
range
of fietds including hospitality, events
and
technicat.
Annual impact upon completion
o The below
tabte shows the impact of the
forecast 40,000
pa
additional
visitors
to
Wollongong
expected
if
the WEC
was
refurbished to
a
Tier
2
Convention
Centre.
o
This
anatysis assumes
a break-up
of the
fottowing,based on
research
conducted
by Tourism
Research
Australia
in
2010
on conference
detegates
to the
lttawarra
region,
referenced
in the Macro
Ptan
Market
Assessment
report:
.
29/o Daytripper's
.
58 Overnighters
(average
2
nights)
.
17Yo internationat
(average
3
nights)
lmpact Direct Effect
lndustrial Effect
Consumption
Effect
a
Output
(SM)
57,172,000.00 52,893,000.00
52,540,000.00 512,605,000.00
MOU Between Coalition of
Pafties for
Convention and
Entertainment
Centre
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.
Sociat
Benefits inctude
a
lift
in
the
brand
of
the
city
(due
to
being
chosen by
venue
organisers), increased
urban
activity,
more
hospitatity
venues
and attractions
to
service
visitors
(that
witt
atso
service residents)
and an increase in
cuttural
activity
-
with visitors
enjoying what the
locols enjoy .
With
the
right
facitities
-
the
refurbished
WlN
Convention
and Entertainment
Centre
-
can
attract
more
events
to
this
city and region.
4.
Key
Principles
and Responsibilities
The
fottowing
key
principtes
underpin
this
MOU
:
A[[ parties
wit[
continue
to
operate
autonomousty, however
wi[[
work cooperatively
to
facititate
advocacy
for
the
refurbishment
of
the
WIN Convention
and
Entertainment
Centre.
A
Case
Study of
the
possibte
economic
benefit is
the
Australasian
Cross Fit
Games
-
which has
been hosted
for
the
last
4
years.
800
athtetes take
part,
over four
days
in
May
-
creating
an estimated
5800,000
of
economic
benefit. Wotlongong
has
become
Cross
Fit
ready
with
many
cafes, restaurants
and hotets
providing
specia[
menus
and
facilities
for these
athtetes.
The
event
is shown
on
ESPN around
the
world.
Where
appropriate,
a[[
parties
witl
endeavour
to
communicate
to
at[
other
parties
any
information
which impacts
positivety
or
adversely
upon
the
purpose
of
this
MOU
Appropriate
and realistic
expectations
will
be
developed
by the
parties
for
any
cottaborative
activities.
5.
MOU
Contacts
a
a
a
a
On
behalf
of :
Contact
Name
and
Title Contact
email
Wol.tongong
City
Councit
Lord
Mayor
Cr Gordon Bradbery
OAM
[ordmayor@wotlongong.
nsw.
gov.
au
l[lawarra
Business
Chamber
cEo
Debra Murphy
Debra.
murphy@i
[awarrabusiness.
com. au
WIN
Corporation
cEo
Andrew
Lancaster
lancastera@wi ncorp.
com. au
lllawarra
Chapter
of
the
Property CounciI
Chair
Mark Jones
Destination
Wollongong
Chair
Tania
Brown
au
lttawarra
Pilot
Joint
Organisation
Chair
Cr Gordon Bradbery
OAM
[ordmayor@wottongong.
nsw.
gov.
au
RegionaI
Devetopment
Austratia
-
lttawarra
Chair
Eddy De
Gabriete
eddydoedmen.com.au
University
of
Wotlongong
Chief
Administration
Officer
Metva Crouch
CSM
MOU Between
Coalition
of
Parties
for
Convention and Entertainment Centre
4
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Date
ignature
ontact
Name
and
Titte
On
behalf
of
:
,4\r4tn
/'.a'
z5l5ltt
Lord
Mayor
Cr Gordon
Bradbery
OAM
Wotlongong
City
CounciI
zs
Isltu
v(-/
Itawarra
Business
Chamber
cEo
Debra
Murphy
WIN
cEo
Andrew
Lancaster
zs
lsl
l
hair
Mark
Jones
lllawarra
Chapter
of
the
Property
Council
z
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APPENDIX
1
TIER
1
AND
TIER
2
CONVENTION
CENTRE
DEFINITIONS
Sou r
c e
:
D
e sti
nati
on
Ma
r
ke
t ng Associ
ati
on
I
n
te
r
nati
on
a
I
(20
I
3
)
Tier I
Tier
2
Airport
with
ampte
domestic
access.
internationaI
and
Regional
airport
with
less
direct
airlift
-
or
access
to major
airport
within
t hour s
drive
Hotel
inventory
that includes
multipte
maj
hoteI
brands
or Affordabte
better
vatue
in
accommodation
Abundant
dining,
entertainment
and
attraction
options
for
attendees
Productive
market
and
supportive
locaI
business
10,000
minimum
committable
sleeping
rooms
Largest
conference
centre
is
either
a
singte
hotel
or
convention
centre
Convention
centre
with
a
minimum
of
500,000
gross
square
feet
of exhibition
space
Convention
centre
with
less
than
500,000
gross
square
feet
of
exhibition
space
Considered
one
of the
top
25
destinations
for
group
business
Attracts
a
regional
drive
market
Distinctive
re
travel
appeal
Distinctive
leisure
travel
appeal
Major
metropotitan
hub
Major
regional hub
Strong
destinational
travel
infrastructure
in
place
Strong
destinational
appeaI
Reputation
for
amenities
world-ctass
services
and
Abitity
to
suppty
first-ctass
services
and
amenities
MOU Between
Coalition
of
Parties
for
Convention
and
Entertainment
Centre
6
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a.
b.
c.
d
e
f
g
h
ADDENDUM A
QU|CK
FACTS
-
WtN ENTERTATNMENT
CENTRE
DETAILS
There
are
1.5 mittion who
live within
t hour's
drive
of
the WEC
-
this
is
a
simitar
catchment
to
the
Adetaide Entertainment Centre
and
the
Adetaide
Convention Centre
Since
1998, the
WEC
has
already
hosted
14
conferences
of over
400
pax
each.
Of the
20,857
patrons
who attended Cirque
Du
Soteil's
season of
Quidam
at the WEC,
from 23/12/15
to
7/1/16
(13
shows),
56%
came
from the
ltlawarra, 41To from
other
locations
in NSW, 8%
from interstate and 1% from
overseas.
For
Quidam
the
fottowing
areas
of Greater
Sydney
visited Woltongong
for the show
-
4%
from the City and
Eastern
Suburbs,
6% from
the North
and North-west,
12lo from
Western
Sydney andT%
from
the
South/Suthertand
area.
For
four
years,
the WEC
has
hosted
the
Austratian
Regional Cross
Fit
Games.
Last
year
800 athtetes,
famity
and
friends attend
this
event,
over
4
days, creating
5800,000
of
regionaI economic
benefit
from
this singte
event.
ln 2016, the
WEC
witt host
7
conventions,
exhibitions
and conferences
(over
18 event
days),
detivering
S3.375
mitlion in regional
economic
benefit,
from these
MICE
events
atone.
lf
the
WCEC is created, it witt be the second
largest convention
centre
in
NSW and
witt
be
abte
to compete
against
other states and locations,
to attract
more
business
to NSW.
ln
2012
lRlS
conctuded
that
the
WSEC venues
created
S27
mittion of
regional
economic
benefit
per year
from
the
events
it
hosted and
supported
270
Full Time Equivalent
jobs.
With
its
proximity
to
the
beach and to the city centre,
the WSEC occupies
arguably
the
most unique
and
desirabte
site for
a
venue,
in Austratia.
With
its
two
venues
and
function
business,
the
WSEC already
hosts
one of the
widest
variety of
events, held
on one site,
in
Australia.
Since
opening
in
1998,
the
WEC
has
hosted 3,076,776
patrons,
WIN
Stadium
has
hosted
1,963,750
patrons
and the
WSEC
Function
Rooms have
hosted93,576
patrons.
Since
1998
the
WEC, WIN
Stadium and
its
Function
Rooms have
hosted5,134,102
patrons
The
6,000 seat
WIN
Entertainment
Centre
was
opened
in
1998
and
constructed
at a cost
of
520
mittion
-
funded
by
the
NSW
Government.
No
funding
was
attocated
for
fit-out, with this
costing
about
58
mittion
and
not
paid-off
untit
2008.
Since
1998, no significant capitat works
or improvements
have taken
ptace,
thus
impacting
on
the WEC to remain
retevant and
viabte.
J
k
t.
m
n.
o.
MOU
Between
Coalition
of
Parties
for
Convention
and Enteftainment
Centre
7
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a.
b.
ADDENDUM B
KEY
MESSAGES AND
FACTS
Business
and [oca[
government
are
joining
together
in
support of
an
initiative
to
upgrade
the
WIN
Entertainment
Centre
(WEC).
The
initiative
would be
a
major
economic
boost for
the
region.
Economic
analysis of the
proposal
estimates
the
refurbishment has
the
potentia[
to:
Attract
a
minimum
of
80
events, bringing
an
estimated
additional 40,000
visitors
to
Wotlongong
annuatty and
supporting
the tocat
accommodation,
hospitatity
and
retail
sectors
Create regional
economic
benefits
vatued
at
512
mitlion
per year,
in
addition
to the
current annual
527
mittion regionat
economic
benefits,
generated
by the WSEC venues
(resutting
in
a total
potential
economic
benefit of
539
mittion
per
year).
Support new
direct and indirect
employment
of up to
287
ongoing
jobs,
in addition
to
the current 270
FTE
generated
by
the
venues
Upgrading
the WEC
woutd
position
the
lttawarra
as the
State's
prime
satettite
conference
venue,
providing
business
leaders, sporting
and interest
groups
with
a
high
quatity
venue
for their
events.
This
is not
a
proposal
to
provide
a 'lick
of
paint'
to the
existing conference facitity.
This
upgrade
woutd transform
the
WEC
from
a
sporting
onty
venue to a high
quality,
fulty
equipped
convention
centre.
The
upgrade
would come
at
a
cost which is
not prohibitive (est.
S40
mittion)
and
which
woutd
extend the
life
of the
WEC
by
more
than
20
years.
Bittions
of dottars
are
being
dedicated
to
purpose
built
facitities
and
upgrades
in
Western
Sydney
and the Sydney
CBD.
Wottongong,
a
major
tourist centre and
regional
centre
only
1.5 hours
away
from
Sydney,
deserves the
funds and
attention
to
boost
its
share of the visitor economy.
Recent
statistics
from Destination
NSW's
year
ended
December 2015
Travel to
lltawarra
Sub
Region
report,
identifies
visitor nights
for
business in
the
lttawarra
has
grown
by
137 .
c
o
e
f
o
5
h
)
k.
MOU
Between
Coalition
of
Parties
for Convention
and Entertainment
Centre 8
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ADDENDUM
C
Tabh 3.
Wcc
-
Net Benefit
Summary
(NPV
2011-20311
NET BENEFIT
SUMMARY
$6,Eol,zzz
s81,902,214
lnduced
prlvate
lnvestment
(Wollongong
CBDI
Net lourlsm
(pendlture
Beneflts
S6,t03,277
s63,923,679
S6,8o3,zzz
s99,88O,749
Bose
Cose
(SNPV)
ENEFIfS
Optinislit
(5NPv)
ansetvative
Economic Benefts
Socol
Publlc Realm
Benets
Value
Upllft
55,s6E
27o
s4,738,676
s5,56A270
S5,568,270
s4,73&676
tluvelSovfngs
Tlmeecongeston Svlngs
Sahty
lrrp.ovments
ses2,6so
S3,o1t
sesa6s0
S3,018
s9s2,6s0
S3,018
l{cse
lr
Pollutlon
Wtr Pollutlon
Greenhouse
{ature
and
landscape
s1162,61s
9U,262,515
$1r,262,615
s38O
s1,13e
s165
s8r3
s161
S38o
s1,r3e
s165
$813
s16r
$380
s1,r39
S16s
s813
s161
Envi ronmentol Benefts
ldJ
Br$rnmGntl
Bgl
cosfs
s2,65t
s1,657
SE1,992,22E
s2,6s7
$u7,949,297
S10,599.308
S99,970,763
s4O,599,308
8ereJ5t
Cost,oto
IECR/
Summary
Suntmory
25 2.Gr
2.91
The Benefit to Cost Ratio
(BCR)
is the total of
State benefits or
outcomes
divided by
the total
monetary
pubtic
costs of
obtaining
them.
lf
the
project
is detivering
a
net
benefit to
society
it has a ratio
greater
than one.
The extent of this benefit
is
measured by
its
variance
above the
breakeven
point
of one.
Source : Wottongong Convention Centre:
Pretiminary
Business
Case
Fina[ Report
-
28
March
2012
MOU Between
Coalition
of
Parties
for Convention and
Entertainment Centre 9
|
Page
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7/25/2019 MEMORANDUM OF UNDERSTANDING - Creation of the WIN Convention & Entertainment Centre through the Refur
10/10
Document
Control
Date
Version
Number
Comments
18 4 2016
V1
Original draft
19 4 ?016
v2
Changes
requested by
parties
via
emaiI
20t4 2016
V3
Changes
requested by
parties
via email
2 5 2016
v4
Changes
requested by
parties
via email
3 5 2016
V5
Changes
requested by
parties
at
meeting
of
z 5t16
12 5 2016
V
Confirmation
of
signatory
for
UOW and change
of
title
MOU Between
Coalition of Parties
for
Convention and Entertainment Centre
10
|
Page
v6 12t5t16