mildura south regional sports precinct · 2.4 mildura south regional sports precinct 10 2.5 mildura...

MILDURA SOUTH REGIONAL

SPORTS PRECINCT

DEVELOPMENT AND BUSINESS PLAN

FINAL DRAFT REPORT

JULY 2017

Prepared by Otium Planning Group Pty Ltd – Sport & Leisure in conjunction with Peddle Thorp Architects and Turner Townsend Quantity Surveyors

OTIUM PLANNING GROUP PTY LTD

Head Office:

Level 6

60 Albert Road

South Melbourne VIC 3205

Phone: (03) 9698 7300

Email: [email protected]

Web: www.otiumplanning.com.au

ABN: 30 605 962 169

CAN: 605 962 169

Otium Planning Group has offices in:

• Auckland

• Brisbane

• Cairns

• Christchurch

• Darwin

• Melbourne

• Perth

• Sydney OPG, IVG and PTA Partnership has offices in Hong Kong, Shenzhen, Shanghai and Beijing

Otium Planning Group National Expertise Local Understanding Page i

Commercial in Confidence

TABLE OF CONTENTS

1. Project Overview 1

1.1 Introduction 1

1.2 Project Scope 1

1.3 Project Methodology 2

2. Project Area Review 4

2.1 Introduction 4

2.2 Council Area Overview 4

2.3 MSRSP Planning and Development Review 5

2.3.1 Mildura South Open Space and Active Reserves Review 7

2.4 Mildura South Regional Sports Precinct 10

2.5 Mildura South Regional Sports Precinct Master Planning 11

3. Market Research and Stakeholder Engagement 13

3.1 Introduction 13

3.2 Relevant Research Review 13

3.3 Stakeholder Engagement 16

3.4 Review of Changes to Regional Indoor Sport Participation 24

3.5 Victorian Indoor Stadium Benchmarking Review 25

3.6 Sport and Leisure Trends 26

3.6.1 Sport and Recreation Participation Trends 26

3.6.2 Sport and Recreation Changing Environment 27

3.6.3 Successful Sport and Recreation Facilities Development Criteria 27

4. Recommended Mildura South Regional Sports Precinct Development 29

4.1 Introduction 29

4.2 Updated Indoor/Outdoor Sport Facilities Demand Summary 29

4.2.1 Indoor Sport Courts and Associated Areas 29

Mildura Rural City Council Mildura South Regional Sports Precinct Development and Business Plan Final Draft Report as at July 2017 Page ii Commercial in Confidence

4.2.2 Outdoor Sport Facilities and Associated Areas 30

4.3 Recommended MSRSP Master Plan Components 31

4.4 MSRSP Concept Plans 32

4.5 Indicative Capital Cost Estimates 38

5. Business and Funding Review 39

5.1 Financial Modelling 39

5.2 MSRSP Ten Year Financial Modelling Business Assumptions 39

5.3 MSRSP Ten Year Financial Operational Performance Summaries 39

5.3.1 MSRSP Operating Performance Projections 40

5.3.2 MSRSP Operating Performance - Annual Visitations 41

5.3.3 MSRSP Operating Performance Net Contribution by Area 41

5.3.4 MSRSP Operating Performance Equivalent Full Time Staff 42

5.4 MSRSP Project Other Business Cost Projections 42

5.4.1 Cost of Borrowings 43

5.4.2 Depreciation Allowances 43

5.5 MSRSP Combined Operational and Other Cost Projections 44

5.6 Other Facility and Business Impacts Not Quantified 44

5.7 Project Staging and Funding Opportunities 45

5.7.1 Identified Project Funding Opportunities 46

5.7.2 Other Project Funding Opportunities 46

5.8 Where to From Here 47

6. Warranties and Disclaimers 48

Mildura Rural City Council Mildura South Regional Sports Precinct Development and Business Plan Final Draft Report as at July 2017 Page iii Commercial in Confidence

DIRECTORY OF TABLES

Table 1: Project Methodology 2 Table 2: Review of Relevant Research 13 Table 3: Stakeholder Feedback Summary 17 Table 4: MRCC Area Indoor Sport Participation and Victoria Regional Trends 25 Table 5: MSRSP Indicative Capital Cost Summary (2018 June Pricing) 38 Table 6: MSRSP Operating Performance - information considered Commercial in Confidence has been removed 40 Table 7: MSRSP Utilisation (Visits/Year) by Area 41 Table 8: MSRSP Operating Projections Net Contribution by Area - information considered Commercial in Confidence has been removed 41 Table 9: MSRSP Operating Projections Equivalent Full Time Staff (EFT) by Area 42 Table 10: MSRSP Loan Details - information considered Commercial in Confidence has been removed 43 Table 11: MSRSP Loan Repayment Details - information considered Commercial in Confidence has been removed 43 Table 12: MSRSP Operating Projections and Cost of Borrowings and Depreciation Allowances - information considered Commercial in Confidence has been

removed 44

APPENDICES

Appendix 1 – Victorian Indoor Stadiums Benchmarking 49

Appendix 2 – Victorian Indoor Stadiums Fees and Charges Benchmarking 53

Appendix 3 – MSRSP Indicative Capital Cost Estimates 55

Appendix 4 – MSRSP 10 Year Financial Model Assumptions Summary 56

Mildura Rural City Council Mildura South Regional Sports Precinct Development and Business Plan Final Draft Report as at July 2017 Page 1 Commercial in Confidence

1. Project Overview

Please Note – this report is designed for public consumption and as such, certain information has been removed due to its Commercial in Confidence nature. Sections where information has been removed for this purpose have been identified accordingly.

1.1 Introduction

Mildura Rural City Council has commissioned this project to complete a full business case and investment prospectus for the proposed $30 million Mildura South Regional Sporting Precinct (MSRSP). The business case will need to satisfy all Investment Lifecycle requirements as stipulated by the Victorian Government’s Department of Treasury & Finance. This includes presentation of the final report in the Department’s required template(s). Upon completion, the business case will appropriately position Mildura Rural City Council to seek State and Federal Government funding for the project’s development. The investment prospectus will provide Mildura Rural City Council with appropriate information should they wish to seek private investment for the project. Otium Planning Group Pty Ltd (OPG) was appointed in November 2016 to complete the project.

1.2 Project Scope

In line with the project brief OPG set up and completed a project methodology that included completion of the following key tasks:

1. Design the layout and positioning of the precinct’s key components

2. Identify the need and positioning of utilities and services to effectively accommodate all user needs at the site

3. Utilise the Mildura South Regional Sporting Precinct Reference Group (as established by MRCC) to determine the most appropriate long-term

location, inclusions and positioning of all components within the Precinct

4. Consult with the nominated authorities to ensure compliance of (a) agreed facilities, (b) the appropriate technical services, and (c) the

positioning and layout of the proposed facilities

5. Review and further develop the 10-year Financial Model included in the 2009 Indoor Sports Stadium Strategy to current costs, and consequent

funding options that include construction and future upkeep and renewal of the facility (whole of life costs).

6. Develop a recommended project funding strategy

7. Provide recommended options in relation to governance/management models post construction

8. Benchmarking with comparable facilities/developments

9. Consider all strategic work completed to date (see attachments


10. Provide for up to five face to face Councillor/Officer briefings (in Mildura) at key project hold points

11. Provide quantity surveyor cost estimates for all components

12. Identify and recommend staged construction options including cost comparisons – consideration to be given to land currently not owned by MRCC

13. Preparation of a full report and executive summary to be provided in draft form for review, discussion and revision (if deemed appropriate) and in

final unbound hardcopy and electronic form

14. Provide independent expert peer review (reviewer to be approved by Mildura Rural City Council)

15. Provide 3D rendering animation and/or augmented reality of physical build

1.3 Project Methodology

In line with the project brief OPG completed a detailed project methodology based on the key project scope outputs required and listed in section 4 of the project brief. This is detailed in the following table.

Table 1: Project Methodology

Stage Task Detail

Stage One Site

and Facilities

Planning

1. Project Clarification. Otium Planning Group (OPG) met with the project manager and Project Control Group (PCG) to review the project methodology, timeframe and collect all relevant information.

2. Site Assessment and

Development of First Draft

Site Plan and Concept Plan

OPG in association with PTA developed the first draft layout and positioning of the precinct’s key components in line with the previously developed site plan and concept plan. The layout plan was forwarded for the project managers and PCG review.

3. Site Services Review Peddle Thorp Architects (PTA) identified the need and positioning of utilities and services to effectively accommodate all user needs at the site. OPG and PTA met with MRCC and Services Providers to determine the level the of services required and positioning of services.

4. Project Reference

Group Meeting

OPG utilised the Mildura South Regional Sporting Precinct Reference Group (as established by MRCC) to help review the first draft site and concept plan and to help determine the most appropriate long term location, inclusions and positioning of all components within the Precinct.

5. Key Authorities Meetings OPG completed meetings and conducted telephone interviews to consult with the all noted authorities listed in the project brief to ensure compliance of (a) agreed facilities, (b) the appropriate technical services, and (c) the positioning and layout of the proposed facilities.

Stage Two:

Draft Facility

Concept and

Costs

6. Update Plans to Final Concept OPG and PTA utilised all information and feedback collected from stage one reviews and updated the first draft site and facilities concept to the final draft concept.

7. Indicative Capital Cost

Turner Townsend (TT) Reviewed final draft plans and develop an indicative capital cost plan.

8. Project Control Group

Meeting Hold Point 1

OPG organised a meeting with the PCG to present and review the final draft concept, site layout plans and quantity surveyor capital cost estimates. This formed the first hold point so the PCG considered and provided feedback on all work to date and key project outcomes.


Stage Task Detail

Stage Three:

Business and

Development

Planning

Review

9. Benchmarking with

Similar Facilities

OPG completed an industry review to assist benchmarking with comparable facilities/developments

10. Management and

Governance Models

OPG reviewed the latest industry trends on similar facility management and provided recommended options in relation to governance/management models post construction. This was forwarded to the project manager and PCG for feedback and agreement on the final management model to be used in financial modelling.

11. Update Financial Model OPG reviewed the 10 year 2009 Indoor Sports Stadium Strategy Financial Model and then updated it with current demand using OPGs industry specific electronic financial model. The update included current costs.

12. Staging Options OPG and PTA developed a range of staging options for the proposed development and linked these to the financial modelling.

13. Project Funding Strategy OPG developed a recommended project funding strategy that included consideration for funding from the new Federal Government Regional Scheme – Building Better Regions Fund (BBRF) and the State Sport and Recreation Victoria – Better Stadiums Fund.

14. Draft Business and Development Report

OPG completed a draft Business and Development Report that detailed up all key findings from section 3 work and reviews. This will be forwarded to PCG members for their review.

15. PCG Meeting Number 2 – Hold Point 2

OPG conducted a forum with the PCG to consider all strategic work completed to date and review the draft Business Development Report.

16. Council Forum – First Council Report Back

OPG completed a project summary PowerPoint presentation for a Council forum and presented this as the first Council report back.

Stage Four: Final Report

17. Final Draft Report OPG considered all PCG and Council feedback and completed a final draft report and executive summary. This was forwarded to the project manager and PCG for review and comments.

18. Final Draft Report Review MRCC organised a community review process for the final draft report and documented key issues raised from this review process.

19. Peer Review MRCC identified a suitable company with experience in this project work area to complete an independent expert peer review on the final draft report. A budget allowance was made for this appointment which was done independently by the company.

20. Consider Peer Review Feedback

OPG met with MRCC to consider the Peer Review Report and make any changes to the final draft report.

21. Final Report OPG completed all edits and developed a final report.


2. Project Area Review

2.1 Introduction

This section reviews the project area, past reviews and planning documents and previous site and development plans.

2.2 Council Area Overview

The Mildura Rural City Council area covers approximately ten per cent of the state of Victoria. In total, the area spans approximately 22,000 km² and includes the towns of Cardross, Colignan, Cowangie, Irymple, Lake Cullulleraine, Merbein, Meringur, Mildura, Murrayville, Nangiloc, Nichols Point, Ouyen, Red Cliffs, Underbool, Walpeup and Werrimull. The map below shows the LGA and main population towns and areas.

Figure 1: Map of Mildura Rural City Council Area

Mildura Rural City Council Snapshot

• Estimated resident population: 53,036

• Mildura population: 31,298

• Indigenous population: 1,865

• Land area: 22,330 km2

• Level above sea level: 50m

• Climate: Dry summers and mild winters

• Key industries: Dryland farming, irrigated horticulture (table grapes, wine grapes, dried grapes, citrus and vegetables), tourism, food and beverage manufacturing, transport and logistics, retail, health and community services

• Emerging industries: Renewable energy generation, aquaculture, mineral sands mining and recycling

figures based on 2014 Australian Bureau of Statistics data


2.3 MSRSP Planning and Development Review

The Mildura South Regional Sporting Precinct is planned to be located within the Mildura South Growth Area. The area was identified in the late 1990s as the area that will accommodate the next major stage of Mildura’s Residential Growth. Hansen Partnership prepared a Mildura South Precinct Structure Plan in October 2014 and this plan forms a key component of the Mildura South Urban Design Plan (2014). The plan presents a hierarchy for the future road network and identifies where future commercial, community and other infrastructure will be located as well as outlining how open space and landscaping will be incorporated and provides an indication for preferred housing densities. The planning area is highlighted by the red border in the aerial photo of Mildura’s urban area.

Figure 2: Mildura South Precinct Structure Plan Area – Hansen partnership The Hansen Partnership Mildura South Precinct Structure Plan (2014) report notes in relation to the planning area:


1The study area is located approximately 4.5km to the south west of the Mildura Central Business District, at the edge of the existing developed urban area. The land is bounded by Riverside Avenue and Sixteenth Street and extends to halfway between Etiwanda and Benetook Avenue to the south east and just short of Seventeenth Street (Calder Freeway) to the south west. The background research and analysis highlighted the following key issues which informed the future development of Mildura South:

• The study area is one of the key growth areas of Mildura with Mildura 2030 Residential Growth Boundary defining part of the study area.

• The Mildura South Growth Area was identified within the 2007 framework plan as accommodating an additional 8400 people. This was calculated at residential density of 3.5 lots per acre which translates to an approximate dwelling density of 8 or 9 dwellings per hectare. This density is below that anticipated through the implementation of the PSP.

• The Mildura Airport is located approximately a kilometre to the south-west of the study area. This has implication for the building height controls within the study area, the provision of employment opportunities, and the visual importance of the area as it will provide the ‘first glimpse’ of Mildura for visitors arriving by air.

• The defining characteristic of the urban structure of the study area is the existing road structure and subdivision patterns which reflect the ‘Chaffey’ subdivision seen throughout Mildura. This subdivision pattern remains relatively intact in the study area, with 20 parcels of land provided within each urban ‘block’. While some of these have been consolidated and some excision of dwellings has occurred the regularity of the pattern remains.

• The study area is divided down the middle by Deakin Avenue, which is the City’s primary boulevard and a key route into the centre of town. It has a wide carriageway and carries a high volume of traffic. While a proposed bypass route may reduce heavy vehicle volumes, Deakin Avenue will remain the key road into the city.

• In addition to the key junction of Deakin Avenue and Seventeenth Street, which is one of the city’s key ‘gateways’, there are several other intersections which are either currently ‘key’, or are likely to become so, in proximity to the study area. This includes the intersection of Deakin and Sixteenth, the intersection of Deakin and Fifteenth (where Mildura Centro is located), and the intersection of Fifteenth and Benetook, which will increase in importance as the bypass develops and provides access to a previously identified future industrial area.

• The proposed heavy vehicle bypass route (along Seventeenth Street and Benetook Avenue) runs below the south-eastern boundary of the study area. The study area itself reflects the impact of this route, with the land immediately adjacent to these roads sitting outside the study area boundary to reflect the need to restrict residential development immediately adjoining this route.

• There are several education facilities near the study area. Mildura South Primary School, just north of the study area, is currently reported to be at capacity. Irymple Primary School and The Lake Primary School are located to the east and west respectively.

• The study area is also close to Centro Mildura and the associated retail offer the Fifteenth Street precinct. This includes two supermarkets, a Big W and specialist retail, as well as some bulky goods outlets.

• There is an existing residential interface along Sixteenth Street where the study area meets the currently developed urban area of Mildura. The interface between these areas will need to be considered to ensure that there is a sense of cohesion between the two urban areas.

1 Mildura South Precinct Structure Plan 2014 – Hansen Partnership Pty ltd


• This potential integration of the two areas is aided by the fact that most of the existing development that runs along Sixteenth Street has to date, been orientated to front that street. However, beyond this ‘front row’ of dwellings, there is little uniformity in the subdivision pattern.

• The study area also has an interface with existing agricultural uses. The future of the strip of agricultural land between the proposed heavy vehicle bypass and the study area will need to be established, but the interface with these parcels, which are unlikely to accommodate residential uses due to the presence of heavy vehicles will need to be carefully managed to ensure no conflict between land uses.

• A series of linear wetlands are in the process of being developed to the north within the existing Mildura South area. These wetlands will be naturalistic, but also provide BBQ shelters and playgrounds to serve the residents. It is understood the wetland system takes stormwater runoff from as far as Irymple and is a key component of the Mildura South Drainage Plan.

• Preceding Council plans have established the need for a significant regional sporting complex to be established in Mildura’s south. The important complex will be established on the south-eastern corner of Sixteenth Street and Deakin Avenue. The position of this complex within the heart of this study area offers great opportunities for residents of the area but means the area will need to acknowledge the role it will play in the regional, as well as local, context.

• The study area immediately adjoins Lake Hawthorn, one of two semi-permanent lakes to the immediate north of Mildura’s urban area. The proximity of the area to this important habitat and the impact of urban stormwater drainage on this lake means a high level of care must be taken to ensure that development of the study area does not impact on the environmental health of the lake.

• The precinct is generally considered at ‘medium’ risk of salinity, with three significant parcels considered at ‘high’ risk of salinity. The management of salinity in the area will be an important consideration, particularly in relation to the provision of infrastructure.

• The topography is generally quite flat, although there are some minor variations in the landscape, with a higher point to the south between Etiwanda and San Mateo Avenues and a low point to the north adjoining Lake Hawthorn. The urban design of the growth area will need to respond to the topography by generating areas of visual interest within a relatively uniform landscape”.

2.3.1 Mildura South Open Space and Active Reserves Review

The Mildura South Precinct Structure Plan covers the planned positioning of open space and active reserves to meet the sport, recreation and leisure needs of the future residents of the area. 2To meet the open space standards outlined in the Precinct Structure Planning Guidelines, development of the study area will incorporate a network of high quality public open space that will be located within 400m of most residential areas. This network will provide a variety of spaces which will accommodate both passive and active recreation, as well as facilitate efficient stormwater management. These must be attractive spaces that become focal points for the community and assist in meeting their social and recreational needs. Precinct structure plans are listed on the next 2 pages and highlight in green the planned open space and active reserves and the linear and trail linkages between these areas and noted that many of these areas are also shared spaces for drainage easements (noted on the plan in dark blue).

2 Mildura South Precinct Structure Plan 2014 – Hansen Partnership Pty ltd


Figure 3: Mildura South Precinct Structure Plan – Open Space and Active Reserves Plan


Figure 4: Mildura South Precinct Structure Plan – Open Space & Active Reserves Access and Neighbourhood Linkages


The open space areas are planned to be attractive spaces that become focal points for the community and assist in meeting their social and recreational needs. The anticipated characteristics of these spaces can be found in the MSSFP and the more recent Mildura South (Sixteenth and Deakin West) Development Plan. The proposed Mildura South Precinct Structure Plan Public Open Space Hierarchy includes:

• Mildura South Active Recreation Reserve (including a regional indoor sporting facility);

• Neighbourhood village green;

• Secondary village greens;

• Local open space;

• Linear open space; and

• Stormwater retention spaces.

2.4 Mildura South Regional Sports Precinct

The Mildura South Precinct Structure Plan (2014) included a major new active recreation reserve to be developed at the intersection of Sixteenth Street and Deakin Avenue. This recreation reserve will provide for the active recreational needs of new residents in the PSP area. However, it will also play an important role at a regional level by accommodating a multi-use indoor sporting facility and outdoor sport and recreation event spaces. Three lots at the corner of Sixteenth Street and Deakin Avenue are currently owned by Council and proposed for development as the Mildura South Active Recreation Reserve (stage 1) are to be rezoned to Public Parks and Recreation Zone. A further lot to the south has also has a planning overlay and will be linked to the reserve when Council purchases the site. As indicated a portion of the site to the north accommodates a drainage basin which is also a fundamental part of the Mildura South Drainage Plan. This basin has been designed to ensure it can be integrated with passive open space opportunities for the Mildura South community. Passive recreation opportunities should also be accommodated in the southern portion of the site. Plans for this site go back to previous drainage study’s and the 2009 Indoor Stadium Strategy completed by SGL Consulting Group Pty Ltd. in 2013 Aurecon was commissioned to complete a concept plan for the site with an emphasis on landscape and drainage area requirements. 3The landscape plan on the next page presents one of the first concept layouts that includes the drainage lagoons, indoor sport stadium and outdoor active reserve areas linked by roads, trails and parkland. Following indoor stadium and outdoor recreation reserve reviews completed in 2014 the Mildura South Sports Precinct was retitled to become the Mildura South Regional Sports Precinct.

3 16th Street and Deakin Avenue Sporting Precinct and Drainage Plan – Aurecon 2013


Figure 5: Mildura Sports Precinct 2013 Landscape Plan - Aurecon

2.5 Mildura South Regional Sports Precinct Master Planning


The Hansen Partnership recommended the development of a master plan for the site with the following key matters to be considered:

• Further assessment and identification of the specific active recreation needs of the Mildura South community (i.e. are two ovals required or an oval and

football pitch etc.).

• Vehicular access points which should match up with the identified road hierarchy and access points as shown on the access and movement diagram.

• Ensuring that the design of the park sufficiently integrates and reflects the Parkway shown along the south-eastern edge.

• Consideration of the needs of Mildura South community in terms of facilities but also passive uses, BBQ areas, playgrounds etc. in any design.

• The integration of required drainage basin to ensure that batters and other proposed treatments are designed to allow for use of these areas for passive open space as well as drainage.

• Recognition of the ‘gateway’ role, in conjunction with the land on the other side of Deakin Avenue.

Figure 6: Mildura South Sporting Precinct Land Views Deakin Avenue


3. Market Research and Stakeholder Engagement

3.1 Introduction

This section covers the updated market research and stakeholder engagement based on the 2014 Mildura South Regional Sports Precinct Report being the base facility demand and scoping document that this study has been commissioned to update. It includes:

• Reviews of relevant research

• Stakeholder interviews

• Victorian stadium benchmarking and updated sport and leisure trends

3.2 Relevant Research Review

The following documents form key research documents that impact on this study and have been reviewed by the project team:

• Mildura South Development Contributions Plan 2005 – SGS Economics and Planning Pty ltd

• Mildura Rural City Council - Indoor Sports Stadium Strategy 2009 – SGL Consulting Group Pty Ltd

• Mildura Rural City Council – Mildura Recreation Reserve Master Plan 2009 – SGL Consulting Group Pty Ltd

• Mildura Rural City Council - Mildura Sports Precinct Business Plan 2009 – SGL Consulting Group Pty Ltd

• Mildura Rural City Council – Mildura South Regional Sports Precinct Business Plan 2014 – SGL Consulting Group Pty Ltd

• Mildura South Precinct Structure Plan 2014 - Hansen Partnership Pty Ltd

Key issues relevant to this study from a review of these documents are detailed in the following table. Table 2: Review of Relevant Research

Document Overview of Document Key Issues Related to MSRSP Project Mildura South Development Contributions Plan 2005 – SGS Economics and Planning Pty Ltd

• Mildura South is an active urban growth area within Mildura. It includes the Mildura South residential growth area and the Fifteenth Street retail and bulky goods precinct.

• This document forms the Development Contributions Plan (DCP) for Mildura South Planning Precinct.

• The DCP Area accommodates approximately 2,400 dwellings in 2005 and is expected to have over 9,400 dwellings at full development, around 2030.

• Major retail floor space is approaching 100,000sqm in 2005 and could grow to 270,000sqm over the long term. Small -scale shop, office and institutional development can also be expected over time.


Document Overview of Document Key Issues Related to MSRSP Project

• This level of development will demand and make use of many infrastructure items over time. This will include road, bike path, open space, community facility and drainage projects.

• The cost of providing the infrastructure will be significant.

• Mildura Rural City Council has resolved that new development in the DCP Area is required to meet 100% of its share of the capital cost of scheduled infrastructure, in accordance with State Government policy on development contributions.

• This DCP has been prepared on that basis and in 2005 covered

• Mildura Rural City Council has determined through its strategic planning processes that 77 infrastructure projects will be included in this DCP.

• Note that other infrastructure projects may be warranted in the area but at the time of DCP preparation these were omitted from the DCP for varying reasons.

• The breakdown of the 77 DCP projects is as follows:

• 48 Road Projects (10 Road Intersection, 37 Road Reconstruction, 1 Road Bus)

• 20 Bike Path Projects

• 5 Open Space Projects

• 1 Community Facility Project

• 3 Drainage Projects

• The MSRSP is located on the planned major open space area.

Mildura Rural City Council - Indoor Sports Stadium Strategy 2009 – SGL Consulting Group Pty Ltd

The report’s findings indicated:

• There was significant need for a major new indoor sport stadium at a Greenfield site and it was determined at the review phase that the proposed Mildura South Sports Precinct in South Mildura (Corner Deakin Avenue and 16th Street) was a suitable site to consider detailed planning of this facility in association with other outdoor sport facilities.

• The Mildura Recreation Reserve Master Plan draft report findings recommended development of an expanded Harness Racing Track at the reserve and that this track would increase the quality of outdoor sports fields by providing more area for delineation of playing fields. This study also indicated interest from several winter tenant football clubs to be considered as possible tenants


Document Overview of Document Key Issues Related to MSRSP Project of any new sports fields in Mildura South at the regional sports precinct site. An additional study was also added to the project teams review scope and this was to review the master plan at the Old Aerodrome Sporting Complex to see if any of the outdoor sporting areas proposed may be better located at this site. The Old Aerodrome Sporting Complex study found:

• That a large portion of the site was already taken up with organised activity areas and it was recommended that adjoining land to the rear and north of the site be purchased and linked to the reserve to ensure future facility demand could be met.

The studies recommendations in relation to the development of the MSRSP included:

• New indoor sport courts (first stage 5 courts plus 4 squash courts and associated service areas) to be built at the MSRSP site.

• Other indoor court strategy improvements to receive Council funding support including Chaffey College (new 2 facility - $800,000), $200,000 to upgrade the Mildura Basketball Stadium and upgrading/expanding the gymnastics facility at Redcliffs.

Mildura Rural City Council – Mildura Recreation Reserve Master Plan 2009 – SGL Consulting Group Pty Ltd

SGL was commissioned to complete a master plan for the Mildura Recreation Reserve and to assist in determining if a Winter sport tenant club was prepared to relocate to an alternative site.

Master Plan included redevelopment of ovals and the Harness Racing track as well as new change and amenity facilities, new outdoor netball courts and services upgrades. It also recommended that Council complete a review process on a winter tenant sport club relocating to an alternative playing area. The process undertaken after this study saw Mildura Football Club being nominated as the preferred club to move to the MSRSP when competition and training facility development had occurred

Mildura Rural City Council - Mildura Sports Precinct Business Plan 2009 – SGL Consulting Group Pty Ltd

SGL was commissioned in August 2008 to complete three interrelated sport facility studies that involved:

1. Review of Indoor Stadium Needs for the Mildura Rural City Council Urban Area for the next 15 years plus.

2. Review and update the Mildura Recreation Reserve Master Plan to enable future need for any relocated outdoor playing fields to be identified and future facility solutions developed (if required).

3. Review of the Mildura South Sports Precinct Land

The studies recommendations in relation to the development of the MSRSP included:

• New indoor sport courts (first stage 5 courts plus 4 squash courts and associated service areas) to be built at the MSRSP site.

• New outdoor sports facilities to be located at MSRSP including 2 ovals, shared pavilion/clubroom.

A schematic concept plan and initial financial model was also completed as part of this study.


Document Overview of Document Key Issues Related to MSRSP Project area to determine if this site was a suitable option for any future demand indoor or outdoor sports and recreation facilities.

Mildura South Precinct Structure Plan 2014 Hansen Partnership Pty Ltd

Information on this study is covered in sections 2.3 and 2.4 of this report

Information on this study is covered in sections 2.3 and 2.4 of this Report.

Mildura Rural City Council – Mildura South Regional Sports Precinct Business Plan 2014 –

SGL Consulting Group Pty Ltd

The objective of this project was to review the 2009 Ten Year Financial Model. It also was to complete more detailed layout planning to include options to inform Council in the future to identify and analyse the cost and benefit of a variety of options, taking into consideration existing parameters in relation to the viability of each option and sound future planning of community facilities.

The study involved updating all potential users and stakeholder’s information and then updating the 2009 facility concepts and business models. The study also reconsidered site placement of proposed facilities and confirmed that the MSRSP site was the best site for the new indoor sport courts and outdoor recreation playing spaces.

3.3 Stakeholder Engagement

A key requirement of this project commission was to meet with stakeholders and project key informants to update association and player demand for indoor and outdoor sport and recreation facilities as well as discuss:

• Potential regional events the proposed facilities could attract to the region

• Potential funding sources to the project

• Other information that was relevant since the 2014 business plan update.

Key information relevant to this project that was provided at stakeholder interview and follow up meetings are listed in the following table on the next pages. The key issues are summarised under the key areas of:

• Previous report status

• Updated information

• 2013 Feedback

• 2017 Plan Feedback


Table 3: Stakeholder Feedback Summary Group Previous Report

Status Updated Information Previous Feedback and Requirements

provided by the user groups as at 2013 User Group Feedback on 2017 Concept Drawings and Facility Components

Basketball

Mildura Basketball Association

Original Indoor Stadium Strategy was based on this group remaining in their current location and would only use facilities at MSRSP for overflow. This position hasn’t changed from MRCC's perspective.

• Operate from own facility in Mildura

• Have 4 aging courts • Amenities need renewal • Are operating at capacity

in terms of players and usage

• Have representative teams in the state competitions with home games requiring spectator seating for 1,000+ as well as adequate change facilities

• Have plans to expand current centre by 2 courts

• No funding available • Cost of maintenance is becoming an issue • Need additional opportunity for revenue • Looking for assistance from Council • If can’t get 2 new courts at MBA then

would look at being part of MSRSP • Would need 6 courts immediately • Need to be able to cater for all games in

one venue • Need to do work on scheduling of any

new venue to enable optimum sharing

• Looking to move all their activities to the new facility • Summer Season-Oct to March

- Require 6 courts Monday to Friday 4pm-10pm for competition and training - Require 6 courts Sat and Sun from 8am -2pm for training

• Winter Season

- Require 5 courts Mon, Wed and Fri - Require 3 courts Tues and Thurs for training

• Sat night representative games • Singular events requiring at least 4 courts

• Inclusions

- Show court with 1,000 seats minimum - Corporate boxes (6pp) x 14 with signage capacity - Appropriate level scoreboards to suit competition level - One electronic screen for sponsors and info

- Bar availability - Presentation area - Function room for trivia nights and presentation nights etc.

- Board room - Office area for 2 employees - Storage room – size to be agreed - Retail shop area (Peak clothing)

- Referees room - CCTV cameras on each court - Broadcast cameras areas for show court

- Media room/radio broadcast - Wall space for notice boards - Change rooms – x 4 (2xmale and 2x female)

- Canteen – central management – not necessarily MBA

Irymple Basketball Association

This group based at Irymple Community Leisure Centre. May use MSRSP facilities for overflow.

• IBA play out of the Mildura basketball stadium now

• Operate the junior competition on a Sat morning

• Were happy to be a tenant at any new facility

• Currently use courts on Sunday (3), Tues (2), Thurs (2) and Saturday morning (4)

• Use the MBA courts and others when available

• Don't believe they can use Chaffey College due to the low roof height/clearance

• Believe the indoor component of any development at Mildura South should take priority

• Work in cooperative relationship with MBA • Strongly support the Mildura South project • Believe a minimum of 8 courts is required to accommodate all sport needs ie.

basketball x 6 at peak and 4+4 for other times • Happy to work in with other sport requirements but have listed the following:

- Access to meeting room - Minor equipment storage - Available seating to all courts - Minimum of 4 courts with adjustable backboard and ring to cater for u10

basketball - Access to change rooms and toilet facilities - Court dividers - Score bench per court - Team seating area per court

- Scoreboards per court


Group Previous Report Status

Updated Information Previous Feedback and Requirements provided by the user groups as at 2013

User Group Feedback on 2017 Concept Drawings and Facility Components

Squash

Mildura Squash Association

This group considered key tenant (court space) of MSRSP Master Plan

• Courts at Irymple LC have been closed since Nov due to storm damage

• Not back in until April • Badminton and Table

Tennis have moved to Chaffey and the Bendigo Centre (St Josephs)

• Had requested 6 new courts with moveable wall to create doubles courts

• Doubles squash is seen as a strategy to allow players to continue playing at older ages as well as allowing new players to develop their skills

• The original component schedule allowed for 6 courts in two banks of 3

• 6 new courts are the ultimate but would be happy with 4 • Are pushing to maintain the option of having doubles courts capacity – moveable walls • Look at providing viewing areas upstairs • Design 4 or 6 courts in a row would work for doubles configuration to provide 2

doubles courts • Need to provide space for spectators at back of courts • Provide clear access for players to change rooms and toilets • Support upstairs function rooms with servery and bar • Would like own space for memorabilia and storage

Table Tennis

Sunraysia Table Tennis Association


• Not able to use IRC at present due to water damage on the courts

• Normally play at IRC but have had to move to Chaffey SC due to water damage and temporary closure

• At IRC they use 13 tables on Mon (5-10.30pm) and Wed (7-10pm)

• Expansion is limited due to lack of court availability

• Have to set up and pack down each session and store tables in side room

• They are operating at capacity and aren’t able to advertise for more players

• Would like to have a facility where they can leave at least 6 tables permanently erected

• STTA believe they would be able to grow their participation if they were able to have a permanent home.

• Currently operate: - Junior competition – Monday 5pm to 7pm from April to August - Social hitting/coaching – Monday 7.30pm to 9.30pm from February to December - Two senior competitions – Wednesday 7pm to 10.30pm – February to August and

August to December. - Junior competition has 40 players using 10 tables - Senior competition has 65-70 players using 10/11 tables - IRC has 4 courts across basketball court

Badminton

Mildura Badminton Association

This group considered key tenant (court space) of MSRSP Master Plan. Group has approached MRCC recently to discuss availability of stand-alone facility. Have concerns re adequacy of high stadium lighting for their sport.

• Out of IRC at present due to closure (water damage)

• Currently use Chaffey College due to necessity

• The ceiling height and lighting is inadequate

• Badminton participation numbers dropped when access to the Bendigo Centre was reduced (from 80/90 players to around 45)

• Mildura Badminton Association is affiliated with South Australia Badminton

• When using IRC they had bookings for Tues, Thurs and Sunday nights

• Air-conditioning is not required due to air movement with the shuttles

• Using Chaffey College while IRC is out of service • Membership is approx. 60 but fluctuates. Non-members also play socially • Average night – Men (26), Ladies (12), Boys (10), Girls (8) • Ceiling height and lighting are key considerations as per IRC • Future use -

- 2 nights per week - Storage area onsite - Clear line markings - Would like to be consulted on line markings/layout

• Needs 6 courts across 2 basketball courts but allow for 8 courts (on same space) to cater for growth.

Netball

Mildura Netball Association

All association games currently played at Mansell reserve and this not likely to change. Association make look to use MSRSP facilities for

• They are not using the basketball stadium any more during winter

• Football/Netball model is changing the way the sport is delivered

• Predominantly operates as an outdoor sport

• Netball were using the indoor courts at MBA during the winter months but this has ceased in recent times due to drop-in numbers

• The courts at MBA do not meet the new compliance specifications for runoff distances but are accepted under the existing facility tolerance

• Courts would need to be compliant to INF standards • Meet all wheelchair access standards • Venue requirements include

- An office or admin area - First aid facilities

- Water refill stations (coolers) - Suitable air-conditioning - Male, female and disabled toilets and change rooms





overflow of large tournaments.

• The football/netball structure has had an effect on the association however the overall participation numbers have increased

• New compliant indoor courts would update the sport facilities to other regional areas.

- Central timing for all courts (not essential) - Divider nets between courts

Volleyball

Sunraysia Volleyball Association


• Have had a hiatus in recent times but have been working to increase participation again in recent times

• Current membership is 214 (59% male and 41% female)

• Looking to start a separate female competition

• Represent at regional tournaments and state league

• Have international reps - youth

• Are a key member in the Sunraysia Academy suite of sports

• Believe increased capacity (court availability) will increase the participation

• Athletes have been awarded scholarships to US colleges

• Office space and shared facilities with central administrator • Dedicated club rooms for volleyball and other indoor sports – home for the sports - Area for trophy/memorabilia display cabinet • Access to a function centre • Access to catering facilities • Priority playing area giving volleyball priority access but allowing other sport

markings as well • Each basketball/netball court to have a central volleyball court with international

level runoffs • Each basketball/netball court to have markings for 2 cross court volleyball markings

for domestic and training purposes • Ceiling height clearance of 12m so can host international events • 3 x dedicated indoor beach courts • 4 x outside beach courts with capacity for spectators (co-use mounds around ovals) • Store room for volleyball gear • Spectator seating for 2,000 on show court • Change and toilet facilities to cater for courts • Stadium to be solar powered

AFL/Netball

Mildura Football Netball Club

Part of the football club which has reconfirmed its commitment to relocate from Mildura Recreation Reserve to MSRSP.

• No discussion • Not previously included in indoor strategy

• Have made the commitment to move to Mildura South • Require 2 x outdoor netball courts as well as ovals • Have included requirements in AFL Sunraysia proposal

AFL Sunraysia AFL Sunraysia (Cont.)

Regional rep for AFL. Key informant/influencer of potential financial contribution from AFL towards construction of facilities at MSRSP

• Have provided Council with a comprehensive business plan

• Looking for 2 grounds of top quality capable of hosting AFL

• Develop an academy on site

• Have funding support they could bring

• One oval initially would work

• Need space for admin and capacity to grow with

• Not previously included in indoor strategy

• Looking to create a Football Netball Regional Hub including the home for Mildura Football Netball Club – (see full proposal)

• AFL may be able to contribute funding up to $250k through its Country Football Netball Program

• Proposing a staged plan with the outdoor facilities as the priority for stage 1 • Components

Oval 1

500 lux lighting – AFL practice match minimum standard

Coaches boxes elevated above Interchange benches, with interchange stewards box

Electronic scoreboard

Reserve fencing – crowd management & entrance fee collection

Ground perimeter fencing





high performance programs etc.

• Have currently got 4-5 staff

• Women’s footy is growing quickly and need facilities

Raised earthen banking around oval doubling as spectator viewing for major events, and elevated car parking for local events

Oval 2

A second oval is functionally important to allow host tenants the ability to utilise the facility all year round, or specifically through the cross over periods between season specific sports.

150 lux lighting

Consideration should be given to a synthetic surface to increase available usage time

Indoor facility

AFL Sunraysia and local League Staff ideally situated within the precinct; AFL Sunraysia 2 full time, Sunraysia FNL 2-part time, AFL & Netball Victoria would require additional 2 hot desks for travelling staff

Medical/trainer’s room

Retracting door between female change 1 & 2 and male change 1 & 2 to ensure a secondary AFL suitable change room is available and both being female friendly if male & female games are played after one another

Cafe area to double as a canteen on footy days and provide outside servery options

A time keeper’s area – no specific area if function rooms and social/community room is being utilised

Upstairs kitchen – of sufficient capacity to host function room when full Millewa Football League

This league has introduced female football to the local region. Potential for this group to use MSRSP for football carnivals


• No feedback provided to date “although believe they have been consulted by AFL Sunraysia and included in their proposal”.

Sunraysia Football Netball League

Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered key tenant (admin and training space) of MSRSP Master Plan


• No feedback provided to date “although believe they have been consulted by AFL Sunraysia and included in their proposal”.

Cricket

Cricket Victoria/Cricket Australia

State/National rep for Cricket. Key informant/influencer of potential financial contribution from Cricket Aus./Cricket Vic towards construction of

• Have funding they can bring to the project (~$4-500K)

• Part of bigger strategy to create regional cricket hubs and Mallee is identified as a priority

• No feedback in previous study • Cricket Vic and Cricket Aust. provided a proposal for a cricket hub on the site that would provide a key regional hub in line with CA’s strategic development plan

• Through this development plan there is the potential to access $400k-$500k in grant funding from CA in a joint investment opportunity

• The hub concept will service Vic, NSW and SA and provide pathways for all • It will service support regional administration and high-quality training and events • All components are based on existing data and experience • Outdoor Cricket Components





facilities at MSRSP. Recent discussions with Brett have been around their interest in possibly establishing a regional cricket hub in Mildura - possible location MSRSP.

• Happy with co-tenanting but would like to use the climate to provide access 12 months of year

• Can bring events and academy activities

• Play at grounds across Mildura

- Main oval – 6 wicket turf block - Second oval – 2 wicket hard wicket block or would look at split turf wickets as well

- Outdoor training nets – 3 hard wickets and 4-6 turf wickets with provision for lighting

• Admin Components

- Office space – 6 desks - Meeting spaces x 2 - Male and female change rooms – shared with other sports

- Function room for 120 pp - Time keepers and scorers’ spaces on first level including media room - External viewing area to both ovals – 75m2 - Public toilets to service outdoor areas

• Indoor Cricket Centre - Connected to main pavilion - Indoor wickets x 4 (16m) with retractable netting

- Lighting at 500 lux - Storage – 50m2 - Change rooms x 2

- Seating and viewing areas combined with meeting rooms - Technology capacity – TBC i.e. Ceiling based power outlets for bowling machines

Sunraysia Cricket Association

Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered key tenant (admin and training space) of MSRSP Master Plan. Would need to coordinate this group's position with Cricket Vic/Cricket Aus.

• No direct discussion • Not previously included in indoor strategy

• Included in Cricket Victoria/Australia feedback

Willowfest Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered possible tenant (admin and training space) of MSRSP Master Plan. Would need to coordinate this group's position with Cricket Vic/Cricket Aus.


• Would like access to change rooms specific to Oval 2 • Indoor training facilities for academy and training groups (captured in Cricket Vic

response)





Cricket Victoria Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered possible tenant (admin and training space) of MSRSP Master Plan. Would need to coordinate this group's position with Cricket Vic/Cricket Aus.


• Included in Cricket Victoria/Australia feedback

Football (Soccer)

Football Federation Sunraysia

Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered key tenant (admin and training space) of MSRSP Master Plan. Note - current MRCC position is that all local competition soccer matches will still be played at Old Aerodrome Sporting Complex (Mildura)


• Are maintaining their focus on old Aero as their base for competitions and development programs

• Would look to host exhibition or practice matches by A-League teams or W-League teams if a quality surface was made available

• Based on the concept plans the following feedback was received:

- Provision of a medical room - More outdoor seating - More outdoor storage - Covered players race

• FFS have provided a document outlining the requirements of a venue to host high level events – most this is captured in other sports’ requests already

Overarching Groups

Sport and Recreation Victoria Sport and Rec Vic (Cont.)

SRVs rep for this region. Very keen to be part of ref group and is a key conduit between MRCC and State Govt. Has also been a party to previous discussion with Cricket Vic/Cricket Aust re the establishment of Cricket Hub at MSRSP


• Will support the reference group in discussions • SRV have supported Cricket Victoria’s position providing funding for a regional hub at

MSRSP





Mallee Sports Assembly Mallee Sports Assembly (Cont.)

Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered key tenant (admin and training space) of MSRSP Master Plan

• Have already started a Mallee Sports Hub where they provide admin space for sports

• Are keen to explore the project and opportunities

• Currently provide support and programs for a wide range of sports ion the region

• Have leased offices in the city • Provide space in their offices for sports

to use for meetings • Moving to new facilities needs to be

feasible • Had 14 staff in 2013

• Have provided 2 options – preference is for Option 2

Option 1:

Office Requirements:

• Reception/Administration area

• 4 – Individual Offices

• Board Room/training room for: -

• MSA Board of Management

• MSA Members and other groups

• Small meeting room

• Hall of Fame location

• Storage area (confidential areas for files etc.)

• Kitchen /eating area, toilets/disabled toilet

• Telephone & internet connections

• Car Parking

Key Points for MSA to consider

• Accessibility for all user groups, individuals, members – disability, CALD,

indigenous, all ages, clubs, community groups, etc.

• Confidentiality and privacy requirements being met

• Ability to expand as we are a growing organisation

• Maintain profile, independence and that we support all sport & recreation clubs &

organisations

• Cost - MSA currently have three office locations so rental arrangements/costs

would need to be favourable if the MSA are to consider relocating.

• Is there an ‘anticipated’ role for the MSA?

Option 2:

In 2015, the Mallee Sports Assembly along with several other key organizations, AFL Vic Country, Cricket Victoria, Sunraysia Academy of Sport, Sunraysia Rugby League & Sunraysia Academy of Sport co-located into one facility. This has led the way to significant synergies, partnerships and opportunities as organizations and

more importantly for our communities, a ‘one-stop-shop.

It would be ideal to transition this current arrangement into the Mildura South Sporting precinct, housing all the key/peak organizations into one location, with the allowance to house other key bodies when and if this

arises.

The requirements for the Mallee Sports Hub would be as follows

Office Requirements:

• Reception/Administration area – (shared by other organizations in the Mallee

Sports Hub, potentially managed by the MSA)





• 12 – Individual Offices which provides opportunities for growth

• 12 - Individual Storage areas for each organisation (confidential areas for files,

stationary etc.)

• Large Equipment storage room or building/s

• Board Room/training room for (shared by other organizations in the Mallee Sports

Hub and outside groups)

• 2 - small meeting rooms (shared by organizations in the Mallee Sports Hub and

external groups)

• MSA Hall of Fame location

• Kitchen /eating area, toilets/disabled toilet – (shared by other organizations in the

Mallee Sports Hub)

• Gymnasium/Fitness Area (open plan 30m X 20M); minimum 20m indoor track with

roller doors to extend the sprint/tow out, slow down phase (shared by other

organizations in the facility and outside users)

• Telephone & internet connections

• Car Parking

Sunraysia Academy of Sport

Establishment of a sports hub a key part of the original Indoor Stadium Strategy. This group considered key tenant (admin/training space) of MSRSP Master Plan

• Currently have offices within Mallee Sports Assembly

• Deliver volleyball, golf & basketball programs

• Concerned new facility will increase user costs

• Utilise local gyms and service providers to run strength and conditioning and sports science programs

• Like to have access to large meeting rooms

• Like to have a gym on site in new facilities

• Requirements have been included in the options put forward by MSA

3.4 Review of Changes to Regional Indoor Sport Participation

The interviews with stakeholders and key informants including state sporting associations representing these sports have allowed OPG to update current local sporting organisations’ indoor sport registration data and compare this to state participation averages. This has allowed us to monitor the impacts lack of facilities (indoor sport courts) may have had on local sport participation and competitions. The summary is presented in the following table utilizing available data and covers:

• MRCC registered players by each sport where available

• Victorian Regional Sport Participation Rates (2014)


• Extrapolation of Potential Indoor Sports Participants based on MRCC Area Population

• Comparison of possible indoor sport participation and 2017 MRCC area sport participation

Table 4: MRCC Area Indoor Sport Participation and Victoria Regional Trends

Sport 2017 MRCC Area Registered Players

Vic State Participation Rates 2014

% of population

Potential Mildura Sport Participation Rates Based on the MRCC

Population of 53,036 and State Sport Participation Rates (%)

Current Total Participation

Adult Junior Male Female

Basketball 624 1080 - - 3.4 1,803 1,704

Badminton 38 18 64% 36% 0.6 318 56

Table Tennis 70 40 0.4 212 110

Volleyball 59% 41% 0.8 424 214

Netball - - - 3.3* 1,750 TBD

Futsal - - - - 1.6 848 TBD

Squash 70 20 70% 30% 0.2 106 90

TOTAL - - - - N/A 5,461 2,174+

* Refers to indoor and outdoor Netball Though OPG were not able to obtain local netball registration data and local competition data the review of current indoor sport registrations compared with overlaying state participation rates against the local population indicates potential for more than double current registrations if more courts and competitions were made available. This is especially so for sports that have little or no access to current indoor courts such as Badminton (250 less registrations than state average) and Table Tennis and Volleyball (less than half current registrations), It also indicates that the sport that has the best access to indoor sport courts in the area being Mildura Basketball is only 100 registrations below the sports state participation average. Considering state Netball trends the development of new indoor sport courts is likely to see immediate take up of most new court space especially if the larger sports of Basketball and Netball can have access.

3.5 Victorian Indoor Stadium Benchmarking Review

To assist with business planning and industry benchmarking for the indoor stadium component of the study, OPG have consolidated a range of indoor facility databases into a Victorian Indoor Stadium Benchmark document. This is listed as appendix one of this report. OPG also have benchmarked fees and charges for such centres and these are listed in appendix two of this report.


3.6 Sport and Leisure Trends

This section highlights the range of general sport and recreation trends that are likely to impact on local communities in the future and facilities such as those proposed at the MSRSP.

3.6.1 Sport and Recreation Participation Trends

The key area sport and recreation participation trends that may have impacts on the proposed developments at MSRSP include:

• A gradual ageing of the population. As life expectancy increases, birth rates stay low and the “baby boomers” of the 1950s and 1960s grow older, this is placing a demand on providing specific older persons programs. In aquatic and leisure facilities, this includes programmed hotter water areas as well as pools suitable for therapy and older adult exercises. This is contributing to a need for aquatic facilities to have a range of pools with different water depths and temperatures, as well as for services and programs both water and gym/health and fitness based to meet their needs.

• Flexibility in the times when people recreate. As demands on people’s time increases and work practices change, people are seeking to take their sport and recreation at different times, over a broad spread of hours and at facilities that offer a variety of activities under the one roof. Indoor pools and health and fitness facilities are particularly attractive and becoming easier to use, as many are open 12 to 16 hours per day, 7 days a week, with some now also open 24/7.

• Increased variety in leisure options. People’s sport and recreation options are changing towards newer more varied activities offered over a greater range of timeframes compared to previous decades where limited variety in activities and scheduling occurred. This has supported the trend to more multi-use facilities to attract a broader range of users as well as multiple programs to meet different needs at the one facility.

• Constraints to leisure participation. Lack of time, lack of facilities close by, family and work constraints, health problems and cost of service or use of facilities are the main constraints to many people’s leisure participation. The development of targeted markets of users, programs and services at many aquatic and health and fitness centres has assisted in reducing some of these participation constraints.

• Changing employment structures, trading and work hours. These trends often make participation in traditional sport and recreation activities difficult and therefore people are looking for facilities that are open longer hours and have a lot of activity options at the one site. This makes opportunities such as indoor pools and health and fitness centres and indoor sports courts attractive as their long opening hours and days open per year means usage can be made in a wide range of social, training, competition and educational settings.

• Different people want different activities. The different population characteristics such as age, gender and cultural background of the population sees the need for facilities to offer potential users a much more varied range of programs and services than previously offered. All year round available indoor and outdoor aquatic and leisure facilities also provide the greatest diversity of activities throughout the different seasons impacted by the areas weather.

• Provision of high standards and quality of facilities and services. People are increasingly seeking high standard, high quality facilities and services to meet their sport and recreation needs. This has also seen the trend for indoor facilities becoming very popular as they allow activity in safe and secure spaces in all weather and environmental conditions. Providing low standard, low cost facilities will not attract the maximum user market.

• Desire for activities to be affordable. The development of multi-purpose aquatic, fitness and indoor sport centres has enabled the high operating cost activities, such as aquatics, to be cross subsidised by more profitable activity areas such as health and fitness, food and beverage and entertainment areas. This has enabled many facilities to keep general entry fees low to encourage use whilst seeking users who want special services to contribute at a greater level to the cost of such activities. In general, there is a greater reliance on locally accessed and lower cost opportunities by those without the resources to travel and pay for more expensive activities.


• Recognition of strong links between physical activity and health. Preventative health care and active lifestyles are very important to many people and aquatic, health and fitness and indoor sport activities are becoming a large part of people’s activity choices. There is increased recognition of the strong links between involvement in recreational activity and good health, and the development of appropriate activities and services, which support this.

• Expectations of equity and access. People with special needs must be catered for in public aquatic and leisure facilities. This has seen improved design features to increase accessibility to and within such facilities. Added to this is the growing array of programs and activities offered to people of all abilities, physical condition and skill levels.

• Sustainable Development. In addition to the trends above there are specific trends relating to recreation and sporting facility development such as facility planners and operators need to respond to community demand for more sustainable and eco-friendly infrastructure.

3.6.2 Sport and Recreation Changing Environment

All sports and recreation providers are operating in an environment of change. There are many challenges that will need to be dealt with including:

• Consumer Expectations: Because of consumers being exposed to high quality programs, events and services through the media and other leisure industry

providers they are expecting more and more from their sport and recreation programs. This includes quality of facilities, support amenity, player and spectator comfort, quality of service, coaching and expecting the service to be provided when they want it. However, this has meant that significantly less program space can be achieved per investment dollar.

• Changing population demographics: Australia’s population is ageing. The percentage of population of 5 to 14 year olds will continue to decrease with the greatest growth in the 55+ age group. This will create a demand for programs and services in sport that go well beyond a focus on junior sport.

• Competition for participants: All Australia’s sporting codes have recognised the need to recruit young players into their sport at an early age. Many of the sports face competition from large, well-funded junior programs and high profile sports as well as other forms of entertainment competing for the time and interest of young people. A key challenge for many sports and recreational activities is the retention of those recruits beyond their early to mid-teen years.

• Reliance on external revenues: Participants provide a large proportion of funding for most sport and recreation activities, programs and services. Competition is intense for funding, sponsorship, spectators, profile and members. Providers will need to clearly differentiate and market products and benefits to seek to access other revenue streams. This is particularly important in the development and upgrade of facilities and equipment.

• Facilities: Maintaining and developing new facilities is a major challenge for the sport and recreation industry. The future may require sporting and recreation providers to partner in multi-sport/recreational developments either in local government or commercially built complexes.

• Well-trained personnel: Volunteers predominantly service most sports. Recruiting and retaining paid staff and volunteers are critical to operations. In an increasingly regulated world, volunteers need and demand access to training and education in a flexible delivery model that responds to their busy lives. Coaches, officials and administrators must be supported to ensure the delivery of quality programs and competitions. Supporting and recognising volunteers is a task not to be underestimated.

3.6.3 Successful Sport and Recreation Facilities Development Criteria

A review of successful Centres demonstrates that they have the following characteristics:

• High visits per square metre

• Excellent program range returns and attendances


• High secondary spend returns

• Excellent range of attendance types (adult/child ratio)

• Draws users from a large catchment area

• High revenue returns from competitions and programs

OPG has been involved in the development of more than 300 successful sport and recreation facilities and the key development trends include.

Bendigo Stadium Redevelopment Plans

Bendigo Stadium Redevelopment Plans

Successful Future Facility Trends

Successful future facility trends indicated a number of common success factors being:

➢ One Stop Shop: Large range of activity areas at the one site to maximise use/help share the costs.

➢ Reduce Operating Losses: Need a mix of community and commercial activities at the one site.

➢ Programmable Spaces: Need to offer programs and memberships to keep users coming back.

➢ All Age and Interest Centres: Need to develop facilities for broad range of people.

➢ Community/Social Hub: Needed to offer quality food, beverage, social and entertainment spaces.


4. Recommended Mildura South Regional Sports Precinct Development

4.1 Introduction

This section highlights the recommended Mildura South Regional Sports Precinct Development Plan and includes:

• Updated facilities demand summary

• Recommended MSRSP Development Master Plan and Staging Strategy

• Final Concept Plans

• Indicative Capital Cost Estimate

4.2 Updated Indoor/Outdoor Sport Facilities Demand Summary

The updated stakeholder, key informant and project reference group feedback in association with facility benchmarking, state sport association input and industry trends for regional facilities has been combined by OPG to assist in confirming the final development brief and priority components for the Mildura South Regional Sports Precinct (MSRSP). As has been noted in the Mildura South Precinct Structure Plan the need for local community facilities such as ovals, recreation reserves, parkland and indoor community facilities are required to cater for the new growth area and planned population expansion in Mildura South. By consolidating small local open space areas into a larger central open space and recreation zone the MSRSP has the capacity to develop a range of multiple indoor and outdoor sporting facilities that can meet day to day local use and with proper planning can also service regional use and event needs. The following information summarises the recommended development strategies for key facility components.

4.2.1 Indoor Sport Courts and Associated Areas

The 2009 MRCC Indoor Stadium Strategy identified there was a strong need for more indoor sport courts in the MRCC urban area, especially for sports such as volleyball, badminton, netball and table tennis that had very limited access to indoor court facilities. The report findings also recommended that Council assist in funding the Chaffey College two court facility (which was replacing the schools one court assembly hall which was done and is now being used by a range of sporting associations and clubs principally for training as 2 courts limit competition use. To also try and provide more useful life of the largest multiple court area being the aged Mildura Basketball Stadium, the report also recommended Council invest in upgrades to the four-court stadium, mainly for improved amenities and change facilities.


Some improvement works were funded to these areas but the aging of the facility, limited capacity to cater for major events and its lack of more than 4 courts to bid for major regional indoor sport events has seen Mildura Basketball Association request to become a tenant at the proposed new regional stadium. Currently the MBA has no court space for new players, teams and to host new competitions and as the area’s population increases this will impact even greater. Mildura Basketball Association representative team’s stakeholders noted in their interviews that many Regional Victorian indoor Sport Centres have undergone expansion and redevelopment since the 2009 Indoor Centre Strategy and are now well above the standard and spectator capacity of the Mildura Basketball Association Stadium. Many are working towards 6 to 10 court provision models so they can bid and host major events. These mixes of issues lead to Basketball Victoria also providing key stakeholder input and supporting the need for Basketball as the biggest indoor participation sport in the region to moving/expanding some of its competitions and teams to the new regional indoor centre once developed. Council was advised of Basketball’s request to change the 2009 Indoor Stadium Facility Strategy and to provide them with access to the new stadium at a briefing in April 2017. Council officers and the consultant team were requested to review this matter and this lead to a formal written request for this sport to be able to hire courts at the new facility under a multi-sport shared use agreement. Due to lack of available court space at peak competition times (Monday to Friday 4pm to 10pm) and undersize courts for netball there has been a major drop off in participation for indoor netball in the area. This is the opposite trend in other major Regional Victorian areas such as Bendigo, Ballarat, Geelong, Shepparton and Traralgon. Stakeholders interviewed indicated the indoor netball competitions that were running in 2009 have now ceased and this has been directly impacted by lack of full size and high standard inside courts in the area. Based on these combined impacts and the fact that the MRCC area population of 49,815 residents (ABS 2006) has increased by 3,200 people to 53,015 residents by 2015 (+6.4% population increase). This further indicates the need to expand the stage one MSRSP indoor facility provision plan from 5 courts to 6 courts. This will ensure the emerging sports of volleyball, badminton and table tennis can be provided with adequate court time but also have the capacity to expand their competitions on the days allocated for this use by leaving some court hours free from permanent competition use by basketball or netball. In relation to deciding on the number of squash courts needed in the first stage of facility development it was noted that the Irymple Community Leisure Centre Squash Courts have been decommissioned due to storm damage and have been unusable for the past 6 months. This has seen the sport of squash go into recess until late July 2017 when the two courts should be back up and open. Interviews with Mildura Squash and Squash Victoria have confirmed that the development of 4 squash courts in the first stage of construction will meet local/regional need and allow the club to bid for regional events.

4.2.2 Outdoor Sport Facilities and Associated Areas

Initial plans for the MSRSP saw provision of 2 ovals with one of these designed as an events oval that could host AFL, Cricket, Soccer and Rugby preseason and special events as well as cater for local teams and associations. Council also completed an expression of interest process to test if a current tenant club at Mildura Recreation Reserve was interested in moving its home base activities to the future growth area of Mildura South. Mildura Football Club was identified as the club that best meet the EOI criteria and it was agreed that planning would be completed to ensure they could relocate once new facilities were operational at MSRSP. Feedback from the project reference group and strong regional sport hub facility interest from Cricket Victoria/Cricket Australia, AFL/Regional AFL and regional soccer/State Soccer has led to the following changes to the previous plans:


• Oval 1 and 2 both designed to meet cricket training and competition requirements.

• That oval number 2 have a larger rectangular irrigated playing surface so it can be used for training and competition for sports requiring ovals (cricket/AFL) or pitches such as soccer/rugby etc.

• That amenities and facilities for playing area number two be reserved for future development.

• That Mildura Football Club have winter seasonal tenant status and can negotiate shared access to the pavilion and stadium social areas. Relocation of MFC from Mildura Recreation Reserve will also trigger Harness Racing Victoria’s funding support offer of contributing funds to assist in this relocation to MSRSP.

• That Cricket Victoria/Cricket Australia have nominated Mildura as one of 7 Regional Cricket hubs and is able to provide some capital funding to assist in the development of cricket hub facilities at MSRSP.

• That the AFL would be able to contribute funds from its Football Facilities Development Fund to assist in the development of MSRSP football facilities.

4.3 Recommended MSRSP Master Plan Components

The recommended MSRSP indoor and outdoor sport and recreation facilities include:

1. Regional standard indoor sport and recreation complex incorporating:

▪ Six (6) fully compliant Netball AA rated courts suitable for a range of sport competition and training uses. Need to be set up to allow for four (4) primary indoor sports markings on courts 1,3, 4, 5 & 6 for basketball/netball/volleyball and badminton. The 2nd court will be the central event court and will only have netball, volleyball and basketball court markings (allow for tape over for other sport use).

▪ Court area 1 to 3 to have installed an indoor retractable seating system and building area seat storage allowance for 2 seating systems up to 1,500 seats either side of court 2 (over courts 1 and 3).

▪ Four (4) squash courts and first floor spectator and umpire zone.

▪ Front of house area including shared entry foyer, reception, café and preparation area with servery indoors and to outdoor oval 1 spectator area, dry lounge adjoining the café and circulation to change and amenity areas. Area also allowed for administration and retail storage.

▪ Four (4) linked indoor change and amenity areas that can be locked of into tow larger spaces or 4 independent spaces. The amenities need to be functionally located close to the outdoor oval number 1 pavilion so they are all located in a common zone so if major events are on all 6 areas can be linked.

▪ Centre management and administration office.

▪ Ground floor sports organisations’ offices and meeting spaces (leasable areas) of approximately 250m2.

▪ Storage to courts and foyer area.

▪ Plant room and communications room.

▪ First floor function and meeting spaces linking:

- Function 1 (230m2) with moveable wall to link with function 2 floor space and service areas and linked to grandstand seating


- Function 2 with kitchen, bar and servery (272m2) that can link with function 1 floor space and linked to grandstand seating

- Board and Club Room (83m2)

- Community Activity and Meeting Room (190m2)

- First floor amenities (40m2)

- First floor storage

- First floor circulation space

- First floor plant room

▪ Lifts and stairwells.

2. Regional standard outdoor sports facilities including:

▪ Major event oval number 1 with fenced playing area with dimensions and surfaces to meet AFL and Cricket event requirements. This oval will include provision for a turf wicket block (further reviews required to determine if a permanent wicket block or drop in pitches).

▪ Major event playing and training area that can be reconfigured into a range of multi-use sport playing ovals or pitches and training fields.

▪ Shared main pavilion of two team change and amenity spaces and separate event official’s amenities plus storage and office areas.

▪ Grandstand area of up to 500 seats linked at first floor into function spaces.

3. Outdoor Open Space and Service Areas

▪ Main sealed car park areas and access road off Deakin Avenue.

▪ Planning for eastern perimeter road linking from 16th Street back through to Deakin Avenue.

▪ Storm water retention area (final area to be determined as part of drainage plan).

▪ Parkland, walking and cycle trails, playground etc. (final locations to be determined once all facility placements are confirmed).

4.4 MSRSP Concept Plans

Peddle Thorp Architects updated plans which were then reviewed by the Project Reference Group, Executive Management Team and Councilors and following feedback also from State and Regional Sporting Organisations final concept plans were developed and are listed on the following pages


Figure 7: Mildura South Regional Sports Precinct Site Plan


Figure 8: Mildura South Sports Precinct Indoor Sports and Recreation Centre - Ground Floor Plan and Area Schedule


Figure 9: Mildura South Sports Precinct Indoor Sports and Recreation Centre - First Floor Plan and Area Schedule


Figure 10: Mildura South Regional Sports Precinct – Front of Indoor Sports and Recreation Centre Artists Impression


Figure 11: Mildura South Regional Sports Precinct – Internal Foyer Indoor Sports and Recreation Centre Artists Impression


4.5 Indicative Capital Cost Estimates

It is difficult at the early schematic planning phase to develop detailed accurate capital cost plans as the design, finishes and fittings are only at a very early stage so a large range of costs need to be based on recent construction allowances and a range of cost assumptions. As design becomes more detailed and facility plant, fittings and finishes are decided on, then more accurate cost planning can be undertaken. To ensure conservative costing at this early stage of a project, OPG and its Quantity Surveyors use a 10% construction cost allowance for design and construction contingencies. This can be reduced as planning becomes more detailed and as design moves to construction usually with a fixed price contract. To assist in developing an indicative capital cost estimate for the proposed MSRSP project, OPG have retained Turner Townsend Quantity Surveyors who are experienced in costing major sport facilities to develop up a detailed project indicative capital cost plan based on construction costs as at June 2018. A summary of key indicative development costs is presented in the following table. Table 5: MSRSP Indicative Capital Cost Summary (2018 June Pricing)

Item Area Rate Total Costs

Ground and first floor building works 8,863m2 $2,236m2 $19,814,110

Oval 1 and oval 2 Building Works Allowances $5,118,076

External Works and Services Allowances $5,786,000

Total Construction Cost $30,718,186

Contingencies Design & Construction 10% $2,628,000

Fees and FF&E and Authority Charges 10% $3,099,400

Indicative Total Project Cost $36,455,586

The indicative capital cost plan indicates the total construction cost for indoor building areas, outdoor ovals and building works and external works and services is estimated at $30.718M. The quantity surveyor has also set contingencies for design and construction at $2.628M and fees and authority charges at $3.099M, totalling $5.727M. Based on these cost assumptions the indicative capital cost for the MSRSP development is $36,455M in 2017 construction prices.


5. Business and Funding Review

5.1 Financial Modelling

This section of the report covers the ten-year financial model set up for the proposed MSRSP development plan as detailed in the concept plans in section 4.4 of this report. To complete the 10-year financial model OPG have modified the companies electronic operating model and adjusted it to cover the proposed components and management and operational model. OPG have also used industry operational data from a sample of the benchmarked stadiums (as listed in appendix 1 of this report) as well as developed specific management and operational assumptions that cover:

• Direct staffing management model.

• Court hourly hire model for indoor sports and squash courts.

• Direct programming of function areas.

• Seat sale commission fee on indoor events.

• Daily hire fees for outdoor events and sales commission on spectator fees for major events.

• Food, beverage, function catering and retail sales operated by centre management.

• Outdoor playing fields are charged out as per Council’s current sporting reserve seasonal model.

• Outdoor field maintenance is competed by MRCC Maintenance staff and allowances for this service have been costed by management of these services.

• Leased areas are charged out at m2 rates/year plus outgoings for contributions for building maintenance, services and amenities.

• Building presentation is part contract and part direct staff costs.

5.2 MSRSP Ten Year Financial Modelling Business Assumptions

The MSRSP ten-year financial modelling assumptions are listed in detail in appendix 4 of this report. They should be read in association with the MSRSP Ten Year Financial Model Spreadsheet Report that has been developed as a separate supporting information report. (Not available with this report due to commercial in confidence reasons)

5.3 MSRSP Ten Year Financial Operational Performance Summaries

The tables on the following pages provide an overview of the projected 10-year operational performance of combined indoor and outdoor facilities proposed for MSRSP based on the business demand expressed by stakeholders, current court usage and the range of business assumptions listed in appendix 3 of this report.


5.3.1 MSRSP Operating Performance Projections

The following table details the projected MSRSP 10-year operating performance projections. Table 6: MSRSP Operating Performance - information considered Commercial in Confidence has been removed

CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Income by Area

Indoor stadium

Squash Courts

Sports Field 1

Sports Field 2

Meeting/Function Rooms

Café and Merchandise

Rentals and Leases

Total Income $1,204,737 $1,300,110 $1,360,074 $1,408,774 $1,445,232 $1,496,923 $1,535,739 $1,590,607 $1,631,933 $1,674,373

Expenditure by area

Indoor stadium

Squash Courts

Sports Field 1

Sports Field 2



Rentals and Leases

Sub- Total Expenditure

Less undistributed overhead costs

Total Expenditure $1,102,262 $1,147,395 $1,181,953 $1,213,406 $1,241,535 $1,274,593 $1,304,203 $1,338,949 $1,370,119 $1,402,056

Projected Profit/(Loss) $102,475 $152,715 $178,121 $195,369 $203,697 $222,330 $231,536 $251,658 $261,814 $272,317

The MSRSP 10-year financial model projections indicate: 1. Income:

• Year 1 income is projected at $1.205M with the 6 indoor courts and café & merchandise projected to be returning in income just over $460,000 respectively.

• Income is projected to increase for each operating year and increases from year 1 at $1.205M to $1.674M by year 10. The increased income is based on annual allowances for CPI, fees and charges and facility hire and usage growth.

2. Expenditure


• Expenditure is projected to increase for each operating year and increases from year 1 at $1.102m to $1.402M by year 10. The increased expenditure is based on annual allowances for CPI, staffing and service cost increases.

3. Net Operating Result

• MSRSP operating projections see an annual operating surplus being projected over the 10-year review period.

• The annual operating surplus for year 1 is projected at $102,262 and this increases annually. The projected net operating surplus for year 10 increases considerably from year one as centre usage and costs are established and stabilised and projected net operating surplus is estimated to be $273,317 by year 10.

• The combined net operating surplus for the 10 years of MSRSP operations is projected at $2.072M.

5.3.2 MSRSP Operating Performance - Annual Visitations

The following table details the projected MSRSP 10-year operating performance visitations by main activity area. Table 7: MSRSP Utilisation (Visits/Year) by Area

VISITS PER YEAR BY AREA YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Indoor stadium 187,622 197,709 201,744 203,761 203,761 205,779 205,779 207,796 207,796 207,796

Squash Courts 7,159 7,544 7,698 7,775 7,775 7,852 7,852 7,929 7,929 7,929

Sports Field 1 7,604 8,012 8,176 8,258 8,258 8,340 8,340 8,421 8,421 8,421

Sports Field 2 7,604 8,012 8,176 8,258 8,258 8,340 8,340 8,421 8,421 8,421

Meeting/Function Rooms 14,648 15,435 15,750 15,908 15,908 16,065 16,065 16,223 16,223 16,223

Total Visits per Year 224,636 236,713 241,544 243,959 243,959 246,375 246,375 248,790 248,790 248,790

The MSRSP 10- year operating model projects a total site visitation of 224,636 visits in year one and this increases slightly for each year through to year 8 at 248,790 visits. Visitation rates then are projected to remain at similar levels for years 8 to 10.

5.3.3 MSRSP Operating Performance Net Contribution by Area

The following table details the projected MSRSP 10-year operating performance net contribution by area. Table 8: MSRSP Operating Projections Net Contribution by Area - information considered Commercial in Confidence has been removed

CONTRIBUTION BY AREA YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Indoor stadium

Squash Courts

Sports Field 1

Sports Field 2





Rentals and Leases

Total contribution by area

Less Undistributed centre management expenses


The MSRSP 10-year operating model projects that all indoor activity areas will return a profit on operations with projected income exceeding projected expenditure. The outdoor areas both are projected to operate at a loss as they require high maintenance costs and under Council’s current fees and charges policy return low seasonal rentals. The café and merchandise area returns the highest profit in the first 7 years then indoor stadium operations become fully established and generate a higher profit in years 8 to 10.

5.3.4 MSRSP Operating Performance Equivalent Full Time Staff

The following table details the projected MSRSP 10-year operating performance equivalent full time staff (EFT). Table 9: MSRSP Operating Projections Equivalent Full Time Staff (EFT) by Area

FULL TIME EQUIVALENT STAFF BY AREA YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Indoor stadium 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2

Squash Courts 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Sports Field 1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sports Field 2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Meeting/Function Rooms 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1

Café and Merchandise 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0

Centre Management 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5

Total EFT Positions 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

The MSRSP 10-year operating model projects the development will create 10 equivalent full time jobs.

5.4 MSRSP Project Other Business Cost Projections

Section 5.3 provides an overview of the projected 10-year operating performance of the MSRSP based on the range of assumptions that have been identified and developed from this study’s key findings. The modelling has been developed on a 10-year period and only includes annual operating projections. To gain an understanding of the overall business and financial impacts of the proposed development OPG has worked with Council’s finance team to develop a range of cost of project impacts above operational performance and these cover:


5.4.1 Cost of Borrowings

In line with the notional funding targets proposed for this development it was agreed that MRCC may have to service a loan of $### as way of funding part of Council’s contribution to the development. Based on a ##-year term loan at ##% annual interest this would see the following interest and principal repayment impacts. Table 10: MSRSP Loan Details - information considered Commercial in Confidence has been removed

MSRSP Loan Details

Loan amount

Interest rate

Number of payments/year

Amount of each annual payment

Total Interest paid on loan

Table 11: MSRSP Loan Repayment Details - information considered Commercial in Confidence has been removed

Payment Number Opening Capital Interest Amount Principle Amount Total Payment Closing Capital

5.4.2 Depreciation Allowances

Council’s Finance Team have also advised OPG to model the MSRSP depreciation allowances based on:

• Buildings and Sport Lighting – 40 years

• Carparks and roads – 50 years

• Ovals and green spaces – Not applicable

Based on these allowances the depreciation impacts on the project would be in the order of: 1. MSRSP Capital Cost Estimates

• Building cost estimated at $26.235m plus lighting and on costs at $708,000 so total building/lighting cost estimated at $26,943,510 say $27.0M.

• Carpark and road costs estimated at $3.229M plus contingencies/fees at 18% = $563,220 so total cost estimated at $3,792,220 say $3.8M

2. Annual Depreciation Allowances

• Building and Sport Lighting – $27.0M depreciated over 40 years would see the annual depreciation allowance being $675,000

• Carpark and roads - $3.8M depreciated over 50 years would see the annual depreciation allowance being $76,000.

• The combined depreciation allowance each year would be $751,000.


5.5 MSRSP Combined Operational and Other Cost Projections

To highlight the total annual cost of development OPG have linked the 10 year operational projections (see section 5.2) with the other cost allowances (see section 5.3) estimated to service borrowings of $### at a repayment cost $###/year and with annual depreciation repayment allowances of $751,000/year. These projections are listed in the following table. Table 12: MSRSP Operating Projections and Cost of Borrowings and Depreciation Allowances - information considered Commercial in Confidence has been removed


Indoor stadium

Squash Courts

Sports Field 1

Sports Field 2



Rentals and Leases

Total contribution by area

Less Undistributed centre management expenses


Less Annual Loan Repayments

Less Annual Depreciation Repayments

Net Operating Result Profit/(Loss)

The MSRSP project business model indicates over the 10-year review period:

• The MSRSP operational model is projected to return annual operating surplus before the cost of borrowings and depreciation.

• Over the combined 10 -year review period the net operating surplus is projected at $2.072M

5.6 Other Facility and Business Impacts Not Quantified

During the completion of this project, Mildura Basketball Association (MBA) requested that Council amend its 2009 Indoor Stadium Strategy to allow it to become a tenant user of the proposed new 6 court stadium at MSRSP. Meetings were held with Council officers and it was noted in support of this decision:

• The MBA had reached capacity of their 4-court basketball centre and was restricted in future growth.

• There was limited free time for club and representative team training due to lack of courts.

• The aging and under size venue (number of courts, court dimensions and seating) was restricting attracting major basketball events to the region.


• That moving some MBA competitions and regional game/events to MSRSP would free up court space for more training and opportunity to locate other sports such as table tennis and gymnastics at the centre. These sports may be better placed at this centre as they could be allocated a set space and leave their equipment up whereas at MSRSP they would have to pack up after each booking.

Council officers in May 2017 advised OPG that future MSRSP business modelling should include considering basketball’s use and this agreement was based on:

• MBA being a tenant hirer of courts and not a manager or controller of the courts.

• Other indoor sports (that do not have access to courts) such as volleyball, badminton etc. being allocated first use of MSRSP courts in peak use times (with adjoining free court time to take up for future association competition expansion) and then MBA use filling in available court spaces. This was done to ensure the sports that did not have access to courts were given priority access with some expansion court time options in the future.

Based on this process the financial modelling has assumed the MBA renting an average of 167 court hours a week in winter and 126 court hours a week in summer. These allowances have resulted in the indoor sports courts achieving high occupancy resulting in operating surplus for this activity. This key future stadium strategy change may have several business impacts on the current basketball stadium and this has been outside the scope of this study to identify and quantify. OPG recommends that Council Officers continue to work with MBA representatives to confirm the future occupancy and use of the Mildura Basketball Centre so it can determine any business and financial impacts currently unknown. It should also be noted that the MSRSP management model that has been adopted is based on an hourly court hire fee for local associations. This is a lower facility revenue model compared to if centre management took over all competitions and charged players directly. Though this would take over the role of volunteer sport associations it would also generate greater operating surpluses than projected for the hour hire model. Due to the historical set up where sports associations in the region have been the organisers of competitions we have used this management arrangement for all financial modelling.

5.7 Project Staging and Funding Opportunities

The development of the MSRSP is a major regional project costed at $36.446M. The project has been costed so that the three key development areas costs can be isolated in case Council needs to stage development and this would see:

• All indoor building works including indoor stadium, squash courts, stadium service areas, offices and pavilion being constructed at a cost of $26.235M.

• The two outdoor playing fields and associated areas constructed at a cost of $5.190M.

• The construction of all external works costed at $5.020M.

In reviewing future project staging options, it is noted that development of indoor facilities at a cost of $26.235m would also require funding of a large portion of the proposed external works and services. A review of these works indicates the minimum works required to ensure the indoor facilities are accessible and are serviced would require a capital budget of around 75% of the current cost allowance for external works and services. This would then see a two-staged project development opportunity being:

• Construction of indoor facilities ($26.235) and required external works and services allowance ($3.765M) for a total staged works cost of $30.0M.


• Construction of playing fields ($5,190M) and balance of external works ($1.425M) for a total of $6.615M.

5.7.1 Identified Project Funding Opportunities

During completion of this project the following funding opportunities have been identified:

• A funding commitment of $300,000 has been made by Harness Racing Victoria to assist with the costs of relocation of a Winter Tennant Club (Mildura Football Club) to MSRSP.

• Cricket Victoria and Sport and Recreation Victoria have indicated they would consider a facility improvement grant to develop a regional cricket hub in Mildura. This was indicated to be in the order of $400,000 to $500,000.

• AFL Victoria indicated they would consider a facility improvement grant to develop the regional event ovals in Mildura. This was indicated to be in the order of $250,000 through its Country Football Facility Improvement Program.

Based on these funding opportunities the known funding to date opportunities are all related to the development of the outdoor sport playing areas and these total $950,000 to $1.050M. This represents approximately 16% of the estimated cost of the proposed outdoor sport facilities development (estimated at $6.615M).

5.7.2 Other Project Funding Opportunities

Development of local sport and recreation facilities is usually the funding responsibility of the local Council and state government has some minor funding support programs available that could see grants of up to $700,000 allocated to the project. The regional significance of the project though sees an opportunity to seek greater other government funding support and this could include: 1. State Government Funding

• Grants of up to $3M from Sport and Recreation Victoria’s Better Stadiums Funding Scheme based on a $1 for $1 basis allocation.

• Grants from Sport and Recreation Victoria from the Community Sports Infrastructure Fund.

• Grants through Regional Development Victoria for major infrastructure projects that harness key regional strengths to improve regional Victoria’s productivity and liveability. These grants aim to invest in major infrastructure projects that create or enhance the conditions for economic growth, and build diversified and sustainable regional economies that are resilient to change. These outcomes are certainly able to be shown from the level of capital investment, creation of local jobs, local health and activity benefits and positive regional tourism impacts that this project brings to the region. These projects are based on an application by application process and Council would need to resource a major funding application to achieve funding from this scheme.

2. Federal Government Funding

• Building Better Regions Fund Scheme which has a budget of $245M and is allocated on a set application process and funding timeline. This project meets the schemes criteria and maximum grants of up to $10M can be allocated from the scheme, again usually based on a $1 for $1 basis as a minimum.


There are also many precedents of Local Government Authorities seeking special project funding for major projects and OPG are aware of many Councils that have received one off funding for major regional sport and community projects. Usually this will require resourcing a funding strategy and ensuring both state and federal local politicians support the project and help take the funding request to senior ministers. A critical element to achieving major grant funding from other levels of Government is to first determine the level of local funding the Council has the capacity to commit to the project. It is called in funding strategy terms the “Fair Giving principle” that recognises this project is important enough for a major local contribution and then this can be used to leverage similar or greater contributions from the other levels of government. If local funding relative to the total cost of the project is low then it is difficult to mount a case that other levels of government should provide major funds when the proponent of the development does not. The cost of the proposed development would make it one of Council’s major work projects so it is critical that a Funding Strategy Review Group is formed internally to look at all identified funding options and opportunities. It is also recognised that this is not the only major capital works project that Council needs to support and there are some very successful examples of where Councils have aggregated and linked a range of major projects and retained a funding support company to assist in attracting major funding to the area.

5.8 Where to From Here

The project is now completed to final draft stage and is being circulated for Council and stakeholder review. Following the reviews OPG will complete all financial modelling and economic impact assessment and work with Council on an agreed funding strategy so the report can be completed.


6. Warranties and Disclaimers

The information contained in this report is provided in good faith. While Otium Planning Group has applied their own experience to the task, they have relied upon information supplied to them by other persons and organisations. We have not conducted an audit of the information provided by others but have accepted it in good faith. Some of the information may have been provided ‘commercial in confidence’ and as such these venues or sources of information are not specifically identified. Readers should be aware that the preparation of this report may have necessitated projections of the future that are inherently uncertain and that our opinion is based on the underlying representations, assumptions and projections detailed in this report. There will be differences between projected and actual results, because events and circumstances frequently do not occur as expected and those differences may be material. We do not express an opinion as to whether actual results will approximate projected results, nor can we confirm, underwrite or guarantee the achievability of the projections as it is not possible to substantiate assumptions which are based on future events. Accordingly, neither Otium Planning Group, nor any member or employee of Otium Planning Group, undertakes responsibility arising in any way whatsoever to any persons other than client in respect of this report, for any errors or omissions herein, arising through negligence or otherwise however caused.


Appendix 1 – Victorian Indoor Stadiums Benchmarking

Victorian Indoor Stadium Benchmarking September 2016 - information considered Commercial in Confidence has been removed Facility Name No. of Crts Other facilities Court Hire Fees

& Charges Spectator/ Door Fee

Sheet fees Kiosk/ Merchandise arrangements

Management. Arrangement

Big V/SEABL Capital Contribution

Contribution to Asset

Mgt

Maintenance Arrangements

Jnr Snr Rep

Broadmeadows Basketball Stadium

4 • Show court seating: 800

• Kiosk

• Meeting room

On + Off Peak $65 p/h Do not do Casual Shooting as over the road from Broadmeadows Leisure Centre, which caters to this market.

Domestic $2.50 Rep. $3

$50 $45 $55 Operated by Basketball Association with all profits going to Basketball Association

Owned by Hume City Council, Managed by Broadmeadows Basketball Association under license agreement

• Hume City Broncos:

Big V State Championship Men

Big V State Championship Women

Big V Youth League 1 Men

Big V Youth Championship Women

Players can come and train for free

No No License agreement responsible for minor maintenance $10k Major maintenance $10K plus Council

Boroondara Sports Complex

3 (1 additional court being constructed)

• Show court seating 500

• Kiosk

• Multipurpose room

• Gym

• Outdoor 50m pool

Peak $54.60 – $65.85/hr Off peak $41.60 - $54.60/hr (Depends on type of usage) Casual $7.00 p/p

Domestic $0 Rep. $3

$50 $70 $61.30 ladies AM Bball)

$55 Operated by YMCA

Management contracted to YMCA Council owned.

• Hawthorn Basketball Association


Big V Div 1 Women

Big V Youth Championship Men


$400,00 $0 $0

Craigieburn Leisure Centre

5 • 2 courts with

show court seating: 300

• Separate kiosk to leisure centre

• Meeting room,

• Squash courts,

• Health Club,

• Pool

• Crèche

Peak $65.40/hr Off Peak $43.80/hr Junior

$32.70/hr Casual $2.50 p/p

Domestic $0 Rep $3

$55 $55 $70 Kiosks: 1 Community run kiosk in stadium (Basketball and

Netball receive profits) 1 Council run kiosk in Aquatic Area (servicing mainly the swimming pool area)

Hume City Council owned and managed Pay court hire fee not

under a licence due to multi use

• Craigieburn Eagles:

Big V Div 2 Men

Big V Div 1 Women

Big V Youth League 2 Men

Big V Youth League 1 Women

No No Council responsible for all

Dandenong Basketball Stadium

15 • Show court

seating: 2000

• Kiosk

• 250 seat function space

• 3 Beach

Volleyball courts

Peak + Off peak

• Basketball

$39.00/hr

• Volleyball $39.00/hr

• Beach Volleyball $42.60/hr

Basketball casual use - $5.30 p/p

$2.70 $41 (U10-20) $21 (U8-9))

$52 VC $50 VJBL $45

Managed internally with all profits being split between the tenants

Council owned Managed by Elite Stadium and Events (sub group of Dandenong Basketball) under agreement with City of Greater Dandenong Council

• Dandenong Rangers:

SEABL Men

SEABL Women



Darebin Community Sports Stadium


• Mezzanine hall,

• Multipurpose room

• 3 outdoor

netball and 2 tennis courts

Basketball/ Netball: Peak $51/hr Off peak $39.50/hr Casual: $4.00 p/p

Domestic Adult $2.30 Child $2.00 Family $6.30

$50 ($3 entry fee)

Men $55 Mixed $55

No Run internally by the YMCA with all profits retained by the YMCA

Facility located on DEECD Land Joint Use Agreement Council responsible for management which is contracted to YMCA, Asset maintenance the responsibility of the YMCA

NA No No NO


Facility Name No. of Crts Other facilities Court Hire Fees & Charges

Spectator/ Door Fee





Mgt


Jnr Snr Rep

Diamond Creek – Community Bank Stadium

3 • Show court

seating: 900

• Multi-purpose room

• Café

• Performing arts space

• Gymnastics space

Peak $50.60 p/h Off Peak $38.50/hr Casual $4.00

p/p

Sporting association set and charge sheet fee with all associations being different

Profits from Kiosk are split between Council and YMCA

according to their contract

Owned by Nillumbik Shire Council, managed by YMCA

• Diamond Valley Eagles





No DET contributed

land

No No

Diamond Valley Sports and Fitness Centre

5 + one ¾ sized court

• Show court seating: 250

• Squash x 3

• Multi-purpose

rooms x 6

• Health club,

• Childcare

• Kiosk

Competition: Peak: $50.60/hr Casual: $3.70

Centre does not change door fee however Associations occasionally do.

$50 $65 $60 Basketball Association stock merchandise at the stadium and all profits go back to them Kiosk operated by external contractor.

Nillumbik Shire Council owned. Clublinks managed. Council and Management group responsible for asset management.

• Diamond Valley Eagles:





Players pay minimal registration fee which the players are encouraged to cover with sponsorship, then don’t pay game fees or court hire

No No No

Frankston Basketball Stadium

6 • Show court

seating: 700

• Kiosk (subleased)

• Meeting room

• Merchandise outlet

Peak and Off Peak $38.50/hr Casual: $4 p/p

$38 - $55 depend

ing on age

$55 $50 Merchandise/ Canteen operated by

Frankston Basketball Association with takings retain by FBA. Kiosk

Owned by Frankston City Council, managed under lease by Frankston

Basketball Association. Basketball Association responsible for asset management/ maintenance.

• Frankston Blues:

SEABL Men

SEABL Women

Contributed some capital fir initial

development $ $1M towards current extension of $12M

No Association. Responsible for all maintenance

Council does some (ad hoc) maintenance

Kilsyth Sports Centre

6 • Show court

seating: 1000

• Kiosk

• Meeting Room

• The Locker

Room merchandise store

• 8 outdoor netball courts

Peak + Off peak

• Show Court 1

$50/hr

• Court 2 $35/hr

• Court 3 & 4 $30

• Courts 5 & 6

$40 Casual $2.00 p/p

• Doesn’t charge schools or charities

• Currently fully booked during peak times

Domestic $2.50 SEABL Games Adult $8 Child $2

Concession $5 Family $18

$33.00 U12+ $28.00 U8-U11

Senior Domestic $43 Senior Domestic

Championships $55 Ladies Daytime 50

80min game - $65 70min

game - $65 50&60min games - $5

Managed and run by Kilsyth Basketball with profits going back into the running of the Centre

Kilsyth Basketball manages 2 facilities including Kilsyth Sports Centre. The facility is located on council land however the

Association provided capital funds towards the development of the facility.

• Swinburne Kilsyth

Cobras:

SEABL Men

SEABL Women



Yes $1M +

Yes Fund major maint.

Association responsible for maint



Spectator/ Door Fee





Mgt


Jnr Snr Rep

The Rings (Previously called Maroondah

Indoor Sports Centre)

4 • Show court

seating: 265

• Crèche

• Kiosk,

• Function room

Off Peak $34.90/hr Peak $45.30/hr Casual $4.00

p/p

Domestic $2.50 $3.00

$36 $64 $65 VC $55 other

s

Managed by the Council and takings go back to the Council

Managed by Maroondah City Council’s Leisure Group.

Council responsible for asset management and maintenance.

• Ringwood Hawkes:




Big V Youth League Championship Women

• Players pay for court

hire

No No No

Keilor Indoor Stadium

3 3 new courts being

constricted

• Show court seating: 900

• Kiosk

• Meeting room

Hire Rate: $34-$38 Casual $3.80 p/p

Domestic $2.50 Rep $3

$50 $75 (no door fee charged)

$80 Canteen managed by Stadium Management Group

Council owned and managed

• Keilor Thunder Basketball:

Big V Division 1 Men

Big V Division 1 Women

Big V Youth League Championships Men

Big V Youth League 2 Women

$6.4m extension $1.2m Council guarantor for the loan

10 yr license agreement based on per crt per hr increased by published CPI

No Council responsible for maintence Second tenant netball coming

Nunawading Basketball Centre


• Kiosk

• 2 x conference/ function rooms

• Bar

• Commercial kitchen

Peak + Off peak $19 - $29.70 (Community groups and charity at the lower end, Rep BB charged $29.70)

Casual $3.00

Domestic $2.50 Rep $2.50

$34 $43 VC - $59 Metro - $52

Managed by the NABA with profits returned to the NABA

Council owned, managed under lease by the Nunawading Amateur Basketball Association on Council land

• Nunawading Spectres:

SEABL Men

SEABL Women



No No No

State Basketball Centre

6 • Show court

seating: 2900

• Admin offices

• Kiosk

• Meeting rooms

• Function room

• Admin base for

Basketball Victoria

• Rep teams

$15/hr

• Club teams $25/hr

• Community

$35 or $40 (off peak/peak)

• Casual use $2.50


$35 (plus $2.50

door fee)

$60 (no door fee)

Midweek or social comp $50 (no door fee)

$50 ($3.00

door fee)

Managed by Knox Basketball Inc

Owned by Knox City Council, managed by Knox Basketball Inc under

a 10-year license agreement with option to extend

• $600,000 $75K Yrs. 1,2 & 3

$100K Yr 4

Boronia Basketball

Stadium

6 • Show court

seating: 1200

• Kiosk

• Meeting Rooms

• Administration area

Peak and Off Peak $38.50/hr

Casual: $2 p/p

Domestic $2.50

Rep $2.50

$35 $60 Monday-

Thursday

$50 Managed by Knox Basketball Inc

Owned by Knox City Council, managed by

Knox Basketball Inc under lease agreement

•



Spectator/ Door Fee





Mgt


Jnr Snr Rep

Wyndham Eagle Stadium

12 • Show court

seating for 900

• Administration

• Café

• Meeting rooms

• Referee room

• Gym

• Group fitness rooms x 2

• Crèche

• Sports

Association Offices

• Rep teams

$15/hr

• Club teams $25/hr

• Community

$35 or $40 (off peak/peak)


•


$35 (plus $2.50 door

fee)

$60 (no door fee)

Midweek or social comp $50 (no door fee)

$50 ($3.00 door

fee)

Managed Western Leisure

Managed b • Werribee Devils

Basketball

Big V Men

Big V Women Division 2

No No No


Appendix 2 – Victorian Indoor Stadiums Fees and Charges Benchmarking

Facility Name No. of Courts

Court Hire Fees & Charges

Altona Basketball Stadium 4 • Peak $35.00 plus GST p/h

• + Off peak $25.00 plus GST p/h for regular users

• Casual $2.00

Broadmeadows Basketball Stadium 4 • On + Off Peak $65 p/h

• Do not do Casual Shooting as over the road from Broadmeadows Leisure Centre, which caters to this market.

Bundoora Netball and Sports Centre 4 netball courts (3 designed for Basketball)

• Peak $47 incl. GST p/h

• Off peak $37.00 incl. GST p/h

• Casual use - $3.50 p/p (unlimited time)

Caroline Springs Leisure Centre 3 • Off Peak + Peak $34.50

• Casual $2.00

Craigieburn Leisure Centre 5 • Peak $56 p/h

• Off Peak $37.55

• Junior $28

• Casual $2.5 p/p

Dandenong Basketball Stadium 15 Peak + Off peak

• Basketball $36.30 inc GST p/h

• Volleyball $36.30 inc GST p/h

• Beach Volleyball $39.60 plus GST p/h

• Basketball casual use - $5 p/p

Darebin Community Sports Stadium 4 Basketball/ Netball

• Peak $47.50 incl. GST p/h

• Permanent Booking $44.50 incl. GST p/h

• Off peak $36.50 incl. GST p/h

• Casual: $3.50 p/p Volleyball

• Peak $24.50 incl. GST p/h

• Off Peak $19.50 incl. GST p/h Badminton

• Peak $20.50 p/h

• Off Peak $18.00 p/h

• Casual $2.00

Diamond Creek – Community Bank Stadium 3 • Peak $46 p/h

• Off Peak $34 p/h

• Casual $4.00 p/p

Diamond Valley Sports and Fitness Centre 5 + one ¾ sized court

• Competition:

• Peak: $47.30

• Off Peak: $36.30

• Community Booking $27.50

• Casual: $3.70


Facility Name No. of Courts

Court Hire Fees & Charges

Frankston Basketball Stadium 6 • Off Peak + Peak $38 p/h inc GST

• Casual: $3

Kilsyth Sports Centre 6 Peak + Off peak

• Show Court 1 $44.00 plus GST

• Court 2 $33.00 plus GST

• Court 3 & 4 $27.50 plus GST

• Courts 5 & 6 $38.50 plus GST

• Casual use $1.00 p/p

• Doesn’t charge schools or charities

• Currently fully booked during peak times

Knox Basketball Association – Boronia 6 Peak + Off peak

• $33 p/h inc GST

• Casual use $2 p/p

Knox Basketball Association – State Basketball Centre

6 • Rep Teams $15/hr

• Club Teams $25/hr

• Community $35 or $40 (off peak/peak)


The Rings (previously called Maroondah Indoor Sports Centre)

4 • Off Peak $32

• Peak $42

• Casual: Free

Melton Indoor Rec Centre 3 • Off Peak + Peak $33.50

• Casual $2.00 U/18

• $4.00 Adult

Mill Park Basketball Stadium 4 • Peak $30 incl. GST

• Off peak $24 incl. GST

• Casual use $3 p/p

Nunawading Basketball Centre 5 • Peak + Off peak $19 - $29.70 (community groups and charity at the lower end, Rep BB charged $29.70)

• Casual – $2.50 /hr

Mildura Basketball Stadium 4 • Court hire $25/hr


Appendix 3 – MSRSP Indicative Capital Cost Estimates

Not supplied - information considered Commercial in Confidence


Appendix 4 – MSRSP 10 Year Financial Model Assumptions Summary

Information considered Commercial in Confidence has been removed The key operating budget assumptions used for the 10-year operating budget models for MSRSP facility development are listed in the following table.

Operating Assumption Category Key Assumptions

Global Impacts • Year Opening: Assumes year opened is 2020

• CPI Increases: Assumes on average 2.0% years 2 to 10.

• Business Growth: Assumes year 3 is base year at 100% and year 2 is discounted by 2% to 98% of year 3 and year 1 is discounted by 7% to 93% of year 3. Business growth year 4 101%, year 5 101%, year 6 102%, year 7 102%, year 8 103%, year 9 103% and year 10 103%

• Real Price Growth: Assumes 1.0% price increases from year 2 to year 10.

• Alternative Expense Adjustment: Assumes energy costs and maintenance increase by 1.0% annually so slightly higher than annual CPI.

• Annual Salary Increases: Allows for annual increases of 1.2% above CPI (to reflect likely salary increases).

• Expenditure Increases: Assumes annual expenditure increase of C.P.I as indicated.

• Salary On-Costs: Assumes annual on costs on all salaries for superannuation, holiday pay/leave loading and sick leave and set at 25% of all labour costs.

• Pre-Opening Expenses: None included as start-up date not known.

• Asset management and Replacement Allowances: No allowances for asset management and renewals in the 10 year operating budgets at this early stage of schematic design as final design and plant and equipment not known.

Centre Management and Staffing Assumes either in-house or contract management model could be set up as an integrated centre management and staffing team with the following senior management mod: 1. Centre Manager 2. Operations & Plant Manager

Centre daily operations are based on fully staffed centre from 3pm to 11pm Monday to Friday and 9am to 11pm Saturday and 8am to 9pm Sunday for 48 weeks of the year. Indoor facility management is through duty supervisors employed on a staff roster during these days and times. All event staff are based on event hire requirements and linked to bookings as are class and program staff. Based on these assumptions the staffing allowances in the base case business plan calculates to equivalent full time (EFT) positions and includes in the established business year (Year 3) 10.0 EFT positions.

Stadium Court Hire Charge Out Assumptions

OPG have adopted a conservative business approach and have assumed in the base model that all stadium weekday use is hired out to associations or clubs or teams on an hourly basis for either a peak time hour rate at $35/court/hour and an off-peak hire rate of $25/court/hour.



Alternative option modelling for charges could include centre management operating some sport competitions and charge per player fees and paying for referee and game costs administration. We have not used this model as in Mildura at the stage all sports associations operate their own competitions.

Sports Court Usage Assumptions The stadium usage has been divided up into 2 main seasons being winter (21 weeks) and summer (21) weeks. The model also has a holiday period of 10 weeks. Sports court usage has been allocated by identified/requested sport court usage and sport participant registered users for the main user activities being for year 1:

• Volleyball – Average 13 court hours’ week winter and 15 hours’ week summer

• Irymple Basketball - Average 28 court hours’ week winter and summer

• Badminton – Average 8 court hours a week winter and summer

• Table Tennis – Average 5 court hours a week winter and summer

• Netball – Average 20 courts hours a week winter and 12 courts a week summer

• Basketball – Average 167 court hours a week winter and 126 court hours a week summer

• Regional Team use i.e. Mildura Heat – Average 15 court hours a week winter The model assumptions cover the estimated court hours per week for each activity hires the courts, how many weeks per season and users per hour and cost of hire per hour per court. The key assumptions are detailed in the indoor stadium section by winter or summary schedule.

Sports Court Staffing Staffing to administer court usage is by court supervisor staff positions and cleaners that maintain the courts. Average staffing allowances per season at 1.5 EFT court supervisors per week (covering 56 hours of supervision per week) during the 42 weeks of competition.

Average Sports Courts Operating Costs per Winter and Summer Season

Benchmarking operating expenditure has been used to project likely court use operating costs including:

• Power costs per court - $6,000/year

• Cleaning costs per m2 - $4.00

• Maintenance costs m2 - $9.00

• Allowances for other costs $24,000

Events Demand, Revenue and Expenditure Assumptions

All sports associations have projected event use of the indoor sports courts and the model assumes:

• Mildura Heat – 10 home games with 1,300 spectators and a $4.00 ticket fee commission/visit.

• Annual BB Tristate Tournament – 3 days @ $1,200 hire a day and $4.00 ticket commission/visit

• Pre-season Sports Event – 3 days/year @ $2,000/day and a $5.00 ticket commission/visit.

• Exhibitions and Displays – 6 days/year @ $2,500/day and a $4.00 ticket commission/visit

• Annual tournaments and events – 10 days/year @ average $900/day and a $2.00 ticket commission/visit

• Events staff assumed at 0.7EFT based on days programed for events.

Squash Court Usage and Charges The financial model assumes main usage in year 1 based on previous Irymple Recreation Centre bookings are:

• Men’s Pennant 32 court hours/week

• Woman’s Pennant 4 court hours /week

• Junior Pennant 12 court hours/week



• Permanent Booking 20 court hours /week

• Casual Hire 52 court hours a week Charges are based on court hire per hour for peak hours at $25/court/hour and $20/court/hour for off peak.

Squash Court Operating Costs Main operating costs assumptions are:

• Power - $1,000/court

• Cleaning m2 - $4.00

• Operating cost allowances – $10,500.

Squash Events Assumes 6 days of squash events/year @ $500/day and no ticket commission fees.

Sport Field 1 Charges are based on MRCC seasonal ground hire and set at average of $2,800/season for winter oval use and $500 for change rooms and kiosk use. Summer cricket use does not have a ground use fee but payment of $200 for change rooms. Model allows for 3 days of major events/year on this area – i.e. preseason AFL or Cricket game etc. Ground maintenance charges are based on an estimated cost of $25,000/playing field by MRCC Maintenance Crews.

Sport Field 2 Charges are based on MRCC seasonal ground hire and set at average of $2,800/season for winter oval use and $500 for change rooms and kiosk use. Summer cricket use does not have a ground use fee but payment of $200 for change rooms. Model allows for 3 days of major events/year on this area – i.e. preseason AFL or Cricket game etc. Ground maintenance charges are based on an estimated cost of $25,000/playing field by MRCC Maintenance Crews.

Function and Meeting Rooms Model has been set up for direct programming of the four function and meeting spaces by centre management for health and fitness and community programs with all instructors costed to the program. The model also operates hire of spaces for:

• Function 2 for seasonal use by sports clubs for home games and 3 fundraisers based on winter use at $4,000/season and summer use at $1,000/season.

• Function hire at community and commercial rates at approximately 20 hire hours/week.

Food, Beverage and Merchandising Assumptions Food, Beverage and Merchandising Assumptions

The model uses a per visit spend for food and beverage and merchandising based on CERM averages for similar centres. Merchandising sales penetration has also been set at the higher level due to the shared foyer area and all centre users going through the retail and merchandising areas set up in the foyer. Inputs to the modelling include:

• Food and beverage sales penetration set at 70% of visits with an average spend of $1.50 and margin for staffing, product and services costs set at 70% of this spend so profit after costs set at 30% of sales.

• Merchandising sales penetration set at 50% of visits with an average spend of $2.00 and margin for staffing, product and services costs set at 75% of this spend so profit after costs set at 25% of sales

Rentals and Leases Model allows for lease of the Regional Sports office of 200m2 @ $150m2 and 2 sports offices (20m2 each) leased at $225m2. Model also allows for lease legal and administration costs. All tenants would pay own services and outgoing costs i.e. power, cleaning, insurances etc.



Centre Management The financial model allows for all staff costs related to a specific activity area to be allocated to that area (i.e. Stadium Duty Officers allocated to the indoor stadium etc.). Centre management costs (managers, receptionists, operations and cleaning staff) are accounted for in this area and their costs are shared across the facility areas by apportionment by percentage of floor area and business levels (i.e. income and visits generated). General circulation and public access area services and maintenance are also allowed for in this activity area and shown in the financial model as undistributed overheads

Cost of Development – Extra annual costs not showing in the 10 year operational models

All assumptions listed above relate to the annual operating projections. To assist Council with also identifying the costs of funding the facility and meeting annual renewals and depreciation the following allowances are made based on MRCC advice: Depreciation

• Buildings and sports lighting – 40 years

• Car parks – 50 years

• Ovals/green space – N/A

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