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Triangle Site Development

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					Triangle Site Development
 Economic and Community Impact Assessment
                City of Port Phillip   January 2008
             This Report has been prepared for:




                  This report has been prepared by:
         SGS Economics and Planning Pty. Ltd.
                                     ACN 007 437 729
                        5th Floor, 171 Latrobe Street,
                             Melbourne Victoria 3000
                           phone:     61 3 8616 0331
                              fax:    61 3 8616 0332
                        email: sgsvic@sgsep.com.au
                            web: www.sgsep.com.au



Offices in Melbourne, Sydney, Brisbane, Hobart, Canberra
                                                                                    Table of Contents


Executive Summary ................................................................... 1


1     Introduction ....................................................................... 5

1.1   Background .............................................................................................................. 5
1.2   Terms of Reference ................................................................................................... 5
1.3   Outline of the Report ................................................................................................. 6


2     A ct iv ity C en tre Con te xt for the T r iang le S ite Dev elopme nt ....... 8

2.1   Overview of the Triangle Site Development ................................................................... 8
      2.1.1       Development Scale ....................................................................................... 8
      2.1.2       Tenancy Mix Strategy ................................................................................. 10
2.2   Policy Context......................................................................................................... 12
      2.2.1       Designations of Activity Centres in Port Phillip................................................. 12
      2.2.2       Principles for Managing Development of Activity Centres in Port Phillip ............... 14
2.3   The Local Function of the St Kilda ‘Cluster of Centres’ ................................................... 18
      2.3.1       Local Community Profile .............................................................................. 18
      2.3.2       Acland Street Component of the St Kilda Major Activity Centre.......................... 19
      2.3.3       Fitzroy Street Component of the St Kilda Major Activity Centre.......................... 22
      2.3.4       Balaclava (Carlisle Street) Major Activity Centre.............................................. 27
2.4   Metropolitan Role of the St Kilda ‘Cluster of Centres’ .................................................... 32
      2.4.1       Context..................................................................................................... 32
      2.4.2       Metropolitan Role by Market Segment ........................................................... 32


3     Impact on Trading Levels .................................................... 37

3.1   Available Retail Expenditure...................................................................................... 37
3.2   The Port Phillip Region in the Retail Hierarchy.............................................................. 40
3.3   Destinations of Expenditure and Turnover ................................................................... 41
3.4   Retail Impact Assessment......................................................................................... 43
      3.4.1       Scenario Definition ..................................................................................... 44
      3.4.2       Scenario 1 – Extension of the Acland Centre................................................... 44
      3.4.3       Scenario 2 – Competitor of the Acland Centre................................................. 46
      3.4.4       Summary of Findings .................................................................................. 47


4     Community Impact Assessment ............................................ 48

4.1   Social Cost Benefit Analysis – Triple Bottom Line Assessment ........................................ 48
4.2   Impacts Matrix........................................................................................................ 49
4.3   Valuation of Impacts................................................................................................ 54
      4.3.1       Enhanced International / Interstate Tourism Expenditure ................................. 54
      4.3.2       Travel Efficiency and Sustainability ............................................................... 54
      4.3.3       Heritage Value Preserved............................................................................. 55
      4.3.4       Stimulus to Music Industry via Expanded Entertainment................................... 55
      4.3.5       Improved Opportunities for People with Lower Employment Prospects................ 56



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        4.3.6       Changing Culture of St Kilda ........................................................................ 56
        4.3.7       Loss of Amenity Due to Construction ............................................................. 59
        4.3.8       Crime and Safety ....................................................................................... 59
4.4     Findings................................................................................................................. 60


5       Strategies to Improve Ne t Community Be nefit ....................... 63

5.1     Synergies between the Triangle Site Development and Local Centres .............................. 63
5.2     Improving Integration of St Kilda Triangle Site with the Existing St Kilda Context ............. 63
        5.2.1       Permeability of the Site ............................................................................... 65
        5.2.2       Car Parking Provision and Configuration......................................................... 66
        5.2.3       Integration of Proposed Development with Tramways ...................................... 67
        5.2.4       Managing the St Kilda Cluster as an Identifiable Coherent Entity ....................... 69
5.3     Mitigating Nuisance Effects from the Night Economy and Loss of Cultural Value ................ 71
        5.3.1       Crime and Anti Social Behaviour ................................................................... 71
        5.3.2       Reinforcement of Cultural Value.................................................................... 72


6       Conclusion ......................................................................... 73


Appendix A: Soci o Economic Profile of St Kilda Residents ............... i

        Population ............................................................................................................... iii
        Age Structure .......................................................................................................... iii
        Household Size ........................................................................................................ iv
        Household and Dwelling Type..................................................................................... vi
        Dwelling Structure....................................................................................................vii
        Household Tenure .................................................................................................... ix
        Income       ................................................................................................................. x
        Educational Attainment .............................................................................................xii
        Occupation .............................................................................................................xiv
        Language and Ethnicity .............................................................................................xv
        Measure of Inequality - Lorenz Curve ........................................................................ xvii
        Homelessness in St Kilda........................................................................................ xviii


Appendix B: Additional Me thodological Detail ............................. xix

St Kilda Tourism ..............................................................................................................xix
People with Lower Employment Prospects.............................................................................xx



Tables
Table 1       Notional Development Summary ........................................................................... 9
Table 2       Notional Floor Area Breakdown (following proposed amendments) ............................. 9
Table 3       Land Use Expressed as a Percentage of Total Built Form ......................................... 10
Table 4       Breakdown of Food & Drink and Entertainment venue areas .................................... 10
Table 5       Breakdown of Businesses/Shops by Category* ...................................................... 11
Table 6       Main Users by Category Type.............................................................................. 12



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Table 7      Carlisle Street Floorspace Breakdown (ABS, 2001)................................................. 29
Table 8      Retail Commodity by ANZSIC Category ................................................................ 38
Table 9      National Retail Expenditure Per Capita (2006$) ..................................................... 38
Table 10     Port Phillip Household Retail Expenditure Variation by Income (2003-2004 $) ............ 38
Table 11     Retail Expenditure – 2006 .................................................................................. 39
Table 12     Projected Retail Expenditure – 2011 (2006 $) ....................................................... 39
Table 13     Projected Retail Expenditure – 2016 (2006 $) ....................................................... 40
Table 14     Retail Turnover 2006......................................................................................... 40
Table 15     Major Expenditure Destinations for Port Phillip Residents (2006 $) ........................... 41
Table 16     Major Retail Turnover Sources for Retailers within Port Phillip (2006 $)..................... 42
Table 17     Net Escape Expenditure – 2006 .......................................................................... 43
Table 18     Retail Turnover Densities Applied in the Analysis (2006 $) ...................................... 43
Table 19     Projected 2011 Retail Turnover – Current Activity Centres ...................................... 45
Table 20     Projected 2016 Retail Turnover – with Triangle Site Development ............................ 45
Table 21     Percentage Impact – 2016 with Triangle Site Development vs 2011 No Development . 45
Table 22     Projected 2016 Retail Turnover –Triangle Site Development .................................... 46
Table 23     Percentage Impact – 2016 with Triangle Site Development vs 2011 No Development . 46
Table 24     Matrix of Impacts.............................................................................................. 50
Table 25     User description of St Kilda ................................................................................ 57
Table 26     Users of St Kilda Suggested Improvements........................................................... 58
Table 27     Summary of Costs and Benefits .......................................................................... 61
Table 28     Section of Community Most Affected.................................................................... 62
Table 28     Population Projections – St Kilda SLA .................................................................... iii
Table 29     Household and Dwelling Type – St Kilda SLA.......................................................... vi
Table 30     Household and Dwelling Type – Melbourne SD .......................................................vii
Table 31     Language Spoken at Home – St Kilda SLA ............................................................xvi
Table 32     Language Spoken at Home – Melbourne SD ..........................................................xvi
Table 33     Ancestry – St Kilda SLA .....................................................................................xvi
Table 34     Ancestry – Melbourne SD .................................................................................. xvii


Figures
Figure 1     Activity Centres within Environs of St Kilda Triangle Project .................................... 13
Figure 2     Acland Street Precinct Commercial Area ............................................................... 20
Figure 3     Fitzroy Street Commercial Area........................................................................... 23
Figure 4     Carlisle Street Commercial Area .......................................................................... 27
Figure 5     National Retail Spending per Capita ..................................................................... 37
Figure 6     Retail Turnover by Area within Port Phillip – 2006 .................................................. 41
Figure 7     Net Capture / Escape Expenditure by Commodity Group – 2006 .............................. 42
Figure 8     Cost Benefit Analysis Method .............................................................................. 49
Figure 9     St Kilda SLA ....................................................................................................... ii
Figure 10 Total Population – St Kilda .................................................................................. iii
Figure 11 Age Structure – St Kilda SLA and Melbourne SD ..................................................... iv
Figure 12 Household Size – St Kilda SLA .............................................................................. v
Figure 13 Household Size – St Kilda SLA and Melbourne SD .................................................... v
Figure 14 Household and Dwelling Type – St Kilda SLA.......................................................... vi
Figure 15 Household and Dwelling Type – Melbourne SD .......................................................vii
Figure 16 Dwelling Structure – St Kilda SLA ........................................................................ viii



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Figure 17 Dwelling Structure – Melbourne SD ..................................................................... viii
Figure 18 Tenure of Households – St Kilda SLA .................................................................... ix
Figure 19 Tenure of Households – St Kilda SLA and Melbourne SD ........................................... x
Figure 20 Household Income – St Kilda SLA and Melbourne SD................................................ x
Figure 21 Individual Weekly Income – St Kilda SLA and Melbourne SD .................................... xi
Figure 22 Highest Year of School Completed (residents over 20 years) – St Kilda SLA and
            Melbourne SD ...................................................................................................xii
Figure 23 Non-School Qualifications – St Kilda SLA and Melbourne SD .................................... xiii
Figure 24 Occupation – St Kilda SLA and Melbourne SD........................................................xiv
Figure 25 Proficiency in English – St Kilda SLA and Melbourne SD ...........................................xv
Figure 26 Lorenz Curve – St Kilda SLA and Melbourne SD .................................................... xvii




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                             City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




Executive Summary

The St Kilda Triangle site development proposal features over 24,000 sq metres of retail floorspace
including a full line supermarket of approximately 3,500 sq metres and some 150 specialty shops.
In addition, the development is planned to accommodate a range of services, entertainment uses
and public space.


The Triangle site development provides the opportunity for the City of Port Phillip to have its only
Principal Activity Centre, and a credible one at that. That is more than a designation change within
Melbourne 2030 but a higher order performance for the St Kilda Activity Centre.


There are two possible scenarios of how the Triangle site development will interact with the
existing retail areas:
    •   Scenario 1: The Triangle site is developed in such a way that it provides a link between
        the existing Acland Street and Fitzroy Street retail areas. That is, the different retail areas
        combine into one centre and actively complement each other.
    •   Scenario 2: The Triangle site is developed and operated in isolation from the existing
        Acland Street and Fitzroy Street retail areas. That is, the different retail areas are direct
        competitors.


If the different retail areas become competitors, the Triangle site development is likely to win such
a competition by virtue of the newness and greater efficiency of its real estate and its sophisticated
management. Acland Street would be the existing retail area that would be the most adversely
impacted as a result of this competition.


If the three centres are well integrated to work as a functional unit, there would be some very
minor impact on the fashion outlets in both Carlisle and Fitzroy Streets, when compared to the
turnover achieved at present time. However, all centres would achieve an overall positive growth
into the future.


There are a number of tangible actions which can be undertaken to ensure that Scenario 1 is the
most likely outcome. The primary integration element is the Fitzroy Street, Upper Esplanade and
Acland Street road corridors. The efficiency and quality of the linear circuit from the north end of
Fitzroy Street to the south end of Acland Street is crucial in the creation of a visible, united entity.


Particular qualitative criteria are identified for the council to consider in evaluating the success of
the proposal’s integration with the wider St Kilda area as well as recommendations on
infrastructure and management issues that may further contribute to its integration. These aspects
include permeability of the site; car parking provision and configuration; integration with public
transport infrastructure; and the quality of public space provision, amenity and activation.


The pedestrian connection throughout the area is especially important. In particular, creating a
stimulating and inviting environment for pedestrians along the whole length of the linear circuit will
be imperative in encouraging users to view and make use of the area as one centre rather than




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three separate locations. In addition, ease of access for bicycles, and improvements to tram/ light
rail connections will also be very important.


Some of the potential adverse impacts on Acland Street in Scenario 2 could be mitigated if the mix
of retailing in the different areas was encouraged to be highly complementary. For example, there
was an increase in focus on household goods (as found in department stores, discount department
stores, and other shops specialising in homewares) within the retail mix of Acland Street.


These types of actions will be a major factor in mitigating possible negative effects on local retail
turnover. In addition, resources should be allocated to managing Acland Street and Fitzroy Street.
Corporate shopping centres get their greatest competitive edge over traditional activity centres by
their ability to recruit a mix of businesses that customers want and by placing them to complement
each other.


Because of the diverse ownership of traditional activity centres there are difficulties in obtaining
consensus within activity centres. However, following a trend in the UK and USA, it is increasingly
common in Melbourne for managers to be appointed for activity centres.


Fortuitously, the City of Port Phillip is at the forefront of this trend and it has had such a
management program for some years. However, additional resources will be required for the new
task of managing an enlarged Principal Activity Centre.


The analysis of the proposed tenancy mix of the Triangle site development suggests that the offer
on this site is generally consistent with emergent needs in the local catchment and broadly reflects
preferences commonly associated with the young, higher income and mobile demography of the
district. The proponents have identified a number of key gaps in the local retail offer, which when
filled by the Triangle site traders, can be expected to be well received and transmit into healthy
sales volumes. This includes a significant improvement in fresh food outlets.


If the retailing and entertainment market does grow, and that would be in hope and expectation
with the additional shopping and entertainment opportunities, it means that the people living and
working in the existing St Kilda trade area will have more and better opportunities to have their
needs met locally. However, they will have to share that improved quality of lifestyle with a
greater number of people; some people may see this as a negative outcome of the development.


A development such as that proposed for the Triangle site can produce a range of costs and
benefits for the community. Using social cost benefit analysis an assessment can be made whether
the community will be better off as a result of the Triangle site development.


St Kilda provides a unique experience not just for the local residents but for users from overseas,
interstate and country Victoria as well as Greater Melbourne. With this fact in mind, the community
for the social cost benefit analysis has been defined as the whole of Victoria.




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                                City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




There are many impacts which have been considered as part of the social cost benefit analysis.
These include:
    •      Travel congestion, efficiency and sustainability.
    •      Enhanced international / interstate tourism.

    •      Stimulus to music industry.
    •      Heritage value preserved.
    •      Improved employment opportunities for people with lower employment prospects.

    •      Change of culture of St Kilda.
    •      Loss of amenity due to construction.
    •      Crime & safety.

    •      Food security.

    •      Public open space.


After accounting for transfer effects (which ‘transfer’ costs and benefits between individuals in
society as they produce no net change in welfare) the Triangle site development has a positive net
community benefit.


The Triangle site development has a Benefit Cost Ratio of 5.05:1 and Net Present Value (NPV) of
$41.1 million (excluding privately traded costs and revenues). Even under a lower set of
assumptions the Benefit Cost Ratio is high at 2.31:1.


The majority of the benefits are due to increased tourism expenditure and travel cost saving. With
the major cost being the loss of amenity of St Kilda beach during the construction phase of the
project.


By definition, any project that has a positive NPV produces a Net Community Benefit, that is, an
improvement, on balance, in the welfare of Victorians.


It is possible to provide some indication of which parts of the community the costs and benefits
may fall. The bulk of the benefits resulting from the Triangle site development are likely to be
attributed to the Melbourne or Victorian community.


Meanwhile, a significant proportion of the costs are likely to be borne by the residents of St Kilda
living within a short distance to the Triangle site development.


There are a number of steps which can be undertaken to minimise the impact of the costs on the
residents living within a short distance to the Triangle site development. Taking steps to encourage
the integration of Triangle site development into the local community will be important. For
example, ensuring the Palais Theatre is available for regular St Kilda community events and the
best use is made of the Triangle site development public spaces for existing community events.


A successful range of these types of activities will help expose the St Kilda community to the
Triangle site development outside of its primary retail function.




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                            City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




Ensuring effective management of the entertainment venues will ensure that the potential for an
increase in crime and anti-social behaviour is limited. The entertainment venues within the Triangle
site will be at relatively large distances from the nearest residential dwellings when compared to
some existing venues. This will assist in the mitigation of noise and other residential amenity
impacts. A concentration of venues can be beneficial as it can provide an integrated approach to
dealing with anti-social behaviour. These types of actions will be a major factor in mitigating
possible negative effects on the local St Kilda area.


In all of this, the primary focus has been on the St Kilda components but there is also a potential
to include Carlisle Street, Balaclava within the pedestrian, bicycle, tram circuit to create a seamless
economic activity centre. Not only would such an emphasis be user friendly but it would also be
environmentally advantageous.


Thereafter, or in anticipation of it, it is important to ensure that all development, new and old,
contribute to the vitality and viability of that defined pedestrian, bicycle and tram circuit. This can
be done by providing a defining street frontage or at least by providing permeability from the
boulevard to and through the supporting developments.


The Triangle site development can and does contribute positively but some changes in both the
proposed development, effective management of the area surrounding the site and the Upper
Esplanade infrastructure needs to be made to fully capitalise on this potential.




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                               City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




1            Introduction


1.1          Background
The St Kilda Triangle site development proposal features over 24,000 sq metres of retail floorspace
including a full line supermarket of approximately 3,500 sq metres and some 150 specialty shops.
In addition, the development is planned to accommodate a range of entertainment and service
uses.


This retail mix has been generated through an extended bid process which, amongst other things,
required the regeneration of the triangle site, including the Palais Theatre and public open spaces,
to be entirely self funding. Council has entered into a contractual arrangement with a preferred
developer on this basis.


Council has conducted a statutory planning process following the bid process for development
rights on the Triangle Site.


On Thursday December 13, 2007, the City of Port Phillip Council considered a statutory planning
report on the Triangle site development. While much of the development was supported with
conditions, the decision was deferred pending two further pieces of information, one of which was…


        …”The results of the economic impact assessment with this information used primarily to
        guide the mix of the tenancy development”



1.2          Terms of Reference
Against this background, the City of Port Phillip commissioned SGS Economics and Planning Pty Ltd
(SGS) to..


    •   “assess the economic impact of the extent and composition of retailing proposed for the
        Triangle Site Development on the Acland, Fitzroy and Carlisle Street shopping precincts,
        and make recommendations which maximise the potential for future economic viability of
        each of the centres;
    •   consider the major social impacts associated with the Triangle Site proposal in the context
        of appraising the extent to which it generates a Net Community Benefit”.


Specifically, SGS was required to carry out the following tasks:


    •   “Review the existing retail composition and trading patterns of the Acland, Fitzroy and
        Carlisle Street retail strips - including consideration of trade catchments (local, regional),
        current trading levels (retail turnover density or similar measure), level of escape
        expenditure and projections for growth in retail demand.




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                            City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




    •   Review the extent and composition of new retail floorspace proposed within the 'St Kilda
        Triangle Site' Development proposal.
    •   Estimate the trading impact of the proposed new retail floorspace at the St Kilda Triangle
        Site on the Acland, Fitzroy and Carlisle Street centres.
    •   Advise whether the level of impact is likely to be significant based on current trading levels
        and predicted future retail demand (overall and by reference to specific retail segments
        e.g. supermarket / clothing).
    •   Advise on the impact on the growth / restructure potential for each of these centres, with
        the view to meeting future shopper / market expectations.
    •   Appraise the overall Net Community Benefit likely to arise from the Triangle Site
        Development as currently proposed.
    •   Advise on how the Net Community Benefit outcome from the Triangle Site development
        might be improved through:
            o   measures to promote retail complementarity with the Acland, Fitzroy and Carlisle
                Street centres; and/or
            o   development management initiatives to mitigate any other negative externalities
                which might attend the project and its operations.
    •   Prepare a report setting out conclusions and recommendations.”


At a minimum, the report generated by SGS was expected to address the following questions:


    •   “What is the optimum business / tenancy mix for the Triangle Site (within contract scope)
        which maximises opportunities for the Acland, Fitzroy and Carlisle Street shopping
        precincts.
    •   How should the three precincts position themselves to respond to / capitalise on the
        Triangle Site Development’s entry to the market?
    •   How could Council most effectively assist the Acland, Fitzroy and Carlisle Street shopping
        precincts to withstand / capitalise on the new market entry?”



1.3         Outline of the Report
The substantive report commences in Section 2 with a description of the Triangle site development
within its broader activity centre context. This discussion has three facets. The first recaps on the
policy base for dealing with change and development in Port Phillip’s activity centres. This covers
reference to officially adopted policies, such as Melbourne 2030, and a range of other planning
principles which SGS has previously advocated to Council. The discussion then moves on to
explore the trading performance and strengths and weaknesses of the Acland Street, Fitzroy Street
and Carlisle Street activity centres under current conditions (that is, without the Triangle site
development), with particular reference to their local services role. The last component of this
Section outlines the higher order role of this cluster of centres, being the entertainment, hospitality
and retailing services provided to the wider Melbourne community and tourists.


Having qualitatively appraised the roles and functions of these centres, Section 3 provides a
quantitative analysis of how the Triangle site development, as currently configured, might impact
on their trading levels. This assessment is undertaken using a gravity modelling approach. It
takes into account a range of factors including anticipated growth in retail spending within the



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                            City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




catchments of these centres; standard assumptions regarding the turnover levels per square metre
required to sustain viable investment in retail premises; the relative size, diversity and quality of
the retail offer amongst the centres competing for the available pool of spending; and travel
distances to the various shopping options from different parts of the relevant catchments. The
outputs of this desk top modelling analysis are interpreted in the context of the qualitative
appraisal of trading performance provided earlier, to arrive at a finding regarding the capacity of
the wider catchment in question to sustain the Triangle site development without long term
detriment to existing centres, in terms of vacancies, foot-traffic and loss of on street vibrancy.


Section 4 extends the appraisal of impacts to consider a range of other community benefits and
dis-benefits. This is undertaken within the framework of ‘social cost/benefit analysis’ or ‘triple
bottom line impact assessment’ as it is sometimes called. As far as possible, this analysis
quantifies the various impacts in dollar terms, to provide a clearer picture of the extent to which
the value of benefits might exceed the value of negative effects. This type of analysis requires the
establishment of a Base Case, that is, the situation which might have unfolded in the absence of
the development in question. In this report the Base Case assumes that retail sales would
continue to be spatially distributed as now, and that the entertainment and tourism uses on the
Triangle site would continue indefinitely as per their floorspace configuration pre the destruction by
fire of the Palace Nightclub.


Social, environmental and economic costs and benefits are identified and measured against this
Base Case. Amongst the costs are (potentially) blighting of competing retail precincts; increased
traffic congestion; additional nuisance from a larger scale and more concentrated night club
precinct (i.e. crime, amenity, noise etc); loss of views and vistas; and anticipated loss of cultural
values through intensification of commercial uses on what is regarded by many as public foreshore
land. Amongst the potential benefits are greater travel efficiency through the reduction of retail
escape expenditure; enhanced international and interstate tourism flows; stimulation /
reinforcement of the local music industry by providing more venues; an expanded
retail/entertainment/hospitality offer for residents of Port Phillip and the wider metropolitan area;
improved food security for local residents; and improved training and employment opportunities for
locals.


Having appraised the Net Community Benefit of the Triangle site development under its existing
configuration, Section 5 considers how the identified negative impacts might be mitigated while the
anticipated positive impacts are enhanced. This addresses whether tenancy/floorspace mix
strategies might be possible to improve complementarity with surrounding retail precincts. It also
covers design initiatives to improve integration of the Triangle site development in the wider
activity centre, as well as a range of measures to contain negative externalities associated with the
night economy.


SGS’s main findings are synthesised in Section 6.




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2           Activity Centre Context for the Triangle Site
            Development


2.1         Overview of the Triangle Site Development


2.1.1       Development Scale

The Triangle site development as proposed to the Statutory Planning Committee (City of Port
Phillip, 13 December 2007) by the applicant is as follows:


    •   $20 million refurbishment of the Palais Theatre including new ‘back of house’ facilities;
    •   15,000 square metres of public areas including pedestrian lanes, an urban square, ‘The
        Rambles’, grass slopes and pathways;
    •   Public event spaces (The Palais Forecourt and Catani Steps);
    •   A new St Kilda Centre for Contemporary Arts (Linden II);
    •   William Angliss Institute of TAFE – Port Phillip Academy for hospitality training;
    •   A boutique hotel of approximately 90 rooms;
    •   A Vertical Garden by the Bay;
    •   Eating and drinking spaces, including a tavern;
    •   A range of entertainment spaces, including live music venues and cinema complex;
    •   Wrought iron lacework public art;
    •   A special events calendar to integrate the community and the development;
    •   Up to 1,200 car parking spaces;
    •   181 tenancies including retail outlets comprising 50% independents, a maximum of 20%
        national chains and a fresh food market;
    •   Basement supermarket; and
    •   Fitness centre.


Table 1 to Table 4 give further details about the size and characteristics of the proposal.




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                             City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




Table 1           Notional Development Summary

                                       Proposed
                                       size (at 13
 Use                                   Dec 2007)             Agreed size
 Tavern/Pub                            1,500 patrons         900 patrons
 Cafés                                 540 seats             540 seats
 Restaurants                           1,800 seats           1,800 seats
 Retail                                24,748 sq.m.          24,748 sq.m.
 Hotel                                 91 rooms              91 rooms
 Gymnasium                             2,000 sq.m.           2,000 sq.m.
 Nightclub/Live Music Venue            4,640 patrons         4000 patrons
 Cinemas                               600 seats             600 seats
 Community Use                         240 patrons           240 patrons
Source: Agenda – Statutory Planning Committee (December 2007); City of Port Phillip




Table 2           Notional Floor Area Breakdown (following proposed amendments)

                                                      Approx size
 Use
                                                         (sq.m.)
 Live Music Venues & Nightclubs                                4,000
 Cinema                                                        2,500
 St Kilda Common (pub)                                           900
 Restaurants and Cafes                                         6,100
 Food Majors & Supermarket                                     5,000
 Gymnasium                                                     2,000
 Book Retailing                                                1,500
 Recorded Music                                                1,500
 Design & Gift Retail                                          2,000
 Sport/Leisure/Wellbeing                                       3,500
 Fashion Retailing                                             7,500
 Fresh Food & Convenience                                      3,000
 Palais Theatre                                                5,000
 Boutique Hotel                                                6,600
 Community                                                       800
 Public Open Space                                           16,600
 Private Open Space / Terraces                                 7,700
 Back of House / Plant / Fire Escapes                          6,000
 Car Parking                                                 33,000
Source: Agenda – Statutory Planning Committee (December 2007)




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                            City of Port Phillip / Triangle Development – Economic and Community Impact Assessment




Table 3         Land Use Expressed as a Percentage of Total Built Form

 Land Use Approx. % of total constructed area
 (115,100 m2)

 Cars and Back of House                                  35%
 Shops and Gymnasium                                     20%
 Public Open Space, Community Facilities,                25%
 Walkways and pedestrian areas                             NA
 Food & Drink and Entertainment Venues                   15%
 Hotel                                                     5%
 Total                                                 100%
Source: Agenda – Statutory Planning Committee (December 2007)




Table 4         Breakdown of Food & Drink and Entertainment venue areas

                                                    Approx.
 Food and Drink Premises breakdown                    %
 Nightclubs/Live Music Venues                         35%
 Palais                                               25%
 Cafes/Restaurants                                    20%
 Tavern/Hotel                                         15%
 Cinema                                                5%
 Total                                               100%
Source: Agenda – Statutory Planning Committee (December 2007)




2.1.2       Tenancy Mix Strategy

According to proponent statements, the tenancy mix strategy of the Triangle site development is
aimed at providing a strong food based centre to serve the local population. This is supplemented
by a range of retail and hospitality uses to serve a wider regional and tourism catchment. The
development is designed with St Kilda’s established character in mind, including its reputation as a
destination for all Melbournians.


A breakdown by floor area of shops and businesses on the Triangle site development, and their
percentage of total shops and businesses, is provided in Table 5. This table indicates that a large
proportion of floor space is dedicated to fashion (17.5%), entertainment (13.7%) and sports and
leisure (10.4%) uses. The combination of fresh food and convenience (6.9%) and supermarket
(7.4%) totals comes in second in percentage terms (14.3%), thus still constituting a significant
portion of the tenant mix. The findings illustrate the strong presence of food at the Centre, as per
tenancy mix objectives.




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Table 5           Breakdown of Businesses/Shops by Category*

                                              Floor Area                   %
 Categories
                                                   (sqm)
 Casual Eating - Total                               1,180                 2.7
 Cinema - Total                                      2,444                 5.7
 Community - Total                                   1,108                 2.6
 Design & Gift Wares - Total                         1,935                 4.5
 Entertainment - Total                               5,898              13.7
 Fashion - Total                                     7,566              17.5
 Fresh Food & Convenience - Total                    2,984                 6.9
 Health & Lifestyle - Total                          3,683                 8.5
 Hotel (excl. rooms)*                                1,450                 3.4
 Palais*                                             3,000                 7.0
 Restaurants & Cafes - Total                         3,847                 8.9
 Services - Total                                       332                0.8
 Sports & Leisure - Total                            4,485              10.4
 Storage - Total                                     35.00                 0.1
 Supermarket - Total                                 3,175                 7.4
 Total                                            43,122                100
Source: Citta Property Group 2007
* Total floor area differs to that found in the figures provided for the Statutory Planning Committee as figures
at that stage were based on estimates. Additionally, business/shop floor area does not include parts of the
Palais and the hotel.


It is also important to note that there is provision for an adventure playground and a 10-pin
bowling alley in the development to cater for a family / youth demographic.




Table 6 has been developed by SGS to illustrate the main users of particular offerings in the
development. While each activity category and commodity type may be used by all visitor types,
this matrix is intended to provide a sense of the primary markets for the facilities provided.


Broadly speaking, this analysis suggests that local and regional (metropolitan) users will be the
principal targets for, and beneficiaries of, the development.



Table 6           Main Users by Category Type

                                                              Main Users
 Category                                       Local          Regional          Tourist
 Casual Eating                                    x                x               x
 Cinema                                           x                x
 Community                                        x
 Design & Gift Wares                              x               x
 Entertainment                                    x               x                x
 Fashion                                          x               x                x



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 Fresh Food & Convenience                       x
 Health & Lifestyle                             x              x
     - Gymnasium                                x
 Hotel                                                                        x
 Palais                                         x              x              x
 Restaurants & Cafes                            x              x              x
 Services                                       x              x
 Sports & Leisure                               x              x              x
 Storage                                        x
 Supermarket                                    x




2.2         Policy Context


2.2.1       Designations of Activity Centres in Port Phillip

The City of Port Phillip does not have a Principal Activity Centre designated under the State
Government’s Melbourne 2030 Strategic Plan. However, it does have four (4) designated Major
Activity Centres (MAC’s) as follows:
    •   Balaclava (Carlisle Street area)
    •   St Kilda (Fitzroy Street and Acland Street areas)
    •   South Melbourne (Clarendon Street area)
    •   Port Melbourne (Bay Street area)


The St Kilda Triangle site development is likely to impact most on Balaclava and St Kilda with little
impact on South Melbourne or Port Melbourne.


The ‘St Kilda’ designation in Melbourne 2030 includes two distinct components: Fitzroy Street and
Acland Street as a single entity even though the City of Port Philip recognises these as two distinct
destinations. It is surprising that St Kilda (both of its components combined) is not designated as
a Principal Activity Centre in Melbourne 2030 because as discussed later it has a substantial non-
local customer base that includes metropolitan, inter-state and international visitors, giving it an
identifiable trade area that is Metropolitan-wide, Australia-wide and International. The addition of
the St Kilda Triangle site development should put the overall entity (Acland Street, Fitzroy Street
and St Kilda Triangle) into the ‘Principal’ Activity Centre category.


The distance between the south end of Fitzroy Street and the north end of Acland Street is about
700 metres. This is a walkable distance, and a pleasant walk at that, that is well within the reach
of visitors following their leisure pursuits (Figure 1). However, it is too far for the two components
to be classified as a coherent whole either on maps or visibly on-site, especially for local residents
going about their quarter-mastering function of weekly shopping.




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Figure 1        Activity Centres within Environs of St Kilda Triangle Project




The St Kilda Triangle site development is located west of Acland Street on The Esplanade, the
major pedestrian desire line between Acland Street and Fitzroy Street. It will be a substantial third
component to the overall St Kilda Activity Centre designation and will go some way to connecting
the other two disparate components.


It is emphasised that the St Kilda Triangle site development does not, in itself, ensure that the St
Kilda Activity Centre becomes a coherent single entity. However, it does provide a special
opportunity in that regard and there is a need for both State and Local Government infrastructure
investment to occur to support it in that positive role. In particular, there is a need for a re-
appraisal of the tramway network, service levels and facilities to and from and within the St Kilda
Activity Centre to achieve an optimum community dividend from the new private sector
investment. This will be discussed more fully later (Section 5).


2.2.2       Principles for Managing Development of Activity
            Centres in Port Phillip

In early 2006, SGS completed a review of the activity centres in the City of Port Phillip (City of Port
Phillip Activity Centres Review: Future Directions Strategy Paper). This work included a review of
policies at State and local level, and their distillation into a series of planning principles. We



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understand that Council has adopted these principles, therefore they are relevant in assessing the
impact of projects like the Triangle site development. In revisiting these principles for application
in the current report, we have proposed one additional principle that is generally applicable but is
especially so for the St Kilda cluster of activity centres.


The strategic Council and State documents that were considered in the formulation of the principles
were:
    •   Melbourne 2030: ‘Direction 1 – A More Compact City’ and ‘Performance Criteria for Activity
        Centres’, 2002
    •   City Plan, 2005
    •   Municipal Early Years Plan, 2005
    •   Food Security in the City of Port Phillip, 2005
    •   Inner Metropolitan Action Plan, 2005
    •   Community Hubs Policy, 2005
    •   Sustainable Transport Framework (2003)
    •   The Fourth Pillar of Sustainability: Culture's Essential Role in Public Planning, by Jon
        Hawkes, was also influential in framing the overarching principles.


The activity centres review recognised that improving access to local food / grocery facilities should
be a key focus for change and development in Port Phillip’s Metropolitan Activity Centres (MAC’s)
and Neighbourhood Activity Centres (NAC’s). At the same time, it also recognised the important
role of many of the municipality’s MAC’s as regional shopping and leisure destinations, and that
these centres will continue to see significant pressure for change and adaptation as niche demands
evolve and as creative entrepreneurs open new markets.


Demographic shifts have occurred over the past several decades and continue to occur throughout
Port Phillip, with a general trend toward a more affluent ‘young professional’ resident (see Section
2.3.1). This is usually associated with a smaller household of two persons or less, with a busy
lifestyle and a high disposable income. Estimates show this trend will continue, as more and more
young professionals seek locations close to Central Melbourne, and find Port Phillip’s cultural and
lifestyle offerings attractive.


Management of activity centres in Port Phillip needs to be open to such change and adaptation,
while at the same time seeking to preserve the desirable socio-economic and cultural diversity that
makes Port Phillip unique. Freezing the current retail offer or pre-empting market demands
through land use regulation should be avoided. However, a number of key principles can be
applied to ensure that these continuing development pressures contribute to rather than detract
from, the vibrancy and cultural significance of these centres. In this report, we propose 12 key
principles to this end, as follows.


        1        ‘Retail Self Sufficiency’


        The research undertaken for this report stresses the need to ensure that Port Phillip’s
        activity centres serve the weekly shopping and convenience needs of the local population.
        This was also a strong theme that came through in the Resident Surveys undertaken for
        the Activity Centres Review. This is critical to ensuring that local people can use their local




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        centres as not just places to get necessary goods and services but also to continue to build
        relationships with other local people.


        It is accepted that there will be a continuing tendency for escape expenditure for higher
        order goods (e.g. department stores, household goods) within the municipality. This
        status quo is accepted on the understanding that Port Phillip does not have many large
        sites where such businesses could locate and furthermore, these offerings are accessible in
        the neighbouring CBD and surrounding municipalities. That said, market demand for such
        retail may allow such development to occur on the few adequate sites that do exist.


        2       ‘Local Self Containment in Personal Services’


        The ‘In-Home’ Survey undertaken during the activity centre review revealed that 63% of
        respondents used Port Phillip’s activity centres for personal services (e.g. visiting a
        hairdresser, video shop or dry cleaner). There is scope to further build on this proportion
        and new such businesses can help support some of the smaller and perhaps more marginal
        neighbourhood activity centres. This has the benefit of further building local employment
        opportunities and fostering local business.


        3       ‘Promoting Cultural Tourism’


        With community endorsement and Council’s leadership, there is much value in celebrating
        the Port Phillip lifestyle. In this vein, tourism activities should have local links and
        celebrate the creativity and diversity of local people and be a showcase for the
        sustainability values that many in the City of Port Phillip hold dear.


        4     ‘Nurturing the Social Sense of Place – The Distinction between
        Places’


        This takes into account local quirks, ethnicity, and differences (e.g. cultural and income)
        and suggests that these are an important – and indeed iconic - part of Port Phillip’s make
        up. To replace these characteristics with more homogenous and generic offerings is
        undesirable. Differences between Port Phillip residents, as well as between the various
        Activity Centres themselves, should be celebrated, promoted, and maintained. Each
        Centre is unique physically, in terms of building stock, historical period, and mix of uses,
        but is also surrounded by a unique type of resident. Though Port Phillip is increasingly
        becoming an affluent suburb characterised by the young professional, it remains in many
        ways a patchwork of ethnicities, lifestyles, ages, incomes, and cultures. This patchwork
        should be celebrated and maintained.


        5       ‘Nurturing the Aesthetic Sense of Place’


        Public places and spaces are an important part of the fabric of Port Phillip’s activity centres
        and need to be preserved and improved. These public places include the streetscapes
        themselves, as well as gathering places such as the St Kilda Esplanade and Bay foreshore,
        transit stations, squares, markets, and parks. They provide places for community




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        interaction, reflection, learning and sense of place. It is important that the design of
        activity centres encourages integration and seamless movement, especially for pedestrians.
        This means that public spaces should be designed and oriented in a manner that allows
        adequate access for all users, and should be open and inviting. Structures and streets
        should not serve as walls or barriers, but gathering places in themselves. Centres need not
        necessarily be nodal, revolving around a central core or intersection: they can be
        integrated physically into surrounding streets and precincts. Indeed, most of Port Phillip’s
        centres are more linear in nature, encompassing several blocks on one street, as well as
        portions of surrounding streets.


        6    ‘Principal Access to all Major Activity Centres to be Public
        Transport, Pedestrian and Cycling’


        Growing gentrification in the City of Port Phillip is leading to increases in car ownership and
        use. It is therefore critical, on the grounds of environmental sustainability, that the
        subsequent planning for Port Phillip’s activity centres be focussed on cars being a
        supplementary and not the primary form of transport. New and improved public transport,
        walking and cycling infrastructure servicing activity centres will help to realise this goal.
        Some examples include improved access to/from existing tram stops and train stations;
        additional tram networks and stops, improved bike and pedestrian networks on the
        foreshore and within the municipality, and better pedestrian/cycling/transit flows between
        the various activity centres.


        7     ‘Establish Activity Centres as Places of Work as well as Retail
        Services’


        Whilst retail and hospitality have traditionally featured strongly in terms of the composition
        of Port Phillip’s activity centres, it is important to explore means by which further office and
        other employment generating uses within activity centres can come about. New residential
        development within Port Phillip’s activity centres should also focus on providing the climate
        that encourages home-based businesses (e.g. broadband, flexible / communal shared
        meeting rooms). Additionally, opportunities for new office space, both in the form of new
        buildings and renovated/re-designed older buildings, should be examined.


        8       ‘Activity Centres as Manifestations of “Balance”’


        Addressing the ‘Four Pillars of Sustainability’ is essential in planning for Major Activity
        Centres. MACs are places that need to balance issues such as retail and commercial
        growth with diverse housing choice (including affordable or social housing), social and
        community needs, environmental sustainability, and cultural vitality/diversity. This theme
        of ‘balance’ is essential. Growth in one type of floor space, such as retail, or commercial,
        should always correspond to community needs, and should take into account all usersb /
        stakeholders. Residential growth should not come at the expense of lower income
        residents; construction and change should not come at the expense of the environment,
        and services should be enhanced and expanded to reflect increased demand. A balanced
        centre is a healthy centre.




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        9        ‘Activity Centres as Examples of Environmental Sustainability’


        There are also several universal Environmentally Sustainable Development (ESD)
        principles, which should be taken into account as redevelopment opportunities arise in
        Activity Centres. For example:


        •    Water-sensitive Urban Design - ensuring that civic upgrade includes storm water
             treatment in the streets (i.e. landscaping) and underground - i.e. high quality
             treatment traps e.g. hydrocarbon traps;
        •    Individual site development - ensuring that all buildings (residential and non-
             residential) meet the environmental requirements of Council and, for residential
             development, provide diverse housing types; and
        •    Improve the environmental performance of building design and layout particularly with
             respect to resource conservation (e.g. energy, water and materials).


        Planning, development, growth, and construction of structures and spaces in Centres, as
        well as for the Centre as a whole, should always be done with resource efficiency in mind.


        10       ‘Housing Affordability’


        The importance of Centres as being accessible to all users has been noted. This is
        especially true in regards to housing affordability. Most areas in inner-Melbourne have
        seen dramatic rises in housing prices over the past several years, as inner-city living has
        become more desirable and demand has outstripped supply. This has been especially true
        in Port Phillip. Housing that is only available to the wealthy will result in a general
        homogenisation of the City and a loss of character and diversity. The Inner Regional
        Housing Statement (2005) makes several strong statements in regards to maintaining
        housing affordability, including:


                 “Prepare and implement structure plans for activity centres which include the
        identification of opportunities for well located, affordable, and social housing (maximising
        access to shops, services and transport for low income households.)”


        11       ‘The ‘Public Realm’ Embraces all Community Members’


        Design of public spaces should cater to the needs of all community members in order to be
        complete. This means that facilities, and design aspects, should take into account users of
        all sizes, ages, and disabilities. This is especially important in regards to children, youth,
        the elderly, and the physically disabled. The Municipal Early Years Plan (2005) stresses the
        importance of maximising the inclusion of children in aspects of public spaces by providing
        child friendly design elements, and child friendly infrastructure. Safety is an important
        aspect for all community users.




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        12        ‘Integration of New Development with Parent Activity Centre’


        Any new shopping and entertainment development in or adjacent to an existing activity
        centre has potential to make a positive contribution to that centre, the viability of existing
        businesses therein and the quality of life of the people who are serviced by it. However, if
        it is set up in direct competition with the existing facilities as a destination in its own right
        it also has the potential to merely exploit the existing economic, physical and social capital
        already accumulated therein. There is a need to ensure that any new investment in
        shopping, entertainment or social facilities is well integrated with the existing activity
        centre.




2.3          The Local Function of the St Kilda ‘Cluster of
             Centres’


2.3.1        Local Community Profile

The local communities served by Acland, Fitzroy and Carlisle Streets are profiled in Appendix A.
The main conclusions arising from this analysis are:


    •   Population growth in the St Kilda SLA has been almost as rapid as that for the metropolitan
        area as a whole for the 2001 – 2006 period signifying a major urban consolidation
        achievement, given the built up nature of the Port Phillip municipality;
    •   Single person and two person households account for more than 80% of households in St
        Kilda;
    •   St Kilda has more than twice the proportion of single person households evident at the
        metropolitan level; conversely, there are significantly fewer traditional family units in this
        SLA (couples with children);
    •   Apartments, flats, townhouses and semi-detached dwellings account for 85% of the
        housing stock in St Kilda;
    •   The SLA has a diverse income distribution. Incomes tend to be higher in St Kilda, but
        there are still substantial numbers of low and very low income people resident there.
        Moreover, large numbers of homeless people continue to gravitate to the area;
    •   Reflecting the higher income profile of the area, St Kilda features higher than average
        representation from people with relatively high educational attainment working in
        professional and managerial jobs; and
    •   St Kilda is no longer a migrant magnet; the proportion of households speaking languages
        other than English at home is now less than that for the metropolitan area.


These demographic traits are important, particularly with regard to the percentage of single and
two person households, and the proportion of higher density dwellings. These factors have
implications for open and community space needs to create a sense of community and inclusion.




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The remainder of this sub-section describes the current role and function of each of the local
‘competing’ centres with a view to identifying potential adverse exposures to, and synergies with,
the Triangle site development. This discussion also draws heavily from SGS’s earlier report Review
of Activity Centres in Port Phillip (January 2006), but has been updated where appropriate.


2.3.2       Acland Street Component of the St Kilda Major Activity
            Centre


Role and Function


Acland Street is the most complex centre within Port Phillip, serving multiple roles for local
residents and tourists. The tourist industry dominates the centre on weekends and evenings,
especially from the spring to autumn. Fitzroy Street and Acland Street hold many similarities with
the exception that Acland Street accommodates two major supermarkets, as well as a more
diverse retail mix providing a wider range of shopping to meet the daily needs of local residents.


It is evident that Acland Street and its surrounds currently perform a ‘principal’ function for
entertainment, drawing in people from all over Melbourne as well as overseas tourists, especially at
week-ends. As noted earlier, there is a prospect of connecting the Acland Street and Fitzroy Street
activity precincts into a more coherent single entity.


Approximately one third of the strip shopping centre and surrounding residential area is covered by
heritage planning controls in the Port Phillip Planning Scheme. See Figure 2 below for a context
map of the area.




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Figure 2        Acland Street Precinct Commercial Area




Distinguishing Features and Connections


Acland Street has worn many hats historically, evolving from a bayside holiday destination to a
bustling immigrant hub, to its current incarnation as a gentrified destination for food, drinks, and
fun. Paralleling these phases has been a consistent presence in the vicinity of elements considered
seedy by some, including drug use and the night - time sex trade. Acland Street’s current retail
mix is an eclectic and diverse blend of these historical hats – continental pastry shops rub
shoulders with health food stores, major supermarkets, bars, trendy restaurants and a few still -
present x-rated businesses.


Acland Street’s multi faceted role is not a recent phenomenon, although the tourism function has
become increasingly acute. In the 1970s, the Centre had a reputation as one of the few places
where one could buy a decent coffee on Sunday. The street was dominated by cake shops and
was frequented by European Jewish migrants. This multi - use character is not without its conflicts
as many local residents avoid Acland Street on Friday evenings, Saturdays and Sundays when
tourists take over.


Acland Street’s close proximity to icon destinations such as St Kilda Beach and Luna Park is also
significant and there is substantial foot traffic between the street and these venues. The identity of




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the street is heavily interlinked with these attractions. The Street is also in close proximity to
precincts frequented by sex workers.


Acland Street’s large catchment overlaps with nearby Fitzroy Street, a few blocks north, as well as
Carlisle Street, a few blocks east. Acland Street and Fitzroy Street are very much complementary
to each other, operating as two distinct nodes of the general St Kilda entertainment/cultural
district. Visitors to Acland Street often come by way of Fitzroy Street, as the two streets abut the
St Kilda Esplanade and share a tram route. Acland Street is in similar proximity to the Carlisle
Street commercial district, but overlaps less with this area. Carlisle Street is not thought of as a
tourist or entertainment destination, and is not normally associated with St Kilda and the bay
foreshore. Over time, Acland Street and Fitzroy Streets have become more interconnected, as
densification, new development, gentrification, and investment in the foreshore have made the
general area more vibrant and attractive.


Strengths and Weaknesses


Acland Street is a strong centre in many respects. It is well served by a public transit spine down
the length of the street, which serves to animate the centre and provide accessibility. This includes
both a tramway along Acland Street as well as bus services on Barkly and Carlisle Streets. It is
well located in the centre of a densely populated precinct with residents of various income levels,
ethnic and cultural backgrounds, as well as many hotel and backpacker hostel rooms. This
provides constant street and pedestrian activity. Acland Street’s close proximity to iconic St Kilda
Beach and its entertainment and cultural offerings add a festive and holiday flair to the district,
especially in the summer months. There are many intact heritage buildings which complement the
streetscape, including several from the art – deco period. The street offers an eclectic and
bohemian atmosphere, offering a diverse range of experiences. The ghosts of a former heavy
Jewish immigrant presence combine with a current hipster/gentrified ambience to provide a unique
vibe on the street.


Acland Street also has a scale which has a decidedly community/village like feel. This is enhanced
by a diverse business mix, featuring many local goods and services, as well as major supermarket
anchors (Coles and Safeway). There are a variety of housing forms in the surrounding area, which
has tended more expensive in recent years, but still offers a mix of price ranges, styles, and
scales.


Acland Street also faces several challenges as a MAC. There is heavy traffic congestion in the area,
coupled with a lack of parking. This is especially the case during the summer months, and is
augmented by the fact that there is no train line running through the neighbourhood. The tram
network, though convenient, is somewhat unfriendly to pedestrians (especially at the
Acland/Carlisle/Esplanade junction) and is also somewhat disconnected to other parts of St Kilda
and areas of the City. There is a lack of available sites for new development, as much of the area
has heritage status and is also quite densely built, potentially limiting growth. Gentrification
caused by rising rents and property prices pose a risk of pushing out the elements that make the
area unique, and give the centre its aforementioned “vibe”. An Acland Street that loses its gritty
flavour, in regards to being a mix of all spectrums of society, is a weakened Acland Street.




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Strategic Direction for the Centre


Distinction should be made between the parts of Acland Street that are to be allowed, or even
encouraged, to develop to service the tourism industry and those parts that are to be restricted for
the daily needs of local residents and workers. As noted, there is a responsibility to ensure that
the needs of local residents are met as a first priority. This can be done by using available
statutory and non – statutory tools to encourage each part of the activity centre for each type of
custom, not exclusively but predominantly. The following are some possibilities:


         Allow Acland Street to develop as a tourist precinct, as it is largely now, but especially the
      west end of the street;
         Open up the Barkly Street and Carlisle Street legs of the area more for uses to service the
      weekly needs of local residents;
         Reserve the east end of Acland Street (around the Acland Court complex) for local needs;
      and develop the Smith Street and Blessington Street components for similar uses; and
         Consider a reorganisation of the tram network and the design of the termini in the area to
      overcome some of the pedestrian / access difficulties, and increase the efficiency of tram
      connectivity through the district to connect to the broader tram network.
         Consider prospect for extending the tramway from Acland Street down Mitford Street or
      Barkly Street to Glenhuntly Road. This would provide public transport access from the
      Elwood area, one of the few public transport-poor areas in the City of Port Phillip, to Acland
      Street, Fitzroy Street and the CBD.


Key Sites for Change / Development


Acland Street holds no major sites that are vacant and can be readily developed. However, around
the activity centre there are numerous sites where uses can be intensified or redevelopment could
occur.


One of these sites is the car park in the middle of the Barkly / Acland / Carlisle Street triangle
adjacent to Irwell and Belford Streets. The development of ‘Other Retail’ and ‘Other Food’
businesses on this site, two areas expected to show strong floor space demand, could be
encouraged by Council through recruitment efforts and public/private partnerships. Opportunities
for the development of affordable housing on or adjacent to this site should also be examined.


The historic theatre on the corner of Carlisle Street and Barkly Street is a wonderful building and
over the years there have been numerous attempts to exploit its latent potential. It is now well
used by the National Theatre as an education / training venue. However, the theatre as a catalyst
for growth in the precinct has not been fully exploited and the ways by which the area can be
developed for culture and the arts should be explored.


2.3.3         Fitzroy Street Component of the St Kilda Major Activity
              Centre

Fitzroy Street (Figure 8) includes an area from Princes Street in the northeast to The Esplanade in
the southwest. It incorporates approximately 7,800 sqm of retail floor space.



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Figure 3        Fitzroy Street Commercial Area




Role and Function


As discussed earlier, Melbourne 2030 classified Fitzroy Street as part of the St Kilda MAC.
However, in combination with Acland Street, it could be suggested that it performs a ‘Principal
Activity Centre’ function for entertainment and cultural tourism.        Fitzroy Street is a regional /
metropolitan tourist precinct. It is a metropolitan-wide destination for dining and entertainment
activities (e.g. nightclubs, hotel music venues). It holds Melbourne’s largest street festival (i.e.
St Kilda Festival) that takes place over a weekend in February.


Although Fitzroy Street has a dominance of restaurants, takeaway food outlets, bars and clubs,
there are ambiguities about its role. It does have a number of traditional local service functions.
There are three pharmacies and four convenience supermarkets which are uses that are likely to
be servicing a very local trade area such as the street’s many boarding houses, cheap hotels and
hostels (backpacker) that support the small transaction food outlets.




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Distinguishing Features and Connections


There are a lot of permanent residents in the area but the activity centre struggles to service their
needs in a meaningful way, particularly given as absence of a mainline supermarket. Of note, a
David Jones Foodchain store opened in 2002 but closed in 2003. The store was designed to fill a
hole in the market (e.g. catering to the needs of busy professionals) but it did not prove
profitable. The concept traded on high quality food at relatively high prices. An IGA Supermarket
is now located on the site. Food security in the area is discussed more in Section 4.1.


Fitzroy Street is connected to Acland Street via the Esplanade and St Kilda foreshore. Tourist visits
to Fitzroy Street and to Acland Street often involve linkages between the two, and this link is
served by tram service and easy pedestrian access.


Fitzroy Street has a number of very important community facilities / venues that generate
substantial activity, including the St Kilda Park Primary School.


Sporting facilities within the immediate area include the St Kilda Bowling Club, Junction Oval,
tennis courts and good access to Albert Park.


The Australian Grand Prix is held at Melbourne's Albert Park in March each year. During the race
period Albert Park is closed to the general public. This event draws many people to the St Kilda
area and provides some additional trade to local businesses. Council's Sustainable Transport Unit
works closely with the Australian Grand Prix Corporation to protect the local traffic area and
minimise disruption to local residents and business.


Fitzroy Street is also home to many live music venues which help define Melbourne’s character as a
cultured, liveable city. However, these venues can create a number of externalities for local
residents. These offsite effects require active management.


Grey Street is home to the Salvation Army’s needle exchange service. The health care needs of
street-based injecting drug users are not currently being met according to a research report
released in 2003 into the 48,000 contacts with clients of the Health Information Exchange at The
Salvation Army Crisis Service in Grey Street, St Kilda. Drug users themselves identified an urgent
need for primary health care services for street-based injecting users in the form of a GP and
related nursing staff, counselling from experienced staff, and dental care, as those services most in
demand among the target population.1


There is a range of other social services in the area, which contribute to activity in and around the
centre. The Activity Centre is also home to some significant Aboriginal places including the nearby
heritage site at the corroboree tree and gathering places at Cleve and Catani Gardens.



      1
       (A) “Who’s Using? The Health Information Exchange and the Development of an Innovative
      Primary Health Care Response for Injecting Drug Users” by Dr. James Rowe, RMIT
      University Centre for Applied Social Research (5 August, 2003)
      (B) Health Information Exchange (2003) Statistics – March 2003 (unpublished internal
      document)



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Gentrification and redevelopment are making it harder for some residents to find affordable,
accessible and suitable housing in the City of Port Phillip and St Kilda, in particular. The social
consequences of neglecting the needs of lower income residents are significant and this is an area
that Council has been pursuing with vigour.


Strengths and Weaknesses


Fitzroy Street’s status as one of Melbourne’s iconic tourism/entertainment destinations, and its
proximity to many attractions (St Kilda Beach, Albert Park, Luna Park, entertainment venues,
pubs) make it a strong centre. The street has a tram line running down its length, and is also the
point of terminus for the light rail line leading into the CBD. There are many heritage buildings
intact on the street, including a collection of impressive old mansions that reflect St Kilda’s past as
a seaside retreat for the wealthy. These buildings are varied in form, height, scale, and era,
providing an eclectic mix. The proximity to Albert Park and the St Kilda foreshore provides good
access to open space. The street has an overall cosmopolitan feel, with a mix of local residents,
tourists, international backpackers, and diverse ethnicities and cultures. Proximity to Acland Street
is a strength, as these two centres are often thought of as part of a single ‘St Kilda’ destination,
and there is considerable pedestrian and visitor spillover between the two.


Fitzroy Street shares many of Acland Street’s weaknesses. Traffic congestion and parking are
problems, augmented during peak summer season. The residential amenity of the street is
potentially negatively - impacted by the entertainment venues and accompanying crowds.
Physically, it is a long and spread-out centre, stretching from St Kilda road all the way to the
foreshore. The local amenity of the street is further weakened by a relative lack of local
convenience shopping (no major supermarket). The centre is also limited by the lack of immediate
sites with major redevelopment/development potential. Remnants of the once common night -
time sex trade remain, with an associated negative connotation. Challenges associated with drug
use are also present in the area. The transient nature of many of the local residents also presents
a challenge in maintaining a true local identity for the centre. Many of those living on/near the
street are backpackers/travellers, and also lower-income boarders, some with addiction problems
or disabilities. These groups are part and parcel of St Kilda life. Care must be taken that
measures designed to otherwise improve the Centre do not result in the further marginalisation of
these groups. In some respects, proximity to Acland Street can also be considered a weakness, as
the prevalence of supermarket chains and ‘local amenity retail’ so close by may hinder such
development on Fitzroy Street.


Strategic Direction for the Centre



Maintenance of Status as Iconic Destination / Broaden Mix of Retail


Fitzroy Street’s high level of recognition, on a national scale, as a centre for gathering, eating,
drinking, music, and entertainment, has been identified as one of its greatest strengths. It would
be undesirable for a future direction to move away from this role. That said, to improve the health
of the centre, it will be important to encourage a broader mix of retail to develop on the street. An
identified weakness is the relative lack of local amenity type retail, in comparison to other MACs in




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Port Phillip. As Fitzroy Street plays dual roles as a centre for visitors and temporary residents as
well as a hub for a large permanent local community, it should have access to the full range of
necessary retail commodities for everyday life.


Strengthen Links to Foreshore / Open Up Street as “Gateway”


Fitzroy Street faces a similar ‘disconnect’ between its core retail strip and the Port Phillip Bay
foreshore as does Bay Street. The street should be seen as a natural “Gateway” to the Bay, and
vice versa, a gateway from the foreshore to the City and the St Kilda neighbourhood. Currently,
access from the Fitzroy Street strip to St Kilda Beach and the promenades / walking and cycling
trails is fairly tortuous, with the busy and heavily trafficked Esplanade functioning as somewhat of
a barrier. Improvements to pedestrian accessibility, and the encouragement of mixed-use
development closer to the foreshore, would help Fitzroy Street better tie in to its front yard; the
Bay, as well as Acland Street and other iconic areas of St Kilda.


Living above the shops


An exciting feature of Fitzroy Street is the amount of residential accommodation above and behind
the shops. This consists of hotels/hostels, permanent residents and rooming houses for
disadvantaged people. Along Fitzroy Street there are numerous entrances to spaces above the
shop fronts. This is good for street life but there is a need for an overall strategy and design
guidelines for them. In particular, entrances need to be kept active; otherwise they become
neglected and dirty.


Key Sites for Change / Development


The street is fully developed or under development so that no single site stands out as unexploited
potential.


George Hotel Corner (Fitzroy Street & Grey Street)


The George Hotel complex underwent renovation some years back and can be seen as a keynote
building and entertainment destination. This was a welcome development, but its completion and
success put pressure on the area surrounding the Fitzroy Street, Canterbury Road and Grey Street
intersection. This is an intersection of major arterial roads serving east and west, with few
meaningful alternative routes. It is currently a difficult intersection for pedestrians to negotiate,
especially in evenings and weekends when the pavements are crowded with pedestrians and the
Canterbury Road / Grey Street route is in full flow.


Grey Street to Princes Street Block: South Side


This key block in Fitzroy Street has been quietly developing into a restaurant destination. The
George Hotel is located at the west end of this block and its renovation has brought the block into
the spotlight creating the potential for more development.




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There is a substantial amount of hotel accommodation above and behind the street frontage that is
an anchor for dining. The pavement is wide which has encouraged the already established al
fresco dining. It may be a lost cause to try to re-invent this location for regular shopping (other
than support for hotels).


Maintenance and Enhancement of Affordable Housing Options and Community /
Public Services


Fitzroy Street does have a selection of affordable housing in the vicinity, some of which is used as
boarding houses, group homes, and other temporary housing. In the face of quickly rising
property values in the St Kilda area, these locations will face mounting pressure for
redevelopment. Council should use what tools it can to promote the maintenance of affordable
housing options, and the creation of additional affordable housing on those sites where it is
possible. Gentrification of the neighbourhood should not threaten the valuable community services
that exist, and these should grow as the neighbourhood does.


2.3.4       Balaclava (Carlisle Street) Major Activity Centre

Carlisle Street is the main part of the Balaclava MAC (Figure 4). It generally follows Carlisle Street
from St Kilda Road / Brighton Road in the west to Carlisle Avenue in the east. The area
incorporates approximately 25,000 sq m of retail floor space.


Figure 4        Carlisle Street Commercial Area




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Role and Function


The primary role of Carlisle Street is ‘local’: serving local residents and employees with daily goods
and services.    There is little or no regional or metropolitan function and tourist activity at this
centre, with the important exception of kosher food and groceries. These, together with specialist
retailers, cater to the Melbourne – wide Jewish community.


Council studies have identified high walk-in trade and tram trips:
        Walk = 31% (Fri); 51% (Sat)
        Bicycle = 1% (Fri); 4% (Sat)
        Tram = 22% (Fri); 11% (Sat)
        Train = 12% (Fri); 4% (Sat)
        Car = 27% (Fri); 30% (Sat)


Carlisle Street’s local shopping function is an attractive alternative for those whose needs are not
met by the retail mix of Acland and Fitzroy Streets.


The presence of the Police Station provides an important community focus for the area. The
Centre also features a number of Christian churches and the surrounding area also has a number
of Synagogues. There are also several social services facilities, (e.g. Ardoch Youth Foundation,
Masada Private Hospital). There are also some strong community connections due to the close
proximity of St Kilda Primary School and the childcare centre.


Carlisle Street functions as an important civic hub and the St Kilda Town Hall and library on the
western end of the street play a particularly important role.


The Carlisle Street Shopping Centre is mostly covered by heritage planning controls (i.e. Heritage
Overlay #7) although a substantial amount of the abutting / nearby residential housing stock is not
included in heritage controls.


A Council commissioned report, ‘Carlisle Street Activity Centre – Future Directions and
Opportunities’ made a number of observations about the Centre:
    •    It contains an estimated 176 business and community activities;
    •    It is primarily a retail centre with approximately 51% of activities in this category;
    •    Other significant representations are personal services, professional and business services,
         community facilities and an increasing representation of cafes and restaurants;
    •    Local businesses and residents were surveyed and there was a consensus that for the
         Centre not to become simply a mainstream ‘suburban’ strip;
    •    Customer surveys indicated that a significant number of patrons walked (40%) or caught
         public transport (28%) to get to the Centre. This represents a low level of car ownership;
         however increasing community affluence is leading to higher rates of car ownership in the
         area;
    •    The Centre was described during working groups for the research “to have an edge”, to be
         cosmopolitan, an alternative centre, gritty, bohemian, busy, bustling, vibrant and eclectic.
         These images reinforce the importance of the Centre’s independent nature and un-
         homogenised appeal.




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A car parking study undertaken by GTA consultants in November 2001 provided the following
estimates of commercial floor space and these demonstrate that within a Melbourne metropolitan
context, Carlisle Street is a significant strip shopping centre:


Table 7           Carlisle Street Floorspace Breakdown (ABS, 2001)

Activity                                  Floorspace (sqm)
Retail / Shop                                    24,338
Restaurant / Café                                 1,480
Office Premises                                   9,716
Hotel                                              909
Medical Centre                                     762
Community Facilities                              3,090
Total                                            40,295




Distinguishing Features and Connections


Carlisle Street’s most distinctive feature is its strong European ethnic flair, predominantly centred
around the Jewish community. This adds a unique quality to the small businesses on the street,
and the character of the street life. Friday evenings feature pedestrians rushing to complete their
Sabbath shopping before sundown, and Saturdays feature pedestrians coming to and from services
at one of the several synagogues in the surrounding areas. This ethnic community brought
European culture with it, including cafes, pastry shops/bakeries, and specialty food stores.


Carlisle Street is not well integrated into the greater St Kilda area, (Acland Street and Fitzroy
Streets) as St Kilda Road functions as a wide, heavily trafficked barrier.


Strengths and Weaknesses


One of Carlisle Street’s greatest strengths is its cosmopolitan and alternative ‘edge’ in its business
mix. This unique and specialised assortment of small businesses serves both the local community,
and also has appeal to the larger region. Carlisle Street is a metropolitan destination for
continental and kosher food and items, and is also known for high-quality European style cafes.
Adding to this diverse tenant mix is a major supermarket acting as anchor, with a second, still
significant speciality supermarket. Many intact heritage buildings add to the character, with a
variety in the built form, scale, and era.


Carlisle Street is very well served by public transportation, with a tram line running down the spine
of the street, and also train stations in the vicinity at Balaclava and Ripponlea. In this sense, it has
an added advantage over St Kilda and Port Melbourne in its accessibility to the CBD and the rest of
the metropolitan train and transit network. The Centre also has seen a high proportion of visits by
foot, adding to the vibrancy of the street and serving as a testament to the strong local focus.




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Traffic congestion is a concern, in part fuelled by rising affluence in the immediate and surrounding
areas and a corresponding rise in auto ownership and use. The tram line also contributes to traffic
congestion in the street. Geographically, the Centre is also quite spread out, stretching from St
Kilda Road east for many blocks, and lacking a definable “centre.” This, as well as the fact that
Carlisle Street MAC neighbourhood is known both as “Balaclava” and also as “St Kilda East” causes
something of an identity crisis for the Centre. Besides the ethnic focus, the centre lacks a strong,
central identity.


Gentrification of the area is occurring, pushed by rising property values surrounding the centre.
This is forcing out low-income households, including many residents and small business owners of
the ethnic community that give the street its unique character.


Strategic Direction for the Centre



Actions to Take Consideration of Current Residents


This is a relatively low-income area but it is rapidly gentrifying. Bringing the centre up-market (for
example, better urban design) to satisfy new residents may accelerate the displacement of lower
income groups.


Like all the MACs, careful attention should be given to the potential for affordable housing
development in and around Carlisle Street. The J.V. Rooming House project completed in
Woodstock Street over a Council car park off Carlisle Street is a good example of the type of
development that could be encouraged through a broad – based inclusionary zoning approach.


Redevelopment of Railway Station area


Balaclava Railway Station is currently slated for redevelopment. By providing some economic
activity adjacent to the railway station there is a prospect of improving visibility and surveillance
and revitalising this run down part of the street. This is arguably the key project to significantly
improve public transport to / from this centre. Personal safety and access are both viewed poorly
and noted as highly probable reasons to suppressing demand.


The station is currently built above street, with up-ramps on both sides of the railway line. As the
station is built on stilts above ground, the connections underneath look threatening and imposing
to pedestrians. Pedestrian lanes connect though from the houses behind to Carlisle Street at both
sides of the railway line. There are some derelict buildings along the alleys connecting to the
station that could be developed with active frontages to improve visibility and personal security.
There is potential for integrated development where a 2-storey development serves as frontage to
the ramps running to the station.


Both the street and train stations are very well served with access to transit. There is a good
connection between the tram and the train station, with the east-bound tram stop under the
railway bridge. There is also a West bound tram stop on the corner of Westbury Street. Both of




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these could be situated under the bridge so that shelter could be provided. This would help make
better connection between tram and train and opens the potential for a pedestrian crossing there.


The car parks on Nelson, Alfred, Camden and Malborough Streets offer some redevelopment
opportunities. Some car park sites have been mooted as possible mixed-use development with
associated car parking.




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2.4         Metropolitan Role of the St Kilda ‘Cluster of
            Centres’


2.4.1       Context

Fitzroy Street, St Kilda, has a regional draw with entertainment venues and pubs, as well as
backpacker and lodging establishments. The Southern end (South of Park Street) is almost
continuous restaurants, cafes and bars, many with outdoor dining. It is a poor centre for the
provision for weekly shopping for food-for-the-home and other household needs.


Nearby Acland Street has a similar regional draw for its food and cultural offerings but with two
supermarkets it retains a stronger function for the provision of food-for-the-home and other
household needs.


Carlisle Street serves mainly the surrounding area with local goods and services. However, all three
of these centres have unique characteristics, such as Carlisle Street’s strong European ethnic
influence. Both Acland Street and to a lesser extent Fitzroy Street have special characteristics that
appeal to metropolitan, inter-State and international visitors.


The last 20 years has seen a virtual reinstatement of the regional service role of many of the
Activity Centres along the waterfront of Port Phillip Bay, of which Fitzroy Street and Acland Street
are the most significant examples. The regional function of St Kilda was commanded through the
late 19th century and the early 20th century prior to the accelerated, car based, suburbanisation of
Melbourne. However, this regional role is now no longer dominated by mainstream retail
operations. Rather it is generally driven by an aggregation of niche offerings in hospitality and
entertainment. This is very evident in both Acland Street and Fitzroy Street.


The Acland Street and Fitzroy Street components of the St Kilda Activity Centre, are already
rejuvenated and powerful economic engines, drawing in tourists and destination shoppers from
overseas, interstate and country Victoria as well as Greater Melbourne.


2.4.2       Metropolitan Role by Market Segment

The following discussion provides a brief overview of the characteristics of St Kilda’s users
(including local residents and visitors) in a metropolitan context by market segment. The profiling
of the user group by market segment is premised upon the type of activities and experiences that
are sought. The aim of this exercise is to define the various audiences and patrons of the St Kilda
area and provide a guide to the types of goods and services that are needed to sustain this broader
metropolitan tourism role into the future.




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For the purpose of the review, St Kilda cluster user groups are split into nine market segment.
These include:
    •   Attractions
    •   Backpackers
    •   Cultural
    •   Food and Wine
    •   Gay/Lesbian
    •   Entertainment
    •   24 Hour/Live Entertainment
    •   Shopping
    •   Spa, Health and Wellness


The market segments are identified from a variety of information sources including research
undertaken by Tourism Victoria, and SGS analysis of the characteristic of the St Kilda cluster area
in the visitor market.


Attractions


Visitors in this category are generally experiential tourists attracted to the St Kilda cluster seeking
activities associated with sight-seeing and a wide range of outdoor entertainment in the forms of
theme parks and beach/parks. The major attractions to this particular market segment will be the
St Kilda foreshore, Luna Park, St Kilda Pier, arts/ Sunday market and annual events and festivals.
The key user groups are likely to be international, inter-state and metro region visitors.


Backpackers


Traditionally this group comprises travellers under 35 years of age with a large number originating
from the UK, USA and Europe. This group generally prefers low cost activities and chooses to stay
in budget accommodation. Backpackers however tend to spend more money in recreational and
leisure activities than the average tourist. Statistics by Tourism Victoria indicates that the top
backpacker activities include dining out in restaurant/café, going to the beach, shopping for
pleasure, experiencing general sight-seeing and going to pubs/clubs/disco.


Cultural


An emerging trend in the industry is the shift from mass tourism to niche based cultural tourism.
With the desire to seek alternative and more diverse experiences, interest in activities such as arts
and cultural heritage has become more pronounced. The diversity of St Kilda has made the region
a destination for cultural visitors. The cultural visitors are attracted to the St Kilda cluster area due
to the unique local Port Phillip lifestyle that is characterised as bohemian, eclectic, cosmopolitan
and a diverse blend of the old and the modern. Statistics by Tourism Victoria indicate that the top
activities engaged in by international and Australian cultural tourists to Melbourne in 2006 included
attending art galleries, museums, musical, dance, and theatre production, live music performance,
and annual festivals and events. Aboriginal art/craft and local community also played a significant
role in cultural tourism.




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St Kilda has a rich offer in this area, over and above the general cache of the suburb as a diverse
and edgy attraction. Cinemas and theatres in the area include:


The Palace George Cinemas
        135 Fitzroy Street, St Kilda 3182
        The Palace George Cinemas have a cinema seating capacity for 800 people. The venue
        caters for cinema goers, private functions and general visitors with live music Thursday
        through Sunday. It extends over two levels, featuring an Expresso Bar upstairs for coffee
        and functions, and three large auditoriums for film screenings, while downstairs features
        the live music area. Screenings include art house and mainstream titles. The area is
        readily accessible by car (with paid parking available nearby) and tram.
        (www.palacecinemas.com.au)


Astor Theatre
        Corner Chapel Street and Dandenong Road, St Kilda 3182.
        Constructed in the 1930s, the Astor is a landmark in St Kilda for its art deco charm and
        classical cinema experience. While the Astor is a single-screen cinema, it has a seating
        capacity of 1,150 and features 70mm film presentations and unique programming. The
        Astor prides itself on its classical experience, presenting films old and new, as well as
        special re-releases. The theatre is accessible by car (on and off street parking; free and
        paid), tram and train. (www.astor-theatre.com/)


The Australian National Theatre
        Corner Barkly and Carlisle Streets, St Kilda 3182
        Originally constructed in 1920 as the 3000 seat Victory film theatre, it has since been
        renovated and converted to a performing arts venue which opened in 1974. The theatre
        houses performances from drama, ballet and dance schools, dance events, operas,
        concerts, and functions as an occasional cinema. Features of the theatre include 783 single
        level seats with good sightlines, an orchestra pit, fly tower, licensed upstairs bar, and six
        studios. The theatre is home to the National Theatre Drama School and National Theatre
        Ballet School. (www.nationaltheatre.org.au/)


St Kilda Open Air Cinema (Summer Only – 31 January to 6 March 2008)
        The Sea Baths, 10-18 Jacka Boulevard, St Kilda Beach, St Kilda 3182.
        Located at the Sea Baths on the St Kilda Esplanade, the Open Air Cinema features a
        festival experience with DJs, live entertainment, movies, drinks and dining. Seating is
        unreserved, with limited chairs and tables provided, while beanbags are available for hire.
        It is advised that cushions, blankets and suitable clothing is brought to the venue. It is
        anticipated that films will feature regardless of weather conditions. Featured films include
        summer movies and cult classics screened at 35mm cinema projection. The Open Air
        Cinema is accessible by car (paid parking), bus, tram and train.
        (www.stkildaopenair.com.au/)


Theatreworks
        14 Acland Street, St Kilda 3182
        Theatreworks is a 24 year old community arts centre for emerging artists and trends. Its
        goal is to create a venue that provides a flexible, friendly and financially viable theatre



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        space to support collaborations, partnerships and innovation in the arts. The Theatreworks
        Box Office also features a Café during lunch hours Tuesday through Friday. The theatre is
        readily accessible by car (free and paid parking), train, bus and tram.
        (www.theatreworks.org.au/)


Red Stitch Actors Theatre
        Rear 2 Chapel Street, St Kilda 3183
        The Red Stitch Actors Theatre is an independent theatre company performing new and
        predominantly unseen shows from overseas. It features regular productions by its in
        house and guest actors. (redstitch.net/)


Food and Wine


Food and Wine is a growing market segment in Victoria. The key demographics of the visitors in
this group are young and mid-life couples with no children and older working married persons. St
Kilda with its diverse range of eateries, café and bars has attracted increasing interest from local
and international food and wine travellers.


Gay and Lesbian


Gay/lesbian tourism often coincides with special gay events such as annual festivals. In the St
Kilda area, the Gay and Lesbian market has become a significant contributor to the diversity of the
area with the hosting of Pride March and Midsumma Festival every year. These draw significant
numbers of interstate and international visitors. Local businesses in the St Kilda area have also
become active participants in these events.


Entertainment and the 24 Hour Economy


As mentioned, St Kilda is a major entertainment and recreation precinct in Melbourne. Visitors to
the St Kilda cluster in particular enjoy a wide range of entertainment offerings. The ’24 hour
economy’ is highlighted particularly as it relates to the growing late night entertainment sector that
mainly involves live music productions and drinking in pubs and bars, and dancing in clubs.


Shopping


St Kilda’s shopping strips are a significant, if currently limited, retail destinations for tourists.
Acland Street, Fitzroy Street and Carlisle Street host a diverse range of local boutique, vintage
clothing, jewellery arts and crafts and fresh produce. These shopping strips have a catchment that
extends well beyond the municipality boundary and the popularity of the local weekend and
art/craft market further boosts the St Kilda cluster area as a unique retail destination. As such, the
‘shopper’ market segment is potentially a key contributor to the economic, social and cultural
vitality of the St Kilda cluster.




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Spa, Health and Wellness


The Spa, Health and Wellness sector is a thriving lifestyle-oriented market segment in Melbourne.
This market is a niche in the St Kilda area with facilities such as the St Kilda Sea Baths and
numerous private facilities. This sector has strong synergies with other market segments such as
food and wine, cultural, shopping and entertainment forms, potentially creating an important
strength for the St Kilda cluster.


Amongst the health and fitness facilities available in the area are the following. In general these
have a highly localised focus. Prima facie, there is scope for a larger scale health/wellbeing
offering in St Kilda, aimed at a metropolitan and tourist market.


        Fernwood Women’s Health Club
        203 Fitzroy Street, St Kilda
        Fully featured gymnasium and group fitness facilities.


        South Pacific Health Club/St Kilda Sea Baths
        10-18 Jacka Boulevard, St Kilda
        Gymnasium, group fitness, spa and wellness facilities.


        Scientific Fighting Congress
        85 Inkerman Street, St Kilda
        Self defence classes.


        Chapel Fitness
        2 Chapel Street, St Kilda
        Gymnasium, kickboxing, group fitness and massage facilities.


        Atmo2sphere
        167a Fitzroy Street, St Kilda
        Health and fitness centre.


        Crunch Health and Fitness
        84 Inkerman Street, St kilda
        Gymnasium, cardio and group fitness classes.


        St Kilda Sports and Fitness Centre/Fitness First
        97 Alma Road
        Includes a swimming pool, gymnasium and group fitness classes.


        St Kilda Yoga School
        11/82 Acland Street




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3                                          Impact on Trading Levels
This Section provides a summary of the retail potential of the St Kilda Triangle site development
and its possible impacts on surrounding centres. The analysis has been divided into four sections:


                           •       Available retail expenditure and trends in retail demand.
                           •       Port Phillip in the Retail Hierarchy - current retail supply and turnover within the existing
                                   activity centres of Port Phillip.
                           •       Destinations of Expenditure and Turnover – where do people that shop in Port Phillip come
                                   from and where do Port Phillip residents shop?
                           •       A Scenario Impact Analysis – what is the impact of the St Kilda Triangle site development
                                   on the existing centres?


3.1                                        Available Retail Expenditure
The latest population projections were obtained from Department of Infrastructure (DoI) on a
Transport Destination Zones basis across the Melbourne Metropolitan Region. Destination Zone
projections by the DoI are based on existing population, known future residential developments
and land availability.


To estimate the changing patterns of retail expenditure, regression analysis was performed on data
from 1983 to 2007 as published in the ABS Retail Trade publication (8501.0). This enabled an
estimate of how the real growth in the national retail expenditure per capita has changed over
time. Results of the regression analysis are shown in the figure below.


Figure 5                                             National Retail Spending per Capita

                          3,000




                          2,500




                          2,000
 $ per Capita per Annum




                                                                                                                                                 Forecast



                          1,500




                          1,000




                           500




                               0
                               1985       1987       1989       1991     1993    1995      1997     1999     2001   2003    2005          2007       2009       2011

                                      Supermarkets          Other Food     Department Stores      Clothing    HH Goods     Other Retail           Hospitality and Services

                                  Source: ABS Retail Trade publication (8501.0) and SGS projection.




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Table 8             Retail Commodity by ANZSIC Category

                                                                                                         ANZSIC
Commodity / Store Type        Description
                                                                                                      Industry Codes

Supermarkets                  Grocery and Liquor Stores                                                    511
Department Stores & DDSs      Myers, David Jones and other Discount Department Stores                      521
Other Food                    Specialised food stores such as a Butcher or a Bakery                        512
                              All stores that sell clothing or footwear as their primary business,
Clothing and Soft Goods                                                                                    522
                              excluding department stores.
Household Goods               Electrical Goods, Household and Office Furniture, Music records etc.         523
Other Retail                  Newsagencies, Pharmacies, Sporting Goods, etc.                             524, 525
                                                                                                      572, 574, 573,
Hospitality and Services      Pubs, Cafes, Restaurants, Hairdressers, Video Stores etc.
                                                                                                        9511,9526


As shown, the proportion of money spent on food has been increasing and is expected to continue
to do so in the near future. In comparison, the amount spent at department stores/discount
department stores and on clothing has stagnated and is currently undergoing slight decline. This
does not necessarily mean that people are buying fewer clothes, but instead is likely to indicate
how the price of clothes has decreased relatively in recent times. Table 9 summarises the effect
this pattern will have on retail expenditure per capita between the census years 2006 and 2016.


Table 9             National Retail Expenditure Per Capita (2006$)

                                                                    2006                       2011                 2016
Supermarkets                                                        2,477                     2,729               2,941
Department Stores                                                     678                       655                 625
Other Food                                                          1,689                     1,906               2,017
Clothing                                                              557                       580                 564
HH Goods                                                            1,332                     1,488               1,602
Other Retail                                                          890                       921               1,011
Hospitality and Services                                            1,444                     1,503               1,564
Total                                                               9,066                     9,783              10,326


Source: ABS Retail Trade publication (8501.0) and SGS projections.


The national retail expenditure by commodity group per capita was modified to apply to residents
throughout Port Phillip. This modification was achieved through use of the 2003-2004 ABS
Household Expenditure Survey (publication 6535.0), which contains statistics on how local
demographics affect retail expenditure. This data is published on a household basis rather than a
per capita basis and thus the household value and its variation from the national average has been
used as a surrogate value for modifying the per capita expenditure figures. The basis of this
modification is shown in the next table. Specifically, when developing the retail expenditure
figures, this calculation was performed separately for each Destination Zone and for each
commodity group within the Port Phillip catchment area.



Table 10            Port Phillip Household Retail Expenditure Variation by Income
                    (2003-2004 $)



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                                               HES Income Quintile
                                  Lower     Second     Third     Forth      Upper    Totals
Percentage of Study Area
                                  15.49%    10.09%     13.88%   22.95%     37.60%    100.00%
Households
                                                                                                 Study
Retail Expend. per HH per wk                                                          Aust                Percentage
                                                                                                 Area
– Aust. Average                                                                      Average               Variation
                                                                                                Average
Supermarkets                        71        104       123       150        186       127        143      +12.78%
Department Stores                   53         79       106       143        221       120        147      +21.97%
Other Food                          71        104       123       150        186       127        143      +12.78%
Clothing and Soft Goods             13         18        25        40        64        32          40      +26.67%
Household Goods                     29         42        57        69        104       60          72      +18.91%
Other Retail                        11         18        24        34        53        28          35      +23.17%
Hospitality and Services            17         25        39        58        86        45          56      +24.81%

Source: ABS Household Expenditure Survey 2003-2004 6535.0, ABS Census 2006.


By using official population projections at SLA level, income variation by percentile group and real
growth in retail expenditure, it is possible to calculate the amount of expenditure available in a
given location. The final retail expenditure estimates for 2006, 2011 and 2016 are shown in the
tables below.



Table 11            Retail Expenditure – 2006

                                 Port Phillip (C) –             Port Phillip (C) –             Port Phillip (C) –
                                      St Kilda                        West                           Total
Supermarkets                         $144.41m                        $108.83m                      $253.24m
Department Stores                     $41.97m                           $33.09m                    $75.06m
Other Food                            $98.48m                           $74.21m                    $172.69m
Clothing and Soft Goods               $35.53m                           $28.53m                    $64.06m
Household Goods                       $80.79m                           $62.93m                    $143.72m
Other Retail                          $55.52m                           $43.97m                    $99.48m
Hospitality and Services              $91.39m                           $72.19m                    $163.59m
Total                                $548.09m                        $423.74m                      $971.83m
Source: SGS Estimate.



Table 12            Projected Retail Expenditure – 2011 (2006 $)

                                  Port Phillip (C) –            Port Phillip (C) –             Port Phillip (C) –
                                       St Kilda                       West                           Total
Supermarkets                          $161.79m                      $139.12m                       $300.91m
Department Stores                     $41.24m                       $37.07m                        $78.31m
Other Food                            $113.01m                      $97.18m                        $210.19m
Clothing and Soft Goods               $37.64m                       $34.45m                        $72.08m
Household Goods                        $91.77m                      $81.52m                        $173.29m
Other Retail                          $58.45m                       $52.77m                       $111.22m
Hospitality and Services              $96.78m                       $87.14m                        $183.91m
Total                                $600.67m                      $529.25m                      $1,129.91m
Source: SGS Estimate.




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Table 13            Projected Retail Expenditure – 2016 (2006 $)

                                     Port Phillip (C) –          Port Phillip (C) –           Port Phillip (C) –
                                          St Kilda                     West                         Total
Supermarkets                             $180.71m                    $162.32m                     $343.03m
Department Stores                        $40.75m                      $38.22m                      $78.97m
Other Food                               $123.95m                    $111.33m                     $235.28m
Clothing and Soft Goods                   $37.94m                     $36.20m                      $74.14m
Household Goods                          $102.41m                     $94.94m                     $197.35m
Other Retail                             $66.50m                      $62.61m                    $129.12m
Hospitality and Services                 $104.34m                     $97.94m                     $202.28m
Total                                   $656.59m                    $603.57m                    $1,260.17m




3.2            The Port Phillip Region in the Retail Hierarchy
Retail employment for each Journey to Work Destination Transport Zone in Victoria was extracted
using ABS Census Journey to Work Data 2006. The number of retail jobs was then used to
estimate the total turnover for each Transport Zone in Metropolitan Melbourne. This information
was then supplemented by known floorspace and turnover data as published by the various reports
such as the Victorian Shopping Centres Directory as published by the Property Council of Australia.
The SGS retail model was then used to approximate the market shares for these Transport Zones
based on these estimates of turnover. The table below summarises the initial turnover estimates
for the relevant Transport Zones (identified by their principal retail strip).


Table 14            Retail Turnover 2006

                           Acland         Bay      Carlisle   Clarendon      Fitzroy      Port Phillip    Port Phillip
                           Street        Street     Street      Street        Street      Remainder         Total
Supermarkets               $34.80m      $37.05m    $39.22m     $17.80m      $13.26m         $30.25m        $172.39m
Department Stores          $0.00m       $0.46m     $0.76m      $0.76m        $0.00m         $3.98m          $5.97m
Other Food                 $17.47m      $18.12m    $30.26m     $26.26m      $16.22m         $64.27m        $172.60m
Clothing and Soft Goods    $7.43m       $3.63m     $7.72m      $26.88m       $5.25m         $15.14m         $66.05m
Household Goods            $5.47m       $6.03m     $10.23m     $62.14m      $12.84m         $88.25m        $184.96m
Other Retail               $6.94m       $11.13m    $12.22m     $20.02m      $11.91m         $39.32m        $101.55m
Hospitality and Services   $32.44m      $44.54m    $33.44m     $48.42m      $74.40m        $111.88m        $345.12m
Total                 $104.56m         $120.96m   $133.87m    $202.28m      $133.89m       $353.09m       $1,048.64m
Source: SGS Estimate.


From Figure 6, it can be seen that there is no “central” activity centre that is responsible for the
majority of total retail spending within Port Phillip. Instead, Port Phillip is serviced by no less than
five distinct retail ‘blocs’, with a substantial amount of turnover arising from distributed retailing
outlets that lie within no major district in particular. Note that retail turnover for the Port Phillip
region does not equate to the retail expenditure, as there is a some amount of retail trade leaving
the region (escape expenditure) as well as a significant amount of retail turnover coming from
customers outside Port Phillip (turnover capture).




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Figure 6            Retail Turnover by Area within Port Phillip – 2006




                                                                  Acland Street
                                                                      10%




                                                                                  Bay Street
    Port Phillip Remainder                                                          12%
              33%




                                                                                       Carlisle Street
                                                                                            13%




                      Fitzroy Street
                           13%
                                                                    Clarendon Street
                                                                          19%




   3.3             Destinations of Expenditure and Turnover
The extent of escape expenditure and turnover capture by Port Phillip is detailed in the following
two tables, which show the destinations for retail expenditure generated from Port Phillip residents
and the sources of retail turnover captured by Port Phillip traders.



Table 15            Major Expenditure Destinations for Port Phillip Residents (2006 $)

Where Port Phillip residents shop                                        Amount Spent                    Percentage
Port Phillip (C)                                                           $487.9m                         50.2%
Melbourne (C)                                                              $154.8m                         15.9%
Stonnington (C)                                                             $92.7m                          9.5%
Yarra (C)                                                                   $26.7m                          2.7%
Glen Eira (C)                                                               $26.1m                          2.7%
Kingston (C)                                                                $23.4m                          2.4%
Bayside (C)                                                                 $18.8m                          1.9%
Monash (C)                                                                  $15.6m                          1.6%
Boroondara (C)                                                              $13.8m                          1.4%
Maribyrnong (C)                                                             $12.0m                          1.2%
Elsewhere                                                                  $100.2m                         10.3%
Total                                                                      $971.8m                         100.0%
 Source: SGS estimate



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As seen in the table above, Port Phillip residents spend approximately 50% of their spending within
Port Phillip, with the major competitors being the CBD (Melbourne) and Chapel Street
(Stonnington).


Table 16                Major Retail Turnover Sources for Retailers within Port Phillip
                        (2006 $)

Residents who shop in Port Phillip                                                   Turnover Generated                             Percentage
Port Phillip (C)                                                                          $487.9m                                     46.5%
Glen Eira (C)                                                                              $50.3m                                      4.8%
Stonnington (C)                                                                            $37.9m                                      3.6%
Brimbank (C)                                                                               $34.8m                                      3.3%
Melbourne (C)                                                                              $30.7m                                      2.9%
Moreland (C)                                                                               $29.0m                                      2.8%
Hobsons Bay (C)                                                                            $28.8m                                      2.7%
Bayside (C)                                                                                $27.8m                                      2.6%
Wyndham (C)                                                                                $27.6m                                      2.6%
Boroondara (C)                                                                             $27.4m                                      2.6%
Elsewhere                                                                                 $266.5m                                     25.4%
Total                                                                                    $1,048.6m                                    100.0%
Source: SGS estimates


As can be seen from the tables and figures, Port Phillip obtains most of its retail trade from
spending generated within its own LGA, whilst also having a large destination based retail
catchment that is evenly distributed across Melbourne SD as a whole.


Based on the analysis for 2006, the current pattern of net escape expenditure by retail group is set
out in Figure 7.


Figure 7                Net Capture / Escape Expenditure by Commodity Group – 2006

                            Department Stores                Clothing and Soft                                    Hospitality and
             Supermarkets       & DDSs          Other Food        Goods          Household Goods   Other Retail     Services
 +150.00%




 +100.00%




  +50.00%




    -0.00%




   -50.00%




  -100.00%




  -150.00%


Source: SGS estimates




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Overall, net escape expenditure within Port Phillip is high for both supermarket expenditure (-32%)
and Department Store/Discount Department Store Spending (-92%), whereas retail capture is high
from other regions in Hospitality and Services (+111%) and Household Goods (+29%).


Table 17           Net Escape Expenditure – 2006

                                                                                         Net Capture / Escape
                                                                                                        % by Community
Commodity Group             Expenditure Potential        Turnover                   $s
                                                                                                             Group
Supermarkets                     $253.24 m              $172.39 m                -$80.85 m                 -31.93%
Department Stores &
                                 $75.06 m                $5.97 m                 -$69.09 m                 -92.05%
DDSs
Other Food                       $172.69 m              $172.60 m                -$0.08 m                   -0.05%
Clothing and Soft
                                 $64.06 m                $66.05 m                 $2.00 m                  +3.12%
Goods
Household Goods                  $143.72 m              $184.96 m                $41.24 m                  +28.69%
Other Retail                     $99.48 m               $101.55 m                 $2.07 m                  +2.08%
Hospitality and
                                 $163.59 m              $345.12 m                $181.53 m                +110.97%
Services
Total                            $971.83 m             $1,048.64 m               $76.81 m                  +7.90%
Source: SGS estimates



3.4               Retail Impact Assessment
To estimate the economic impact of a new development within a region it is first necessary to
determine the amount of turnover a shopping centre generates per sqm of floor space (known as
the retail turnover density or RTD).            It should be noted that the RTDs can vary substantially from
centre to centre; for example, past studies have shown that the RTDs achieved in a regional
shopping centre may be as high as $8,000 whereas minor shopping strips can survive on an RTD of
$2,000 due to the lower rents that prevail in such locations.                In this case RTDs were chosen that
are similar to what would be achieved by an average enclosed shopping centre development.


Table 18           Retail Turnover Densities Applied in the Analysis (2006 $)

                                    RTD ($/sqm)           Retail Floorspace (sqm)            Turnover
 Supermarkets                           9,250                        3,500                   $32.38m
 Department Stores                      3,000                         0                       $0.00m
 Other Food                             7,000                        4,500                   $31.50m
 Clothing and Soft Goods                3,500                        7,500                   $26.25m
 Household Goods                        3,500                         0                       $0.00m
 Other Retail                           4,700                        8,500                   $39.95m
 Hospitality and Services               3,500                       11,000                   $38.50m
 Total                                                              35,000                   $168.58m
Source: SGS Estimate.


By using the above Retail Turnover Densities and the projected retail turnover it is possible to
calculate the required retail catchment required to achieve such targets given the location of the
new development. Once a catchment for the new centre has been established, it is then possible
to calculate what impact capture of trade from this catchment would have on surrounding shopping
centres competing for the same customers.




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3.4.1       Scenario Definition

For the purposes of this study we have examined two retail development scenarios. These two
scenarios arise because of the very close proximity of the St Kilda Triangle site development to the
existing Acland Street Centre.


    Scenario 1: The St Kilda Triangle site development is considered to be an extension of the
    existing Acland Street retail centre. This assumes that both the Triangle site development and
    the Acland Street centres are considered to be the same “destination”. This means that
    pedestrians would move freely between both centres, and the influx of visitors to one centre
    would also be felt in the other. This assumes that if anything, the turnover achieved in the
    existing Acland Street region would improve rather than dissipate. This effect is common in
    many CBD’s, and can also be seen with the clustering of what would ordinary be thought of
    competing franchises, such as a McDonalds locating next to a KFC and Hungry Jacks.
    Scenario 2: The St Kilda Triangle site development is considered to be a direct competitor of
    the existing Acland Street retail centre. This scenario assumes that the centres compete
    directly against each other, meaning that if a visitor went to one centre they would see no
    reason to visit the other one.


In reality the effect of the St Kilda Triangle site development would most likely be somewhere in
between both scenarios, however, the extent to which scenario one would obtain as opposed to
scenario two, would most likely depend on the integration of urban design and management of
both centres.


3.4.2       Scenario 1 – Extension of the Acland Centre

The impact analysis results of the first scenario are illustrated in the tables below.         This assumes
that the existing Acland Street Centre maintains its current market share now and into the future,
and also benefits from the turnover generated by the new St Kilda Triangle site development.


Turnover levels were first projected to 2011 based on the current retailing performance. This
assumes that the existing retail centres maintain their current market share and there is an
increase in turnover due to growth in the surrounding population and real growth in retail
expenditure per capita. It should be notes that allowance was also made for the recent
development of two new supermarkets in the Clarendon St region.




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Table 19            Projected 2011 Retail Turnover – Current Activity Centres

                           Acland       Bay         Carlisle           Clarendon        Fitzroy     Port Phillip
                           Street      Street        Street              Street         Street      Remainder           Total
Supermarkets               $40m        $46m            $44m               $83m          $15m           $33m            $260m
Department Stores           $m         $1m               $1m              $1m             $m            $4m             $6m
Other Food                 $21m        $24m            $36m               $34m          $19m           $79m            $213m
Clothing and Soft Goods     $8m        $4m               $8m              $32m           $6m           $17m             $76m
Household Goods             $7m        $8m             $12m               $78m          $15m           $109m           $229m
Other Retail                $8m        $14m            $13m               $24m          $13m           $45m            $116m
Hospitality and Services   $36m        $54m            $37m               $57m          $83m           $126m           $393m
Total                      $120m       $150m          $151m               $310m         $151m          $413m          $1,294m


In 2011, retail turnover in Acland Street is projected to be $120 million driven in most part by
Supermarkets ($40 million) and Hospitality and services ($36 million).


Table 20            Projected 2016 Retail Turnover – with Triangle Site Development

                           Acland       Bay         Carlisle           Clarendon        Fitzroy     Port Phillip
                           Street      Street        Street              Street         Street      Remainder           Total
Supermarkets                $77m       $53m          $47m                $96m            $16m          $36m            $325m
Department Stores            $0m        $1m           $1m                 $1m             $0m           $4m             $6m
Other Food                  $55m       $27m          $37m                $39m            $20m          $86m            $264m
Clothing and Soft Goods     $35m        $5m           $8m                $33m             $5m          $17m            $102m
Household Goods             $8m         $9m          $13m                $90m            $17m         $124m            $261m
Other Retail               $49m        $16m            $13m               $28m          $13m           $50m            $169m
Hospitality and Services   $78m        $59m            $39m               $64m          $89m           $135m           $463m
Total                      $302m       $169m          $158m               $351m         $160m          $451m          $1,591m


Table 21 shows the impact of the addition of the Triangle site development. By 2016, retail
turnover in Acland Street is projected to be $302 million. In percentage terms this represents an
increase of 152% with overall Port Phillip retail turnover increased by 23%. Fitzroy Street has a
marginal projected increase of 6% as a result of the Triangle site development and growth in
population and real retail expenditure per capita.


Table 21            Percentage Impact – 2016 with Triangle Site Development vs 2011
                    No Development

                              Acland             Bay           Carlisle     Clarendon     Fitzroy   Port Phillip     Total
                              Street            Street          Street        Street      Street    Remainder      Port Phillip
Supermarkets                  +95%              +15%            +7%           +16%          +7%        +8%            +25%
Department Stores                 0%            +4%              -1%            +8%         0%         -0%            +1%
Other Food                    +162%             +13%            +4%           +15%          +4%        +9%            +24%
Clothing and Soft Goods       +319%             +3%              -8%            +2%         -8%        -1%            +34%
Household Goods               +15%              +16%            +12%          +15%         +12%        +14%           +14%
Other Retail                  +535%             +17%            +1%           +18%          +3%        +11%           +46%
Hospitality and Services      +115%             +10%            +5%           +11%          +7%        +7%            +18%
Total                         +152%             +13%            +5%           +14%          +6%        +9%            +23%


As can be seen from the analysis, if the two centres (Acland Street and the Triangle site) were are
considered to be the same “destination” by shoppers, there would be some minor impact on the
fashion outlets in both Carlisle Street (-8%) and Fitzroy Street (-8%), when compared to the



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turnover achieved at present time. Generally speaking, an overall impact of less than 10% is
considered an acceptable level by the professional community. In this case all centres would
achieve an overall positive growth within the development timeframe.


3.4.3             Scenario 2 – Competitor of the Acland Centre

The impact analysis results of the second scenario assumes that the St Kilda Triangle site
development competes directly with the existing Acland Street Centre, and due to its proximity,
has a trade area that largely overlaps the one achieved by Acland Street centre.


Table 222           Projected 2016 Retail Turnover –Triangle Site Development

                                                                                                            Port
                     Acland      Bay        Carlisle      Clarendon     Fitzroy            St K            Phillip
                     Street     Street       Street         Street      Street           Triangle         Remainder          Total
Supermarkets          $38m      $53m         $47m           $97m         $16m             $32m              $36m            $319m
Department Stores      $0m       $1m          $1m            $1m          $0m              $0m               $4m             $6m
Other Food            $18m      $27m         $37m           $40m         $20m             $32m              $86m            $260m
Clothing and
Soft Goods             $6m         $5m       $8m            $33m            $5m             $26m             $17m           $100m
Household Goods        $8m         $9m       $13m           $90m        $17m                $0m             $124m           $261m
Other Retail           $5m      $16m         $14m           $28m        $14m                $40m             $50m           $166m
Hospitality and
Services              $35m      $59m         $39m           $64m        $89m                $39m            $135m           $459m
Total                 $110m     $170m       $159m           $352m       $161m               $169m           $452m          $1,572m


The results from comparing the projections in Table 22 to the projections in Table 19 are presented
in Table 23. Retail turnover in Acland Street is adversely affected in Other retail (-33%), Clothing
and soft goods (-26%) and Other food (-15%).


Table 23            Percentage Impact – 2016 with Triangle Site Development vs 2011
                    No Development

                             Acland        Bay         Carlisle   Clarendon       Fitzroy       St K     Port Phillip     Total
                             Street       Street        Street      Street        Street      Triangle   Remainder      Port Phillip
Supermarkets                  -4%         +16%          +8%         +16%           +8%            N/A       +9%            +23%
Department Stores             0%          +4%            -1%          +8%          0%             N/A       -0%            +1%
Other Food                    -15%        +13%          +5%         +15%           +5%            N/A       +9%            +22%
Clothing and Soft Goods       -26%        +4%            -7%          +2%          -8%            N/A       -1%            +31%
Household Goods              +15%         +16%          +12%        +15%          +12%            N/A       +14%           +14%
Other Retail                  -33%        +17%          +2%         +18%           +4%            N/A       +11%           +42%
Hospitality and Services      -3%         +10%          +5%         +11%           +7%            N/A       +7%            +22%
Total                         -8%         +13%          +6%         +14%           +7%            N/A       +9%            +23%


As seen from the analysis, if the two centres are considered as separate destinations, the overall
impact on the Acland Street centres would be -8%, which is still below the accepted level of -10%.
However, a large proportion of the trade that is currently enjoyed by the Acland Street would shift
to the Triangle site development, and in particular, fashion, boutique food stores and other
miscellaneous specialty stores would suffer a large impact.




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This would probably cause a shift in centre role and the change of some shops as the centre
adjusts its overall retail offer to compensate. It should be noted that some of this impact could be
mitigated if there was an increase in focus on household goods (as found in department stores,
discount department stores, and other shops specialising in homewares) within the retail mix of
Acland Street.


3.4.4       Summary of Findings

If the three centres are well integrated to work as a functional unit (Scenario 1), there would be
some very minor impact on the fashion outlets (Clothing and Soft Goods) in both Carlisle and
Fitzroy Streets, when compared to the turnover achieved at present time. However, all centres
would achieve an overall positive growth into the future.


If the different retail areas become competitors (Scenario 2), the Triangle site development, is
likely to win such a competition by virtue of the newness and greater efficiency of its real estate
and its sophisticated management. Acland Street would be the existing retail area which would be
the most adversely impacted as a result of this competition.


Section 5 of this report discusses a number of strategies which can be undertaken to ensure that
Scenario 1 the far more likely outcome.




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4           Community Impact Assessment


4.1         Social Cost Benefit Analysis – Triple Bottom Line
            Assessment
The objective of social cost benefit analysis (CBA) is to assist decision making that is consistent
with ‘efficiency’ in the allocation of resources in areas where, for one reason or another, market
forces do not guarantee an appropriate outcome. The CBA requires a definition of a ‘Base Case’ –
that is what might reasonably be expected to happen without the project under consideration? In
this case what would happen in the absence of the St Kilda Triangle site development proposal?
Comparing the project to the Base Case, an assessment can be made whether the community will
be better off as a result of the project.


The community in this case has been defined to be the whole of Victoria. As discussed in Section
2.3, the St Kilda area serves not just the local residents but Victorians from across the metro area
and the State. Defining


It is conventional when undertaking CBA to discuss distributive effects as well as whether a project
delivers an overall net community benefit. In some cases it is practical to use CBA to indentify
‘winners’ and ‘losers’ from certain projects. Steps can then be taken to redistribute the benefits
from ‘winners’ to the ‘losers’ (via some form of transfer payment or compensation). However, this
project would not be one of those cases.


The CBA is being conducted for the whole of Victoria so it is important to ensure that there are not
any transfer effects included in the CBA. Project impacts which merely ‘transfer’ costs and benefits
between individuals in society are excluded from the analysis, as they produce no net change in
welfare.


The CBA addresses a triple bottom line, which provides equal weighting to the economic, social and
environmental impacts. The costs and benefits are each, as far as possible, expressed in money
terms and hence are directly comparable with one another.


In some cases measuring the value of an impact is relatively simple as market forces provide easily
indentified monetary values. For example, the income earned by a person working part time in the
retail industry is relatively easy to measure and obtain information on.


In other cases shadow pricing techniques, which aim to value a cost or benefit by imputing prices
have to be used. For example, providing public open space is a clear benefit for a community.
However, as there are no costs or income generated by people accessing this open space,
measuring the value of this open space is more complex. In this case the cost of travelling to the
site by users can be seen as a proxy for the value they place on the open space.


A general methodology for carrying out a CBA is illustrated in the Figure 8.



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Figure 8        Cost Benefit Analysis Method

                               Project Description




           Define ‘Status Quo’ Scenario                         Define ‘Redevelopment’ Scenario




                        Identify Marginal Costs & Benefits



                        Quantify Marginal Costs & Benefits
                                (wherever possible)



                   Prepare Discounted Cashflow Analysis (DCF)



                      Generate Project Performance Measures
                                                                                      Sensitivity Testing
                                (NPV, BCR, IRR)


                                                                           Support with Description of Un-quantified
                                                                                       Costs & Benefits


                                                                               Examine Equity of Cost & Benefit
                     Conclusions re: Triple Bottom Line Merit
                                                                                        Distribution


As noted, it is necessary to consider the scenario that will unfold without the project. This is
generally not the ‘status quo/ do nothing’ scenario. For the purposes of the community impact
assessment, the Base Case has been defined as:

        ‘The retail and entertainment facilities provided at the St Kilda Triangle site development
        would have been provided elsewhere within Victoria although scattered across a distributed
        network of centres rather than in a single location. A replacement venue for ‘The Palace’
        would have been constructed on the Triangle site. The time horizon being dealt with is the
        two year construction phase (starting in mid 2008) up until 2016. The Palais would be
        maintained in its current state of repair for this period.’


The costs and benefits of the St Kilda Triangle site development proposal will be compared back to
this Base Case to determine if there is a net community benefit.



4.2         Impacts Matrix
The impacts arising from the St Kilda Triangle site development proposal are wide ranging.
Therefore, the impacts must be measured in a variety of different ways. Table 24 identifies the
costs and benefits of the proposal and discusses how these have been quantified and valued.




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It should be noted that the analysis focuses on the positive and negative ‘externalities’ of the
project; that is, those costs and benefits which are not included in the ‘accounts’ of the
developer/traders associated with the Triangle development and the direct users of the facilities
(e.g. shoppers). Traded costs and benefits are assumed to deliver a net positive outcome
(otherwise the development would not be financially feasible)



Table 244         Matrix of Impacts

Impact                                 Measurement                              Comments

Travel efficiency and                  Saving in the value of                    The Triangle site development
sustainability.                        kilometre travelled and                   may reduce the number of
                                       associated externalities.                 shopping trips out of St Kilda.
Enhanced international /               Increased tourism expenditure             The induced marginal
interstate tourism.                    associated with having                    expenditure of tourists as a
                                       additional retail and café /              result of the development
                                       restaurant / bar /
                                       entertainment floor space
                                       located at major tourist
                                       location.
Heritage value preserved.              The $20 million refurbishment
                                       of the Palais Theatre.
Stimulus to music industry via         Increased economic activity as
expanded entertainment                 a result of increased number of
offering for local residents.          performances being held at the
                                       Palais Theatre.
Improved employment                    The proportion of staff that              Implicitly included in this
opportunities for people with          would be drawn from the St                estimate is the value of formal
lower employment prospects.            Kilda population with lower               training provided at the site.
                                       employment prospects above
                                       what would have occurred in
                                       the Base Case.


                                       Then apply the average
                                       difference between
                                       employment income and
                                       welfare income.




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Impact                               Measurement                              Comments

Change of culture of the St          Estimate the value people
Kilda area.                          place on the current cultural
                                     attraction of St Kilda.


                                     This is done by estimating the
                                     cost people are prepared to
                                     pay to travel to St Kilda.


                                     An estimate is then made of
                                     the number of people who may
                                     chose not to travel to St Kilda
                                     due to loss of a cultural value
                                     (preferred character).
Nuisance value of construction       As above, but with a focus only          In the Base Case it is assumed
affecting visitors to St Kilda       on reduced visitation during             that this construction will take
beach.                               the two year construction                place elsewhere in Victoria. So
                                     phase.                                   the nuisance value in this case
                                                                              is only focused on the loss of
                                                                              amenity of St Kilda beach.
Crime and Safety and                 Based on existing recorded               Crime and antisocial behaviour
communal integration.                crime rates for the Port Phillip         which might be expected to be
                                     Local Government Area and the            associated with a project of
                                     average cost of crime from the           this size.
                                     Australian Instituted of
                                     Criminology. ABS data will be
                                     used to account for crimes
                                     which are not reported to
                                     police.


In addition to the impacts outlined above there are a number of other impacts which have been
considered, but, have been seen as being transfer effects rather than a net cost or benefit to the
Victorian community. These include:
    •    The impact of the development on the surrounding area’s retail turnover. As this is moving
         turnover from one store to another within Victoria it is seen as a transfer effect and is not
         included in the CBA.
    •    Traffic congestion associated with the development. The development will not create
         addition traffic congestion rather it will transfer congestion from other parts of the supply
         chain. Congestion at the site will, arguably, relieve congestion in other areas (for example,
         South Melbourne Markets, Chapel St and the CBD). So this is principally a transfer effect
         rather than a net cost to the community.
    •    The economic (e.g. employment creation) benefits from the development. In the Base
         Case it has been assumed that the same level of development would occur but in other
         parts of Melbourne. So rather than the stimulus being located in St Kilda it would be
         scattered around the rest of Melbourne.




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    •   Construction nuisance associated with the development is seen as a transfer effect in the
        same way as the economic benefits.


Other costs and benefits also exist, but due to their nature and the size of the potential impact
they have not been assigned a monetary value in the CBA. For example, the open space created
as part of the Triangle site development. Open space provides a number of benefits such as,
personal enjoyment, physical and mental health enhancement reducing health care costs and
providing a venue for special events. However, due to the small size (relative to the St Kilda beach
front) valuing the open space would be difficult in the current analysis.


Another benefit which is difficult to place a monetary value on is improved food security. This is an
important issue that has been acknowledged within the City’s 20 year vision for ‘Municipal Food
Security’. The City specifies that, “By the year 2024, the City of Port Phillip will be a local
community that acknowledges food security as a human right and takes collective responsibility for
ensuring that all people have daily access to affordable, nutritious food throughout their lifespan.”


The Council’s ‘Food Security Vision’ goes on to say…. “There is plenty of food but a paucity of low
cost food outlets accessible by walkable distance or by public or community transport.” An analysis
has been undertaken to investigate the present number of people within walking distance (400m)
to a major supermarket compared to the anticipated number of people within walking distance with
the incorporation of a supermarket developed on the Triangle site.


Figure 3 depicts the lots that are within a walkable catchment of a major supermarket. The lots
highlighted in green are used for residential purposes and show the area that does not have
walkable access but will gain this access with the development of a supermarket on the Triangle
site.


To determine the number of residents who reside within this area the existing number of dwellings
on each lot was multiplied by the average household size for St Kilda according to the 2006 ABS
Census. Results show that these lots provide for 658 dwellings, resulting in an increased provision
of approximately 1,118 people who will be able to walk to a major supermarket with the inclusion
of a supermarket on the Triangle site.




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Figure 3        Lots provided within a walkable catchment to a major supermarket




There are other factors which are difficult to fully quantify as a cost or benefit. The concentration
of entertainment venues within the Triangle site development is one such case. There is a
substantial amount of research that shows a relationship between the concentrations of venues
providing alcohol and neighbourhood problems2. St Kilda already has a high concentration of
entertainment venues which the Triangle site development will only increase.


However, having a number of entertainment venues in a single central location can provide
advantages for both the Police and private firms providing security services at the Triangle site.
The security services will also be provided on an ongoing basis during the day as part of operations
in the Triangle site development which will be a benefit for the local community. So if this impact
will have a net cost or benefit is unclear. While not quantified as part of the CBA these types of
impacts have been investigated as part of the research for the CBA.




      2
        Donnelly, Poynton, Weatherburn, Bamford & Nottage ‘Liquor outlet concentrations and alcohol-related
      neighbourhood problems’ Alcohol Studies Bulletin, no. 8, NSW Bureau of Crime Statistics and Research,
      Sydney.



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4.3            Valuation of Impacts


4.3.1          Enhanced International / Interstate Tourism
               Expenditure

Melbourne attracted an estimated 8.2 million domestic (interstate) and international tourists in
2007. St Kilda beach and surrounding areas attracted an estimated 5.8 million tourists in 2007.
For information on the methodology and data sources used in constructing this estimate please
refer to Appendix B.


Providing opportunities for tourists to increase their consumption from retail stores, pubs, clubs,
café and restaurants would effectively boost Victorian exports. Using average tourist expenditures
on tourism products3 from the Australian National Accounts: Tourism Satellite Accounts (cat. no
5249.0) for day trips an estimate of the amount of expenditure that would be expected in St Kilda
can be generated. This estimate can be compared to turnover of Retail and Accommodation, cafes
and restaurants business registered in St Kilda which is estimated to be attributed to tourists.


This provides an estimate of the additional expenditure which could be potentially spent by tourists
with the Triangle site development. The assumption here is that the very concentration of leisure,
hospitality and retail opportunities on the Triangle site will induce tourist to spend money which
they would not have otherwise spent in Victoria. For example, the Triangle will have a range of
restaurants with ocean views which could not be found elsewhere in Victoria. Tourist may
purchase an additional beverage at one of these restaurants to take advantage of these views.
This type of expenditure may not have taken place without the Triangle development.


As the CBA is based on the whole of Victoria an adjustment has been made for expenditure which
would have taken place elsewhere in Victoria. SGS estimates that the development of the Triangle
would increase tourist expenditure in Victoria above the Base Case by an estimated net $3.6
million per year (or 71 cents for each tourist visiting St Kilda Beach).


The estimate of increased tourism expenditure is based on a number of assumptions which can be
altered to test the sensitivity of the final estimate. By altering the number of tourists and the
additional expenditure of each tourist upper and lower estimates can be made. The lower estimate
is $1.4 million and the upper estimate is $6.8 million. For more information on the methodology
please refer to Appendix B.


4.3.2          Travel Efficiency and Sustainability

Locating the proposed retail space at the Triangle site may reduce the distance residents of St
Kilda and the rest of Port Phillip and beyond have to travel in order to access a wide range of goods
and services. This reduced travel time has a number of benefits:
      •   Reduced vehicle operating cost.

3
    Takeaway & restaurant meals (including beverages), shopping and alcoholic beverages & other beverages.




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    •   Reduced opportunity cost of travelling.
    •   Reduced cost of associated with Greenhouse Gas (GHG) emissions.


A reduction in these costs will benefit individual drivers, the driving community in general (via
reducing congestion) and the wider community (via reduced GHG emissions).


Via the use of the SGS Retail Model an estimate of the total trip length (in kilometres travelled)
which will be saved as a result of placing the retail space at the Triangle site, versus distributing
this floorspace in proportion with the current allocation of retail floorspace across the region, can
be made. Applying average vehicle operating costs allows a total estimate of the value of
kilometres saved to be made. Using average fuel consumption, GHG emissions can be calculated
and a dollar value assigned to them.


Applying an average travel speed for metropolitan Melbourne allows estimation of the total time
savings involved by locating the retail floor space in St Kilda. By applying an average wage rate an
estimate of the value of time saved can be made.


Using the same methodology, an estimate can be made for the savings associated with delivery
and other service vehicles which will service the Triangle site.


The Triangle site development is estimated to save 4.5 million kilometres travelled out of an
estimated total of 6.7 billion kilometres undertaken within the Melbourne Statistical Division. This
would indicate that the average shopping trip has been roughly reduced by 1.2 kilometres.
Applying standard average costs outlined above and assuming that around 40% (a conservative
estimate) of the trips are made by car, this equates to a saving of $2.2 million per year. The lower
estimate is $2.0 million and the upper estimate is $2.5 million per year.


4.3.3       Heritage Value Preserved

The refurbishment of the Palais Theatre as part of the Triangle site development will help preserve
and enhance a building of particular historical and cultural significance. Measuring this benefit is
based on the estimated costs of the refurbishment ($20 million). Given this refurbishment is an
integral part of the Triangle site development proposal the upper and lower estimates are also set
to $20 million.


4.3.4       Stimulus to Music Industry via Expanded Entertainment

The refurbishment of the Palais Theatre includes attracting additional music acts to Victoria above
what would have occurred in the Base Case. The value of this increased entertainment offering
can be measured by the resulting increased economic activity. The increased economic activity is
measured in two steps. The first is to measure total economic output of the additional
performances (204 additional performances above the Base Case each year), an estimated ticket
price ($75) and an average capacity for each performance (75%).

4
  40 additional performances are planned. However, an assumption has been made that half of these will be
transferred from other venues in Melbourne.




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This will provide an estimate of gross turnover which then has to be adjusted to estimate the net
economic value added. Using the ratio (0.28) of gross output to value added for the Entertainment
services (excluding Libraries, Museums etc) industry5 the value of the additional music acts to
Victoria above what would have occurred in the Base Case is estimated to be $950,000 per year.


Once again by altering the assumptions underlying this estimate, upper and lower estimates can be
made. In this case the lower estimate is $500,000 and the upper estimate is $1.6 million.


4.3.5           Improved Opportunities for People with Lower
                Employment Prospects

The Triangle site development will generate employment in the local area. However, in the Base
Case it is assumed that this employment will occur in other parts of Victoria. So this is classed as a
transfer effect which should not be included in the CBA.


However, there are a number of factors which will alter the outcome from the Base Case:
    •       The proposed inclusion of the William Angliss – Port Phillip Academy hospitality training
            facility in Triangle site development.
    •       The concentration of employment opportunities at the one site.
    •       The relatively large pool of low skilled unemployed located in the area close by.


These factors are expected to produce marginally better employment outcomes than would be
expected in the Base Case. By adopting a ‘lifetime labour income approach6’ the increased stock of
human capital resulting from the Triangle site development is in total $750,000. However, to
maintain consistency with the other impacts the benefit will be presented as increased income per
year. The estimated benefit is relatively small ($160,000 per year) but for completeness is
included in the CBA. For more details please refer to Appendix B.


4.3.6           Changing Culture of St Kilda

St Kilda attracts a diverse range of people for a variety of different reasons. A great deal of the
attractiveness of the area can be attributed to the uniqueness of the area, or what might be
described as its ‘St Kilda-ness’. The Triangle site development may impact on what some people
perceive to be St Kilda-ness, because of the size of the development and the increasing the
commercial focus of the area.


Estimating the valuing of St Kilda-ness can be approached by imputing a value for people visiting
St Kilda. The costs of a visitor travelling to St Kilda to enjoy the uniqueness of the area provide an
estimate of the value people place on St Kilda-ness. Based on the number of visitors (both people
local to Melbourne and Victoria) and tourists combined with average travel costs, SGS has
estimated the value of St Kilda’s unique set of attractions to be around $196 million.

        5
            Australian National Accounts: Tourism Satellite Accounts (cat. no 5249.0)
        6
         Working Papers in Econometrics and Applied Statistics: No 2004/1 Measuring the Stock of Human
        Capital for Australia, (cat. no. 1351.0.55.001).




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Gauging the number of people who might choose not to travel (or travel less) to St Kilda provides
an estimate of the impact on the attractiveness of St Kilda. A survey was conducted in January
2007 by UrbisJHD on people’s perceptions of St Kilda. User descriptions of St Kilda are presented
below.



Table 255         User description of St Kilda

User description                                                                                                %

Beach lifestyle                                                                                                 35
Vibrant / buzzing                                                                                               23
Touristy                                                                                                        23
Summer lifestyle                                                                                                23

A place for young people                                                                                        22

Relaxing                                                                                                        19
Culturally diverse                                                                                              18
Cosmopolitan                                                                                                    18
Trendy                                                                                                          15
Eclectic                                                                                                        13
Bohemian                                                                                                        11
Fashionable                                                                                                     11
Historic Character                                                                                               9
Users could provide more than one response hence total will not sum to 100%
Source: UrbisJHD, St Kilda User Survey, 12-18 January 2007


The Bohemian (11%) and Historical character (9%) descriptions of St Kilda provide some insight
into the number of users of St Kilda who might find the Triangle site development as a potential
reason enough to cease or reduce their visitation to St Kilda. This would suggest that around 10%
of users would fall into this group. This is further supported by the ‘Improved suggestions for St
Kilda’ in the next table; 9% of users surveyed suggested ‘Restrict development’ as an improvement
for St Kilda. Residents (13%) were more likely to suggest this improvement than visitors (5%).


It is important to note than 5% of users suggested ‘Improvements to retail offer’ as an
improvement for St Kilda. This is a group which could see the Triangle site development as a
positive for the St Kilda area and therefore travel to the site more regularly.




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Table 266           Users of St Kilda Suggested Improvements

Improvements suggested                                Total (%)         Residents (%)              Visitors (%)

Clean/spruce up/beautify/less noise                             22                      29                       17
Improve safety/remove undesirables                              20                      27                       15
Parking improvements                                            14                      15                       13
Beach/public area improvements                                  13                      11                       15
Restrict development                                             9                      13                        5

Traffic improvements                                             7                        7                       8

Improvements for                                                 6                        6                       6
footpath/pedestrians
Improvements to retail offer                                     5                        7                       3
Improvements: attractions/venues                                 4                        6                       2
Public facilities                                                3                        3                       4
Nothing in particular/don’t know                                27                      20                       33
Users could provide more than one response hence total will not sum to 100%
Source: UrbisJHD, St Kilda User Survey, 12-18 January 2007


The next and most important assumption is to estimate what percentage of these people, in net
terms, would see the St Kilda-ness reduced as a result of the Triangle site development and cease
to or reduce their travel to St Kilda.


Assuming that there is a bell shaped7 distribution of people’s within the 10% of users who have
been identified as having the potential to see the Triangle site development as a reduction in St
Kilda-ness, 2.5% could potentially cease travelling to St Kilda permanently. This is offset by the
1% (from the improvements to retail offer groups) who may increase their trips to St Kilda due to
the Triangle development.


Based around this population of users it has been assumed that there would be a permanent
1.25% reduction by visitors and 2.5% reduction by locals in visits to St Kilda as a result of the
Triangle site development. Using these visitor numbers and average travel costs an estimate of a
one off net cost to the community of $2.7 million has been made. Upper ($4.2million) and lower
($2.2 million) estimates have also been produced by altering the assumptions underlying the
estimate.


There is a need to allow for loss of ‘St Kilda-ness’ for residents as well as visitors. In theory, this
should be reflected in a relative fall in housing prices. Measurement of this impact, were it to occur
at all, would be problematic.




       7
        That is 25% are not affected, 25% are slightly affected, 25% are highly affected and 25% are
       extremely affected.




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It may be the case that after the Triangle site development there may be an increase in the value
of St Kilda. For example, the Triangle site development will improve the beach access which will
improve the ‘beach lifestsyle’ which would only add to the cultural value of St Kilda.




4.3.7           Loss of Amenity Due to Construction

Using the same methodology as outlined in the previous section, an estimate of the loss of amenity
due to construction affecting visitors to St Kilda beach can also be made. The Base Case assumes
that the construction of the retail space of the same size will occur elsewhere in Victoria. So
general construction nuisance is not accounted for as it is a transfer effect. However, the impact
on the amenity of St Kilda beach itself is seen as a clear cost.


Assuming that 5% of users of St Kilda beach cease visiting due to the loss of amenity during the
two year construction phase8, the loss to the community is estimated at $6.4 ($3.2 – $9.5) million.


4.3.8           Crime and Safety

The Port Phillip SLA had the third highest crime rate in Victoria in 2006-079 and crime/safety
concerns ranked highly in the St Kilda users least liked aspects of the area. Clearly, crime and
safety is an important issue for the residents of St Kilda which has to be addressed as part of the
CBA.


As the Triangle site is currently unoccupied, it may provide opportunities for antisocial or criminal
activity. It is anticipated that any nuisance arising from behaviour on the currently empty site will
be reduced as a result of its development. However, this may simply be displaced to other
locations.


The Triangle site development could potentially generate additional crime due to the concentration
of bars, and nightclubs. Venues within the Triangle site development will have the capacity to
cater for an additional 3,10010 patrons in St Kilda. In the lower end estimate it could be assumed
that the presence of these additional 3,100 patrons in St Kilda will not generate any additional
crime relative to the Base Case. That is, any additional crime in St Kilda associated with the
Triangle site development will be ‘transferred’ from another part of Melbourne. So there is no net
cost to the Victorian community.


At the other end of the spectrum, the 3,100 patrons could be viewed as ‘quasi residents’ of Port
Phillip with the same crime victimisation rates as currently recorded in the municipality. For every
1,000 residents there are 32 assaults11 each year in Port Phillip. So the Triangle site development
could be the location of 67 assaults each year.

8
    Based on the area of beach which is likely to be directly affected by the construction.
9
    State and Regional Indictors, Victoria, September 2007 (cat. no. 1367.2).
10
  The Triangle site development has capacity for 5,900 patrons in bars and nightclubs however, in the base
1,800 of those are allocated to the replacement for the Palace venue.
11
     This includes both offences reported and unreported to police.




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Using this same methodology the number of offences for a range of offence classifications can be
estimated. These include robbery, assault, sexual assault and property crimes. The average cost12
of these types of crimes to the community can then be applied to the number offences. Using this
method an estimate of $430,000 per year for the crime located in and around the Triangle site
development has been made.


However, there are a number of factors which would indicate that the Triangle site redevelopment
generating this level of new crime relative to the Base Case is an unlikely scenario. For example,
63.5% of assaults occur in a private residence, compared with 13.2% occurring in a place of
entertainment13. So the assaults are less likely to take place in an environment such as the
entertainment venues in the Triangle site development. Also the development may reduce crime
which currently takes place near or on the site. These types of factors suggest that the $430,000
would have to be seen as an upper estimate.


The final estimate is therefore the mid point of the upper and lower estimates which equates to
$215,000 per year.



4.4            Findings
The Table below presents a summary of the costs and benefits associated with the Triangle site
development.


It shows that the Triangle site development has a Benefit Cost Ratio of 5.05:1, and Net Present
Value (NPV) of $41.1 million (excluding privately traded costs and revenues). The majority of
these benefits are due to increased tourism expenditure (PV=$16.8 million) and travel cost saving
(PV=$10.2 million).


By definition, any project that has a positive NPV produces a Net Community Benefit, that is, an
improvement, on balance, in the welfare of Victorians.


Even under the lower set of assumptions the Benefit Cost Ratio is high at 2.31:1.




      12
         Mayhew, Counting the Costs of Crime in Australia, Trends and Issues in Crime and Criminal Justice,
      No. 247 Australian Institute of Criminology, Canberra.
      13
           Crime and Safety, Australia (cat. no. 4509.0).




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Table 277          Summary of Costs and Benefits14

Impact                                                   Lower            Most likely                         Upper

Greater travel efficiency and                       $2.0 million          $2.2 million                  $2.5 million
sustainability.
Enhanced international /                            $1.4 million          $3.6 million                  $6.8 million
interstate tourism.

Stimulus to music industry                            $500,000               $950,000                   $1.6 million

Heritage value preserved (total                     $20 million            $20 million                  $20 million
value).
Improved employment                                            0             $160,000                     $200,000
opportunities for people with
lower employment prospects.

Change of culture of St Kilda                       $2.2 million          $2.7 million                  $4.2 million
(total value).
Loss of amenity due to                              $1.6 million          $3.2 million                  $4.7 million
construction.
Crime & safety.                                                0             $215,000                     $430,000


Present Value of Costs                             $16.0 million         $10.2 million                  $5.2 million
Present Value of Benefits                          $36.9 million         $51.3 million                $71.5 million
Net Present Value                                  $20.9 million         $41.1 million                $65.3 million
B/C Ratio                                                  2.31                    5.05                        13.65



However, as discussed in section 4.1, an important part of any CBA is examining the distributive
implications.


As St Kilda provides a services and amenity to the people of Victoria not just the local residents,
the community for the CBA has been defined as the whole of Victoria. Accurately assigning costs
and benefits below that level would be extremely problematic. However, it is possible to provide
some indication of what various parts of the community the costs and benefits may fall.


The bulk of the benefits resulting from the Triangle site development are likely to be attributed to
the Melbourne or Victorian community. Meanwhile, a significant proportion of the costs are likely
to be borne by the residents of St Kilda living within a short distance to the Triangle site
development.




      14
           Per year, unless otherwise indicated.




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Table 288         Section of Community Most Affected

Impact                                                     Section of community most likely affected

Greater travel efficiency and sustainability.              Victoria / Port Phillip
Enhanced international / interstate tourism.               Victoria

Stimulus to music industry.                                Melbourne

Heritage value preserved.                                  Victoria / Port Phillip
Improved employment opportunities.                         St Kilda

Change of culture of St Kilda.                             St Kilda / Melbourne

Loss of amenity due to construction.                       St Kilda / Melbourne
Crime & safety.                                            Crime against the person (Melbourne)
                                                           Property crimes (St Kilda streets adjacent to the
                                                           Triangle site)
Improved food security.                                    St Kilda

Travel congestion.*                                        St Kilda

Public open space.*                                        St Kilda

Improved access to beach front.*                           St Kilda

* Treated as a transfer effect in the CBA.




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5           Strategies to Improve Net Community
            Benefit


5.1         Synergies between the Triangle Site
            Development and Local Centres
The retail impact analysis in Section 3 of the report demonstrates the imperative to integrate the
Triangle site development with Acland Street and Fitzroy Street to form a coherent activity centre
of metropolitan significance. The relationship with Acland Street is of particular interest because of
its real and perceived proximity.


Our analysis of the proposed tenancy mix of the Triangle site development suggests that the offer
on this site is generally consistent with emergent needs in the local catchment and broadly reflects
preferences commonly associated with the young, higher income and mobile demography of the
district. In these types of cases indentifying the optimum tenancy mix is near impossible as there
would not doubt be numerous possible combinations of tenancies which could be considered
optimum.


However, the proponents have identified a number of key gaps in the local retail offer, which when
filled by the Triangle site traders, can be expected to be well received and transmit into healthy
sales volumes. This includes a significant improvement in fresh food outlets.


We believe that the successful integration of the Triangle site development in the wider St Kilda
activity centre turns on pedestrian routing and public transport initiatives, as well as urban design
adjustments to articulate the Triangle site, not as a separate destination, but a series of stops that
one might enjoy whilst traversing the full circuit of opportunities from Acland Street the foreshore
and Fitzroy Street.


Opportunities to improve this physical / pedestrian integration are discussed in the next section.



5.2         Improving Integration of St Kilda Triangle Site
            with the Existing St Kilda Context
The stated intention of the St Kilda Triangle project and the Council’s policies for the Triangle area
is that it should integrate well with the existing St Kilda context. As also highlighted by the
economic impact assessment, there is a possibility that if the proposal does not integrate well into
the existing context it may actually plunder it of its existing vitality. Therefore, the extent to which
the St Kilda Triangle development achieves this integration within Kilda generally, and with the
Fitzroy, Acland and Carlisle Street retail precincts in particular, will be a major factor in mitigating
possible negative effects on local social and economic conditions.




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The concern with introducing a comprehensively planned and developed project such as this into
an established neighbourhood is that it may purposely isolate itself from its surroundings. One
advantage of this for the new development would be that it cuts the prospect of any positive
externality benefits flowing to established retail and entertainment facilities, or, its competitors.
Such an attitude on the part of the St Kilda Triangle development would steer towards Scenario 2
as identified in the economic modelling, where the new development sits in direct competition with
the Fitzroy and Acland Street retail precincts. This may also have the negative effect of isolating
public spaces provided in the site from potential users amongst the local resident community.


This section of the report identifies possibilities for integrating the St Kilda Triangle site into its
immediate urban context as well as some investment and management aspects that may impact
on successfully achieving the full potential integration of the site. It will consider the St Kilda
Triangle site in relation to:
    •   other existing shopping destinations in the vicinity, especially Acland Street;
    •   existing entertainment/ recreation facilities scattered around the district: Fitzroy Street,
        Acland Street and Carlisle Street;
    •   nearby residential neighbourhoods, where residents could expect to be able to walk to the
        new centre and continue through it to the waterfront beyond;
    •   City of Port Phillip/ St Kilda residential areas further way, from which people would use
        private or public transport to access the centre; and,
    •   the context of greater Melbourne through it connections to city-wide infrastructure such as
        roads and trams.


A number of possible benefits to the community from successful integration of the St Kilda Triangle
site with its context include:
    •   greater permeability of the site to facilitate movement between St Kilda residential and
        retail precincts and the waterfront;
    •   increased accessibility to public space amenity for local residents;
    •   additional catchment area and shared benefits for the entire St Kilda retail precinct
        including Fitzroy, Acland and Carlisle Streets; and
    •   increased retail choices for local residents and visitors alike.


Problems that may arise from a lack of integration of the St Kilda Triangle site include:
    •   an internalised retail centre that acts in competition with existing retail precincts (especially
        Acland St) and presents a loss of opportunity to existing retail precincts and businesses;
    •   a development that acts as a barrier to pedestrians and cyclists (whether local residents of
        visitors to St Kilda), or that internalises their movement and prevents an easy flow of
        movement through and beyond the site;
    •   a car-dominated development that discourages visitors that arrive by car from leaving the
        centre to filter into other parts of St Kilda, or, that encourages local residents to drive to
        the centre for weekly shopping rather than using public transport or walking; or
    •   public open space built by the developer with which the local residents do not associate as
        it does not meets their local community needs.




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5.2.1       The Esplanade

A strong and active pedestrian promenade along the upper Esplanade that connects the Fitzroy and
Acland Street precincts to each other as well as to the St Kilda Triangle development is a crucial
factor in allowing the precincts to function as unified urban fabric. This passage in its current state
is not designed for easy access by pedestrians. It instead favours the uninterrupted movement of
traffic. In conjunction with lack of shading, appropriate crossing points and landscaping this
dominance of road infrastructure actively discourages pedestrian movement along its edges. This
will need to be addressed if the proposed pedestrian movement along the Upper Esplanade is to
occur. With views to the waterfront and this new status as connecting spine to St Kilda, this stretch
of upper Esplanade should be made into one of Melbourne’s iconic boulevards. This new inviting
public space would also offer the possibility of revived pedestrian connection from within St Kilda to
the waterfront.




5.2.2       Permeability of the Site

Currently the confluence of the large-scale road infrastructure of The Esplanade and Jacka
Boulevard, along with the current state of the St Kilda Triangle Site as a car park, form a largely
impermeable barrier to movement for pedestrians and bicycles between the residentiall /
commercial areas of St Kilda and the waterfront. The development of the St Kilda Triangle Site
therefore poses a set of possibilities for improving the connection between these two important
aspects of the St Kilda fabric. Successful integration of the pedestrian permeability of the site will
also improve chances for the outcome of the development to approach Scenario 1, where it
interacts with Fitzroy, Acland and Carlisle Streets to their mutual benefit.


Pedestrian Amenity and Permeability


The development proposal has made a number of gestures to improve permeability of the site by
including additional crossings to the major road infrastructure, formalising some pedestrian desire
lines through the site, and creating a network of interconnected paths across the site.15 However,
pedestrian paths across the development comprise only one aspect of the movement facilitated by
a design. A clear connection between all modes of arrival to the site (pedestrian, bicycle, tram,
bus, taxi and private vehicle), the subsequent pedestrian desire lines generated by these and the
extent to which these are catered for should all be considered.


Edge permeability refers to the ease of entering or leaving the site to-and-from surrounding areas.
As mentioned above, this should be considered for all modes of transport and points of arrival as
well as for pedestrians moving into and through the site from adjacent areas. A specific mention of
improvement of the pedestrian access to and from the centre car parking and its possible impact
on car use has been outlined below. Internal permeability could be described as the ease and logic
of movement within the site. To integrate into St Kilda, this internal movement needs to bear a



      15
         Desire lines are those routes that connect locations and desired destinations, which are
      often the most direct route possible.



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relation to the surrounding public spaces and streetscapes in terms of alignment, scale and
configuration.


Bicycle Amenity and Permeability


Many of the comments relevant to pedestrians are also relevant to bicycle users. There are a
number of extra amenities that should also be provided for bicycle users including:
    •   the provision of dedicated bicycle paths to and through the site;
    •   the provision of suitable and sufficient locations where bicycles can be locked; and,
    •   the possibility for cyclists to wheel a bike next to them when traversing the site on foot,
        especially with regards to impediments such as stairs.


Permeability of Views


Views to the waterfront, either open panoramas from areas such as the Upper Esplanade or smaller
framed views available from within the residential districts, contribute substantially to St Kilda’s
sea-side atmosphere. Retaining the permeability of the new development to view lines from St
Kilda through and across the site is therefore also an important factor in integrating the
development into the surrounding urban fabric.


View lines from within the development are also important as they help establish the degree to
which the experience of the development is perceived to be connected to things outside the site.
Clear connections between view lines and paths of travel between the site and its surrounds can
add to its perceived edge permeability and subsequent integration and may decrease its tendency
to appear as an internalised and separate centre. This is the extent to which the public spaces of
the site are perceived as the extension of streets and public spaces of St Kilda.




5.2.3       Car Parking Provision and Configuration

The proposal for the Triangle site includes substantial provision for car parking on the site. This
offers a number of potential benefits to the integration of the site and potential extra amenity to
the St Kilda area. In addition to serving the car parking needs of the St Kilda Triangle site, car
parking in the new development may offer some respite to this shortage for visitors to other
activities of St Kilda. The development car park would also generate pedestrian traffic that would
move through the development site and filter into other areas of St Kilda and to the waterfront.
The configuration of the development car park, especially of pedestrian entrances and exits
therefore presents an opportunity to activate the public spaces of the development and surrounds.


Although some of the proposed car parking is provided in the form of on-street parking, the
majority of it is located on-site at basement level. A concern with this provision would be that
those visitors who access the centre by car are discouraged from leaving the development to filter
into St Kilda or the waterfront. This may be due to a lack of paths from the development to the
surrounding areas, or perception of such. As with attracting pedestrians to the site, a greater
exchange of activity between visitors arriving at the site and St Kilda could be achieved with clear
pedestrian connections directly from the car parks into the streets and public realm.



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As discussed regarding pedestrian permeability, the provision of such basement parking without
improvements to public transport infrastructure and pedestrian access, some local residents who
would otherwise arrive by public transport or on foot may be encouraged to drive to the centre.
This would act to both increase traffic and congestion in the area and to decrease the pedestrian
vitality of the streets and public spaces.




5.2.4       Integration of Proposed Development with Tramways

In any development, the connection of the site into the immediate environs and beyond should be
given priority because inappropriate development can bring disadvantageous impacts on the local
context. As previously discussed, successful integration into the surrounding context also has the
potential to bring pedestrian activity into and through the site whereas a lack of integration may
have the effect of the site being used as an internalised, car-oriented destination. Improvements to
the existing trams running along The Esplanade would increase the potential of the proposal to
operate as a public transport and pedestrian oriented development.


Tram Infrastructure on Upper Esplanade


The St Kilda Triangle site development proposes the addition of Tram Super-Stops at two points
along the Esplanade. The addition of such infrastructure to the Upper Esplanade creates great
potential for ease of accessibility for St Kilda residents as well as visitors. This tram infrastructure
could improve the integration of the Triangle site with Fitzroy and Acland Streets as it makes a
clear and legible continuation of the public infrastructure that connects them. It also allows
pedestrians to move from one point of intensity to another as a hop-on, hop-off passenger.
Additional improvements to the public spaces of the Upper Esplanade such as shading, well-
considered pedestrian crossings, landscaping and street furnishings, will also improve the
pedestrian amenity of this route connecting the three precincts and lead to its increased use as a
public promenade.


Although the 19 and 96 Tram routes currently offer quick and direct public transport access to and
from the city for both St Kilda residents and visitors to the area, the potential of this infrastructure
to service the waterfront is not fully utilised. As outlined above the road infrastructure of the upper
Esplanade offers a substantial impediment to easy access of waterfront areas and activities for
pedestrians. This circumstance also applies to visitors arriving by tram who wish to access St Kilda
Beach or other waterfront activities. These pedestrian routes, between tram and waterfront and
between tram and interior neighbourhood streets, are strong desire lines that should be considered
in the new development.


Tram stops throughout the metropolitan Melbourne area follow the principle that where possible
they are located directly on pedestrian feeder routes that connect the linear system deep into the
neighbouring residential districts. Trams feed people into the public realm at regular intervals along
these strips and attract people into and through these streets from the adjacent residential areas.
Often this also means that the tram stop can be associated with existing infrastructure such as
traffic lights and minimise the dangers for pedestrians crossing without lights to reach trams. Due



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to its extensive use, this system is also well-known and therefore legible to Melbourne tram users.
In this way the tram infrastructure contributes to the pedestrian permeability and vitality of the
urban fabric.


In order to make best use of this potential, the location of these proposed new stops on the Upper
Esplanade should be carefully considered. It is suggested that these tram stops be located at
positions that maximise their potential to focus pedestrian routes across the Upper Esplanade and
connect with the most permeable routes through the site and to the residential districts and
waterfront. A correlation of site permeability and tram stops would also increase the development’s
ability to feed off the linear tram network of the Upper Esplanade as well as waterfront pedestrian
activity, rather than becoming a point location that is best accessed by car.


Possible Tramway extensions


Extending the St Kilda Tramway to Glenhuntly Road in Elwood is also proposed as an infrastructure
benefit that would be mutually beneficial to the community. This would reinstate a previously
existing tram line. Mitford Street was part of 1906 St Kilda-Brighton Beach line run by the Victorian
Railways. The Brighton Beach end closed in 1957, while the Elwood to St Kilda Section including
Mitford Street closed in 1959. The area that would be served by this tram extension is currently
public transport poor even though it is located near to very well served public transport areas.


In addition to redressing these issues of accessibility, this additional infrastructure would add to the
public transport catchment areas for both the new proposal and the commercial strips of Fitzroy
and Acland Streets, thereby increasing the number of people that could access the entire district by
public transport. It would also provide better public transport access to the St Kilda waterfront
activities for these residents. In Figure 9 the catchment area for existing transport infrastructure is
identified in pale yellow and the proposed tram catchment has been included in pink. It can be
clearly seen how the proposed tramway would substantially cater for the currently transport-poor
zone, improving its connection into both surrounding areas and metropolitan Melbourne.




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Figure 9        New Tramway Catchment Following Possible Extension




Provision for Taxis


The ability to locate taxi queues on Jacka Boulevard away from residential areas could also help to
reduce late night noise levels from entertainment precinct patrons. This would assist in moving
patrons along rather than infiltrating nearby residential areas.




5.2.5       Managing the St Kilda Cluster as an Identifiable
            Coherent Entity

Drive-in comprehensively developed shopping centres set the standard for retailing in urban areas
against which traditional activity centres, such as Acland Street and Fitzroy Street, are inevitably
assessed. That such corporately-owned shopping centres are successful is evident by the
increasing percentage of the consumer dollar passing though them at the expense of traditional
activity centres. And this is likely to be the case with the Triangle site development due to its
sophisticated centre management and tenanting programs.




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An appropriate response is not to attempt to restrain the Triangle site development but rather to
increase the range of responsibilities and the level of sophistication of the management of Acland
Street and Fitzroy Street to best exploit the undoubted drawing power of the new shopping and
entertainment destination.


In recent years local governments have tried to revitalise Melbourne’s activity centres by adopting
similar urban design solutions as corporate shopping centres; for example, improving the quality
of footpaths or providing more seating or bunting in the street. These initiatives should help but
they are not sufficient to create a competitive shopping destination. Corporate shopping centres
get their greatest competitive edge over activity centres by their ability to recruit a mix of
businesses that customers want and by placing them to complement each other.


This is easier in shopping centres where business premises are in single ownership, whereas in
shopping districts they are in multiple ownership. However, the fundamental task of each type of
shopping destination is the same: to have the disparate stakeholder interests perform collectively
towards a single vision. What corporate shopping centres can achieve by lease conditions activity
centres must do by negotiating a commitment from stakeholders.


Because of the difficulties of getting consensus within activity centres, it is unlikely that they can
reach the sophisticated level of management of their corporate shopping centre competitors.
However, following a trend in the UK and USA, it is increasingly common in Melbourne for
managers to be appointed for activity centres. Fortuitously, the City of Port Phillip is at the
forefront of this trend and it has had such a management program for some years. However,
additional resources will be required for the new task of managing an enlarged Principal Activity
Centre. There are examples internationally of sophisticated activity centre management that can
be explored.


Throughout this section emphasis has been placed on how best to ensure that the disparate
components are integrated into one identifiable coherent entity. In this the business mix and
location of individual businesses is important but so is the urban design of the most significant
integrating element for the St Kilda cluster: the Fitzroy Street, Upper Esplande, Acland Street
corridor.




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5.3         Mitigating Nuisance Effects from the Night
            Economy and Loss of Cultural Value


5.3.1       Crime and Anti Social Behaviour

As discussed in Section 4.3.8 crime and anti-social behaviour is a significant problem in the St
Kilda area. A development of the size and nature of the Triangle site development may increase or
concentrate existing crime and anti-social behaviour in the immediate and surrounding area. There
is also the potential for the Triangle site development to produce a positive outcome for the
community in terms of crime and safety.


Before proceeding it is important to divide the crime and anti-social behaviour issue into two
distinct clusters:
    •   That related to people attending the entertainment venues located at the Triangle site
        (alcohol related assaults, property damage etc).
    •   That which is currently taking place in the St Kilda such as drug dealing / consumption and
        related anti-social behaviour.


Mitigation of crime occurring in the two clusters is likely to require quite different approaches. The
way the patrons of the entertainment venues are managed by the Triangle site development is
very important. The mix of patrons each venue is catering for can go a long way to reducing the
level of crime associated with them. The relationship between alcohol (and in particular binge
drinking), age and violence is well established. Younger people, and in particular young men, are
associated with higher rates of alcohol related crime.


Ensuring that the mix of entertainment venues is aiming to attract patrons who are aged outside
the 18-24 age group would be useful. This must apply to the whole duration of entertainment
venues trading hours. For example, having entertainment venues marketing to over 30’s groups
between 5pm-10pm and marketing to an under 25 group between 10pm-2pm would be a poor
outcome. However, it should be noted that people aged 18-24 should not be singled out as being
the cause of all alcohol related crime in the St Kilda area.


In terms of community impact, the location of entertainment venues in the Triangle site offers
some advantages compared to alternative locations across the metropolitan area. Specifically, the
entertainment venues within the Triangle site will be at relatively large distances from the nearest
residential dwellings. This will assist in the mitigation of noise and other residential amenity
impacts of the new entertainment venues.


It could also be the case that the Triangle site development entertainment venues could draw some
surplus patrons away from existing venues. This may reduce the current levels of noise and anti-
social behaviour which affecting St Kilda.




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A concentration of venues, such as those on the Triangle site development can also provide an
integrated approach to dealing with anti-social behaviour.


Overall management of public transport to ensure that patrons are able to quickly and easily
depart the entertainment venues (rather than spilling into surrounding streets) will also help
mitigate any potential problems. This can be combined with ensuring that effective security
services are provided around the entire Triangle site on a 24 hours basis.


The drug related problems within St Kilda requires a more complex set of strategies to mitigate the
potential impact of the Triangle site development. The Triangle site may have the effect of
disrupting and / or ‘displacing’ (moving to another area) some of the drug related activities.
However, disruption practices are most effective when used in conjunction with treatment and
support services.


Programs which offer treatment options such as the Mobile Overdose Responses Service, Mobile
Drugs Safety Workers and Youth Alcohol & Drug Day Programs should work closely with the City of
Port Phillip, Police and Triangle Site Development management. This will ensure that there is a
common understanding of the various strategies and services available to address drug related
problems in the St Kilda area.


5.3.2       Reinforcement of Cultural Value

As discussed in section 4.3.6 the Triangle site development may also impact on what some people
might perceive to be ‘St Kilda-ness’. A number of steps can be taken to assist the integration of
the Triangle site development into the St Kilda community. For example:
    •   Ensuring the Palais Theatre is available for regular St Kilda community events.
    •   Use of the Triangle site development public spaces for existing community events.
    •   The William Angliss centre or St Kilda Market shopfront could also provide a venue for
        community events and training programs.


Ensuring the ongoing success of these types of activities will expose the St Kilda community to the
Triangle site development outside of its primary retail function.




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6           Conclusion
The new St Kilda Triangle site development provides the opportunity for the City of Port Phillip to
have its only Principal Activity Centre, and a credible one at that. That is more than a designation
change within Melbourne 2030 but a higher order performance for the St Kilda Activity Centre. If
the new centre is developed and operated in isolation from the other St Kilda components
(especially Acland Street and Fitzroy Street), no individual component will generate the synergies
necessary to create the critical mass of opportunities (shopping, entertainment, employment and
residential) necessary to be a vital and viable Principal Activity Centre, irrespective of the
designation.


The analysis of the proposed tenancy mix of the Triangle site development suggests that the offer
on this site is generally consistent with emergent needs in the local catchment and broadly reflects
preferences commonly associated with the young, higher income and mobile demography of the
district. The proponents have identified a number of key gaps in the local retail offer, which when
filled by the Triangle site traders, can be expected to be well received and transmit into healthy
sales volumes. This includes a significant improvement in fresh food outlets.


There are two possible scenarios of how the Triangle site development will interact with the
existing retail areas. These two scenarios produce two quite different potential outcomes.


If the different retail areas become competitors, the Triangle site development, is likely to win such
a competition by virtue of the newness and greater efficiency of its real estate and its sophisticated
management. Acland Street would be the existing retail area which would be the most adversely
impacted as a result of this competition.


If the three centres are well integrated to work as a functional unit, there would be some very
minor impact on the fashion outlets in both Carlisle and Fitzroy Streets, when compared to the
turnover achieved at present time. However, all centres would achieve an overall positive growth
into the future.


There are a number of tangible actions which can be undertaken to ensure that the three centres
are well integrated. The primary integration element is the Fitzroy Street, Upper Esplanade and
Acland Street road corridors. The efficiency and quality of the linear circuit from the north end of
Fitzroy Street to the south end of Acland Street is crucial in the creation of a visible, united entity.
This simple circuit has the potential to be one of Melbourne’s most iconic boulevards.


Particular qualitative criteria are identified for the council to consider in evaluating the success of
the proposal’s integration with St Kilda as well as recommendations on infrastructure and
management issues that may further contribute to its integration.


The pedestrian connection throughout the area is especially important. Creating a stimulating and
inviting environment for pedestrians along the whole length of the linear circuit will be imperative
in encouraging users to view and make use of the area as one centre rather than three separate




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centres. Ease of access for bicycles, and improvements to tram/ light rail connections is also very
important.


Some of the potential adverse impacts on Acland Street in Scenario 2 could be mitigated if the mix
of retailing in the different areas was encouraged to be highly complementary.


For example, there was an increase in focus on household goods within the retail mix of Acland
Street. This could be done via effective collaborative management of Acland Street and Fitzroy
Street. Corporate shopping centres get their greatest competitive edge over activity centres by
their ability to recruit a mix of businesses that customers want and by placing them to complement
each other. Because of the diverse ownership of traditional activity centres there are many
difficulties in obtaining consensus within activity centres. However, it is increasingly common in
Melbourne for managers to be appointed for activity centres.


Fortuitously, the City of Port Phillip is at the forefront of this trend and it has had such a
management program for some years. However, additional resources will be required for the new
task of managing an enlarged Principal Activity Centre.


The potential outcome is not entirely in the control of the St Kilda Triangle site development
because much of the integration must be achieved within the public domain, an entirely desirable
situation. This will entail particularly sensitive and creative planning.


If the retailing and entertainment market does grow, and that would be the hope and expectation
with the additional shopping and entertainment opportunities, it means that the people living and
working in the existing St Kilda trade area will have more and better opportunities to have their
needs met locally. However, they will have to share that improved quality of lifestyle with a
greater number of people; some people may see this as a negative outcome of the development.


A development such as that proposed for the Triangle site can produce a range of costs and
benefits for the community. Using social cost benefit analysis an assessment can be made whether
the community will be better off as a result of the Triangle site development.


St Kilda provides a unique experience not just for the local residents but for users from overseas,
interstate and country Victoria as well as Greater Melbourne. With this fact in mind, the community
for the social cost benefit analysis has been defined as the whole of Victoria. After accounting for
transfer effects (which ‘transfer’ costs and benefits between individuals in society as they produce
no net change in welfare) the Triangle site development has a positive net community benefit.


The Triangle site development has a Benefit Cost Ratio of 5.05:1 and NPV of $41.1 million. Even
under a lower set of assumptions the Benefit Cost Ratio is high at 2.31:1. The majority of the
benefits are due to increased tourism expenditure and travel cost saving. With the major cost
being the loss of amenity of St Kilda beach during the construction phase of the project.


By definition, any project that has a positive NPV produces a Net Community Benefit, that is, an
improvement, on balance, in the welfare of Victorians.




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The bulk of the benefits resulting from the Triangle site development are likely to be attributed to
the Melbourne or Victorian community. Meanwhile, a significant proportion of the costs are likely
to be borne by the residents of St Kilda living within a short distance to the Triangle site
development. There are a number of possible actions which can be undertaken to mitigate the
adverse impact on these residents.


In all of this, the primary focus has been on the St Kilda components but there is also a potential
to include Carlisle Street, Balaclava within the pedestrian, bicycle, tram circuit to create a seamless
economic activity centre. Not only would such an emphasis be user friendly but it would also be
environmentally advantageous.


Thereafter, or in anticipation of it, it is important to ensure that all development, new and old,
contribute to the vitality and viability of that defined pedestrian, bicycle and tram circuit. This can
be done by providing a defining street frontage or at least by providing permeability from the
boulevard to and through the supporting developments.


The Triangle site development can and does contribute positively but some changes in both the
proposed development, effective management of the area surrounding the site and the Upper
Esplanade infrastructure needs to be made to fully capitalise on this potential.




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Appendix A: Socio Economic Profile of St Kilda
Residents
A social profile of people who reside in close proximity to the Triangle site development is provided
based on the Australian Bureau of Statistics geographical classification of Statistical Local Area
(SLA) - Figure 10. This immediate area offers a base upon which the local market for the Triangle
site development may be assessed. Data about the Melbourne metropolitan area, or statistical
division (Melbourne SD), has been included for comparison purposes.


It is important to note that there has been substantial population growth in the vicinity of St Kilda
Road to the north of the St Kilda SLA. Therefore there is a possibility that this group of new
residents will frequent the St Kilda Triangle site development.




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Figure 10       St Kilda SLA




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Population

The population of the St Kilda SLA has been increasing over the period 1996 to 2006 to reach
51,856 persons in 2006 (see Figure 11).


Figure 11                Total Population – St Kilda


                53,000

                                                                                  51,856
                52,000

                51,000

                50,000
   Population




                                                           49,044
                49,000

                48,000
                                 47,296
                47,000

                46,000

                45,000
                                                       St Kilda (SLA)

                                                    1996    2001    2006

Source: ABS Census 2006
* Includes overseas visitors.


The total population of the Melbourne SD has also been growing, reaching 3,622,366 in 2006 - an
increase of 7% since 2001. In comparison, the St Kilda SLA has increased by 6% since 2001.


According to State Government projections for the St Kilda SLA, its population is expected to reach
59,051 by 2031 (see Table 29).


Table 29                 Population Projections – St Kilda SLA

Year                          2011          2021      2031
Projection                  51,737        55,640    59,051
Source: Department of Sustainability and Environment, ‘Victoria In Future’ 2004




Age Structure

The age structure of the St Kilda SLA is dominated by young adults, with a high percentage (31%)
of persons aged between 25 and 34 years (see Figure 12). This is not reflected in the Melbourne



SGS Eco and Comm Impact Report Final Final.doc P. iii
SD age distribution, with only 15% of persons in this cohort. Similarly, while the Melbourne SD
has a spike in the age cohort of 5 to 14 years, the St Kilda SLA has a relatively low percentage of
persons aged below 19 years of age.


Figure 12               Age Structure – St Kilda SLA and Melbourne SD


                           35%

                           30%

                           25%
  Population (%)




                           20%

                           15%

                           10%

                            5%

                            0%
                                                                                                                   85
                                   0-4    5-14    15-19   20-24   25-34   35-44   45-54   55-64   65-74   75-84
                                                                                                                  years
                                  years   years   years   years   years   years   years   years   years   years
                                                                                                                   and
                   St Kilda SLA    4%      5%      3%      9%     31%     19%      12%     8%      4%      3%      2%
                   Melbourne SD    6%     13%      7%      8%     15%     15%      14%    10%      6%      5%      2%
                                                                      Age Cohort


Source: ABS Census 2006




Household Size

Almost half of all households in the St Kilda SLA consist of only one person (45%) (see Figure 13).
There is also a high percentage of two person households (38%). This is also a strongly growing
group in the local population.




SGS Eco and Comm Impact Report Final Final.doc P. iv
Figure 13                                 Household Size – St Kilda SLA


                              60%
  Percentage of Households.




                              50%

                              40%

                              30%

                              20%

                              10%

                               0%
                                                                                                                         6 Persons or
                                          1 Person   2 Persons            3 Persons          4 Persons   5 Persons
                                                                                                                            more
                              1996          48%        33%                  10%                 6%          2%               1%
                              2001          47%        37%                  10%                 5%          1%               0%
                              2006          45%        38%                   9%                 6%          2%               1%
                                                                       Number of Usual Residents

                                                                              1996    2001    2006


Source: ABS Census 2006


It can be seen in Figure 14 that the St Kilda SLA has almost double the percentage of one person
households compared to the Melbourne SD. It also has a higher percentage of two person
households, and lower percentages of all other household sizes.


Figure 14                                 Household Size – St Kilda SLA and Melbourne SD


                                          50%

                                          45%
  Percentage of Households.




                                          40%
                                          35%

                                          30%
                                          25%

                                          20%

                                          15%
                                          10%

                                           5%
                                           0%
                                                           St Kilda SLA                                   Melbourne SD
                              1 Person                           45%                                          24%
                              2 Persons                          38%                                          32%
                              3 Persons                          9%                                           17%
                              4 Persons                          6%                                           17%
                              5 Persons                          2%                                           7%
                              6 Persons or more                  1%                                           3%
                                                                                        Region




Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. v
Household and Dwelling Type

The most common household type in the St Kilda SLA is that of a lone person, comprising 38.5% of
all households (see Figure 15 and Table 30). This is followed by couple family with no children
households (20.1%), other households (14.8%) and group households (10.7%). This is consistent
with the age profile indicating small numbers of children, with couple families with children and one
parent family households comprising less than 15% of households combined.


Figure 15                            Household and Dwelling Type – St Kilda SLA


                                          45.0%
                                          40.0%
 Percent of Households




                                          35.0%
                                          30.0%
                                          25.0%
                                          20.0%
                                          15.0%
                                          10.0%
                                          5.0%
                                          0.0%
                                                     Couple         Couple
                                                                             One parent              Lone person  Group                            Other
                                                   family with   family with            Other family
                                                                               family                 household household                        household
                                                   no children     children
                         Other                        0.0%          0.0%            0.0%            0.0%             0.1%            0.0%           0.0%
                         Attached to shop/office      0.0%          0.0%            0.0%            0.0%             0.1%            0.0%           0.0%
                         Apartment                   13.9%          3.0%            2.4%            1.2%            32.0%            8.2%           12.4%
                         Semi-detached                3.1%          2.3%            0.7%            0.2%             3.4%            1.4%           1.3%
                         Separate house               3.1%          4.7%            1.1%            0.2%             2.9%            1.1%           1.1%
                                                                                       Household Composition

Source: ABS Census 2006


Table 30                             Household and Dwelling Type – St Kilda SLA

                                                      Couple family
                                                                    Couple family One parent                  Lone person     Group       Other
                                                        with no                                Other family                                            Total
                                                                    with children   family                     household    household   household
                                                        children
Separate house                                            815         1,238         290            54             780         280         287          3,744
Semi-detached                                             832          599          195            48             904         361         353          3,292
Apartment                                                3,702         801          626           314            8,498       2,188       3,291        19,420
Attached to shop/office                                    9            8            3             0              25           11          11           67
Other                                                      0            0            0             0              17           0           0            17
Total                                                    5,358        2,646        1,114          416           10,224       2,840       3,942        26,540

Source: ABS Census 2006


By contrast The most common household type in the Melbourne SD is the couple family with
children, comprising 33.4% of households (see Figure 16 and Table 31). This is followed by couple
family with no children (22.8%), lone person households (22.7%) and one parent families
(10.4%).




SGS Eco and Comm Impact Report Final Final.doc P. vi
Figure 16                             Household and Dwelling Type – Melbourne SD


                                           40.0%
   Number of Households




                                           35.0%
                                           30.0%
                                           25.0%
                                           20.0%
                                           15.0%
                                           10.0%
                                           5.0%
                                           0.0%
                                                      Couple      Couple                                           Lone
                                                                            One parent              Other                         Group         Other
                                                    family with family with                                       person
                                                                              family                family                      household     household
                                                    no children   children                                       household
                          Other                       0.0%           0.0%           0.0%            0.0%            0.2%             0.0%          0.0%
                          Attached to shop/office     0.1%           0.1%           0.0%            0.0%            0.1%             0.0%          0.0%
                          Apartment                   3.0%           1.3%           1.2%            0.4%            7.0%             1.4%          1.8%
                          Semi-detached               2.7%           2.1%           1.1%            0.2%            3.8%             0.8%          0.6%
                          Separate house              17.0%          29.9%          8.1%            0.8%            11.6%            1.9%          2.5%
                                                                                       Household Composition


Source: ABS Census 2006


Table 31                              Household and Dwelling Type – Melbourne SD

                                                     Couple family
                                                                   Couple family One parent                  Lone person     Group       Other
                                                       with no                                Other family                                            Total
                                                                   with children   family                     household    household   household
                                                       children
Separate house                                         230,355      404,595      109,219        11,187        156,201       26,068      34,158       971,783
Semi-detached                                           37,138       28,402       15,104         2,722         50,806       11,227       8,762       154,161
Apartment                                               40,426       17,363       15,872         5,546         94,825       19,542      24,261       217,835
Attached to shop/office                                  714          752          264            55            958          316          415         3,474
Other                                                    534          302          198            27           2,247          78          596         3,982
Total                                                  309,167      451,414      140,657        19,537        305,037       57,231      68,192      1,351,235

Source: ABS Census 2006


It is also worth noting that a majority of people in the Melbourne SD reside in separate houses,
while persons in the St Kilda SLA are more likely to occupy apartment dwellings. This has
implications for the types of facilities provided in St Kilda, for example, a greater need for public
open space and high quality public domain.


Dwelling Structure

As noted, flats, units and apartments are the main form of dwelling found in the St Kilda SLA,
comprising 71% in 2006 (see Figure 17). This is distantly followed by separate houses (15%) and
semi-detached, row, terrace houses and townhouses (13%).


Flats, units and apartments, and semi-detached, row, terrace houses and townhouses have
increased their share since 1996 at the expense of separate houses and other dwellings.




SGS Eco and Comm Impact Report Final Final.doc P. vii
Figure 17               Dwelling Structure – St Kilda SLA


              80%
              70%
              60%
  Dwellings




              50%
              40%
              30%
              20%
              10%
              0%
                                       Semi-detached,
                                                             Flat, unit or
                     Separate house     row or terrace                              Other dwelling    Not stated
                                                              apartment
                                      house,townhouse
              1996        16%               11%                  70%                      1%              2%
              2001        15%               13%                  71%                      1%              1%
              2006        15%               13%                  71%                      0%              0%
                                                          Dwelling structure

                                                          1996    2001      2006


Source: ABS Census 2006


The shift away from separate houses is replicated in the Melbourne SD (see Figure 18) which has
seen the market share of this dwelling type decline to 73% in 2006. However, the share of
separate dwellings and flats, units and apartments in the Melbourne SD contrasts with that of the
St Kilda SLA, with only 15% of dwellings in the St Kilda SLA comprising separate dwellings. In
addition, while 71% of dwellings in the St Kilda SLA are flats, units or apartments, this figure is
only 15% across the Melbourne SD.


Figure 18               Dwelling Structure – Melbourne SD


              80%

              70%

              60%

              50%
  Dwellings




              40%

              30%

              20%

              10%

              0%
                                       Semi-detached,
                                                            Flat, unit or
                     Separate house     row or terrace                             Other dwelling    Not stated
                                                             apartment
                                      house,townhouse
              1996        75%               8%                   14%                    1%              2%
              2001        75%               10%                  13%                    1%              1%
              2006        73%               11%                  15%                    1%              0%
                                                         Dwelling structure


Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. viii
Household Tenure

Dwellings in the St Kilda SLA are primarily leased, with 47% of dwellings privately rented (see
Figure 19). Dwellings being purchased comprise 20% of dwellings, followed by fully owned
properties (15%). These findings are consistent with a younger age demographic which is yet to
purchase a home, as well as lone person households who may not be able to afford a mortgage on
a single income. Some renters may also reside in St Kilda as a transitional location before moving
on to other areas after changes in life stages, for example, having children.


It is important to note that the percentage of dwellings being rented and dwellings that are fully
owned have declined since 1996, while those being purchased have increased. This may be due to
rising housing prices resulting in higher and longer mortgage terms.


Figure 19                           Tenure of Households – St Kilda SLA


                             60%
  Percentage of Households




                             50%

                             40%

                             30%

                             20%

                             10%

                             0%
                                                                    Rented: Housing                      Other tenure / Not
                                    Fully owned   Being purchased                        Rented: Other
                                                                       authority                               Stated
                             1996      20%             17%                 2%                53%                8%
                             2001      20%             16%                 2%                50%                12%
                             2006      15%             20%                 2%                47%                16%
                                                                    Type of Tenure

                                                                    1996   2001   2006


Source: ABS Census 2006




In comparison to the Melbourne SD, the St Kilda SD has a high percentage of private renters, and
considerably lower percentages of dwellings fully owned or being purchased (see Figure 20).




SGS Eco and Comm Impact Report Final Final.doc P. ix
Figure 20                                                          Tenure of Households – St Kilda SLA and Melbourne SD

                                                                           50%

                                                                           45%
                  Percentage of Total Households




                                                                           40%

                                                                           35%

                                                                           30%

                                                                           25%

                                                                           20%

                                                                           15%

                                                                           10%

                                                                           5%

                                                                           0%
                                                                                               St Kilda SLA                        Melbourne SD
                                                   Fully owned                                    14.6%                                33.1%
                                                   Being purchased                                19.6%                                34.6%
                                                   Rented: Housing authority                      2.4%                                  2.7%
                                                   Rented: Other                                  47.2%                                21.8%
                                                   Other tenure / Not Stated                      16.2%                                 7.8%
                                                                                                 Region



Source: ABS Census 2006




Income

Generally, the St Kilda SLA has a higher percentage of higher income groups, and a lower
percentage of lower income groups than the Melbourne SD (Figure 21). However, it still retains a
diverse income profile, with significant numbers of low and very low income households present.


Figure 21                                                          Household Income – St Kilda SLA and Melbourne SD

                                                             16%

                                                             14%

                                                             12%
% of Households




                                                             10%

                                                              8%

                                                              6%

                                                              4%

                                                              2%

                                                              0%
                                                                             $1-   $150- $250- $350- $500- $650- $800- $1,000-$1,200-$1,400-$1,700-$2,000-$2,500-$3,000
                                                                     <$1
                                                                            $149   $249 $349 $499 $649 $799 $999 $1,199 $1,399 $1,699 $1,999 $2,499 $2,999 plus

                                                      Melbourne SD   3%     2%      7%    9%     4%    13%     9%   9%    12%     6%    7%     6%    5%     5%    3%
                                                      St Kilda SLA   2%     1%      6%    7%     2%    10%    10%   9%    14%     5%    9%     7%    7%     7%    4%
                                                                                                              Income Cohort




Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. x
Individual weekly income of the St Kilda SLA shows a relatively even distribution of middle incomes
(see Figure 22). The most common individual incomes are $600-$799 and $1,000-$1,299 (13%),
followed by $400-$599 and $800-$999 (12%) and $150-$249 and $250-$399 (10%). Again,
there are also considerable percentages of very low and very high incomes.


In comparison, the Melbourne SD is skewed towards lower individual incomes, with the most
prominent cohorts $150-$249 (14%), $400-$599 (14%) and $250-$399 (13%). Its percentages
of higher income earners are lower than those for the St Kilda SLA.



Figure 22                 Individual Weekly Income – St Kilda SLA and Melbourne SD

                        16%

                        14%

                        12%
 % of Persons




                        10%

                         8%

                         6%

                         4%

                         2%

                         0%
                               Negativ
                                               $150-   $250-     $400-   $600-   $800-   $1,000- $1,300- $1,600- $2,000
                                 e/Nil $1-$149
                                               $249    $399      $599     $799   $999    $1,299 $1,599 $1,999 or more
                               income
                Melbourne SD    9%      8%     14%     13%       14%     12%      9%       9%     5%      3%      4%
                St Kilda SLA    5%      4%     10%     10%       12%     13%     12%      13%     8%      5%      9%
                                                               Weekly Individual Income




Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. xi
Educational Attainment

The percentage of residents in the St Kilda SLA that have completed their education at a Year 12 or
equivalent level is 64.6% - higher than the Melbourne SD average of 50.1% (see Figure 23).


Figure 23                                      Highest Year of School Completed (residents over 20 years) – St
                                               Kilda SLA and Melbourne SD


                                         70%
                                               64.6%
  Percentage of persons, aged 20 years




                                         60%

                                                                                                     50.1%
                                         50%
                and over




                                         40%


                                         30%


                                         20%                                        17.4%
                                                                                                         11.9%13.4%
                                                                                                                                              9.7%
                                         10%           7.0% 6.0%                                                                8.1%
                                                                                                                         5.4%
                                                                   1.9% 2.6% 0.4%                                                      1.4%
                                         0%
                                                              St Kilda SLA                                        Melbourne SD
                                                                                            Region

                                                 Year 12 or equivalent   Year 11 or equivalent   Year 10 or equivalent    Year 9 or equivalent
                                                 Year 8 or below         Did not go to school    Not stated


Source: ABS Census 2006


Of those who have a non-school qualification in the St Kilda SLA, 35% hold a Bachelors Degree,
followed by Certificates (13%) and Advanced Diploma and Diplomas (12%) (see Figure 24). For
the Melbourne SD, Bachelors Degrees and Certificates are the most common non-school
qualification, comprising 26% each of all non-school qualifications, followed Advanced Diploma and
Diplomas (14%). This indicates that residents in the St Kilda SLA tend to be more educated than
the Melbourne SD.




SGS Eco and Comm Impact Report Final Final.doc P. xii
Figure 24                 Non-School Qualifications – St Kilda SLA and Melbourne SD


                       40%

                       35%

                       30%

                       25%
  Percentage




                       20%

                       15%

                       10%

                        5%

                        0%
                                        Graduate             Advanced
                                                  Bachelor                                                Certificate   Inad.
                              Postgrad. Diplom/Ce             Dip and Certificate Certificate Certificate                       Not stated
                                                   Degree                                                   Total       Desc.
                                             rt                 Dip      nfd       III & IV     I & II
               St Kilda SLA     9%        5%        35%        12%         2%         10%         1%         13%         2%       25%
               Melbourne SD     6%        4%        26%        14%         3%         22%         2%         26%         2%       21%
                                                                            Qualification


Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. xiii
Occupation

Professionals make up a large percentage of St Kilda SLA occupational groups, comprising 38%
(see Figure 25). This is followed by managers (16%), clerical and administration (14%), sales and
personal service workers (both 9%). In comparison to the Melbourne SD, small percentages of St
Kilda SLA residents are employed as tradespersons and technical personnel, machinery operators
and drivers and labourers. This is consistent with non-school education levels which showed high
percentages of post-school qualifications and comparatively low Certificate qualifications.


Figure 25                     Occupation – St Kilda SLA and Melbourne SD

                       40%


                       35%


                       30%


                       25%
  Percentage




                       20%


                       15%


                       10%


                        5%


                        0%
                                                                                                          Mach.
                                                          Tech. and   Service   Clerical and
                               Managers   Professionals                                        Sales   Operators/Dri   Labourers   Not stated
                                                            Trade     workers      Admin
                                                                                                           vers
               St Kilda SLA      16%          38%           8%          9%         14%          9%         2%             3%          2%
               Melbourne SD      12%          23%           14%         8%         16%         10%         6%             9%          2%
                                                                                Occupation


Source: ABS Census 2006




SGS Eco and Comm Impact Report Final Final.doc P. xiv
Language and Ethnicity

It can be seen in Figure 26 that residents in the St Kilda SLA have a high proficiency in the English
language, with 69% reporting that they only speak English, and 14% speak it very well or well.
This finding is on par with the Melbourne SD, however more persons reported speaking English
‘very well’ (21%) in the Melbourne SD than the St Kilda SLA.


Figure 26                       Proficiency in English – St Kilda SLA and Melbourne SD


                          80%

                                  69%                                                   68%
                          70%

                          60%
  Percentage of Persons




                          50%

                          40%


                          30%
                                                                                                   21%
                          20%
                                          14%                 15%

                          10%                                                                                 5%        6%
                                                    3%
                          0%
                                           St Kilda SLA                                            Melbourne SD
                                                                         Region

                                        Speaks English only   Very well or well   Not well or not at all   Not Stated


Source: ABS Census 2006


The percentage of residents who speak English at home is consistent with findings regarding
proficiency in English, with 68% of residents speaking English at home (see Table 32). The next
prominent languages were Russian (2.1%), Chinese languages (1.8%), Greek (1.7%) and Italian
(1.1%). The percentage of English spoken at home only is higher than the Melbourne SD at 68%.
This shows that, notwithstanding its continuing social diversity, St Kilda is no longer a primary hub
for migrants.


The most prominent languages other than English spoken at home were similar to the Melbourne
SD, with the exception of Russian and Polish, which were replaced by Vietnamese and Arabic.




SGS Eco and Comm Impact Report Final Final.doc P. xv
Table 32         Language Spoken at Home – St Kilda SLA

                                                      2001                       2006
       Language Spoken at Home
                                               Persons         %          Persons         %
Speaks English only                            33,210         69%         34,327         68%
Others (Top 5)
   Russian                                      1,529         3.2%         1,083         2.1%
   Chinese languages                             789          1.6%          892          1.8%
   Greek                                         997          2.1%          872          1.7%
   Italian                                       674          1.4%          574          1.1%
   Polish                                        545          1.1%          409          0.8%
Source: ABS Census 2006


Table 33         Language Spoken at Home – Melbourne SD

                                                     2001                     2006
       Language Spoken at Home
                                              Persons          %       Persons            %
Speaks English only                          2,316,755        69%     2,423,701          67%
Others (Top 5)
   Chinese languages                          110,645         3.3%        141,073        3.9%
   Italian                                    133,907         4.0%        119,330        3.3%
   Greek                                      118,394         3.5%        113,845        3.2%
   Vietnamese                                 62,978          1.9%        71,013         2.0%
   Arabic (includes Lebanese)                 45,787          1.4%        53,853         1.5%
Source: ABS Census 2006


Findings in relation to ancestry are consistent with English proficiency and language spoken at
home (see Table 34). The three most common ancestries; English, Irish and Scottish share
English as their native tongue. The other common languages spoken at home are also present in
this list.


Table 34         Ancestry – St Kilda SLA

                                             2001                         2006
             Ancestry
                                     No.                 %        No.               %
English                             14,118              24%      13,627            21%
Irish                               6,714               11%      6,052             9%
Scottish                            1,835               3%       4,281             7%
German                              2,046               3%       2,044             3%
Italian                             1,809               3%       1,928             3%
Polish                              1,548               3%       1,414             2%
Chinese                             1,221               2%       1,383             2%
Greek                               1,459               2%       1,360             2%
Russian                             1,121               2%        890               1%
Indian                               517                1%        795               1%
Source: ABS Census 2006


The St Kilda SLA had a higher percentage of people of English, Irish and Scottish descent than the
Melbourne average, however ancestry was generally similar to the Melbourne SD with the
exception of Polish and Russian.




SGS Eco and Comm Impact Report Final Final.doc P. xvi
Table 35                                  Ancestry – Melbourne SD

                                                                              2001                       2006
           Ancestry
                                                               No.                       %       No.             %
English                                                      929,314                    23%    906,843          20%
Irish                                                        319,977                    8%     296,116          7%
Italian                                                      247,719                    6%     259,521          6%
Scottish                                                     90,653                     2%     235,538          5%
Chinese                                                      146,827                    4%     182,369          4%
Greek                                                        151,785                    4%     148,728          3%
German                                                       103,464                    3%     108,233          2%
Indian                                                       40,556                     1%     67,296           2%
Vietnamese                                                   55,995                     1%     62,551           1%
Dutch                                                        53,385                     1%     60,025           1%
Source: ABS Census 2006




Measure of Inequality - Lorenz Curve

The Lorenz Curve is a graphic representation of the distribution of income. The horizontal axis
provides the cumulative percentage of the people in the population ranked according to their
income and with the vertical axis displays the corresponding cumulative percentage of personal
income. If income was distributed exactly equally across the population, the Lorenz curve would
be the diagonal line through the origin of the graph; the greater the area between the actual
income distribution and the perfect distribution the higher the income inequality.


Figure 27 shows that personal income inequality in the St Kilda SLA is less than the Melbourne SD.


Figure 27                                 Lorenz Curve – St Kilda SLA and Melbourne SD

                                          100%

                                          90%

                                          80%
             Cumulative Share of Income




                                                                                n
                                                                             io
                                                                          ut




                                          70%
                                                                          b
                                                                      t ri
                                                                   is




                                          60%
                                                                  D
                                                                  ct
                                                               fe




                                          50%
                                                            er
                                                           P




                                          40%

                                          30%

                                          20%

                                          10%

                                           0%
                                             0%   20%    40%           60%      80%     100%
                                                   Cumulative Share of People




                                                  Melbourne SD           St Kilda SLA


Source: ABS Census 2006



SGS Eco and Comm Impact Report Final Final.doc P. xvii
Homelessness in St Kilda

The region of Port Phillip has long accommodated homeless citizens in its community. Often this
has been through ‘boarding’ or ‘share’ houses, however these are disappearing through
gentrification of areas like St Kilda and conversion to other forms of accommodation.


From 2001 Census data, it was found that 29 people were accommodated in hostels, and 59 people
were ‘sleeping rough’ in improvised accommodation in St Kilda. However, this figure is
approximate given limitations to obtaining data about this group of people. Anecdotal evidence
suggests that this figure is much higher, and that a majority of homeless people reside in St Kilda.


A protocol endorsed by the City of Port Phillip exists to provide a framework for encounters
between officials and homeless individuals. However, there are still limitations and difficulties
surrounding this group of people, including obtaining adequate information.




SGS Eco and Comm Impact Report Final Final.docP. xviii
Appendix B: Additional Methodological Detail


St Kilda Tourism
The number of tourists entering Melbourne has been based on two data sources, the National
Visitor Survey16 (NVS) and Overseas arrivals and departures, Australia (cat. no. 3401.0). The
NVS provides a direct estimate of domestic tourists to Melbourne. Overseas arrivals and
departures provides an estimate of the number of departing international tourists who spent the
majority of their time in Victoria. An adjustment has to be made to account for the number of
tourist who spent some, but not the majority of their time in Victoria. This is based on Victoria’s
share of total international tourism. It is assumed that 95% of international tourists would have
visited Melbourne at some stage during their stay in Victoria.


There are a number of ways for international and domestic tourists to gain access to St Kilda. The
most likely form of transportation is public transport. Tram patronage data for the four tram (16,
79, 96 and 112) line which provide a service to St Kilda was used as a starting point for the
estimate.


The Tram patronage data was then adjusted to reflect the percentage of stops which were within
the St Kilda area. Adjustments based on population, and employment data from the Census was
used to remove patronage by local residents. This included journey to work and other trips which
would be likely to be taken via public transport.


Via research of tourism patterns and direct analysis of tram patronage an estimate of roughly 2/3
of tram patrons being from outside of Victoria was made. An adjustment was then made for
tourists (based on analysis of data from the National Visitor Survey) for interstate tourists who
might have driven to St Kilda. This produced an estimate of 5.8 million.


This estimate was then compared to data from a number of other sources including total tourist
numbers to Melbourne and Victoria, and the UrbisJHD report on St Kilda users. Tourists to
Melbourne were estimated to be 8.2 million. The estimate of 5.8 million tourists visiting St Kilda
beach represented almost 69% which would appear to be a reasonable proportion.


Data from the Value of Tourism to the Inner Melbourne Region17 report indicated that 6.1 million
tourists million visited inner Melbourne (defined as the Cities of Melbourne, Stonnington, Port
Phillip and Yarra) in 2007. This provides additional confidence that the 5.8 million tourists estimate
for St Kilda beach would seem reasonable.




      16
         Tourism Research Australia (2007), Travel by Australians, December Quarter 2006, Tourism
      Australia, Canberra.
      17
           Report prepared by datainsights for the Inner Melbourne Action Plan program.




SGS Eco and Comm Impact Report Final Final.doc P. xix
The 5.8 million equates to 15,800 tourists visiting St Kilda per day this would align relatively well
to the UrbisJHD report indicated that of St Kilda beach users 26% were from outside of Melbourne.
Using the UrbisJHD report and the population of St Kilda to provide an estimate of total St Kilda
users the estimate of 15,800 interstate and international tourists per day appears reasonable, if
slightly low.


The average expenditure per tourist has been based on average tourism consumption from
Australian National Accounts: Tourism Satellite Account (cat. no 5249.0) on Takeaway &
restaurant meals (including beverages), shopping (including souvenirs) and alcoholic beverages &
other beverages. The average has been based on expenditure for day trips only rather than
overnight trips. This was done as it has been assumed that relatively few tourists18 would be
staying overnight at St Kilda. The average expenditure can vary dramatically between day and
over night trips. The average expenditure was then weighted to account for the different average
expenditure of domestic and international tourists.


The potential spend for tourists in St Kilda is estimated by applying the average spend to the total
number of tourists.


The existing expenditure by tourist is based on the turnover data for the Retail and
Accommodation, café & restaurants industries from the Counts of Australian Business, including
Entries and Exits, Jun 2003 to Jun 2007 (cat. no. 8165.0) for the St Kilda SLA. Estimates of
tourist expenditure were then made based on the share of gross value added allocated to tourists
from the Tourism Satellite Account. The difference between the two estimates provided an
indicator of the untapped tourist expenditure in St Kilda.


To ensure the robustness of the estimates for St Kilda the same method was used to estimate
potential and existing tourist expenditure for Victoria. The two estimates for Victoria were within
8% of each other which provided additional confidence that the method being used for St Kilda was
robust. The state estimate provided an indicator of how much of the potential additional St Kilda
tourist expenditure was already being spent elsewhere in Victoria. This indicator was used to scale
down the estimate of untapped St Kilda tourist expenditure.



People with Lower Employment Prospects
Job Search Experience, Australia (cat. no. 6222.0) provides estimates of the percentage of people
who started a new job in the previous 12 months who were in another job (56%), unemployed
(33%), or not in the labour force (11%) prior to starting work. By combining unemployed and not
in the labour force into one group it is estimated that 44% of new job starters were not employed
previously.


As the analysis in this case is focused on people with lower employment prospects, the percentage
of the unemployed who were looking for work for more than 2 months was used as a proxy. They
represented around 51% of unemployed people who found a job in the previous 12 months. By

      18
         St Kilda does have a number low cost accommodation options. But the expenditure by tourists
      staying in this type of accommodation would be low enough not to affect the aggregate tourist
      expenditure.




SGS Eco and Comm Impact Report Final Final.doc P. xx
combining this estimate with the 44% of new job starters who were not employed previously it can
be seen that for every 100 jobs filled in 2006 around 21% would be drawn from people with lower
employment prospects.


Applying this ratio to the 600 new jobs which will be created by the Triangle site development it
would appear likely that 120 people of these positions would be filled by people with lower
employment prospects. Of course, in the Base Case these jobs would also have been created
elsewhere in Victoria, so there is not a net benefit to the community. However, there are a
number of factors which will alter the outcome from the Base Case:
       •   The proposed inclusion of the William Angliss – Port Phillip Academy hospitality training
           facility in Triangle site development.
       •   The concentration of employment opportunities at the one site.
       •   The relatively large pool of low skilled unemployed located in the area close by.


Job search experience also provides information on the difficulties which the unemployed found to
be the main barriers to finding employment. Over 10% identified lack of skills as being the main
barrier to employment. Another 6% identified transportation issues as being a barrier to
employment. Given the potential advantages of the Triangle site development identified above
combined with the barriers to employment data an estimate of 8% was made. That is, the
Triangle site will produce 8% better employment outcomes for people with lower employment
prospects than the Base Case.


Average wages rates for the Retail and Accommodation, Café & Restaurants industries19, and the
average unemployment benefit were used to generate the additional income that these people will
receive.




19
     Average Weekly Earnings, Australia (cat. no. 6302.0)




SGS Eco and Comm Impact Report Final Final.doc P. xxi

				
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