Agenda of Ipswich Central Redevelopment Committee

Item No.	Item Title	Page No.
	Confirmation of Minutes
1	Confirmation of Minutes of the Ipswich Central Redevelopment Committee No. 2022(01) of 10 February 2022	7
	Officers’ Reports
2	**Procurement - Contract 16456 Program Management Services Variation	12
3	Nicholas Street Precinct - Retail Sub-Project Steering Committee February 2022	19
	Notices of Motion
	Matters Arising

Ipswich Central Redevelopment Committee

Meeting Agenda

10 March

2022

Ipswich Central Redevelopment Committee NO. 2022(01)

10 February 2022

Minutes

COUNCILLORS’ ATTENDANCE: Councillor Marnie Doyle (Chairperson); Mayor Teresa Harding, Councillors Kate Kunzelmann, Russell Milligan and Deputy Mayor Nicole Jonic

COUNCILLOR’S APOLOGIES: Nil

OFFICERS’ ATTENDANCE: Chief Executive Officer (Sonia Cooper), General Manager Infrastructure and Environment (Sean Madigan), Acting General Manager Corporate Services (Jeff Keech), Project Manager (Greg Thomas), Chair Retail Sub-Project Sub Committee (James Hepburn), Communications, Events and Engagement Manager (Karyn Sutton), Senior Policy and Communications Officer (David Shaw), Manager, Economic and Community Development (Cat Matson), Chief of Staff – Office of the Mayor (Melissa Fitzgerald), Senior Digital Media and Content Officer (Jodie Richter) and Theatre Technician (Harrison Cate)

OTHER ATTENDANCE: Pro-Av Representative (Brad Hebbard)

WELCOME TO COUNTRY/ACKNOWLEDGEMENT OF COUNTRY

Councillor Marnie Doyle (Chairperson) delivered the Acknowledgement of Country.

DECLARATIONS OF INTEREST IN MATTERS ON THE AGENDA

Nil

BUSINESS OUTSTANDING

Nil

Confirmation of Minutes

1. Confirmation of Minutes of the Ipswich Central Redevelopment Committee No. 2021(11) of 1 December 2021

RECOMMENDATION

Moved by Councillor Marnie Doyle:

Seconded by Councillor Russell Milligan:

That the minutes of the Ipswich Central Redevelopment Committee held on 1 December 2021 be confirmed.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Doyle Nil

Harding

Kunzelmann

Milligan

Jonic

The motion was put and carried.

2. Confirmation of Minutes of the Special Meeting of the Ipswich Central Redevelopment Committee No. 2021(12) of 9 December 2021

RECOMMENDATION

Moved by Councillor Marnie Doyle:

Seconded by Councillor Kate Kunzelmann:

That the minutes of the Special Ipswich Central Redevelopment Committee held on 9 December 2021 be confirmed.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Doyle Nil

Harding

Kunzelmann

Milligan

Jonic

The motion was put and carried.

Officers’ Reports

3. Nicholas Street Precinct - communications, engagement and events report January 2021

This is a report concerning the communications, engagement and events activity undertaken and planned for the Nicholas Street Precinct in January 2022.

RECOMMENDATION

Moved by Councillor Kate Kunzelmann:

Seconded by Mayor Teresa Harding:

That the Nicholas Street Precinct Communications, Engagement and Events Monthly Report be received and the contents noted.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Doyle Nil

Harding

Kunzelmann

Milligan

Jonic

The motion was put carried.

4. Nicholas Street Precinct - Retail Sub-Project Steering Committee January 2022

This is a report concerning the January 2022 report from the Retail Sub-Project Steering Committee on the status of the leasing program and associated developments with the retail component of the Nicholas St Precinct redevelopment.

RECOMMENDATION

Moved by Councillor Kate Kunzelmann:

Seconded by Councillor Russell Milligan:

That the January 2022 Retail Sub-Project Steering Committee Report be received and the contents noted.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Doyle Nil

Harding

Kunzelmann

Milligan

Jonic

The motion was put and carried.

5. Healthy Places: Ipswich Central Pilot Project

This is a report concerning the Healthy Places: Ipswich Central Pilot Project which is a collaboration between Queensland Health Preventative Health branch, Office of the Queensland Government Architect, West Moreton Hospital and Health Service, Department of Transport and Main Roads and Ipswich City Council.

RECOMMENDATION

Moved by Councillor Russell Milligan:

Seconded by Councillor Kate Kunzelmann:

That the report be received and the contents noted.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Doyle Nil

Harding

Kunzelmann

Milligan

Jonic

The motion was put and carried.

NOTICES OF MOTION

Nil

MATTERS ARISING

Nil

PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 1.49 pm.

The meeting closed at 2.04 pm.

Doc ID No: A7905926

ITEM: 2

SUBJECT: Procurement - Contract 16456 Program Management Services Variation

AUTHOR: Category Specialist

DATE: 21 February 2022

Executive Summary

This is a report concerning a variation of contract 16456 with Ranbury Management Group Pty Ltd for the provision of Program Management Services for the Ipswich Central Revitalisation Project. This report makes the recommendation intended to facilitate the ongoing engagement of Ranbury Management Group Pty Ltd until the conclusion of the contract.

RECOMMENDATION

A. That the contractual arrangement (Council contract 16456) with Ranbury Management Group Pty Ltd (Supplier) for the provision of Program Management Services for the Ipswich Central Revitalisation Project be varied to amend the purchase price from one million, six hundred and sixty-two thousand, one hundred and twenty eight dollars and fifty cents ($1,662,128.50) excluding GST to approximately two million, one hundred and three thousand, six hundred and fifty six dollars and fifty cents ($2,103,656.50) with a contingency of 20% up to four hundred and twenty thousand, seven hundred and thirty one dollars ($420,731) excluding GST over the entire term.

B. That Council enter into a deed of variation with the Supplier to appropriately amend the existing contractual arrangement.

C. That pursuant to Section 257(1)(b) of the Local Government Act 2009, Council resolve to delegate to the Chief Executive Officer the power to take “contractual action” pursuant to section 238 of the Regulation, in order to implement Council’s decision, including the deed of variation to the revised fee estimate and any future variations up to the contingency amount.

RELATED PARTIES

Ranbury Management Group Pty Ltd (ACN 076 497 866)

ifuture Theme

Vibrant and Growing

Purpose of Report/Background

On 25 March 2021 Council resolved to adopt a Tender Consideration Plan to enter into a contract (Contract 16456) for the provision of program management services with the Supplier. See Confidential Attachment 1. Contract 16456 commenced on 29 April 2021 for a two (2) year period with one (1) x twelve (12) month option to extend. The original cost of the Contract was estimated at one million, six hundred and sixty-nine thousand, eight hundred and thirty-two dollars ($1,669,832) excluding GST.

On 22 September 2021, in accordance with the authority delegated to the Chief Executive Officer, the contract packages were varied and the total contract price reduced to one million, six hundred and sixty two thousand, one hundred and twenty eight dollars and fifty cents ($1,662,128.50) excluding GST. See Confidential Attachment 2 for full details.

Contract 16456 covers six (6) packages, or deliverables, for Program Management Services of the Ipswich Central Revitalisation Project. Five (5) of these six (6) packages have proposed fee variations, as detailed in Table 1.

Package	Description	Current Contract (ex GST)	Proposed Variation (ex GST)
1a	Civic Project	$358,800.00	$358,800.00
1b	Civic Project Day 2 Works	$62,400.00	$119,720.00
3	Commonwealth Hotel	$252,480.00	$318,780.00
4	Retail Existing	$786,822.00	$879,894.00
6	Development Management (Metro A and Commonwealth Hotel)	$101,626.50	$201,448.50
7	Asset Management	$93,600.00	$218,614.00
	Retail Precinct Management Team Brief	$6,400.00	$6,400.00
TOTAL		$1,662,128.50	$2,103,656.50

Table 1 – Contract Packages, current contract cost and proposed variation cost

· Package 1b – Civic Day Works

Additional activities have been identified by Council as being required under Package 1b, the Supplier has provided a revised fee estimate for the provision of the additional activities. The additional cost estimate of $57,320.00 is provided is an upper limit, with services charged on hourly rates, if estimated hours are not required the upper limit will not be payable. See Confidential Attachment 3 for additional details.

· Package 3 – Commonwealth Hotel

The variation to Package 3 proposes a fee increase of $66,300.00, this is made due to delays in the programmed works. The works were scheduled to be completed in June 2022 however the scheduled opening date of the Commonwealth Hotel has been revised and extended to Easter 2023. Negotiations with the proposed lessee are nearing finalisation, the Supplier has developed a fixed fee/lump sum proposal for the remainder of the program management works, up to the anticipated opening at Easter 2023. See Confidential Attachment 4 for additional details.

· Package 4 – Retail Existing

Package 4 variation has been requested due to a delay in the program delivery, the retail program was scheduled with an open for trade date of June 2021, however delays in the program now have a final delivery scheduled for completion in September 2022, with defects liability period scheduled to conclude in April 2023. The revised fee estimate increases the program management fees of by $93,072.00. Package 4 is a fixed fee/lump sum proposal with the exception of the Tenancy Coordinator which is estimated at a schedule of hourly rates that can be reduced/increased as required. See Confidential Attachment 5 for additional details.

· Package 6 - Development Management (Metro A and Commonwealth Hotel)

The existing fee schedule for Package 6 forecasts services up to and including April 2022. The additional fee estimate totalling $99,822, covers the continuation of works for the remainder of the 2022 calendar year. The variation in fees have been estimated based on an upper limit fee with services charged at hourly rates, the upper limit fee will not be exceeded without prior approval. See Confidential Attachment 6 for additional details.

· Package 7 – Asset Management

Package 7 currently includes services up to and including April 2022. The additional fee estimate of $93,600 covers the continuation of works for the remainder of the 2022 calendar year. The variation in fees have been estimated based on an upper limit fee with services charged at hourly rates, the upper limit fee will not be exceeded without prior approval. See Confidential Attachment 7 for additional details.

The hourly rates the Supplier has adopted to prepare the abovementioned fee proposals are consistent with the discounted rates established in the initial contract between Council and the Supplier in 2016. The supplier has not increased the hourly rates over the last 5 years. The Supplier has attempted to forecast expenditure which will be incurred for the delivery of the ongoing Program Management Services based on additional works requested and the revised completion dates.

The accurate forecasting of fees for the delivery of the Ipswich Central Revitalisation Project precinct has proven a difficult task due to the factors outside the suppliers control including project delays and scope adjustments. Accordingly, the CBD revitalisation team and the Procurement branch have requested an additional contingency to the value of 20% of the contract price ($420,731), to be approved to allow the Chief Executive Officer to take additional “contractual action” if and when required to facilitate the timely administration of future variations.

Council is currently undertaking an open market tender process for the provision of Project Management Services for the Venue Building, within the Ipswich Central Revitalisation Project, which is not covered by Contract 16456. This new contract will also include options for Council to exercise at its discretion for additional project management services required for the Ipswich Central Revitalisation Project, including: -

- Tulmur Square Bar - Design, planning and construction, including tenancy onboarding and opening;

- Metro A - feasibility and works relating securing end occupiers and multiple design and construct delivery options; and

- Metro B - Ongoing onboarding and opening of tenancies

The tender process will provide a fresh perspective on Project Management Services for the Ipswich Central Redevelopment Project with both contracts running concurrently for different aspects of the development. The tender process will also provide surety to Council that value for money is being obtained under existing contract 16456 and any new contract resulting from the tender process

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

Local Government Regulation 2012

RISK MANAGEMENT IMPLICATIONS

Risk Management implications have been considered in Table 2.

Risk Category	Rating	Description
Political and Reputational	High	· If project is delayed and as a result the programmed works not delivered or delayed, the current tenants and the community will be impacted, and complaints raised to Councillors
Legal and Governance	Low	· The engagement is on Councils Standard Professional Services contract, this variation does not change the terms and conditions of the contract
Financial	Low	· Ranbury Management Group attempt to re-negotiate the fee, this is unlikely as there is an agreement in place regarding the fee restructure · Ranbury Management Group have not increased the hourly rate since the commencement of the initial engagement in 2016 · Council is conducting a new tender process for Project management services for the venue building, this process will test the market and assist Council to ensuring Contract 16456 remains value for money
Service delivery	High	· Delay in the delivery of the Ipswich Central CBD Transformation Project and opening of tenancies if the variation is not approved
Information management	Medium	· The variation to increase the fee estimates, allows the existing provider of Program Management Services to continue to progress the project and ensures consistency of information and knowledge

Table 2 – Risk Management Implications

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS
OTHER DECISION

(a) What is the Act/Decision being made?	Recommendation A is that Council vary the purchase price of Contract 16456 with the Supplier for the provision of Project Management Services for the Ipswich Central Revitalisation Project.
(b) What human rights are affected?	There are no human rights affected by this decision. This is because the decision impacts a company (only individuals have human rights). Further, the subject matter of the contract will not impact the human rights of any third parties.
(c) How are the human rights limited?	Not applicable
(d) Is there a good reason for limiting the relevant rights? Is the limitation fair and reasonable?	Not applicable
(e) Conclusion	The decision is consistent with human rights.

Financial/RESOURCE IMPLICATIONS

The scope of proposed services is allowed for under the existing Project budget. There will be no impact to the project budget due to the recommendations of this report.

The contingency requested in this report is currently unbudgeted. Budget amendments will be required if additional variations are required under Contract 16456.

This variation will increase the contract price by an additional four hundred and forty-one thousand, five hundred and twenty-eight dollars ($441,528) ex GST. Table 3 provides a summary of contract fee estimates, the original approved contract (yellow), variation 1 approved previously (blue), and the proposed current variation (green).

		APPROVED	APPROVED		PROPOSED
Package	Description	Original Contract (executed 29/04/2021)	Variation 1 (executed 22/09/2021)	Revised Contract	Variation 2 (executed TBA)	Revised Contract (executed TBA)
1a	Civic Project	$358,800.00	-	$358,800.00	-	$358,800.00
1b	Civic Day 2 Works	-	$62,400.00	$62,400.00	$57,320.00	$119,720.00
3	Commonwealth Hotel	$220,000.00	$32,480.00	$252,480.00	$66,300.00	$318,780.00
4	Retail Existing	$951,032.00	($164,210.00)	$786,822.00	$93,072.00	$879,894.00
6	Development Management	$20,000.00	$81,626.50	$101,626.50	$99,822.00	$201,448.50
7	Asset Management	$20,000.00	$73,600.00	$93,600.00	$125,014.00	$218,614.00
9	Survey Management	$20,000.00	($20,000.00)	-	-	-
tbd	Other feasibility	$80,000.00	($80,000.00)	-	-	-
	Retail Precinct Management Team Brief	-	$6,400.00	$6,400.00	-	$6,400.00
		$1,669,832.00	($7,703.50)	$1,662,128.50	$441,528.00	$2,103,656.50

Table 3. Contract fee estimates as approved and proposed.

COMMUNITY and OTHER CONSULTATION

There was no community consultation in the preparation of this report.

Conclusion

Subject to Council’s resolution of the Recommendations contained in this report, Procurement branch and CBD revitalisation team will work closely together to ensure expenditure for Contract 16456 is appropriately accounted for, monitored and regularly reported to through the appropriate channels.

Attachments and Confidential Background Papers

	CONFIDENTIAL
1.	16456 - Tender Consideration Plan
2.	16456 - Variation #1 Package
3.	16456 - Variation #2 Civic Project Proposal
4.	16456 - Variation #2 Cth Hotel Proposal
5.	16456 - Variation #2 Retail Project Proposal
6.	16456 - Variation #2 Development Mgt Proposal
7.	16456 - Variation #2 Asset Mgt Proposal

Shyanne Ward

Category Specialist

I concur with the recommendations contained in this report.

Juliana Jarvis

Goods and Services Category Manager

I concur with the recommendations contained in this report.

Greg Thomas

Project Manager

I concur with the recommendations contained in this report.

Richard White

Manager, Procurement

I concur with the recommendations contained in this report.

Sean Madigan

General Manager - Infrastructure and Environment

“Together, we proudly enhance the quality of life for our community”

Ipswich Central Redevelopment Committee

Meeting Agenda

10 March

2022

Doc ID No: A7916484

ITEM: 3

SUBJECT: Nicholas Street Precinct - Retail Sub-Project Steering Committee February 2022

AUTHOR: Project Manager

DATE: 28 February 2022

Executive Summary

This is a report concerning the February 2022 report from the Retail Sub-Project Steering Committee on the status of the leasing program and associated developments with the retail component of the Nicholas St Precinct redevelopment.

Recommendation/s

That the February 2022 Retail Sub-Project Steering Committee Report be received and the contents noted.

RELATED PARTIES

Ranbury Management Group - Program Management PartnerRanbury Property Services - Retail Leasing Agent

Councillor Fechner may have a potential conflict of interest in relation to this matter.

Councillor Madsen may have a potential conflict of interest in relation to this matter.

ifuture Theme

Vibrant and Growing

Purpose of Report/Background

The Retail Sub-Project Steering Committee (RSPSC) supports the Ipswich Central Redevelopment Committee (ICRC) in delivering the Nicholas St Precinct redevelopment. The RSPSC reports monthly to the ICRC on the planning, development, delivery and operations of the Nicholas St Precinct’s retail and commercial assets.

The February 2022 RSPSC meeting considered the status of retail leasing and the cinema tender process, refurbishment works to Metro B and the budget development process for the precinct in 2022-2023. Refer Attachment 1 for the draft RSPSC February 2022 minutes.

The table below identifies the status of tenancy negotiations as of Tuesday 1 March 2022. Since the previous report, one lease has been signed by the Lessee and is with Council for execution. Furthermore, two Heads of Agreement (HOA) that were submitted to Council’s for consideration have been endorsed by the Chief Executive Officer, with the corresponding lease documentation issued to both Lessee’s.

Previous uncertainty surrounding the Omicron COVID-19 variant appears to have dissipated as staff return to the workplace and governments continue to relax restrictions.

Deal Status	February 2022	Change from January 2022
HOA Signed (non-legally binding) #	17	+2
HOA Pending Approval by Council	0	-2
Lease Documents Issued	16	+2
Lease Documents Being Prepared	1	-2
Leases Executed by Lessee	4	+2
Leases Pending Approval by Lessor (Council)	2	+2
Leases Executed by Lessor (Council)	2	-

In December 2021, Council endorsed entering into an AFL/lease with the preferred operator for the cinema. The current three-month exclusivity period will allow Council to finalise the AFL/Lease, tenant fit-out design and wider Venue design, cost and value impacts.

Practical completion of the refurbishment works to the Eats building remains forecast for
31 March 2022 due to delays with CCTV camera installations. Works continue on Metro B and the streetscape works to both Nicholas Street/Union Place with completion forecast for the end of March 2022 noting the PWD lift will not be installed by that date. It is currently planned that both Nicholas Street and Union Place will open to one way traffic (from Brisbane Street) in April 2022 with hoardings being dismantled on the day of opening.

That Dumpling Place is now forecast to open later in March 2022 with the handover of the Gelatissimo tenancy scheduled to occur on 10 March with a potential opening in early April 2022.

It is currently anticipated that an AFL for the Commonwealth Hotel will be executed shortly. As conditioned by Council, the delivery of the extension is subject to an executed AFL. Preparations for the procurement of the contractor to deliver the extension are continuing with requirement to undertake a design development phase to establish detailed design and cost before construction.

The rain event in late February 2022 impacted the precinct with the undercover car park experiencing water ingress on levels 5 and 6 which required closure of the car park.

Due to the proximity of the March 2022 Ipswich Central Redevelopment Committee meeting to the end of the reporting month, the February 2022 Executive Report will be included with the March 2022 Ipswich Central Redevelopment Committee papers. Refer Attachment 2 for the January 2022 Executive Report.

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

Local Government Regulation 2012

RISK MANAGEMENT IMPLICATIONS

Challenges to retail leasing continue including but not limited to COVID-19 impacts, the pace of the retail market rebound, the securing of anchor and other tenants and the attractiveness of the offer from the lessor (Council) in the current market conditions.

The conversion of endorsed HOA’s into legally binding AFLs/leases remains a critical outcome given the progress of refurbishment works on both the Eats and Metro B buildings.

The extension to the Commonwealth Hotel and the refurbishment of the Venue building are both contingent on the execution of AFL with their prospective tenants.

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS

RECEIVE AND NOTE REPORT

The recommendation states that the report be received, and the contents noted. The decision to receive and note the report does not limit human rights. Therefore, the decision is compatible with human rights.

Financial/RESOURCE IMPLICATIONS

The retail precinct’s short-term commercial success remains dependent on identifying, attracting and securing a commercially viable tenancy mix through executed leases. Commercial success in the medium to longer term will require a comprehensive and ongoing activation and management strategy to support tenants and deliver a revitalised and activated precinct.

The draft 2022-23 precinct operational, revenue and supporting capital budgets have been completed and are currently under management review. Rephasing has occurred for the NSP redevelopment budget to reflect current understandings.

COMMUNITY and OTHER CONSULTATION

The contents of this report did not require any community consultation.

Conclusion

The process to secure key anchor tenants for both the cinema and the Commonwealth Hotel continues as does the conversion of HOA’s into AFL’s/leases. Achieving executed leases for the cinema and the hotel remains a critical focus given the upcoming opening of both the Eats and Metro B buildings.

Attachments and Confidential Background Papers