IPSWICH
CITY
COUNCIL
AGENDA
of the
Council Special Meeting
Held in the Council Chambers
8th floor – 1 Nicholas Street
IPSWICH QLD 4305
On Thursday, 11 August 2022
At 10
minutes after the conclusion of the Ipswich Central Redevelopment Committee
The purpose of the meeting is to consider:
1. Nicholas Street Precinct - Investment Strategy
2. Procurement - Venue Cinema Tenancy
3. Procurement: Tender Consideration Plan to vary contract 13245 Ipswich Central Civic Project
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Council Special Meeting Agenda |
11 August 2022 |
2. WELCOME TO COUNTRY OR ACKNOWLEDGEMENT OF COUNTRY:
3. OPENING PRAYER:
4. APOLOGIES AND LEAVE OF ABSENCE:
5. DECLARATIONS OF INTEREST IN MATTERS ON THE AGENDA:
6.1 Nicholas Street Precinct - Investment Strategy............................................. 5
6.2 Procurement - Venue Cinema Tenancy..................................................... 119
6.3 Procurement: Tender Consideration Plan to vary contract 13245 Ipswich Central Civic Project................................................................................................ 125
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Council Special Meeting Agenda |
11 August 2022 |
ITEM: 6.1
SUBJECT: Nicholas Street Precinct - Investment Strategy
AUTHOR: Project Manager
DATE: 9 August 2022
Executive Summary
This is a report concerning the investment strategy for the Nicholas Street Precinct redevelopment as it relates specifically to the Venue Building and the Commonwealth Hotel. These two assets are key anchor tenants and critical to achieving an enduring and activate civic heart for the people of Ipswich.
The Venue and the Commonwealth Hotel are the next stages of the Nicholas Street Precinct Redevelopment and are subject of further reports presented to this committee which are a lease agreement for the cinema operator and the construction costs for the Venue Building and the historic Commonwealth Hotel.
As a result of cost escalations associated with the extensively publicised inflationary and supply chain issues the amount of Council funds required to be invested to complete the development of the Venue building and the Commonwealth Hotel have increased which will require an additional $21.553 million in the 23/24 Financial Year.
This report is to confirm that Council is still supportive of the investment strategy for the key anchor assets of the Venue building and Commonwealth Hotel, given the cost increases incurred due to the current economic conditions being experienced in the construction industry nationally.
A. That Council endorse the investment strategy to proceed with the development of the Venue Building and Commonwealth Hotel.
B. That the investment strategy as detailed in this report as it relates to the development of the Venue Building and the Commonwealth Hotel be funded through a future Council budget amendment.
RELATED PARTIES
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 purpose of this report is to provide an overview to the background and drivers for the proposed NSP investment strategy and related decisions to be discussed at the 11 August 2022 Ipswich Central Redevelopment Committee meeting. Specifically, these decisions relate to Council entering into an Agreement for Lease (AFL) and associated documentation with the recommended Venue’ cinema operator and a variation to the contract with J. Hutchinson Pty Ltd (trading as Hutchinson Builders) for the refurbishment of the Venue building and the extension to the Commonwealth Hotel.
History
In September 2018, Council’s Executive Leadership Team in conjunction with the Interim Administrator developed a specific set of Strategic Objectives for the Nicholas St, Ipswich Central development. Council’s six strategic objectives for the renewal of the Ipswich CBD and the Nicholas St project were:
1. Deliver an enduring and activated Civic Heart;
2. Deliver cultural and entertainment activities that complement other activity centres;
3. Provide space for growth of key employers and service providers;
4. Relocate Council’s administration centre to the new Civic Heart;
5. Provide opportunities for private sector investment in the renewal;
6. Project governance - robust, resilient and replicable.
Since the adoption of these objectives and the commencement of on-site works, Council has continued to successfully deliver the revitalisation of the Ipswich’s city centre with all civic works now completed. The initial retail phases are practically complete with leasing currently being undertaken for both the Metro B and Eats buildings.
NSP Investment Strategy Overview
The Venue’s refurbishment and the extension to the Commonwealth Hotel represent Phase Two of the identified three phases for delivery that will complete the precinct. Redevelopment works to date have significantly transformed the precinct with wider positive impacts resulting in the nearby CBD. A cinema within the ‘The Venue’ complex has been identified by a range of industry experts (discussed below) as an anchor tenant that will play a vital role in supporting sales for many of the incoming and wider CBD hospitality businesses and motivate prospective tenants to commence and/or finalise their tenancy negotiations to be ready in time for the Venue’s reopening. Council has conditioned its approval of the Venue’s refurbishment on a cinema AFL being executed (discussed below).
Market feedback from prospective hoteliers/lessees interested in the Commonwealth Hotel indicated that the reconstructed Commonwealth Hotel was not of a sufficient size to interest the market for a contemporary inner city/CBD hotel offering. Council had also conditioned an approval of the extension to the Commonwealth Hotel on an AFL being in place with the proposed tenant, the AFL with the prospective lessee being executed on 10 March 2022.
Procurement – Venue Cinema Operator
The agenda for the 11 August 2022 Ipswich Central Redevelopment Committee meeting includes a paper entitled ‘Procurement – Venue Cinema Tenancy’ which seeks Council approval to enter into an AFL for the Venue’s cinema tenancy. As background, following the completion of a Request for Tender (RFT) process, in December 2021 Council resolved to enter into an AFL with the proposed cinema operator in the Venue building. A detailed Probity Report on the RFT process accompanies the committee paper. In the period since December 2021, the commercial terms of the lease and the associated legal documentation have been finalised.
Location IQ (refer Attachment 1), a property economics consultancy was engaged to provide an independent assessment of the likely demand, forecast demand/attendance and revenue for a proposed cinema complex within the precinct. Utilising an established Queensland benchmark (9.7 screens/100,000 residents), the resulting report noted an under-provision of 10 screens existed within the main trade area, which will increase with the significant population growth projected for this Ipswich local government area.
Contract Variation - J. Hutchinson Pty Ltd
In line with the recommended Investment Strategy, on 11 August 2022 Council will be requested to consider a report recommending the adoption of a Tender Consideration Plan (TCP) to vary the existing contractual arrangement between Council and J. Hutchinson Pty Ltd. The purpose of the TCP is to provide justification (as required by s231 of the Local Government Regulations 2012) for Council to vary the existing contractual arrangement associated with the delivery of the Ipswich Central Civic Project. The resulting variation will enable J. Hutchinson Pty Ltd to refurbish the Venue building (including the cinema complex) and deliver the extension to the Commonwealth Hotel.
Cost Escalation
Cost escalation and abnormal market conditions are impacting the Queensland construction economy. As a result, supply chain issues continue to impact all projects resulting in increased costs and extended project durations. The market is flooded with work and contractors are experiencing difficulties obtaining reasonable levels of market coverage from sub-contractors as well as obtaining staff as there is a significant labour shortage due to social and economic factors. Due to the above drivers, the market experienced significant escalation in 2021/22 and as a result the precinct’s quantity surveyor’s (Rider Levett Bucknall - RLB) Tender Price Index rose by 9.6%. RLB’s current forecast escalation for the period January to December 2022 is between 8%-10% and 5% for 2023.
Bull and Bear Economics (Bull & Bear)
Bull & Bear were engaged to undertake a social and economic impact analysis for the investment and development of the Nicholas Street Precinct’s civic and retail projects to further inform Council’s decision making. The report (refer Attachment 2) was commissioned to provide an independent assessment of the projected economic contribution of business activities within the precinct and projected employment within the Ipswich Central area as a result of the Nicholas Street Redevelopment. The assessment of economic activity looked at both the construction stimulus (based on construction costs) and operational stimulus (created when new businesses locate within the precinct). The report identified that the precinct will over the next ten years significantly contribute to Ipswich Central’s output, value add and employment numbers.
The highlights of the Bull and Bear Report are that the Nicholas Street Precinct will achieve a total direction contribution of $1.196 billion to the local government area for the period from 2020 through to 2032.
Additionally, the Nicholas Street Precinct Redevelopment is expected to create up to 480 new city centre jobs for the people of Ipswich.
Queensland Treasury Corporation (QTC)
In December 2021 as part of their engagement to provide advisory services to the NSP project, QTC commenced assessment of various investment strategies to increase the value of the Venue building and protect the value already created in the precinct.
Existing precinct valuation assessments had assumed the Venue had an operational cinema that acted as a precinct anchor (driving increased activation/customer footfall). It was important for Council to understand the value impact of different leasing strategies and associated options for the Venue building’s future, its supporting role and the resulting impacts to the precinct and the wider Ipswich Central.
The outcome of this consultancy concluded that Council should continue to invest into the Venue phase and attract a cinema operator as an anchor tenant to preserve the precinct’s value and support the current leasing strategy. Refer Confidential Attachment 3 for the detailed confidential QTC report. The report is confidential due to the nature of the commercial information contained in it that would be detrimental to ongoing commercial negotiations for the precinct.
KPMG
As part of the tender process of the cinema offering, Council engaged KPMG to provide an evaluation assessment on the commercial proposals and associated commercial terms of the each of the tenderers involved with the open market procurement process to select a precinct cinema operator. This confidential report is attached to the Venue Cinema Tenancy paper for the 11 August 2022 Ipswich Central Redevelopment Committee meeting. The resulting analysis identified that the commercial proposal from the recommended tenderer was strongest.
In summary, based on all of the available information for the Nicholas Street Precinct including the Bull and Bear Social and Economic Analysis report, the Location IQ report and the analysis by QTC on the Venue Building it is recommended that Council continue with the investment strategy to develop the Venue Building and the Commonwealth Hotel.
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
Should the proposed NSP investment strategy not be supported, it puts at risk the commercial success of the existing retail assets and city centre’s future activation.
This is a significant investment by the Council in the precinct. As will all commercial investment decisions it carries a risk. Council officers have endeavoured to provide as much information to the elected representatives to ensure that their decision is fully and properly informed.
HUMAN RIGHTS IMPLICATIONS
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HUMAN RIGHTS IMPACTS |
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RECEIVE AND NOTE REPORT |
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No human rights that been negatively impacted by the recommendations in this report.
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Financial/RESOURCE IMPLICATIONS
Ipswich Council has committed $41.5 million in its 2022/23 budget for the next phase of work in the Nicholas Street Precinct redevelopment. An additional $21.533 million is required in the 23/24 financial year to complete the redevelopment of the Venue Building and the Commonwealth Hotel. A budget amendment will be required to include this additional capital expenditure in Council’s budget and long-term financial forecast.
COMMUNITY and OTHER CONSULTATION
No community consultation was conducted in the preparation of this report.
Consultation occurred with the Queensland Treasury Corporation, the Nicholas Street Precinct Team and the ICC Corporate Finance team in the preparation of the confidential QTC report.
Conclusion
The recommendation of this report is for Council to endorse the development investment strategy for the Nicholas Street Precinct to achieve the stated outcome of an activated and enduring city heart.
As identified in the Bull and Bear Social and Economic Analysis report the Council’s investment in the Nicholas Street Precinct has broader economic benefits for the Ipswich economy and will create new jobs for the community.
Attachments and Confidential Background Papers
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Location IQ Report ⇩ |
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2. |
Bull and Bear Economics Report ⇩ |
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CONFIDENTIAL |
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3. |
Greg Thomas
Project Manager
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”
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Council Special Meeting Agenda |
11 August 2022 |
ITEM: 6.2
SUBJECT: Procurement - Venue Cinema Tenancy
AUTHOR: Category Specialist
DATE: 9 August 2022
Executive Summary
This is a report concerning the procurement and recommendation of a lessee to operate a Cinema in ‘The Venue’, located at 163 Brisbane Street, Ipswich QLD 4305, Lot 1 on RP209886.
A. That pursuant to Section 228 of the Local Government Regulation 2012 (Regulation), Council award Tender number 16041 for the disposal of interest in land at 163 Brisbane Street, Ipswich QLD 4305 more particularly described as part of Lot 1 and Plan RP209886 (Cinema Tenancy), to the proposed Lessee, for the permitted use of a Cinema.
B. That Council enter into an Agreement for Lease and associated documents of the Agreement for Lease with the proposed lessee for the Cinema Tenancy under the commercial terms detailed in the confidential attachments to this report.
C. That conditional upon Council satisfactorily executing the Agreement for Lease with the proposed Lessee, Council will enter into a Lease for the Cinema Tenancy with the proposed Lessee as detailed in the confidential attachments to this report.
D. 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 decisions a Recommendations A, B and C.
E. That Council be kept informed as to the progress and outcome of the execution and publication of details.
RELATED PARTIES
The related party, being the proposed Lessee, is detailed in the attachments to this report.
ifuture Theme
Vibrant and Growing
Purpose of Report/Background
On 9 December 2021, following a Request for Tender (RFT) process, Council resolved to enter into an agreement for lease and subsequent lease agreement with the proposed Lessee for the premises located at 163 Brisbane Street, Ipswich QLD 4305 more particularly described as part of Lot 1 and Plan RP209886, for the permitted use of a Cinema. The RFT process established a base level position between Council and the proposed Lessee for the agreement for lease and lease agreement, as detailed in Confidential Attachment 1.
The proposed Lessee’s board met on the 25 February 2022 and resolved to move to the next stage and undertake the legal documentation, schematic design and updated costings before the final board sign off.
Comprehensive designs and costings have been undertaken by both parties, with the agreed Lessors works being included as part of works proposed in the detailed in committee report [14683] Procurement: Tender Consideration Plan to Vary Contract 13245 Ipswich Central Civic Project.
In response to market conditions, the proposed Lessee’s board revised their initial offer to Council, the revised Heads of Agreement are included in Confidential Attachment 2. Contract negotiations between the parties have finalised and the proposed Lessee is undertaking final checks prior to execution of the agreement for lease and associated documents. The revised offer remains consistent with the Sound Contracting Principles of the Local Government Act 2009.
This paper is seeking council’s approval to enter into an agreement for lease for the Cinema Tenancy associated with the Nicholas Street Precinct redevelopment utilising the process detailed above.
A lease is a contract by which one party conveys land, property, services, etc. to another for a specified term, and in this instance in return for a periodic payment. The lease agreement outlines all of the aspects of the lease arrangement so that each party understands their rights and obligations under the lease. An agreement for lease is necessary when the party owning the land is investing significant capital into refurbishing or building new space for the potential lessee. The agreement for lease pre-empts and contractually links to the final lease document whilst committing both parties to enter into a lease on occupation and/or opening of the space. Essentially an agreement for lease de-risks the landlord’s capital expenditure with a contracted outcome.
The Nicholas Street Precinct team will be negotiating up to 40 retail, food and beverage and leisure deals over the next few years. During this process and with the desire to drive the best financial outcome for council and its constituents, the precinct team need to protect this outcome by maintaining a competitive advantage during the negotiations, which can only happen with an element of confidentiality. The lessees will also seek and in most cases secure contractual obligations on both parties to maintain a level of confidentiality around commercially sensitive material. This is likely to be around key terms like rent, term, options to extend, landlord’ contributions, sales data access and general operational costs of the tenancy.
The brand name associated with this executed agreement for lease will be released prior to the tenant’s opening with the precinct team’s desire being to drive marketing reach across relating real estate and retail industry media channels to best serve the leasing uptake. As a result, the lessee’s details and agreed commercial terms to be reflected in the lease documentation are Commercial in Confidence. A memorandum of advice detailing the Commercial in Confidence nature of the content of this report is attached (refer Confidential Attachment 3). Specific details on the lessee, the commercial terms, tenure and associated independent reviews (both the procurement and assessment processes) are contained in Confidential Attachments 4 - 7).
Council engaged Knight Frank Valuation & Advisory Queensland to provide an independent market appraisal of the proposed lease arrangement’s commercial terms as detailed in a Heads of Agreement (a precursor to an agreement for lease/lease detailing agreed commercial terms between the parties). Knight Frank’s review of the revised HOA for the Cinema Tenancy is attached (refer Confidential Attachment 4). Confidential Attachment 5 discusses the final commercial terms and details any material changes from Knight Frank’s review to the final draft of the agreement for lease. Refer Confidential Attachment 6 for KPMG’s evaluation assessment on the commercial proposals and terms of the each of the cinema tenderers.
This paper seeks approval for council to enter into an agreement for lease for a Cinema tenancy associated with the Nicholas Street Precinct redevelopment. The delegation to the Chief Executive Officer will enable council’s execution of the agreement for lease, the lease and associated documentation for the Cinema Tenancy and ensure the lessee can commence their fit-out works and open as soon as possible (following completion of the Venue’s refurbishment). Post the execution of the lease documentation, Council will be provided with a subsequent report detailing lessee specifics and their offering.
The proposed lease contains an option to renew, this is a contractual right that can be exercised by the lessee/tenant, under the Retail Shop Leases Act 1994 and Property Law Act 1974. The right of the lessee to exercise the option is subject to certain conditions, including giving notice to the lessor that they wish to exercise the option during the timeframe specified in the lease (for example, between six and three months prior to the expiry of the lease) and not being in breach of the lease when they give notice that they wish to exercise the option. Provided that the lessee meets the conditions, the lessor must grant the lessee the option. The effect of an option being exercised is that the lessee continues to lease the premises on the same terms and conditions for the length of the option.
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
The risk management implications have been considered in Confidential Attachment 1. The risks have not changed since the previous Council resolution on 9 December 2021.
HUMAN RIGHTS IMPLICATIONS
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HUMAN RIGHTS IMPACTS |
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OTHER DECISION |
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(a) What is the Act/Decision being made? |
Recommendation A related to Council awarding the tender for the Cinema tenancy.
Recommendation B relates to Council entering into an agreement for lease and associated documents for the Cinema tenancy.
Recommendation C relates to Council entering into a lease for the Cinema tenancy.
Recommendation D delegates to the CEO the power to execute related lease documentation.
Recommendation E relates to the provision of an update to council. |
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(b) What human rights are affected? |
No Human Rights are affected in the making of this decision because the tenderers are all companies (only individuals have human rights).
Further, the subject matter of the contract will not impact on the human rights of any third parties.
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(c) How are the human rights limited? |
Not applicable
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(d) Is there a good reason for limiting the relevant rights? Is the limitation fair and reasonable? |
Not applicable
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(e) Conclusion |
The decision is consistent with human rights. |
Financial/RESOURCE IMPLICATIONS
Ipswich City Council has committed $41.5 million in its 2022/23 budget for the next phase of work in the Nicholas Street Precinct redevelopment. $32.5 million of this 2022/23 budget is allocated to the Venue building.
The retail precinct’s short-term commercial success remains dependent on identifying, attracting and securing a commercially viable tenancy mix through executed leases and sub-leases. Funding for any associated landlord contributions is incorporated into the project’s budget.
COMMUNITY and OTHER CONSULTATION
No community consultation was conducted during the tender or negotiation process.
Council has continued to inform the public on the vision for Nicholas Street Precinct via media release, these are but not limited to the following media articles regarding the refurbishment of the Venue and occupancy:
· 13 December 2019 - New cinema complex and indoor go kart track part of plans for Ipswich CBD redevelopment
· 5 May 2021 - New cinema operator for Nicholas Street Precinct set by August
· 6 April 2022 - Next stage of $250 million Nicholas Street Precinct revealed in Ipswich CBD
· 30 June 2022 - Ipswich CBD revitalisation gets $41.5 million budget boost
External consultants assisted throughout the RFT process, these consultants and their roles are detailed in Confidential Attachment 1.
Knight Frank group was consulted to review the revised HOA, this report is attached a Confidential Attachment 4.
Conclusion
The recommendations and information contained within this report aligns with Council’s iFuture Corporate Plan 2021-2026. The redevelopment of the Ipswich Central Business District is a crucial part of revitalising the heart of Ipswich and an executed Agreement for Lease with an anchor tenant for the Venue is a significant part of this revitalisation and the precinct’s future success.
The recommendation within this report is to be read in conjunction with the recommendation detailed in committee report [14683] Procurement: Tender Consideration Plan to Vary Contract 13245 Ipswich Central Civic Project., as a proportion of that variation includes the lessor works required for handover of the Cinema Tenancy.
Attachments and Confidential Background Papers
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CONFIDENTIAL |
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7. |
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.
Richard White
Manager, Procurement
I concur with the recommendations contained in this report.
Greg Thomas
Project Manager
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”
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Council Special Meeting Agenda |
11 August 2022 |
ITEM: 6.3
SUBJECT: Procurement: Tender Consideration Plan to vary contract 13245 Ipswich Central Civic Project
AUTHOR: Category Specialist
DATE: 9 August 2022
Executive Summary
This is a report concerning the redevelopment of Council owned retail assets which form part of the Ipswich Central Civil Project within the Nicholas Street Precinct. Information detailed within this report shall provide clarity and justification for adoption of a Tender Consideration Plan by Council to vary the existing contractual arrangement between Council and J. Hutchinson Pty Ltd.
A. That
pursuant to Section 230(1)(a) of the Local Government Regulation 2012
(Regulation), Council resolve to prepare Tender Consideration
Plan to vary contractual arrangement 13245 Ipswich Central Civic Project
– Design & Construction of Administration Building, Civic Precinct,
Library and Carpark Upgrade with J. Hutchinson Pty Ltd.
B. That
pursuant to Section 230(1)(b) of the Local Government Regulation 2012 (Regulation),
Council resolve to adopt Tender Consideration Plan that
has been prepared to vary contractual arrangement 13245 Ipswich Central Civic
Project – Design & Construction of Administration Building, Civic
Precinct, Library and Carpark Upgrade with J. Hutchinson Pty Ltd.
C. That in accordance with the Tender Consideration Plan, Council contractual arrangement 13245 Ipswich Central Civic Project – Design & Construction of Administration Building, Civic Precinct, Library and Carpark Upgrade with J. Hutchinson Pty Ltd for an approximate purchase price of $36,544,959 excluding GST, aggregated as follows:
(a) Venue – $28,413,314
(b) Commonwealth Hotel – $8,031,645
D. 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.
RELATED PARTIES
· J. Hutchinson Pty Ltd; and
· Ipswich City Council
There were no declarations of conflict of interest
ifuture Theme
Vibrant and Growing
Purpose of Report/Background
The purpose of this report is to seek Council adoption of the Tender Consideration Plan. The Tender Consideration Plan has been prepared to provide justification required by s231 of the Local Government Regulations 2012 for Council to vary contractual arrangement 13245 Ipswich Central Civic Project – Design & Construction of Administration Building, Civic Precinct, Library and Carpark Upgrade with J. Hutchinson Pty Ltd for an approximate purchase price of $36,544,959 excluding GST, aggregated as follows:
· Venue – $28,413,314
· Commonwealth Hotel – $8,031,645
For this to occur, Council must:
(a) decide, by resolution, to prepare a quote or tender consideration plan; and
(b) prepare and adopt the plan.
The tender consideration plan has been prepared to include but not limited to the following:
(a) the objectives of the plan; and
(b) how the objectives are to be achieved; and
(c) how the achievement of the objectives will be measured; and
(d) any alternative ways of achieving the objectives, and why the alternative ways were not adopted; and
(e) the proposed terms of the contract for the goods or services; and
(f) a risk analysis of the market from which the goods or services are to be obtained.
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
Should the recommendations not be adopted by Council, the desired activation of the Nicholas Street Precinct and revitalisation of the Ipswich CBD will not be achieved.
Council’s quantity surveyor Rider Levett Bucknall reviewed the Offer from J. Hutchinson Pty Ltd in detail where a number of risks were identified, these are provided in detail within the confidential attachments listed below:
(a) Recommendation Report Venue & Comm Hotel - Ranbury v1; and
(b) Venue & Comm Hotel - QS Review – RLB.
HUMAN RIGHTS IMPLICATIONS
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HUMAN RIGHTS IMPACTS |
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OTHER DECISION |
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(a) What is the Act/Decision being made? |
Act/Decision being made is detailed in the recommendations within this report |
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(b) What human rights are affected? |
The parties involved are companies/corporations and the subject matter of the proposed engagement, act or decision being assessed will not affect human rights and further consideration is unnecessary. |
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(c) How are the human rights limited? |
Not applicable
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(d) Is there a good reason for limiting the relevant rights? Is the limitation fair and reasonable? |
Not applicable
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(e) Conclusion |
The decision is consistent with human rights. |
Financial/RESOURCE IMPLICATIONS
Financial and resource implications have been considered in making the recommendations within this report along with preparation of the Tender Consideration Plan.
Ipswich Council has committed $41.5 million in its 2022-2023 budget for the next phase of work in the Nicholas Street Precinct redevelopment. A significant portion of these funds will be spent on the delivery of leisure, entertainment, food and beverage areas which includes the Venue and Commonwealth Hotel.
The detailed design process conducted by J. Hutchinson Pty Ltd has estimated an approximate cost of $36,544,959 excluding GST for all works, aggregated as follows:
(a) Venue – $28,413,314
(b) Commonwealth Hotel – $8,031,645
These figures are based on J. Hutchinson Pty Ltd completing project works as one (resulting in economies of scale), any change to the scope could require repricing.
Council’s quantity surveyor has identified that the Offer from J. Hutchinson Pty Ltd is fair and reasonable based on the scope of works required. However, there are further financial risks and cost implications which are deemed confidential that need to be considered, these are provided in further detail within the confidential attachments “Recommendation Report Venue & Comm Hotel - Ranbury v1” & “Venue & Comm Hotel - QS Review – RLB”.
COMMUNITY and OTHER CONSULTATION
Council has continued to inform the public on the vision for Nicholas Street Precinct via media releases, these are but not limited to the following media articles regarding the following Council assets:
· Venue:
o 13 December 2019 - New cinema complex and indoor go kart track part of plans for Ipswich CBD redevelopment;
o 5 May 2021 - New cinema operator for Nicholas Street Precinct set by August;
o 6 April 2022 - Next stage of $250 million Nicholas Street Precinct revealed in Ipswich CBD;
o 30 June 2022 - Ipswich CBD revitalisation gets $41.5 million budget boost.
· Commonwealth Hotel:
o 14 June 2019 - Commonwealth Hotel, of days gone by;
o 16 June 2021 – Commonwealth Hotel has been put back together again;
o 9 January 2020 - What’s next for century-old Commonwealth Hotel;
o 10 July 2020 – Council gives green light to Commonwealth Hotel reconstruction;
o 12 November 2020 – Commonwealth Hotel rebuild well on the way as Ipswich CBD transformed;
o 15 March 2022 - Hotelier takes the reins of iconic Ipswich pub in Nicholas Street Precinct;
o 6 April 2022 - Next stage of $250 million Nicholas Street Precinct revealed in Ipswich CBD;
o 30 June 2022 - Ipswich CBD revitalisation gets $41.5 million budget boost.
Internal Stakeholders
· Procurement Branch
· Nicholas Street Precinct Branch
· Legal and Governance Branch
External Stakeholders
· Ranbury Management Group– Project Management Consultancy Services
· Rider Levett Bucknall – Quantity Surveyor
· Bornhorst & Ward – Structural Design Consultancy Services
· WSP Australia – Schematic Design Consultancy Services
· McKenzie Group – Building, Surveying and Access Consultancy Services
· Tait Moreton Johnson – Architectural Design Consultancy Services
· Clayton Utz – Council’s External Legal Consultant
· J. Hutchinson Pty. Ltd.
Conclusion
In concluding this report, the recommendations and information contained within this report aligns with Council’s iFuture Corporate Plan 2021-2026. The redevelopment of the Ipswich Central Business District (CBD) is a crucial part of revitalising the heart of Ipswich and the refurbishment of Council assets is a vital part of this revitalisation and the precinct’s future success.
Attachments and Confidential Background Papers
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CONFIDENTIAL |
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220725 Recommendation Report Venue & Comm Hotel - Ranbury v1 |
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3. |
David Niebling
Category Specialist
I concur with the recommendations contained in this report.
Wayne Bichel
Building Construction and Maintenance 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”
