ACCOMMODATING GROWTH DELIVERING INFRASTRUCTURE BUILDING BETTER COMMUNITIES
METROPOLITAN AUTHORITY A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES
SUBIACO, WESTERN AUSTRALIA
PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES
A NEW REGIME TO DELIVER URBAN RENEWAL South Australia has embarked on a bold new path toward urban redevelopments that will support our growing economy and population. The Government has identified a range of infill sites along the northwest growth corridor and around the metropolitan area, from Noarlunga in the south to Elizabeth in the north. In addition, the Government is also upzoning large sections of transit corridors to enable urban infill. The scheduling, planning and delivery of these sites to market is a mammoth task. Building on lessons from the 2009 international tour of Transit Oriented Development sites, the 2010 Urban Development Tour and examples from around Australia, momentum is gathering for a South Australian Metropolitan Authority to deliver our new city communities.
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MEETING THE CHALLENGES OF THE 30-YEAR PLAN Population growth is inevitable
The cost of inaction
Coordinating delivery
Contrary to common misconceptions, international migration is not the sole cause of Australia’s population growth. A recent report by the Centre for Independent Studies shows that even if Australia halved its migration levels, at current fertility levels the population would still grow to 30 million people by 2050.
Without a new approach to the delivery of urban renewal - one that is better coordinated, faster and strategically driven, we will experience ill-timed and poorly scheduled developments that fail to meet the needs of the community and heap additional costs onto government.
A Metropolitan Authority should have responsibility for amalgamating and coordinating the delivery of sites to the market to stimulate the creation of new, active, vibrant and sustainable communities that leverage upon and support the State Government’s investment in our public transport system.
We can either ignore the reality of population growth and suffer the consequences of unplanned urban expansion, or we can begin to plan strategically for a growing population and economy.
Metropolitan Authorities charged with infill projects in other Australian jurisdictions and around the world have proved their capacity to quickly develop the new communities South Australia will inevitably need as the state prospers and grows.
South Australia’s current model for delivering urban renewal sees a range of Government agencies working to different objectives with divergent priorities. A clear lesson from successful redevelopment projects overseas and interstate is that the most effective means of coordinating urban renewal is through a Metropolitan Authority governance model.
The South Australian Government has chosen the latter and planning for growth is underway. But given the emphasis placed on urban infill as a strategy for accommodating metropolitan growth, a new governace structure is needed to deliver the 30-Year Plan for Greater Adelaide.
VAUBAN, FREIBURG, GERMANY
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The rationale and structure Urban regeneration projects are more complex than greenfield developments. They involve more than the preparation of planning ordinance, master plans, structure plans, precinct plans and policies and regulation for private sector response and reaction. A revitalised committment to urban renewal will require strong leadership and a unified and consistent approach to decisions and actions with respect to: • future development and the highest and best use of land (including potential private-public partnerships); • the establishment of effective governance bodies and institutional arrangements;
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a commitment to fiscal and financial (both capital and recurrent) policies and tools; a commitment to legible, transparent and effective policies and guidelines that balance certainty and flexibility; effective community engagement and consultation; land tenure and acquisition; land assembly; land use and activity distribution; investment in infrastructure to support development and unlock sites; a commitment to place making and place capital; and strong and consistent advocacy for agreed directions and outcomes.
Policy misalignments working counter to infill projects + stamp duty disincentive to multi-level residential developments + delivery of good public spaces constrained by tax and planning settings + many government agencies with different responsibilities and priorities + mandatory affordable housing requirements constrain innovative approaches + energy, sewerage and other infrastructure augmentation costs + fractured site ownership and complex titling hampers delivery of sites to market + inequitable energy efficiency requirements
PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES
WHAT ARE THE OPPORTUNITIES? A Metropolitan Authority will increase South Australia’s ability to deliver the housing, employment and growth it needs to achieve the targets set out in the 30-Year Plan for Greater Adelaide.
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RESOLVING POLICY INCONSISTENCIES A statutory body tasked with the delivery of Zones of State Significance and major corridor developments would have greater ability to resolve the policy inconsistencies that currently exist and that act as a barrier to the delivery of good outcomes for all South Australians.
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LINKING HOUSING AND EMPLOYMENT LANDS It is critical that we provide jobs for people where they live. A Metropolitan Authority would be positioned to ensure that appropriate employment opportunities are provided in the new communities where people will live.
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AFFORDABLE HOUSING Rather than the traditional approach of ‘taxing thy neighbour’, a Metropolitan Authority would be able to take a holistic view of the delivery of affordable housing, and more importantly, housing in general, to the market.
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A COORDINATED RESPONSE There are currently a dozen Government agencies with an interest in the delivery of Zones of State Significance and corridor developments. This can prompt competition over cooperation and lead tp duplication of effort. A Metropolitan Authority offers ensure the smooth, efficient and productive delivery of these sites to market,
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CENTRE REVITALISATION The importance of these Zones and corridor developments as activity centres cannot be underestimated. However, the ability to deliver these outcomes depends on the capacity of the Government or the Authority to reinvest dividends from the sale of land into appealing public spaces.
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INVESTOR CERTAINTY The greatest advantage of a Metropolitan Authority, as illustrated in Australia and overseas, is the ability to provide investor certainty, for those that purchase homes, for those that start businesses in the new communities and for those developing the sites.
In October 2010, the South Australian Government released the first audit of land in the Greater Adelaide area. This audit, the Housing and Employment Land Supply Program report clearly identifies areas for targeted housing and employment. Critically, this report highlights that we do not have enough greenfields land in the Greater Adelaide area to support our projected population growth. The only option, as identified by Government, is to increase the density of housing and other development around our transport corridors. This is the only solution that will deliver affordable housing, in close proximity to where people work and in a way that reduces our impact on the environment.
THE ANSWER FOR SOUTH AUSTRALIA To ensure the successful implementation and delivery of the urban renewal required to meet the targets and policies set out in the 30-Year Plan for Greater Adelaide, a Metropolitan Authority should be established as soon as possible.
VAUBAN, FREIBURG, GERMANY
Almost all successful urban renewal programs have succeeded as consequence of being guided by a Metropolitan Authority. The Authority must be established with a legislative framework that designates control over all Zones of State Significance, corridor developments and surplus government lands within the Greater metropolitan area. The Authority should also work in partnership with other government agencies such as Housing SA, whose sites will be integral in delivering future urban renewal outcomes. Given the scale and complexity of this work and its importance in the realisation of regional and state-wide strategic objectives, the Authority should have: • strong leadership and direction; • legislative and statutory authority; • initial financial establishment support with access to recurrent funding streams; • power to initiate and act to achieve agreed outcomes; • a focus that transcends political contexts and cycles; • an approach that is unified, coordinated and structured with appropriate supporting institutional arrangements; • capacity to deliver and achieve short (up to five years), medium (five to 10 years) and longer term (10 to 20 years) results; • an agreed, transparent implementation plan that is adequately funded, programmed and action-oriented and; • power of acquisition to assist with land assembly and the development of key land parcels (to achieve coordinated development and delivery of key sites and areas). It is suggested that a Metropolitan Authority of this nature would assist in addressing potential delivery impediments that may arise including competing overnment interests (state / local), competing agency interests or the potential conflicting interests of local stakeholders.
PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES
NEW SOLUTIONS THAT WORK A Metropolitan Authority will ensure infrastructure and land use planning is coordinated and delivered to the market in a strategic manner with a view to delivering economic prosperity. The Government already has a statutory entity to deal with surplus government lands, called the Land Management Corporation. This is an organisation that, with some amendments to its structure and charter, is ideally placed to become South Australia’s Metropolitan Authority. The South Australian model for a Metropolitan Authority should have five fundamental elements: 1. 2. 3. 4. 5.
responsibility for site consolidation in Zones of State Significance; and corridor developments; responsibility for precinct planning and development authorisation with final approval undertaken by the Development Assessment Commission; responsibility for coordinating the infrastructure delivery and public realm; responsibility for delivering the site to market; and required to reinvest dividends from the sale of land into the site.
Where Authorities have worked: •
Dandenong Development Board, VIC
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Honeysuckle Development Corporation, NSW
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Redfern-Waterloo Authority, NSW
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East Perth Redevelopment Authority, WA
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Midland Redevelopment Authority, WA
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Subiaco Redevelopment Authority, WA
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Urban Land Development Authority, QLD
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South Bank Corporation, QLD
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22@Barcelona, Spain
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Urban Centre Metroplitano, Torino
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Portland Development Authority, USA
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City of Philadelphia Redevelopment Authority, USA
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THE ACTION PLAN 1
Government commitment
Government must commit to establishing a Metropolitan Authority to oversee the deliver of Zones of State Significance and corridor developments in South Australia. This should include powers to: • amalgamate sites; • undertake appropriate planning processes (structure and precinct planning); and • retain and reinvest dividends into public infrastructure.
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Reform the Land Management Corporation
The most efficient pathway to delivering a Metropolitan Authority is to convert the Land Management Corporation. The process of converting the Land Management Corporation must include: • a full review and revision of the Corporation’s Charter; • a full review of skills and requirements of the new body; and • a commitment from Government that the new body will not be a developer.
ORENCO STATION, PORTLAND, USA
PROPERTY COUNCIL OF AUSTRALIA – METROPOLITAN AUTHORITY: A NEW GOVERNANCE MODEL FOR FUTURE COMMUNITIES
Property Council of Australia Limited ABN 13008 474 422 142 Gawler Place Adelaide SA 5000 Telephone: 08 8236 0900 Facsimile: 08 8223 6451 Email: sa@propertyoz.com.au Web: www.propertyoz.com.au
Copyright 2011
TURIN, ITALY