Internally, the Criterion's drastically changed interior is no longer able to demonstrate the planning

184 Pages·2017·18.1 MB·English

THE HIVE, TOWNSVILLE
HERITAGE IMPACT REPORT - PRELIMINARY APPROVAL
49
Internally, the Criterion's drastically changed interior is no longer able to demonstrate the
planning and functions of early hotels in Townsville. The original layout had appeared to be
fairly typical of its time, but does not survive apart from the entry foyer, the dining room,
and the rear kitchen. At least several highly intact examples do survive locally, including the
Great Northern Hotel which provides a clear insight into how such early hotels were laid out
and used. On a smaller scale, the West End, the Republic, the Commonwealth and Victoria
Park hotels illustrate substantially intact early interiors.

Again, in no way can the Criterion be considered a "fine example" of hotel interior planning
and layout.

Interior views of the Great Northern Hotel. The photo on the left is of the dining room, the main bar is in the
centre, and a first floor hallway is on the right (plans and photos from The Great Northern Hotel, Townsville - A
Conservation Plan by Andrew Ladlay Architect, November 2008).

Rather than being a fine example of an early 20th century hotel, the Criterion Hotel can only
be considered as a poor example as it does not demonstrate the principal characteristics of
early 20th century hotels in Townsville. Therefore it does not satisfy Criterion (d) of the
Schedule 7 citation: The place is important in demonstrating the principal characteristics of a
particular class of cultural places.

Criterion (e) of the Schedule 7 citation: The place is important because of its aesthetic
significance (as an) aesthetically distinctive landmark building that contributes to the
streetscape of The Strand.

As discussed earlier, in terms of its aesthetic significance, the Criterion is not a good example
of hotel design, or indeed of building design, of the late nineteenth and early twentieth
centuries. It contrasts sharply with the refined and rhythmic facade of the Queens Hotel
nearby, and when compared to other surviving Townsville hotels of the period, the Criterion
can only be seen as a poor example of a two storey hotel of the Federation period. Neither
can it be considered as an aesthetically distinctive landmark building. The former Buchanan's
hotel (see page14), the Queens and the Great Northern, for example, would be considered
as aesthetically distinctive landmark buildings.

As to its contribution to the streetscape of the Strand, any building in that location will make
some contribution, whether good, bad or indifferent. In this case the contribution is the
latter. While from directly front on and from close to the Strand/King Street corner the
ANDREW LADLAY ARCHITECT
THE HIVE, TOWNSVILLE
HERITAGE IMPACT REPORT - PRELIMINARY APPROVAL
50
building presents as a reasonable architectural composition, albeit a largely blank and lifeless
one without the early corner parapet and pediment, much of the building as seen from King
Street presents as a conglomeration of shapes, materials, colours and textures. Much of the
view of the building from the west along The Strand is similarly cluttered and untidy.

The Queens Hotel The Great Northern Hotel

The changes made to the Criterion, including the addition to the King Street facade and in
particular the removal of the early corner parapet and pediment, have also further
diminished its somewhat limited streetscape values.

The view to the Criterion from The Strand to the west. The blank King Street facade.

This report finds that the Criterion hotel is not important because of its aesthetic
significance, and that the place is not an aesthetically distinctive landmark building that
contributes positively to the streetscape of The Strand. Indeed, most other early surviving
Townsville hotels make far greater contribution to their streetscapes than does the Criterion.

Therefore it does not satisfy Criterion (e) of the Schedule 7 citation: The place is important
because of its aesthetic significance.

In conclusion, it is considered that the Criterion Hotel does not meet the
criteria for inclusion in Schedule 7, and therefore that its proposed demolition
will not contribute to the loss of cultural heritage values.
ANDREW LADLAY ARCHITECT
Appendix H
Economic Evaluation
The Hive
Economic Evaluation

Prepared by: Prepared for:
RPS AUSTRALIA EAST PTY LTD GRIFFIN GROUP
Robina East Quay Corporate Park PO Box 349
Suite 4, 34-36 Glenferrie Drive Albion
Robina QLD 4226 Queensland 4010

T: [phone]
F: [phone]
E: [email protected]

Client Manager: William Owen
Report Number: PR132845
Version / Date: 26 October 2016

rpsgroup.com.au
The Hive
Economic Evaluation

IMPORTANT NOTE
Apart from fair dealing for the purposes of private study, research, criticism, or review as permitted under the Copyright
Act, no part of this report, its attachments or appendices may be reproduced by any process without the written consent
of RPS Australia East Pty Ltd. All enquiries should be directed to RPS Australia East Pty Ltd.
We have prepared this report for the sole purposes of the Griffin Group and Gleeson Properties (“Client”) for the specific
purpose of only for which it is supplied (“Purpose”). This report is strictly limited to the purpose and the facts and matters
stated in it and does not apply directly or indirectly and will not be used for any other application, purpose, use or matter.
In preparing this report we have made certain assumptions. We have assumed that all information and documents
provided to us by the Client or as a result of a specific request or enquiry were complete, accurate and up-to-date. Where
we have obtained information from a government register or database, we have assumed that the information is
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matters the subject of that assumption. We are not aware of any reason why any of the assumptions are incorrect.
This report is presented without the assumption of a duty of care to any other person (other than the Client) (“Third
Party”). The report may not contain sufficient information for the purposes of a Third Party or for other uses. Without the
prior written consent of RPS Australia East Pty Ltd:
(a) this report may not be relied on by a Third Party; and
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and releases and indemnifies and agrees to keep indemnified RPS Australia East Pty Ltd from any loss, damage, claim
or liability arising directly or indirectly from the use of or reliance on this report.
In this note, a reference to loss and damage includes past and prospective economic loss, loss of profits, damage to
property, injury to any person (including death) costs and expenses incurred in taking measures to prevent, mitigate or
rectify any harm, loss of opportunity, legal costs, compensation, interest and any other direct, indirect, consequential or
financial or other loss.
Document Status
Version Purpose of Document Orig Review Review Date
1.0 Exposure Draft WO WO 21 July 2016
2.0 Revised Base Data WO WO 25 August 2016
3.0 Revised Base Data WO WO 26 October 2016

PR132845; 26 October 2016 Page ii
The Hive
Economic Evaluation

Contents
EXECUTIVE SUMMARY .................................................................................................................................... 5
A new precinct ........................................................................................................................................ 5
Substantial employment and expenditure ........................................................................................... 5
Comparative Significance ..................................................................................................................... 5
Economic Indicators .............................................................................................................................. 5
Need for additional Office space .......................................................................................................... 6
Conclusion .............................................................................................................................................. 7
1.0 INTRODUCTION ...................................................................................................................................... 8
1.1 Components ................................................................................................................................. 8
1.2 How the site will function? .......................................................................................................... 9
2.0 SITE ASSESSMENT .............................................................................................................................. 10
2.1 Site ............................................................................................................................................... 10
2.2 Implications ................................................................................................................................ 10
3.0 SITE VISITATION ESTIMATES ............................................................................................................. 12
3.1 Art Galleries and Museums ....................................................................................................... 12
3.2 Concert Hall ................................................................................................................................ 13
3.3 Library ......................................................................................................................................... 13
3.4 Conclusion .................................................................................................................................. 14
4.0 COMMERCIAL OFFICE ........................................................................................................................ 15
4.1 Existing Commercial Infrastructure ......................................................................................... 15
4.2 Occupied Space ......................................................................................................................... 16
4.3 Demand ....................................................................................................................................... 17
4.4 Implications ................................................................................................................................ 18
4.5 Conclusion .................................................................................................................................. 18
5.0 ECONOMIC AND EMPLOYMENT EVALUATION ................................................................................ 20
5.1 Employment ................................................................................................................................ 20
5.2 Visitation – Library, Art Gallery, and Concert Hall.................................................................. 20
5.3 Expenditure................................................................................................................................. 20
5.4 Hotel Visitors .............................................................................................................................. 20
5.5 Rates ............................................................................................................................................ 21
5.6 Contribution to Gross Value Add ............................................................................................. 21
5.7 Indirect Benefits ......................................................................................................................... 21
5.8 Conclusion .................................................................................................................................. 21
6.0 ECONOMIC IMPACT EVALUATION .................................................................................................... 22
6.1 A New Precinct ........................................................................................................................... 22
6.2 Substantial Employment and Expenditure .............................................................................. 22
6.3 Comparative Significance ......................................................................................................... 22

PR132845; 26 October 2016 Page iii
The Hive
Economic Evaluation

6.4 Impact of Additional Office Space ............................................................................................ 22
6.5 Conclusion .................................................................................................................................. 23
APPENDIX 1 - GLOSSARY AND REFERENCE ............................................................................................. 24
Methodological Assumptions ............................................................................................................. 24
Types of Impacts Assessed ................................................................................................................ 24
Criticisms of Economic Impact Assessments .................................................................................. 25

Tables
Table 1 - Townsville CBD Calculated Office Demand ...................................................................................... 17

Figures
Figure 1 - Site and Surrounding Land Uses ..................................................................................................... 11
Figure 2 – Distribution of Office Space ............................................................................................................. 15
Figure 3 – Office Occupancy by category ........................................................................................................ 16
Figure 4 - Office Space (occupied and vacant) by precinct .............................................................................. 17

PR132845; 26 October 2016 Page iv
The Hive
Economic Evaluation

Executive Summary
The Hive project will provide a substantial economic and social benefit for Townsville. These advantages are
summarised as follows.
A new precinct
The concert hall/art gallery/library and hotel will combine to appeal to the current patronage base (residents
and tourists) of Townsville and will also generate new visits. This will take the form of current tourists
extending their stay and new trips being undertaken to visit the new attractions. The establishment of new
attractions in concert with local workers and residents is precisely what is required to achieve Councils vision
for the CBD.
The concert hall/art gallery/library will host 750,000 to 1,100,000 visitors per annum. This includes residents
and tourists with new (or additional) tourist visitation accounting for 17,500 to 25,100 new visitor nights. This
is potentially a conservative estimate as the actual number of new tourists will be linked to the appeal and
popularity of the events hosted by the art gallery and the concert hall.
Substantial employment and expenditure
When operational, The Hive precinct will host 1,491 workers (1,163 EFT) and will generate $26.8m in
expenditure, with over 96% of this being spent on-site and in the CBD. This expenditure will include $12.5m
on food and beverage services, $9.2m on all forms of retail and services and $5.2m for short stay
accommodation. The mixed-use nature of the redevelopment means that this expenditure will be dispersed
to a range of retail and service providers, thereby distributing the resulting benefits across a broad base.
The attraction of new patrons and expenditure is essential if Townsville to achieve the objective of 30,000
workers and residents in the CBD by 2036.
Comparative Significance
Comparing the relative significance of The Hive to other projects and events is difficult given the complexity
of data capture and the sometimes poor standards of analysis. The Hive will increase the overall pool of
visitors and expenditure to the region by offering new attractions.
It is possible to compare the projected economic performance of The Hive with the Townsville Supercars
event. RPS estimates that the Supercars event adds about $40m to the Townsville economy (GVA).
By comparison, The Hive is expected to add $191m into the economy. Simply put, The Hive will have an
economic impact that is over 4.5 times that of the Supercars Race.
It should be noted that The Hive and the Supercars Race are complementary and will work in concert with
other announced projects (including the $250m stadium) to increase the level of visitation and expenditure to
Townsville.
Economic Indicators
Indicator Value
Ongoing employment - onsite.  1,163 EFT (1,491 full time, part time and casual jobs)
Construction employment  1,837 EFT direct and supply chain (inc the 561 on-site)
Project budget  $450m
 The Concert Hall, Library, and Gallery are estimated to generate
Site Visitation
between 750,000 and 1,100,000 site visits per annum

PR132845; 26 October 2016 Page 5
The Hive
Economic Evaluation

Indicator Value
 $26.8m in expenditure (hotel, residential, retail and food/beverage)
 About 14% ($3.55m) of this expenditure can be attributed to people
Expenditure attracted to Townsville by the new Gallery and Concert Hall
 The balance ($23.3) is current regional expenditure that will be
redirected to the precinct and will help activate the CBD
 The hotel is estimated to host between 38,500 room nights and
Hotel
57,700 person nights
 The project when fully operational and occupied will generate
Rates $1.45m and $1.75m per annum in rates and utility charges from the
residential and commercial owners
 Construction - $324m
Contribution to Gross Value Add
 Operational - $191m per annum
Need for additional Office space
The inclusion of employees on-site is essential for the success of The Hive development. Too often major
cultural facilities are located on isolated sites that do not provide the opportunity for related and synergistic
activities. Where these synergies occur, attractive and economically strong precincts are created, many with
an extended activity cycles. The inclusion of 9,100 Sq M of office space (in concert with some other uses)
will generate weekday activity for the site to balance the weekend and weeknight activity produced by the
cultural facilities.
Council has acknowledged the importance of local workers and residents as the target of 30,000 residents
and workers is a fundamental element of the CBD and PDA strategies.
It is concluded that the 9,100 Sq M of office space is a critical element of the proposal. Reasons include:
 Demand - The 9,100 Sq M of office space represents three years of population-driven demand, much of
which will seek A Class office space. The provision of 9,100 Sq M of office space at The Hive is in line
with the development history of Townsville where a new large A Class office building is developed every 2
to 4 years. The resulting relocations by tenants redistribute this demand across all classes of office
buildings in the CBD.
 Market Stratification - The majority of the vacant office space is located in secondary buildings, the
potential tenants at The Hive will not be seeking this type of space. The overall office vacancy rate is
somewhat misleading as the current vacancy rate of A Class buildings is estimated at 14%. Given
Townsville‘s economic role and function, now is the time to be planning for the next generation of projects
in the CBD. The provision of office space is a small risk for the Council and public as the risk is borne by
the developer and financier.
 Market Cycles - The lead time for development means that property developers of major sites are
considering market and economic conditions 3 to 5 years in the future.
 Mixed Use – the office space will generate a true mixed-use precinct with an extended activity cycle. The
office space is an essential inclusion in the development as daytime employees will activate the space
and provide patronage for local retailers and food service providers.
 Investment Attraction – The CBD (core and frame) will have higher levels of economic and social activity
when The Hive is developed and operational. The benefits brought by this development will include a
greater focus on the CBD, a diversity of development (not just residential) and community/cultural uses
that are attractive to both residents and visitors.

PR132845; 26 October 2016 Page 6
The Hive
Economic Evaluation

Conclusion
In a functional (market) sense the subject site forms part of the CBD. At one point in its history it would have
been in the core of the CBD (it is opposite Customs House) and over time became part of the frame as the
central focus moved to the south west. The site has been underutilised for many years and now offers a
significant redevelopment opportunity, the scale of which is not available in the current core of the CBD.
A mixed use development, of the scale proposed for The Hive, is a paradigm shift for development within the
CBD. The stated benefits far outweigh the risks of adding more office space into the market in the short to
medium term. While Townsville has a significant amount of office vacancies, the impacts of this are
exacerbated by the oversupply of retail space and the modest rate of new development in the CBD.
The successful implementation of Councils 30,000 resident and worker objective will see the vacant office
space being absorbed or redeveloped. However, the 30,000 target will only be achieved if significant
developments that will generate activity in the CBD are approved and supported.
The Hive development will be a mixed use, extended activity cycle precinct that will join the CBD with the
foreshore and marina area. The extended business cycle will be generated by the visitors to the public
domain uses, on-site employees, residents, and tourists. The commercial and cultural uses will operate
synergistically and will reactivate the north east end of the CBD.

PR132845; 26 October 2016 Page 7