YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW Final Report

YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW

Final Report

Prepared by

Hansen Partnership and Charter Keck Cramer

For

City of Yarra

September 2004

YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW 2004

Hansen Partnership – Charter Keck Cramer

NOTE

Please note that the land zonings included in the recommendations of this report dated September 2004 are not as of right and have not been approved by the Council of the City of Yarra.

Any future rezoning of land subject to this study will be assessed on a case by case basis in accordance with the Industrial and Business Strategy which forms part of the current review of industrial and business activities in the City of Yarra. Each rezoning proposal will be considered as a formal amendment to the Yarra Planning Scheme and will be assessed against the policy framework prepared as part of the study and through the ongoing review of Yarra’s Municipal Strategic Statement (MSS) over the next twelve months.

September 2004.



TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................ I

1 INTRODUCTION ............................................................................................... 1 1.1 The Purpose of this Strategy 1 1.2 Approach 2

2 THE IMPORTANCE OF EMPLOYMENT AND BUSINESS TO YARRA .................................... 3

3 CONTEXT....................................................................................................... 4

4 INDUSTRIAL AND BUSINESS ZONED LAND............................................................... 7

5 INDUSTRY & BUSINESS ACTIVITY ......................................................................... 9 5.1 Overview 9 5.2 Economic Structure 10 5.3 Trends in Business & Industry Location 11 5.4 Business Movement 13 5.5 Characteristics of Yarra’s Workers 14 5.6 Where do Yarra workers come from? 15

6 PLANNING BACKGROUND................................................................................. 17 6.1 State Planning Policy 17 6.2 City of Yarra Municipal Strategic Statement 19 6.3 Local Planning Policies 27 6.4 Melbourne 2030: Planning for Sustainable Growth 28 6.5 Industry in Melbourne: Open for Business 30 6.6 Industrial and Business Activity: Trends and Opportunities Analysis (Ratio Report)

31 6.7 Amendment C27 to the Moreland Planning Scheme - Panel Report 35 6.8 Previous Rezonings 37 6.9 Development Proposals 38 6.10 Zoning Controls 42

7 TOWARDS AND INDUSTRIAL AND BUSINESS STRATEGY ............................................ 50 7.1 Introduction 50 7.2 Economic Considerations - Economic Outlook Industry and Business 50 7.3 Strategic Considerations 51

7.3.1 Activity Centre Policy 54 7.3.2 Public Transport Accessibility 55 7.3.3 Yarra River Corridor 55 7.3.4 The Need for an Integrated Policy Approach 56

7.4 Land Use Planning Considerations 57 7.4.1 Recognising Yarra’s Mixed Use (Multi-use) Character 57 7.4.2 Existing Industries / Industrial Concentrations 59 7.4.3 Under Utilised Land 59 7.4.4 Making the Most of Underutilised Industrial Land 60 7.4.5 Large Industrial Sites 60 7.4.6 Isolated Industrial Sites 61 7.4.7 Heritage Buildings 61

7.5 The Planning Decisions to be Made 62 7.5.1 Which Zone is Most Appropriate 62



7.5.2 When and How to Rezone? 63 7.5.3 Site Specific Rezonings 64

7.6 Conclusion 64

8 FUTURE OF INDUSTRIAL AND BUSINESS PRECINCTS ................................................. 65 8.1 Doonside Precinct 66 8.2 CUB Precinct 68 8.3 Victoria Crescent / Harper Street 70 8.4 Gipps Street Precinct 72 8.5 Johnston Street 74 8.6 Other Industrial and Business Precincts 76

8.6.1 Cremorne 76 8.6.2 Trenerry Crescent 77 8.6.3 Queens Parade (B3Z) and Alexandra Parade 77 8.6.4 North Fitzroy Village 78 8.6.5 Amcor, Alphington 79 8.6.6 Barkly 79 8.6.7 Noone 80

9 INDUSTRIAL AND BUSINESS STRATEGY................................................................. 81 9.1 Vision 81 9.2 Objectives 82 9.3 Strategies 82 9.4 Policy 83 9.5 Implementation 87 9.6 Implications of this Strategy 89 9.7 What Council Can Do To Promote Industry and Business in the Municipality 90 9.8 Area Enhancement and Development Contributions 93

9.8.1 Development Contributions Plan 93 9.8.2 Conditions on Permit 95 9.8.3 Agreements 96 9.8.4 Council Development Contributions Policy 97

APPENDIX 1 - DESCRIPTION OF INDUSTRIAL AND BUSINESS PRECINCTS............................. 1 TDZ 97 - AMCOR Precinct 2 TDZ 98 & 103: North Fitzroy Village Precinct & Queens Parade Precinct 4 TDZ 100 - Heidelberg Road Precinct 7 TDZ 101 – Noone / Hoddle 9 TDZ 105 Nicholson Street - TDZ 106 Alexandra Parade - TDZ 109 Johnston / Brunswick

Street Precincts 11 Nicholson Street Precinct 11 Alexandra Parade Precinct 12 Johnston / Brunswick Street Precinct 13

TDZ 107 - Smith Street (Johnston-Budd) Precinct 15 TDZ 108: CUB - Johnston / Hoddle - Victoria Crescent / Harper Street Precincts 18

CUB Precinct 19 Johnston / Hoddle Precinct 20 Victoria Crescent / Harper Street Precinct 21

TDZ 110 - Gipps Precinct 23 TDZ 111 – Risely Precinct 27 TDZ 112 - Swan Street and Burnley Precincts 31 TDZ 113 - Doonside, Stawell (GTV 9), Stawell (B4Z) Precincts 33



Doonside Precinct 34 Stawell Precinct (GTV9) 36 Stawell Precinct (Business 4 Zone) 37

TDZ 114: Cremorne and Dover – Barkly - Church Street Precincts 39 Cremorne & Dover Precinct 40 Barkly Precinct 42 Church Street Precinct 44

List of Figures Figure 1 - Rezoning Recommendations Summary Map........................................................ viii Figure 2 - Locality Map.................................................................................................................. 5 Figure 3- Study Precincts Map ..................................................................................................... 8 Figure 4 - Change in Employment by Industry 1996-2001 ..................................................... 13 Figure 5 -City of Yarra: Business Relocations by Type of Activity.......................................... 14 Figure 6- Yarra MSS Industrial and Commercial Framework Plan ........................................ 24 Figure 7- Yarra MSS Retailing and Activity Centres Framework Plan................................... 25 Figure 8 - Yarra MSS Transport and Access Framework Plan ................................................ 26 Figure 9 - Ratio Report Future Direction Strategy Map.......................................................... 34 Figure 10 -Key Development Site Map..................................................................................... 41 Figure 11 - Land Use Influences in Yarra................................................................................... 53 Figure 12 - Doonside Precinct Zoning Recommendation Map............................................ 67 Figure 13 – CUB & Victoria Crescent / Harper Street Precincts Zoning Recommendation

Map ....................................................................................................................................... 72 Figure 14 - Gipps Street Precinct Zoning Recommendation Map....................................... 74 Figure 15 - Queens Parade Zoning Recommendations Map............................................... 78 Figure 16 - North Fitzroy Village Zoning Recommendation Map ......................................... 79 Figure 17 - Barkly Street Precinct Zoning Recommendation Map....................................... 80 Figure 18 – TDZ 97 AMCOR Precinct Map.................................................................................. 3 Figure 19 - TDZ 98, North Fitzroy Village Precinct Map ............................................................. 5 Figure 20 - TDZ 103, Queens Parade Precinct Map.................................................................. 6 Figure 21 – TDZ 100, Heidelberg Road Precinct Map............................................................... 8 Figure 22– TDZ 101, Noone / Hoddle Precinct Map ............................................................... 10 Figure 23 - TDZ 105, 106, 107 - Johnston, Brunswick and Nicholson Street Precincts Map 14 Figure 24 - TDZ 107, Smith Street (Johnston-Budd) Precinct Map......................................... 17 Figure 25 - TDZ108 CUB, Victoria Crescent/Harper Street & Johnston/Hoddle Precincts

Map ....................................................................................................................................... 22 Figure 26 - TDZ 110, Gipps Precinct Map.................................................................................. 26 Figure 27 - TDZ 111, Risley Precinct Map................................................................................... 30 Figure 28 - TDZ 112, Swan Street and Burnley Precincts ......................................................... 32 Figure 29 - TDZ 113, Doonside, Stawel (GTV 9) & Stawel (B4Z) Precincts Map ................... 38 Figure 30- TDZ 114, Cremorne, Dover, Church and Barkly Street Precincts Map .............. 46



List of Tables Table 1 - Industry & Business Mix: Share of Total Employment .............................................. 10 Table 2: Journey to Work from Individual LGAs, 1996 ............................................................ 15 Table 3 - Key Development Sites............................................................................................... 38 Table 4: Indicative Employment Ratios (City of Melbourne) ................................................ 51 Table 5: Estimated Change in Land Use Requirement 2001-2020 ....................................... 51 Table 6 - Summary of Rezoning Change ................................................................................. 90


Hansen Partnership – Charter Keck Cramer i

EXECUTIVE SUMMARY

Introduction

The purpose of this study is to:

review trends in industrial and business activity on the future use and development of land zoned Industrial 1 and 3, and Business 3 and 4 in the municipality of Yarra; and

to make recommendations regarding the future use and zoning of such land.

The consultant team commissioned to prepare the study by Council comprised Hansen Partnership, town planners and urban designers, and Charter Keck Cramer, property advisors and economists. As part of the study Charter Keck Cramer prepared a separate report titled “Industry and Business Activity: Trends and Opportunities Analysis (April 2004). That report presents full details of the economic analysis component of the project and underlies the recommendations contained in this report.

The Importance of Employment and Business to Yarra

Yarra is a mixed use municipality in which business and residential activities interact to provide the interesting and diverse cosmopolitan inner city character that makes Yarra such as special place for people to live, work and visit.

A significant number of businesses and jobs exist within the municipality. In addition to contributing to the character of Yarra, these businesses and the employment opportunities make a significant contribution to the local and regional economy, and to the lifestyles enjoyed by local residents.

With some 55,000 jobs existing in Yarra and a population of around 67,000 (2001 figures), there are nearly as many jobs in the municipality as there are residents. This highlights the importance of employment and business to the municipality. It also highlights the need to balance the requirements of business with those of residents, in all aspect of local government decision making regarding the future planning and development of the municipality.

Context

Yarra has a tradition of manufacturing industry, much of which located along the Yarra River in the late 19th and early 20th Centuries, but which was also dispersed throughout other parts of the municipality.

The role of industry in Yarra has changed considerably over the years and ongoing change is continuing to occur. Substantial restructuring of industry, in particular manufacturing industry and the TCF (Textiles Clothing and Footwear) sector, has seen many factories and businesses close down or relocate from the municipality. This has resulted in a loss of local businesses and jobs, negative impacts on the local economy, and the creation of considerable amounts of vacant and underutilised industrial land within the municipality over time.

This change has also provided considerable new development opportunities within the municipality, the benefits of which have contributed to reversing the previous decline in population experienced in Yarra, improving the appearance and amenity of many parts of the municipality, enhancing the Yarra River corridor, and providing the opportunity for new generation business to establish.


Hansen Partnership – Charter Keck Cramer ii

Within metropolitan Melbourne recent transport infrastructure changes, such as the construction of the Metropolitan Ring Road and City Link, have significantly changed accessibility and industrial location patterns in Melbourne.

Whilst industrial activity has declined in Yarra employment has increased. Yarra has become a preferred location for many smaller and medium sized businesses, particularly those in computer, technology, marketing and design, and restricted retail. These trends are expected to continue.

Industry & Business Activity

The City of Yarra’s total working population in 2001 was 55,300. Of that amount about 8,213 (15%) were people employed in the manufacturing sector and wholesale trade sectors of the economy.

The concentration of manufacturing activity within Yarra relative to the rest of Melbourne is not particularly strong. Manufacturing activities for which Yarra has a strong concentration are limited to: food and beverages (reflecting the presence of CUB in Abbotsford); textiles, clothing and footwear; and printing, publishing and recorded media.

There is evidence of strong concentrations of activity in Yarra relative to the rest of Melbourne in business services activities, particularly within emerging growth sectors such as finance and insurance, property and business services, and health services.

The evolution of Australia’s manufacturing economy towards higher value added activities focussed upon innovation rather than production, has resulted in a shift away from traditional blue-collar activities towards white collar employment.

Within the wholesale trade sector there is a strong concentration of personal and household goods wholesaling in Yarra. This reflects a number of factors including the proximity of Yarra to CAD retailers, as well as the trend towards factory outlets selling direct to the public.

There is also a strong concentration of business service activity within Yarra, particularly in Richmond.

The economic performance of Yarra over the period 1996-2001 was mixed, with traditional industries such as manufacturing, and in particular blue-collar activities and wholesale trade, performing below that achieved by these sectors at the metropolitan level. This contrasts with the business services sector which outperformed the rest of metropolitan Melbourne.

Significant opportunities exist for the further development of business service related activities within Yarra, supported by the opportunity to establish links to CAD based organisations.

Planning Policy Background

This study is part of the review of the Yarra Municipal Strategic Statement (MSS) that is presently being undertaken by the Council. As such it will contribute to a new MSS being prepared for the municipality, and in particular to new polices for industrial and business activity.

State planning policies provide little guidance in relation to the future use and development of industrial land. Rather, implications regarding industrial land need to be drawn from policies regarding other matters such as activity centres, residential development and public transport.

Melbourne 2030 is the strategic planning document most relevant to this study. The policy directions that will have the greatest influence on the future use of industrial and business zoned land in Yarra include:


Hansen Partnership – Charter Keck Cramer iii

Policies that aim to direct a significant proportion of new residential development into and around activity centres – This policy will have implications on the future use of underutilised industrial land located close to activity centres in Yarra.

Policies to encourage office development to locate in activity centres, and which discourage out-of-centre development – This policy will have implications on the future use of underutilised industrial land in Yarra that is located some distance away from activity centres.

Policies that encourage better use of public transport and the establishment of higher density housing and also employment uses (especially where close to activity centres) along the principle public transport network – This policy will have implications for the future use of underutilised industrial land along key public transport routes and tram routes throughout the municipality.

Towards an Industrial and Business Strategy

Key considerations that have been taken into account in formulating the recommendations contained in this study include the following:

Economic Considerations − While industry will remain an important component of Yarra’s local economy, the

demand for industrial land has declined in the past and is expected to continue to decline in the future.

− It is forecast that over the next 15 to 20 years to 2020, demand for industrial and related land in Yarra is likely to decline by around 20 hectares.

− A considerable increase in demand for business services activities and office type uses is forecast in Yarra over the next 20 years, of around 150,000 square metres.

Strategic considerations: − Proximity to activity centres – This policy is supportive of higher order employment (i.e.

office) and higher density residential uses on underutilised industrial land within or close to activity centres.

− Proximity to public transport and the principle public transport network – This policy is supportive of higher density residential use, or higher density employment uses such as offices (where also close to activity centres) on underutilised industrial land close to railway stations and along Public transport routes throughout the municipality.

− Proximity to the major environmental features such as the Yarra River – Supportive of higher order uses such as residential or offices uses on underutilised industrial land abutting the river corridor (subject to appropriate built form relationships to the river).

Land Use planning considerations − Recognising Yarra’s mixed use character. − Reflecting existing major industries and concentrations of industrial activity that are

viable and have a medium to long term commitment to an area. − Seeking ways to better utilise and rehabilitate underutilised, vacant or derelict

industrial land. − Realising the difficulty of redeveloping large industrial sites for new industrial

purposes and the need for greater flexibility in relation to the redevelopment of such land.

− Recognising the need to adopt a flexible approach in relation to isolated industrial sites, particularly those in otherwise residential areas and off main roads.

− Recognising the need for a flexible approach in relation to heritage buildings in industrial areas, to ensure their ability to be retained, refurbished and reused.


Hansen Partnership – Charter Keck Cramer iv

The above considerations are relevant where existing industrial land is either vacant or underutilised. Other than in exceptional circumstances, land that is efficiently used for viable industrial purposes that has a long term commitment to the area, is not considered for rezoning to a zone that would undermine the continued operation of such businesses.

Future of Industrial and Business Precincts Doonside Precincts

− Potential for land to the north of Appleton Street to be rezoned to a Mixed Use Zone when existing industry relocates, to enable a mix of commercial and higher density residential uses close to Victoria Gardens.

− Rezone land along the east side of Burnley Street, to the north of Blazey Street, to a Mixed Use Zone to allow flexibility to reflect existing ground level commercial uses and to provide the opportunity for upper level office or residential activities.

− Rezone the balance of the area to a Business 3 Zone to retain the existing industrial use of the area, whilst providing the opportunity for a wider range of business uses, including offices.

CUB Precinct − Retain existing industrial zonings that apply to the CUB site and surrounding area, to

protect the long term interests of CUB and the role of the area as an industrial precinct.

− Rezone land to the east of Grosvenor Street, including Flockhart Street and extending east to Walmer Street to a Business 2 Zone, with a local policy that identifies the future of the area as an employment precinct, but with the opportunity for a residential component as part of mixed use developments.

− Rezone land along the north side of Victoria Street from its existing Business 3 Zone to a Business 1 Zone.

Victoria Crescent / Harper Street − Transform Victoria Crescent into an attractive landscape boulevard with active

street frontages. − Rezone land along the east side of Victoria Crescent to a Mixed Use Zone to provide

the opportunity to revitalise the area and to achieve mixed use or residential redevelopment adjacent to the river.

− Rezone land south of Mollison Street, including the Brush Fabrics site, to a Mixed Use Zone to allow mixed use or residential redevelopment.

− Rezone land bounded by Gipps Street, Victoria Crescent, Mollison Street and Nicholson Street to a Business 3 Zone, to retain the existing industrial use of the area whilst providing the opportunity for a wider range of business uses, including offices.

Gipps Street Precinct − Rezone to a Business 3 Zone to retain the existing industrial use of the area whilst

providing the opportunity for a wider range of business uses, including offices.

Johnston Street − Consult with land owners and occupiers about the rezoning of land along the north

side of Johnston Street between Wellington Street and Hoddle Street (extending through to Sackville Street) to a Business 1 Zone, in order to revitalise this underutilised area.

− Rezone land zoned Business 3 on both sides of Johnston Street between Smith Street and Wellington Street, to a Business 1 Zone. On the north side of Johnston Street the Business 1 Zone should only apply to properties fronting Johnston Street and should not extend through to Sackville Street.


Hansen Partnership – Charter Keck Cramer v

− Rezone land between Brunswick Street and Smith Street to a Business 2 Zone to differentiate the retail role of this area from that of Brunswick Street and Smith Street, whilst providing the flexibility for shop top or upper level housing or office uses (including a local planning policy to reflect intent of rezoning).

Cremorne − Retain the existing Business 3 Zone that applies to the area. − Rezone the Kangan Batman TAFE sites to Business 3 Zones to encourage their

redevelopment for business rather than residential purposes. − Adopt a flexible approach in relation to the redevelopment of the historic Richmond

Maltworks site. This may include support for a mixed use development with a residential component.

− Retain the Stitches Site at the corner of Cremorne Street and CityLink in a Business 3 Zone and encourage redevelopment consistent with that zone.

Trenerry Crescent − Adopt a flexible approach to redevelopment proposals affecting the two remaining

sites in that area zoned Business 3, including the possibility for mixed use or residential redevelopments (i.e. Mixed Use Zone).

Queens Parade − Rezone land bounded by Queens Parade, Alexandra Parade, George Street and

Napier Street, in Fitzroy North to a Mixed Use Zone

Alexandra Parade − Rezone the area zoned Business 3 on the north side of Alexandra Parade, between

Smith and Wellington Street, to a Mixed Use Zone to provide the opportunity for upper level office or residential activities along main road frontages or for the residential use of underutilised sites in local streets abutting residential uses.

North Fitzroy Village − Rezone the area bounded by St Georges Road, Fergie Street and Scotchmer Street

to a Business 1 Zone to encourage the redevelopment / refurbishment of the existing building of the site in a manner that contributes to the North Fitzroy Village in a positive manner.

Barkly − Rezone all Industrial 3 Zoned land in the area to a Business 3 Zone to provide greater

opportunity to maximise the utilisation of land for higher order business and employment activities, whilst recognising the existence of established industries and businesses.

Noone Street, Clifton Hill. − Support the existing request to rezone the site of the Australian Dyeing Company to

a Mixed Use Zone to support mixed use or residential redevelopment.

Figure 1 indicates the location of existing industrial and business precincts and provides a summary of the rezoning changes recommended in this study.

Things Council Can do to Support Industry and Business in the Municipality

Council’s attention should be focussed on two key areas:

keeping existing business within the municipality; and

attracting appropriate new businesses to the municipality.


Hansen Partnership – Charter Keck Cramer vi

Council’s efforts in terms of supporting industry and business in the municipality should be directed towards the following four areas in relation to support for industry and business:

supportive whole of Council attitude;

strategic planning certainty;

expedient development approvals process; and

business development support.

Area Enhancement and Development Contributions

The rezoning of industrial land to a zone that allows higher order uses such as offices or residential uses, has the potential to change the character of an area, to change activity levels and traffic patterns, to create demands for improvements to the amenity of the area, and create a need to upgrading or provide new public infrastructure, services and facilities.

Council should adopt a policy that seeks to optimise the funding of area enhancements and infrastructure requirements from private development, in accordance with established principles for development funding and contributions.


Hansen Partnership – Charter Keck Cramer vii

Implications of the Study

The following table summarises the existing area of land included in the Industrial 1 and 3 zones and the Business 3 and 4 zones assessed as part of this study, and the subsequent area of land in relevant zones should all rezonings identifies in the study be initiated.

Zoned Existing Area (ha) Change (ha) Future Land Area (ha)

IN1 52.1 -35.05 17.05

IN3 31.4 -12.99 18.41

Total IN1 and IN3 83.5 - 35.46

B3 95.7 +29.43 125.13

B4 8.5 0 8.5

B2 - +7.44 -

B1 - +1.49 -

MUZ - +9.68 -


Hansen Partnership – Charter Keck Cramer viii

Figure 1 - Rezoning Recommendations Summary Map

YARRA INDUSTRIAL AND BUSINESS ACTIVITY STUDY 2004

Hansen Partnership – Charter Keck Cramer Page 1

1 INTRODUCTION

1.1 The Purpose of this Strategy

The purpose of this study as outlined in the project brief issued by the City of Yarra is to:

analyse the principal findings of the ‘Ratio Report’ (Industrial and Business Activity: Trends and Opportunities Analysis Parts A and B, prepared by Ratio Consultants, July 2000);

identify and analyse the viability and trends in the industrial and business sectors of Yarra’s economy;

review all land contained within the Industrial 1 and Industrial 3 zones, and the Business 3 and Business 4 zones;

consider the future role and functions of Yarra’s industrial and business areas and assess the planning tools to manage these areas under the planning scheme; and

provide recommendations regarding areas to change and areas that should remain industrial, and a decision making framework for Council.

The study brief also identified the following more detailed objectives:

To critically review the existing and proposed Yarra controls and policies, and strategic planning documents including the Ratio Report.

To analyse the business and industry trends that are emerging nationally and locally, that will influence Yarra’s future development.

To analyse the dynamics of the local property market which will influence the future position of Yarra within the wider commercial / industrial property market.

To assess the current and future role of the City of Yarra for commercial and industrial activity based on a supply and demand analysis that takes account of industry trends, availability of land, competition with other competing commercial and industrial precincts etc.

To estimate the level of future development required to accommodate potential demand.

To determine the most appropriate land zoning in order for economic development opportunities to be maximised.

To establish criteria for evaluating individual sites based upon a number of factors including market and developer requirements, economic development and urban planning principles.



To review the precincts outlined in the Ratio Report based on the property supply and demand analysis and having regard to the viability and sustainability of the precincts.

To identify the potential futures for the precincts in terms of viable and sustainable industries, opportunities for clustering certain industries, employment opportunities, and areas that are better converted to alternative uses and what these alternatives may be.

To make recommendations regarding any changes in land use zoning or other planning scheme provisions.

To provide a strategic policy framework for managing industrial and business activity in Yarra.

To define the industrial areas, the role and future sustainable use of these areas and how interface issues should be addressed.

To provide a future decision making framework to assist Yarra in managing current trends and the changing form of industry and business in the future.

1.2 Approach

The consultant team for this study comprised Hansen Partnership, town planners and urban designers, and Charter Keck Cramer, property advisors and economists.

Charter Keck Cramer’s role was to analyse the existing economic situation and the economic outlook in relation to industrial and business activity in Yarra. That economic overview provided input into that component of the study undertaken by Hansen Partnership. Hansen Partnership’s work included reviewing land use patterns in industrial areas, reviewing the current planning policy context, and making recommendations regarding the future strategic land use framework for industrial and business zoned land in the municipality.

As part of this study Charter Keck Cramer prepared a separate report titled “Industry and Business Activity: Trends and Opportunities Analysis (April 2004). That report presents full details of the economic analysis component of the project. That report informs the planning and land use recommendations contained in this document.

As part of the study Council established a working group of existing business operators in the municipality. The consultants met with that group to discuss issues relevant to industry and business in Yarra. The consultants have also met with a number of proponents of rezoning requests and a number of other individual businesses operating within the municipality.



2 THE IMPORTANCE OF EMPLOYMENT AND BUSINESS TO YARRA

Yarra is a mixed use municipality in which business and residential activities interact to provide an interesting and diverse cosmopolitan inner city character, which makes the municipality such as special place for people who live, work and visit.

A significant number of businesses and jobs exist within the municipality. In addition to determining the character of Yarra, business and employment opportunities available in the municipality make a considerable contribution to the local and regional economy and to the lifestyles of local residents.

With some 55,000 jobs existing in Yarra (2001) and a population of 67,000 (2001), there are nearly as many jobs in the municipality as there are residents. This highlights the importance of employment and business to the municipality. It also highlights the need to balance the requirements of business with those of residents, in all aspects of local government decision making related to the future planning and development of the municipality.

The economic profile of the municipality is changing, with a transition towards jobs in the retail, service business and public sectors of the economy. However industry and wholesale trade activities still account for a quarter of all jobs available in Yarra. Combined with new generation business uses in which traditional distinctions between industry and office activities have become blurred, a positive approach to the future planning and development of the industrial and business zones relevant to this study it is critical to ensuring the economic base of Yarra evolves to meet current and future business needs.



3 CONTEXT

The City of Yarra is situated immediately to the east of Melbourne’s Central Activities Area (CAD). Yarra includes the suburbs of Richmond and Burnley in its south, Collingwood and Abbotsford in its central areas, Fitzroy to North Carlton in its north and Alphington in its far east (refer to Figure 2 for locality map).

Yarra has a diverse population of around 67,000 people (2001). One third of residents are from non-English speaking backgrounds including Vietnam, Greece, and Italy. The diverse community is reflected in the range of shopping, employment, entertainment and cultural destinations in the municipality.

The municipality has a tradition of manufacturing industry, much of which located along the Yarra River in the late 19th and early 20th Centuries, but which was also dispersed through other parts of the municipality. Carlton and United Breweries in Abbotsford and AMCOR in Alphington are continued evidence of this trend. The municipality has also been a traditional centre of the textiles clothing and footwear (TCF) industry in Victoria, with particular concentrations in Collingwood and in the Richmond / Cremorne area.

The role of industry in Yarra has changed considerably over the years and ongoing change will continue to occur. The municipality is experiencing significant change with regards to its business and industrial sectors in line with global trends. Substantial restructuring of industry, in particular manufacturing industry and the TCF sector, has seen many factories and businesses close or relocate from the municipality. This has resulted in a loss of local businesses and jobs, negative impacts on the local economy, and the creation of considerable amounts of vacant and underutilised industrial land within the municipality over time.

Within metropolitan Melbourne recent transport infrastructure changes, such as the construction of the Metropolitan Ring Road and City Link, have significantly changed accessibility and industrial location patterns in Melbourne. New fringe industrial areas have become more accessible to the wider metropolitan region and are the preferred locations for manufacturing industry, freight and distribution operations. These changes continue to have an impact on the types of industry and business that benefit from locating in Yarra.



Figure 2 - Locality Map

The nature of economic activity in Yarra has also been influenced by the gentrification of what was essentially a traditional working class municipality. This has had a significant impact on the characteristics of the local labour force, housing demand and the level and nature of household expenditure.

The inner city has become a desirable and sought after residential address. Over the past decade pressures for inner city housing have seen many former industrial areas transformed into residential areas through the refurbishment of former industrial buildings into warehouse style apartments and the construction of new apartments. This has changed expectations in terms of amenity issues such as interfaces with industry, industrial traffic in residential streets etc.

Over time there has been an ongoing loss of industrial land to other zones. With the introduction of a Mixed Use Zone by the Victorian Planning Provisions (VPPs) in the mid 1990s, considerable areas of ‘struggling’ industrial zoned land were rezoned into this new zone, that allows a mix of residential and business activities. This was particularly the case in areas such Kerr Street Fitzroy and Cambridge Street Collingwood, where the former Foy and Gibson buildings have been converted to predominantly residential warehouse apartments. The Tanner Street area adjoining Richmond Station is an area where rezonings enabled former industrial buildings to be re-used for residential apartments.

City of Yarra



Considerable change has occurred along the Yarra River, where former industrial areas have been rezoned for a mix of residential and or office development. Trenerry Crescent in Abbotsford and River Street in Richmond are two such areas.

The rezonings have provided considerable opportunity to maintain Yarra’s industrial building heritage through the refurbishment of historic industrial buildings into warehouse apartments and offices; uses to which they are particularly well suited.

Whilst industrial activity has declined in Yarra employment has increased. Yarra has become a preferred location for many smaller and medium sized businesses, particularly those in computer, technology, marketing and design, and restricted retail. Many of these operations are essentially office uses, but many combine a mix of activities and necessitate buildings that provide a mix of office and warehouse style accommodation. Former industrial strips such as along the southern end of Church Street, the northern end of Smith Street and the eastern ends of Bridge Road and Swan Street, have become thriving mixed business destinations with offices, showrooms, restricted retail outlets and the like.

The rezoning of former industrial areas such as the Cremorne area, to allow a wider range of business activities has resulted in the rejuvenation of these areas to include a mix of businesses and increased local employment.

An important reason for the gentrification of the municipality and the change in profile of businesses locating in Yarra has to do with less tangible matters, such as the overall character and ambience of the municipality as a place to live and work. Yarra is a busy, bustling, at times congested place. It is a place where people can live in an unrenovated terrace, in public housing, in a stunning new apartment overlooking the Yarra, or in funky converted warehouse at the back of Smith Street. People can rent an old factory to set up a new business, convert one into a contemporary office, or work out of home within easy reach of the city. The shopping and entertainment strips of Swan Street, Bridge Road, Smith Street and Brunswick Street are interesting, busy, different and exciting places. The area is attractive to active, energetic and creative people. It is these elements that make Yarra the place that it is today. It is these factors that are important to the ongoing vitality of Yarra for business and employment generating uses.



4 INDUSTRIAL AND BUSINESS ZONED LAND

Figure 3 shows the location of all Industrial 1 and 3, and Business 3 and 4 zoned land in Yarra.

The amount of land included in each zone is summarised as follows:

A total of approximately 83 hectares of industrial zoned land, comprising 52 hectares of Industrial 1 and 31 hectares Industrial 3 zoned land.

A total of 96 hectares of Business 3 zoned land.

A total of 8.5 hectares of Business 4 zoned land.

A field investigation was undertaken of all Industrial and Business 3 and 4 zoned land as part of this study. The purpose of that investigation was to identify the general nature of existing land uses, key features of each area such as major businesses, residential interface and accessibility issues, the level of utilisation of land, opportunities and constraints for future development in each area. That work formed a basis for an assessment of the suitability of current zones applicable to each area and ultimately recommendations regarding future zonings.

A summary of the findings of the field investigation is included in Appendix 1. This should be referred to directly for more detailed information regarding the existing characteristics of industrial and Business 3 and 4 zoned land throughout the municipality.



Figure 3- Study Precincts Map



5 INDUSTRY & BUSINESS ACTIVITY

This chapter presents a synopsis of a detailed economic analysis prepared as part of this study by Charter Keck Cramer - ‘Industry and Business Activity: Trends & Opportunities Analysis’ (2004). The Charter Keck Cramer analysis addresses the current industry and business profile in Yarra, outlines past influences, and presents trends at the local, national and global level.

5.1 Overview

Yarra’s current economic structure reflects its historical role as a manufacturing location particularly for the textile, clothing and footwear sector (TCF), as well as office-based activities that have been attracted to Yarra due to its proximity to Melbourne’s CAD. The nature of economic activity in Yarra has also been influenced by the gentrification of traditional working class areas. This has had widespread impacts on the characteristics of the local labour force, housing demand and the level and nature of household expenditure.

Initiatives by successive federal Governments in the areas of industry policy and macroeconomic management over the past 20 years have impacted significantly on the structure of the Australian economy. The progressive unwinding of protection for the manufacturing sector, particularly for the textile, clothing and footwear sector, has resulted in a restructuring of Australian industry away from manufacturing towards higher value-adding service orientated activities. These initiatives have been reflected at the local level by traditional manufacturing precincts within Australia’s capital cities experiencing decline, business closures and relocations, job losses and as a consequence, pressure for land use change.

Melbourne’s economic growth and expansion since being founded in 1835 has resulted in continual change in land use. The progressive development of transport infrastructure has allowed Melbourne’s growing population and economic activity to spread initially beyond the City of Melbourne into Yarra and then into Melbourne’s inner and outer suburbs. The development of Melbourne’s CAD as a financial and administrative centre was dependent upon the relocation of other functions to suburban locations. This in turn supported the development of the wider Victorian economy. This process continues today with the highest and best use for sites reflecting trends in the wider economy and pressures for land resources to accommodate the needs of industrial and business activities and workers. As a result, land use change across the metropolitan area, including Yarra, reflects the dynamics of industry and economic growth and contributes to economic and employment growth at not only the local level but also a regional and national level.



5.2 Economic Structure

Yarra’s current economic structure reflects the history of its development commencing in the 19th century and extending through periods of strong industrial growth which established Melbourne as the centre of manufacturing in Australia. As the Australian economy has evolved so has Yarra’s economy, with the services sector now accounting for a large share of employment.

The City of Yarra’s total working population in 2001 was 55,300 with 33,100 (60%) of workers employed in workplaces located within the Yarra (North) SLA. The remaining 22,200 persons were employed within the Yarra (Richmond) SLA. A key characteristic of this working population is a trend towards business and health services.

Yarra has some 8,213 people employed in the manufacturing sector, which represented approximately 3.4% of manufacturing jobs in the Melbourne Statistical Division (MSD) (2001). There was a reduction in manufacturing employment between 1996 and 2001 of some 2,378 people. This compares with a growth of around 2,464 people employed in the property and business services sector in Yarra. This is reflective of the general decline in manufacturing employment and the growth in professional and business services.

There is evidence of strong concentrations of activity in Yarra relative to the rest of Melbourne, particularly within emerging growth sectors such as finance and insurance, property and business services, and health services. These concentrations of activity provide Yarra with a competitive advantage in attracting further activity, as new and relocating businesses seek locations offering opportunities for the establishment of linkages with established businesses. (It should be noted that the presence of the Epworth Hospital accounts for a large proportion of health & community services in Yarra).

Table 1 - Industry & Business Mix: Share of Total Employment

Industry Metro. Melbourne City of Yarra

Finance & Insurance 4.9% 3.3%

Property & Business Services 13.4% 16.1%

Health & Community Services 9.7% 16.3%

Manufacturing 16.7% 14.9%

Wholesale Trade 6.3% 9.6%

Retail Trade 15.1% 13.0%

Health & Community Services 9.7% 16.3%

Source: Charter Keck Cramer, 2004



The concentration of manufacturing activity within Yarra relative to the rest of Melbourne is not particularly strong. Those activities for which Yarra has a strong concentration of activities is limited to: food and beverages (reflecting the presence of CUB in Abbotsford) textiles, clothing & footwear; and printing, publishing and recorded media. The future contribution of these activities to employment generation within Yarra will depend on a number of factors including future investment decisions by CUB, the outlook for the textiles, clothing and footwear sector and the ongoing attractiveness of Yarra as a location for these activities.

The evolution of Australian’s manufacturing towards higher value added activities focussed upon innovation rather than production, has resulted in a shift away from traditional blue-collar activities towards white collar employment. North Yarra has a higher concentration of white collar manufacturing activities than blue collar when compared to the rest of Melbourne. The future development of white collar manufacturing will however be dependent upon the level of competition from other locations with strong concentrations, including the Monash technology precincts and industrial precincts within the City of Melbourne such as Fishermens Bend.

Within the wholesale trade sector there is a strong concentration of personal & household goods wholesaling in Yarra. This reflects a number of factors including the proximity of Yarra to CAD retailers, as well as the trend towards factory outlets selling direct to the public.

There is also a strong concentration of business service activity within Yarra and in particular in Richmond. The activities undertaken generally relate to higher level activities requiring managers and professionals. The proximity of Yarra to the Melbourne CAD is likely to support a further concentration of such activity in Yarra in the future.

5.3 Trends in Business & Industry Location

The nature and pace of future economic development in Yarra will be determined by a number of factors including:

the existing industry and business mix and the exposure this offers to growth sectors;

any competitive advantages associated with Yarra’s geographic location with respect to its ability to source appropriately skilled labour, access to transport infrastructure, proximity to key organisations or the level of amenity available; and

the ability to accommodate the changing property requirements of industry.



The economic performance of Yarra over the period 1996-2001 was mixed, with traditional industries such as manufacturing, and in particular blue-collar activities and wholesale trade, performing below that achieved by these sectors at the metropolitan level. This contrasts with the business services sector which outperformed the rest of metropolitan Melbourne.

The disparity in the growth performance of sectors reflects the transition that Yarra is currently undergoing from that of a traditional manufacturing location to that of a centre for the provision of business services. This transformation is being facilitated by a number of factors including the increasing attractiveness of outer suburban locations for industry, and the out-sourcing of non-core business functions by large organisations located in the Melbourne CAD to smaller operations that might located in inner city locations such as Yarra.



Figure 4 - Change in Employment by Industry 1996-2001

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Manufacturing Wholesale Trade Retail Trade Accommodation,Café & Restaurants

Property andBusiness Services

Health andCommunity Services

Cha

nge

in E

mpl

oym

ent 1

996-

2001

Total MSD City of Yarra

Source: ABS, Charter Keck Cramer

Trends in the growth of white collar manufacturing employment indicates that Yarra experiences strong competition from the Fishermens Bend and Port Melbourne industrial precincts, where the opening of the City Link network has encouraged the development of previously underutilised industrial land. Similarly, strong competition is also exerted by Melbourne’s south-eastern industrial belt.

The analysis suggests that strong opportunities exist for the further development of business service related activities within Yarra, supported by the opportunity to establish links to CAD based organisations.

5.4 Business Movement

A total of 183 businesses moved into the City of Yarra over the period 2000-2003, compared to 171 businesses that moved out of the municipality. While the total movement of businesses is similar in each direction, there are noticeable differences at the industry level. The number of manufacturing firms that moved out of Yarra exceeded the number that relocated into Yarra by 22%. This contrasts with technical and business service activities, in which 24% more businesses moved into the municipality compared to those that moved out.



Whilst there has been a net inflow of wholesaling businesses into Yarra, a closer examination indicates that many of the businesses relocating into the municipality are more accurately described as showroom / bulky goods outlets (i.e. restricted retailing premises within the meaning of the planning scheme). Many of these activities are establishing in high exposure locations such as along Bridge Road, Church Street and Victoria Parade. Conversely, those businesses leaving Yarra represent the more traditional forms of wholesaling that typically locate in industrial precincts.

Figure 5 -City of Yarra: Business Relocations by Type of Activity

0

10

20

30

40

50

60

70

80

90

100

Manufacturing Techical & Business Services Wholesaling

No.

of B

usin

esse

s

Relocations InRelocations Out

Source: Charter Keck Cramer

5.5 Characteristics of Yarra’s Workers

Yarra’s working population differs noticeably from that of the wider metropolitan area with:

significantly higher representation from managers and administrators, and professionals; and

relatively lower incidence of employment in blue collar and clerical occupations.

As at 2001 Yarra’s population was approximately 67,000 (The MSS refers to a population of 65,000 which was based on 1996 census data). Thus, there has been a steady increase in population moving into Yarra in recent times.



The profile of Yarra’s resident workforce has changed noticeably over the past decade in response to the gentrification of areas such as Fitzroy and Richmond. As indicated by industry trends presented earlier, over the period 1991- 2001 the proportion of residents working in the property and business services sector increased from 11% to 21%, while the proportion working in manufacturing declined from 14% to 10%. In comparison the shift from manufacturing to business services at the metropolitan level saw the proportion of employment in manufacturing fall only marginally from 17% to 16%, and property and business service section increase its share from 8% to 13%.

The composition of Yarra’s resident workforce is also reflected in where people work. In 1996, 34% of Yarra’s resident workforce were employed in the City of Melbourne, with a further 13% working in the municipalities of Boroondara, Stonnington and Port Phillip. These municipalities offer strong employment opportunities in the business services and finance sectors. Continued growth in employment opportunities in these sectors will increase the attractiveness of Yarra as a place to live for higher-income professionals. This will result in upward pressure on residential property values. Rising house prices combined with an increasing availability of manufacturing employment opportunities in Melbourne’s outer suburbs will encourage the migration of manufacturing workers to Melbourne’s middle and outer suburbs. This in turn will work to further reduce the attractiveness of Yarra for businesses requiring access to a suitably skilled manufacturing workforce.

5.6 Where do Yarra workers come from?

In 1996 Yarra drew most of its workers from Yarra itself (13.6%), Boroondara (8.7%), Darebin (7.9%), Manningham (5.2%), Banyule (5.1%), Moreland (4.7%), Whitehorse (4.7%) and Stonnington (4.2%) as detailed in Table 2.

Table 2: Journey to Work from Individual LGAs, 1996

LGA Person Percent Cumulative Percentage

Yarra (C) 7,269 13.6% 13.6%

Boroondara (C) 4,649 8.7% 22.3%

Darebin (C) 4,200 7.9% 30.2%

Manningham (C) 2,771 5.2% 35.4%

Banyule (C) 2,704 5.1% 40.5%

Moreland (C) 2,498 4.7% 45.2%

Whitehorse (C) 2,490 4.7% 49.8%

Stonnington (C) 2,222 4.2% 54.0%

Whittlesea (C) 2,177 4.1% 58.1%



LGA Person Percent Cumulative Percentage

Port Phillip (C) 1,873 3.5% 61.6%

Glen Eira (C) 1,788 3.4% 65.0%

Monash (C) 1,778 3.3% 68.3%

Moonee Valley (C) 1,669 3.1% 71.4%

Brimbank (C) 1,494 2.8% 74.2%

Knox (C) 1,156 2.2% 76.4%

Hume (C) 1,146 2.1% 78.5%

Melbourne (C) 1,092 2.0% 80.6%

Nillumbik (C) 1,029 1.9% 82.5%

Maroondah (C) 1,002 1.9% 84.4%

Kingston (C) 991 1.9% 86.3%

Other 7,327 13.7% 100.0%

Total 53,325 100.0%

Source: VicRoads, Charter Keck Cramer, 2004

Together these municipalities accounted for 54% of Yarra’s working population, whilst only accounting for 8% of Melbourne’s total working population. This indicates that Yarra is heavily dependent upon these area for sourcing its workers. Changes in the educational and occupational composition of these areas will therefore influence the nature of industrial and business activity in Yarra.

With the exception of Darebin, the top eight LGAs that accommodate Yarra workers (listed in Table 2) have household incomes greater than the metropolitan average. Hence, Yarra is attracting workers from a pool of high income earners relative to the metropolitan average.

Yarra workers are drawn from areas that have increasing proportions of white-collar workers - in particular professionals - and a corresponding lesser proportion of blue-collar workers. The proportion of white collar workers in the top eight LGA’s, except for Darebin, are above average when compared to the Melbourne average.

In the LGA’s which Yarra workers are drawn from there is a high proportion of people employed in property & business services and retail trade. Compared to the Melbourne average, all areas have below average proportions employed in manufacturing.



6 PLANNING BACKGROUND

This section of the report examines planning considerations relevant to the future use and development of industrial and business land in Yarra. It reviews relevant state and local planning policy that influences decisions regarding the future of industrial zoned land, refers to other relevant documents, identifies past rezonings that have occurred and current development proposals, and reviews the applicability of various zoned contained in the Victorian Planning Provisions (VPPs).

6.1 State Planning Policy

The objectives of planning in Victoria (as set out in Section 4 (1) of the Planning and Environment Act 1987) that are most relevant to this study include the following:

“To provide for the fair, orderly, economic and sustainable use and development of land.

To secure a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria.

To conserve and enhance those buildings, areas or other places which are of scientific, aesthetic, architectural or historical interest, or otherwise of special cultural value.

To balance the present and future interests of all Victorians.”

The State Planning Policy Framework contained in the Yarra Planning Scheme seeks to ensure that the objectives of planning in Victoria are fostered through appropriate land use and development, and practices that integrate relevant environmental, social and economic factors in the interest of net community benefit and sustainable development.

Clause 11 of the State Planning Policy Framework outlines seven principles of Land Use and Development Planning. These relate to:

Settlement

Environment

Management of Resources

Infrastructure

Economic Well-Being

Social Needs

Regional Co-operation



The State Planning Policy Framework seeks a balance between land uses, with an emphasis on consideration of social, environmental and economic effects of development. The policies most relevant to this study include the following.

Clause 11 – Settlement

Planning is to anticipate and respond to the needs of existing and future communities through provision of zoned and serviced land for housing, employment, recreation and open space, commercial and community facilities and infrastructure.

The main objectives for strategic planning are that it contributes towards:

Health and safety

Diversity of choice

Adaptation in response to changing technology

Economic viability

A high standard of urban design and amenity

Land use and transport integration

Clause 11 – Economic Well-Being

Planning is to contribute to the economic well-being of communities by supporting and fostering economic growth and development by providing land, facilitating decisions, and resolving land use conflicts, so that each district may build on its strengths and achieve its economic potential.

Clause 11 – Social Needs

The SPPF seeks to recognise social needs with regards to providing land for community resources including affordable housing, places of employment, open space etc. Planning must also ensure adequate and safe physical and social environments for residents through the appropriate location of uses and developments, and quality of urban design.

Clause 17 – Economic Development

Clause 17 outlines objectives and strategies for economic development. Specifically Clause 17 seeks the following. These objectives are particularly relevant to this study.

Activity Centres – encourage the concentration of office, commercial, administrative, entertainment and cultural developments into activity centres which provide a range of uses that are highly accessible to the



community. Essentially industry and its related uses should not be located in primary activity centres.

Business – encourage developments that meet the needs for entertainment, commerce, retail and office uses. These uses should be located together in existing or planned activity centres to ensure sustainability of commercial facilities.

Industry – ensure that land is available for industry and to facilitate the sustainable development and operation of industry, and research and development activity. This policy seeks to ensure that key industries throughout Melbourne are maintained. This policy notes the state significance of industrial areas at Dandenong South, Campbellfield and Somerton, and Laverton North.

Clause 18 – Infrastructure

Clause 18 states the objectives and strategies for all infrastructure related functions, in particular, main roads, railway, bicycle transport, car parking and access to public transport. The primary objective is to ensure that land use planning is integrated with the various elements of transport infrastructure.

Summary

The State Planning Policy Framework encourages the long term viability of industrial land by clustering like uses and providing new industrial land in growth areas. The development of industrial land in designated growth areas (as per ‘Melbourne 2030’) are a consideration for this study. A discussion of Melbourne 2030 is provided later in this chapter.

The development of most of Yarra’s business and industrial areas occurred long before planning policy existed. Thus many of the industrial and business areas are scattered, with small pockets of industrial land located throughout the municipality, often in close proximity to activity centres, sensitive uses and residential areas.

The SPPF provides the framework for local planning policies. Local policy cannot conflict with the strategic principles contained within the SPPF. Thus, any recommendations or policies that derive from this study must be consistent with statewide planning policies.

6.2 City of Yarra Municipal Strategic Statement

This study, and a number of other studies being undertaken by Council, is part of an overall review of Council Municipality Strategic Statement (MSS). These projects will result in a revised MSS being prepared for the City of Yarra.



Council’s existing MSS provides current planning policy direction for the municipality.

The existing MSS provides the strategic context and rationale for statutory planning controls in the City of Yarra. The MSS builds upon the strategies and general principles of the State Planning Policy Framework.

As identified in Council’s MSS, Yarra’s industrial base has witnessed considerable change in past decades. Traditional manufacturing industrial activity of the past is being replaced by modern enterprises involved in assembly, warehousing and distribution, and research and the application of technology. The MSS states that manufacturing activity, whilst in decline, remains an important component of local industry. The greatest concentrations of business activity are identified as being in: textile, clothing and footwear (TCF); printing, publishing and recorded media; petroleum, chemical and associated products; and the machinery and equipment sectors.

Clause 21.03 of the MSS (Key Influences & Issues) acknowledges factors that influence the development of Yarra:

The changing community in terms of ageing population, increasing polarisation between the ‘rich’ and the ‘poor’, and ethnic diversity.

Previous population decline due to smaller households.

Declining industrial activity resulting in a shift to more assembly, warehousing and distribution, and research and technology.

Shift in local economic base with focus on finance, property and business services, cultural / recreational tourism, and wholesale and distribution activities.

Changing retail patterns requiring strip shopping centres to evolve in response to retail trends and shopper expectations to remain viable.

Managing amenity impacts of business and non-residential land uses on residential uses which can be achieved by the move towards ‘cleaner’ industries and performance based approaches to planning to enable land-uses to successfully co-exist.

The development boom, particularly within established residential areas which are experiencing in-fill medium density developments. New development needs to take account of heritage attributes and neighbourhood character.

Urban renewal which is happening because of Yarra’s network of arterial roads (accessibility), array of former industrial sites, and Yarra River frontage present an opportunity for land use change particularly for new commercial or residential development in high profile locations.

Protecting environmental assets by ensuring water quality is maintained, encouraging use of public transport, and promoting energy efficient building design.



Impacts of regional transport functions, in particular proximity to major arterial roads such as City Link, the Eastern Freeway and Monash Freeway.

Growth opportunities in tourism related to the Yarra River Corridor, shopping precincts which contain bars, restaurants and specialist retail, arts venues, and cultural destinations. The potential impacts of late night trading venues to residents of Yarra.

Clause 21.04 (Vision, Strategic Framework) outlines key strategies for Yarra which relate to identity, sustainability, liveability and the economy. The overall objective for Yarra is:

“The Yarra community highly values the City’s diverse social and cultural fabric, its built environment rich in heritage and leading edge contemporary development, through to the natural environment of the Yarra River Corridor. The ‘Yarra City Plan (1998 - 2001)’ directs Council’s resources towards enhancing such assets to ensure a City renowned for its distinctive social and urban character, a competitive local economy, high standards of amenity and ecologically sound urban development. In essence, the aim is to achieve a socially, environmentally and economically sustainable future for the Yarra community.”

Clause 21.05 (Strategic Elements) contains the detailed strategies regarding:

Element 1 – Yarra Urban Design Framework

Element 2 – Residential Land Use and Development

Element 3 – Industry and Commerce

Element 4 – Retailing and Activity Centres

Element 5 – Open Space

Element 6 – Yarra River Corridor

Element 7 – Heritage Conservation

Element 8 – Transport and Access

Element 9 – Community Facilities

Elements 3 and 4 are particularly relevant to this study. Element 3 seeks to retain a viable industrial base with emphasis on value added export oriented industrial activities. The Industrial and Commercial Framework Plan contained in the MSS (refer to Figure 4) designates areas into categories for ‘Core Industrial Areas’, ‘Industrial Buffer Zones’, and ‘Isolated Industrial Sites’. These areas are defined as follows:

Core Industrial Areas – locations of existing industrial operations, including industries which have the potential to cause amenity impacts.

Industrial Buffer Zones – areas located at the edge of core industrial areas which directly adjoin residential land.



Isolated Industrial Sites – sites that are not in an industrial land use cluster and are remote from either of the Industrial Core or Buffer Areas.

Key strategies for industry and commerce are to:

facilitate the efficient use of marginalised industrial land and a shift in the City’s economic base towards service business through establishing ‘Business Enterprise Areas’;

facilitate the trend toward Home Based Business through encouraging co-location of residential / business occupations within Mixed Use Areas and providing for single caretakers dwellings ancillary to established business operations within the Business Enterprise Areas;

protect Industrial and Business Enterprise Areas from further encroachment by residential or retail activities; and

encourage business activities that adopt best practice environmental standards.

Strategies in relation to retailing and activity centres are illustrated on the Retail and Activity Centre Framework Plan (refer to Figure 7) and include the following:

to direct and concentrate large scale display based retailing (restricted retail uses) to designated locations along Hoddle Street, Swan Street and Heidelberg Road through the application of the Business 4 Zone;

to reinforce the identity of Yarra’s major shopping strips and promote quality urban design outcomes through application of the Design and Development Overlay along primary and secondary boulevards; and

to discourage retail (shop) and restricted retail activities outside designated retail strips, except where such activity is ancillary to or offers a support service to other activities (including minor retailing associated with warehouse, wholesale and showroom activities within industrial, business enterprise and commercial areas).

Strategies within Element 8, Transport and Access, that are relevant to this study are to:

Integrate transport and land use planning to improve the efficiency of the road network linking core industrial and business enterprise areas to freight transport corridors (Princes Street/Alexandra Parade, Hoddle Street/Punt Road and the Monash Freeway).

Minimise the need for heavy vehicles and business traffic to access sites via streets of predominantly residential land use.

Key strategies for transport and access are contained in the Transport and Access Framework Plan. Refer to Figure 8.

The policy framework suggests that in relation to industry it is important to balance the need to maintain an employment base within Yarra, with the high



demand for residential development. Council policies seek to retain existing industry whilst clearly stating that future industry should be ‘clean and green’, adopt best practice environmental management practices and a high level of innovation.

The MSS encourages the development of the business service sector, which will provide jobs for a range of skill levels and also provide a sustainable employment base for the municipality.



Figure 6- Yarra MSS Industrial and Commercial Framework Plan

Source: Yarra Planning Scheme, 2004



Figure 7- Yarra MSS Retailing and Activity Centres Framework Plan




Figure 8 - Yarra MSS Transport and Access Framework Plan




6.3 Local Planning Policies

Clause 22.05 (Location of Commercial / Industrial Activities Policy) of the Yarra Planning Scheme outlines Yarra’s policy for the location of commercial / industrial activities. The objective of the policy is to ensure that there are no adverse amenity impacts between land uses and developments in areas of mixed activities and at the interface between these areas and residential neighbourhoods.

The policy discourages activities with adverse amenity impacts from locating next to residential land uses in the Business Enterprise, Industrial Buffer, and Mixed Use areas shown on the Industrial and Commercial Framework Plan in the MSS.

It is also policy that Council consider the following issues when assessing the amenity impacts of land uses and developments in the above mentioned areas:

hours of operation;

design and location of buildings, plant and equipment;

noise;

emissions;

car parking and loading bay provisions and access; and

landscaping.

Clause 22.06 (Caretakers Houses Policy) relates to planning permit application for caretakers’ houses in Business 3, Industrial 1 and Industrial 3 zones. The Caretakers’ Houses policy seeks to ensure that caretaker houses are properly planned for supervisory services of an associated industrial or commercial activity. It is policy that caretakers’ houses:

should be provided directly in association with and ancillary to approved commercial or industrial land use and development;

should be above ground level; and

should be less than 10% of total floor area of the associated commercial or industrial use excluding car parking and loading bay areas or up to 100m2 whichever is the lesser.

The primary purpose of the policy is to prevent residential development encroaching into industrial areas and areas included in a Business 3 Zone (in which residential uses are prohibited). Since the introduction of the policy there have been a number of quasi residential developments in industrial areas that raise a number of issues regarding the effectiveness of the policy.



6.4 Melbourne 2030: Planning for Sustainable Growth

‘Melbourne 2030 – planning for sustainable growth’ (Melbourne 2030) is a 30 year plan to manage growth and change across metropolitan Melbourne and the surrounding region. Melbourne 2030 has been adopted by the Victorian State Government and will be implemented through Clauses 12 and 13 of the State Planning Policy Framework section of planning schemes.

Melbourne 2030 was accompanied by six draft implementation plans. They related to urban growth boundaries, growth areas, housing, activity centres, green wedges and integrated transport. There is no implementation plan for industry.

Melbourne 2030 is based on nine key ‘directions’ as detailed below:

− Direction 1 – A more compact city:

Build up activity centres as the focus for high quality development, living and activity, broaden the business and service base of activity centres (which includes more office uses), restrict out of centre development, and locate a substantial proportion of new housing in or close to activity centres to offer good access to services and transport.

Direction 1 classifies Metropolitan Melbourne’s activity centres into five types and defines the role and function of centres, including preferred uses, scale of development and links to the public transport system. The City of Yarra contains five Major Activity Centres:

− Fitzroy, Brunswick Street − Fitzroy, Smith Street − Richmond, Swan Street − Richmond, Bridge Road − Richmond, Victoria Street

Major Activity Centres are typically defined as activity centres with a smaller catchment than a Principal Activity Centre. However they supplement the network of Principal Activity Centres and provide additional scope to accommodate ongoing investment and change in retail, office, service and residential markets.

Melbourne 2030 encourages continued broadening of the range of uses in Major Activity Centres and upgrading of public transport services.

− Direction 2 – Better management of metropolitan growth:

Establishes an urban growth boundary to limit outward urban development (sprawl), concentrate urban expansion into growth areas, manage development so that services are available from early in the life of new communities, and protect green wedges from inappropriate development.



− Direction 3 – Networks with the regional cities:

Promotes the growth of regional cities and key towns on regional transport corridors, and controls development in rural areas to protect agriculture and avoid inappropriate rural residential development.

− Direction 4 – A more prosperous city:

Maintain access to productive natural resources, strengthen Central Melbourne’s capital city functions, develop key transport gateways, create opportunities for innovation and the knowledge economy, and encourage deployment of broadband telecommunications services.

Initiative 4.1.4 is to increase protection for natural resource-based industries, industrial land and energy efficient infrastructure against competing and incompatible uses. Other initiatives include encouraging manufacturing and storage industries that generate significant volumes of freight to locate close to air, rail and road freight terminals, and assist local councils to provide well located and low-cost premises for start-up enterprises. An initiative of Direction 4 seeks to amend, where needed, the business and industrial zones in planning schemes to provide for the essential needs of the production economy whilst not undermining the intent of the activity centres policy in Melbourne 2030.

− Direction 5 – A great place to be:

Promote good urban design, recognise / protect cultural identity, neighbourhood character and sense of place, improve community safety, promote excellent neighbourhood design and improve the quality and distribution of local open space, improve environmental health of the bays. Also to protect coastal and foreshore environments and maintain and develop Melbourne as a desirable tourist destination.

− Direction 6 – A fairer City:

Increase the supply of well-located affordable housing, plan for more equitable distribution of social infrastructure, improve the coordination and installation of services and infrastructure in new development, and develop a strong cultural environment with increased access to the arts, recreation and cultural facilities.

− Direction 7 – A greener City:

Manage water resources in a sustainable way, protect water quality, reduce waste, increase recycling, reduce energy usage and greenhouse gas emissions, ensure land use and transport planning and infrastructure provisions contribute to improved air quality, and protect native habitat and biodiversity.

− Direction 8 – Better transport links:

Upgrade and develop the principal public transport network (PPTN) and local connectivity between transport and activities, improve operation of existing public transport networks, give more priority to cycling and



walking in planning urban development, and promote the use of sustainable personal transport options.

− Direction 9 – Better planning decisions, careful management:

Achieve better planning decisions, speed up resolution of appeals, develop strong partnerships with local government, and implement Melbourne 2030 in an integrated way involving the community.

The implications of Melbourne 2030 for the City of Yarra relate to the increased density and development promoted around activity centres. Direction 1 will impact particularly upon the relationship between Swan Street Major Activity Centre and the adjoining industrial areas to the south in Cremorne.

The relationship between the Victoria Street Major Activity Centre and major industrial activities in the CUB Precinct and at Victoria Gardens will also potentially impact upon the future of traditional industrial precincts in Richmond, Abbotsford and Collingwood.

The concentration of industrial zoned land around Gipps Street, Collingwood, is also reasonably close to the Smith Street Major Activity Centre which may have an impact on industrial activities.

6.5 Industry in Melbourne: Open for Business

Industry in Melbourne: Open for Business is a report prepared by the Department of Infrastructure (2000) which outlines the trends in industrial land supply and demand in recent years. It provides a comparative analysis of manufacturing and industry in Victoria and at a National level.

The report notes that Victoria has more industrial zoned land than the capital cities of other states and also has a larger amount of vacant industrial land. Within Victoria, Yarra has a relatively low quantity of industrially zoned land compared to the other metropolitan municipalities.

The industrially zoned land is unevenly distributed throughout metropolitan Melbourne with major concentrations located in five broad spatial areas:

Brimbank, Hobsons Bay and Wyndham;

Hume and Whittlesea;

Knox and Maroondah;

Casey, Frankston, Greater Dandenong, Kingston and Monash; and

Mornington Peninsula.

In terms of where and how much industrial land Yarra has in comparison to other municipalities, Yarra is ranked 27th out of 31 municipalities. The report notes that there was an increase in industrial zoned land in metropolitan



Melbourne between 1998 and the end of 2000. However, factory development peaked in around 1996/1997, with business premises being the major type of building activity in industrial areas (based on building approvals).

The report identified that industrial land is being converted to residential use mostly within 10km of the Melbourne Central Business District, particularly in the municipalities of Melbourne, Port Phillip, Yarra, Moreland, Glen Eira and Maribyrnong.

The report notes that:

Consumption of industrial land for other uses in the inner city impacts on potential industrial users. For example biotechnology start-ups, which may require proximity to other types of uses, such as universities, technical services, and a skilled workforce, often compete with more financially attractive residential opportunities.”

The report also highlighted the importance of efficient and integrated transport and communications networks which are integral to Melbourne being a desirable place for business.

6.6 Industrial and Business Activity: Trends and Opportunities Analysis (Ratio Report)

The ‘Industrial and Business Activity: Trends and Opportunities Analysis’ study was undertaken by Ratio Consultants in July 2000. The report focused on land contained in the Industrial 1, Industrial 3 and Business 3 zones, and which was designated ‘Core Industrial’ or ‘Business Enterprise’ in the Yarra MSS.

The Ratio report comprised three main components: background analysis of industrial and business land; allocating business and industrial land into geographical precincts; and the preparation of a Future Directions Strategy for industrial and business precincts.

The key findings and issues raised in the Ratio Report include the following:

Industrial/Business precincts within Yarra have a long-term and sustainable future. The study indicated that whilst Yarra’s old style building stock did not present a particular advantage it also did not provide any significant disincentive for the establishment of business nor a barrier to investment.

The business base within Yarra is diverse, which ensures its long-term viability and that Council should aim to maintain this diversity and should specifically focus on individual business sectors which are subject to changing fortunes over time.



Yarra’s competitive advantage lies in its central location and the prevalence of a diversity of business spaces, in particular, smaller business spaces.

The main opportunity for supporting a viable business base is by maximising the potential of the operating environment through protection / enhancement of locational attributes and working to improve constraints such as car parking limitations.

A diversity of business sizes aids the long term viability of precincts.

The loss of business space should be avoided in most precincts to maintain the business image of Yarra and the critical mass of its industrial and business precincts.

Large, strategically located sites are limited and they play an important role as a catalyst for redevelopment of business precincts, therefore an integrated approach to change or redevelopment is required.

Change is inevitable in the business environment and a strong understanding of emerging changes is required in order to retain flexibility and ensure the precincts provide an appropriate operating environment for the changing needs of business and industry.

In response to these issues the Future Directions Strategy was formulated. Within the Strategy, the report recommended:

A change to the MSS by introducing an additional category to the Industrial and Commercial Framework Plan for the identification and management of ‘Gateway’ and ‘Strategic’ sites.

Council identify specific locational opportunities for retailing / wholesaling activity associated with industrial uses, and legitimate business-residence activities.

Council identify areas where decline is evident and higher levels of intervention may be required to ensure the precinct attains/retains a viable activity mix.

Some 26 precincts were identified in the report that were based on geographic locations. The existing zoning of twenty of the precincts was considered to be appropriate and was recommended be unchanged. Six precincts were identified as precincts where change in zoning should be considered. These six precincts were:

Heidelberg and Queens Parade;

Queens Parade and Alexander Parade (identified sections only);

Alexander Parade East;

Gray Street;

Victoria Street (Theatre) and Brunswick; and



Taplin Street.

Refer to Figure 9 for the Ratio Report Future Direction Strategy Map.

A recommendation of the Future Direction Strategy was to keep the existing local planning policies at Clause 22.05 (Location of Commercial/Industrial Activities) and Clause 22.06 (Caretakers’ Houses). An additional policy was recommended which related to the use and development of industrial and business enterprise areas, which sought to control land use, development, urban design and subdivision in the industrial and business areas of Yarra that were identified in the Ratio study. That policy has not been implemented.

The Future Decision Making Framework outlined a number of ‘tests’ to determine whether long-term business activity remains appropriate for specific areas. The decision making framework was designed to form the basis of Council’s consideration of any future rezoning requests.



Figure 9 - Ratio Report Future Direction Strategy Map

Source:

Ratio Consultants, 2000



6.7 Amendment C27 to the Moreland Planning Scheme - Panel Report

Amendment C27 to the Moreland Planning Scheme sought to include the objectives and strategies of the Moreland Industrial Land Use Strategy (MILUS) by updating relevant clauses of the MSS.

The outcomes and recommendations of the Panel that reviewed that amendment are relevant to this study as they provide an indication of how an independent panel has responded to issues relating to future use and planning of industrial land that are similar to those in Yarra.

The Moreland Industrial Strategy focussed on land included within the Industrial 1 and 3 zones and the Business 3 and 4 zones. In addition, it assessed land contained in the Mixed Use Zone. The Moreland strategy proposed the following classification of industrial land:

Core Industrial - Major concentrations of industrial zoned land that are relatively unconstrained by residential or other sensitive uses and have relatively good access to the road network. Non-industrial intrusions into these areas should not be permitted.

Secondary Industrial - Smaller concentrations of industrial zoned land that are relatively unconstrained by residential or other sensitive uses and have relatively good access to the road network. Where interface issues exist on the boundaries of these areas, they are manageable. Non-industrial intrusions into these areas should not be permitted.

Employment – Areas appropriate to accommodate a wider mix of employment opportunities, including a mix of industry and offices or wholly office accommodation (or other employment uses). Residential uses in these areas should only be permitted if specific conditions are met.

Multi Use - Areas where the opportunity exists for the mix of uses to change over time to include offices (or other employment uses) as well as residential uses. Each new development should be of a real ‘mixed use’ nature; wholly residential developments should not be supported. The opportunity should remain for industrial uses to continue or establish, provided they are compatible with residential uses.

Transition-Residential - Areas where, because of the surrounding land use pattern and / or access arrangements, it is appropriate that the area convert over time to residential uses. The opportunity should remain for employment generating uses to continue or establish, provided they are of a type compatible with residential activities.

The Moreland Industrial Strategy was prepared prior to Melbourne 2030 being released. A key element of the strategy was aimed at promoting alternative employment uses (such as offices) on redundant industrial land along main



roads and close to activity centres. This was promoted in order to retain and increase the employment base of the municipality. The panel that considered AmC27 to the Moreland Planning Scheme made a number of comments about the relevance of Melbourne 2030 to the planning of industrial land, and in particular to the future use of redundant industrial land outside of activity centres:

The Panel had reservations about the requirement for employment generating uses (typically offices) in locations that were relatively remote from activity centres.

The redevelopment of redundant industrial sites for medium to high density residential uses supports the objectives of Melbourne 2030 where that land is not close to activity centres.

The Panel was concerned by the proposed potential employment locations identified in MILUS that were located in areas between, rather than within, the “core” of activity centres. The Panel considered that office development in such locations could well be considered “out of centre” development in terms of Melbourne 2030.

The Panel supported the redevelopment of poorly located former industrial sites for higher density residential uses as it saw such as contributing to the economic viability of activity centres by generating increased demand for local services and retail facilities by future residents. The panel acknowledged that there is a great benefit to the community for the higher density residential redevelopment.

The Moreland Industrial Strategy also raised issues regarding the nature of the existing Mixed Use Zone contained in the VPPs. The report raised concerns that the zone functioned as a defacto residential zone and did not provide the opportunity to manage residential land uses in a way that would retain a true mix of activities in the long term. MILUS referred to the use of Section 173 Agreements to enforce a mix of land uses on sites considered for rezoning to a Mixed Use Zone.

The Panel acknowledges that:

“…prohibiting any dwellings on land within the MUZ (despite the use of the word in Section 174(2)(a)) would be a breach of section 180 and of the Ministers Direction. Using a Section 173 Agreement to ensure other uses as well must be included, does not amount to such breach”.

However the Panel advised that in their view Section 173 agreements should not be used for this purpose because:

Local provisions should not undermine the consistency provided by the VPP.

The Practice Note ‘Writing Local Policy’ indicates that a policy should not contradict controls in a zone. It also indicates that a policy should relate



to a specific discretion but no such discretion over residential use is available in the MUZ.

The Manual in relation to the VPP provisions indicates that MUZ is intended to give priority to residential uses – that is not the general intent of this Amendment C27, and particularly in the employment category area.

As suggested in some of the submissions made to the panel, use of a Section 173 Agreement is ‘clumsy’. It is only going to be able to be used when there is a site specific rezoning proposal to Council, no doubt combined with a proposed permit for use and development. The need to include some form of arbitrary provision to deal with the possibility of non-residential use proving to be not viable, may also be criticised as clumsy.

MILUS, whilst nevertheless indicating that ‘wholly residential developments should not be supported’ does not suggest use of a Section 173 Agreement.” (P. 82)

Thus, the Panel did not support the use of the Section 173 Agreement in this regard. However it recommended that the Department of Sustainability and Environment review the effectiveness of the VPP zones in providing a planning framework for mixed use areas where discretion over dwellings is desirable.

These matters are relevant to how and when the MUZ is applied and how to deal with MUZ options.

6.8 Previous Rezonings

As noted previously, the role of Yarra as an area of industry and manufacturing is evolving, with a shift away from traditional manufacturing. This is reflected by the change to the pattern of zoning that has occurred in Yarra over the past 10 years. Significant areas of land have been rezoned from industrial to other zones. Rezonings since the introduction of the new format planning scheme (VPPs) in the late 1990s include the following:

Amendment C20 – Rezoning of 26 properties in North Fitzroy, in the area between Brunswick Street, Napier Street and Queens Parade from a Business 3 Zone (B3Z) to Mixed Use Zone (MUZ). This was a combined planning permit and rezoning amendment which essentially gave effect to the development of the site for residential dwellings. This rezoning was a recommendation of the Ratio Report.

Amendment C22 – No. 13-19 Victoria Street, Fitzroy, which was rezoned from B3Z to MUZ to enable a residential development.

Amendment C23 – Rezoning of 28-42 Taplin Street, North Fitzroy from B3Z to MUZ.



Amendment C25 – Rezoning of 284 St Georges Road, North Fitzroy from B3Z to MUZ. The amendment included a planning application for use and development of a shop and development of 15 dwellings.

Amendment C26 – Rezoning of a number of properties between the intersections of Scotchmer Street and Fergie Street with St Georges Road, Fitzroy North, from B3Z to MUZ. The rezoning sought approval of an application to develop some of the land for home occupation dwellings.

Amendment C28 – Rezoning of 67 Islington Street Collingwood, from an Industrial 1 Zone (IN1Z) to a Business 2 Zone (B2Z).

Amendment C33 – Rezoning of part of 13 Victoria Street and 21-105 Victoria Street Fitzroy from a Business 3 Zone to a Mixed Use Zone.

Amendment C37 – Properties near the intersection of Taplin Street and St Georges Road, North Fitzroy, rezoned from B3Z to MUZ.

Amendment C42 – Queens Parade, Hoddle Street and Dummet Crescent, Clifton Hill, rezoned from B3Z to MUZ.

Amendment C44 – Rezoning of two parcels of land in Alexandra Parade East, between Rutland and Groom streets, from B3Z to MUZ.

Amendment C56 – Johnston St (Davenport site) rezoned from B5Z and B4Z, to B3Z.

Amendment C69 – 572 Swan Street, Burnley rezoned from B3Z to B2Z and application of the DPO to the site.

6.9 Development Proposals

Given the ongoing restructuring of industrial activity underway in Yarra, the relative underutilisation of some areas of industrial zoned land, and the strong pressures that exist for residential and office development throughout the municipality of Yarra, there are numerous development proposals that currently affect industrial and Business 3 and 4 zoned land. Many of these proposals would necessitate the rezoning of land to allow the proposed redevelopment of the land. This study will make recommendations in relation to currently unresolved rezoning and development applications.

Current development proposals identified as part of this study are outline in Table 3 and are illustrated on Figure 10.

Table 3 - Key Development Sites

Location Proposal

Alphington

AMCOR, Heidelberg Road, Alphington AMCOR has recently applied to extend the height of the air vents



Location Proposal

at its site. There are no other proposals for the site.

Abbotsford

601 Victoria Street, Abbotsford Application to rezone the land from part Business 3 and part Industrial 1 Zone to a Business 2 Zone. This site comprises a number of allotments and is commonly referred to as the Going Going Gone site. The rezoning seeks to introduce Design and Development Overlay Schedule 6, which includes non mandatory requirements for building height and setbacks. The decision guidelines require consideration be given to active frontages at ground level, the industrial context of the area, ensuring that sensitive uses are designed to reduce any amenity impacts by existing development and new non-residential development protects residential amenity.

Victoria Park Railway Land (adjacent to Park Street), Abbotsford

No specific development proposal, estimated yield – 100 dwellings.

Computer Share, 452 Johnston Street, Abbotsford (adjacent to Yarra River)

Computer Share national head office containing offices, conference centre and on-site staff amenities. An example of a new form of business services development choosing to locate in Yarra.

Davenport Site, Johnston Street, Abbotsford (west of Computer Share)

Owner has enquired with Council about developing part of the site for an additional car park for Computer Share. Remainder of the site would be likely to be developed for commercial / residential use given the existing Business 5 Zoning.

Westons, Grosvenor Street, Abbotsford Westons biscuit factory is to close. The site is in an Industrial 1 Zone adjoining Carlton and United Breweries. This will be a key development site in the precinct.

48-60 Nicholson Street, Abbotsford The former hat factory is located on the corner of Nicholson and Mollison streets and is within the Industrial 3 Zone. The site contains old warehouse buildings that may be suitable for residential warehouse apartments / or office uses. The estimated dwelling yield is approximately 170 dwellings.

Burnley

Harry the Hirer, Burnley Street, Burnley (IN1Z)

Application to extend existing facility.

City Link depot site adjacent to Burnley Street and Barkly Street, Burnley (IN1Z)

Melbourne Fire Brigade is investigating development opportunities at the former City Link depot site in Burnley Street, for extension/relocation of its training centre which is currently located in Victoria Street and Shamrock Street, Abbotsford.

Clifton Hill

Australian Dyeing Company, 169 Noone Street, Clifton Hill

Proposal to rezone Business 3 zoned land at 169 Noone Street, Clifton Hill to a Mixed Use Zone. No specific development proposal exists at present.

Collingwood

105 Victoria Parade, Collingwood (silo site)

The site is zoned Business 2 and has an estimated residential dwelling yield of 172.

1-21 Robert Street, Collingwood Approval for conversion of existing brick warehouses for residential development of approximately 150 dwellings, and use of the land for office and café.

James Hood Malt Works (Yorkshire Brewery), 67 Islington Street, Collingwood

No approved development proposal however the site has recently been rezoned to Business 2 Zone from B3Z. The estimated residential yield is 115 dwellings.



Location Proposal

Cremorne

Kangan Batman TAFE, Cremorne Street, Cremorne

The TAFE will be vacating two properties located at Cremorne/Dover Streets and Cubitt/Gwynne streets. The sites are currently in a Public Use Zone 2 (Education)

Holophane Site, Cremorne and Bent streets, Cremorne

Preliminary proposal is for 100 dwellings on the site. However the site is currently in a B3Z which prohibits dwellings.

Richmond

69-71 River Street, Richmond Construction is underway of a 3-6 storey building proposed to contain approximately 230 dwellings.

31-33 River Street, Richmond Construction is underway of a residential apartment building. Approximately 37 dwellings are approved for the site.

Jacques Site, 1 Palmer Street, Richmond Site is in a Mixed Use Zone. No approved development however estimated number of proposed dwellings is 180.

Victoria Gardens, cnr Burnley Street and Victoria Street, Richmond

Victoria Gardens comprises a shopping centre and residential apartment development (already developed) on the northern part of the site. The southern parts of the site have not been developed and to date there is no development plan approved. The general proposal is for residential and commercial/office development on the south-eastern parts of the site.

Richmond Maltworks – Site is located between Punt Road and Cremorne Street, and Harcourt Parade (Monash Fwy access) and Gough Street.

It is proposed to relocate the maltworks to Geelong within 12 months. Prospective purchasers are interested in developing a mix of commercial / office and residential uses on the site. The site is listed on the Victorian Heritage Register and is subject to development constraints by the presence of historically important buildings & malting equipment.



Figure 10 -Key Development Site Map



6.10 Zoning Controls

This section of the report sets out an analysis of the various industrial and business zones that may be relevant to apply as a consequence of this study.

Industrial 1 Zone

The Industrial 1 Zone primarily provides for manufacturing industry and the storage and distribution of goods and associated uses that do not affect local amenity.

This zone is presently applied to Core Industrial Areas within Yarra (as defined in the Municipal Strategic Statement) and to a number of other clusters of industrial land throughout the municipality.

The use ‘industry’ is allowed in this zone without the need for a planning permit, provided the activities are not listed in Clause 52.10 of the scheme. Clause 52.10 generally applies to activities with the potential to cause adverse off-site amenity impacts and triggers the need for a planning permit.

A freestanding office is allowed to locate in an Industrial 1 Zone subject to a permit, however, the maximum allowable floor area is restricted to 500 square metres. As many small sites exist throughout industrial areas of Yarra, this provision allows smaller sites to be redeveloped for office uses (subject to a permit). However it does not allow larger sites to be similarly redeveloped.

Residential uses are prohibited in the Industrial 1 Zone.

Application in Yarra:

The Industrial 1 Zone is appropriate to apply to existing industrial areas that are reasonably well separated from sensitive residential uses, are intended to remain predominately industrial in nature, and in which freestanding office activities are not considered appropriate to occur. This will usually apply to those industrial areas that retain major manufacturing industry(s), and to areas that are presently well utilised and for which no need is seen to change the existing zoning to initiate revitalisation or to better utilise the area.

Industrial 3 Zone

The primary purpose of the Industrial 3 Zone is:

to provide for industries and associated uses in specific areas where special consideration of the nature and impacts of industrial uses is required or to avoid inter industry conflict;



to provide a buffer between the Industrial 1 Zone or Industrial 2 Zone and local communities, which allows for industries and associated uses compatible with the nearby community; and

to ensure that uses do not affect the safety and amenity of adjacent, more sensitive land uses.

This zone is presently applied to Industrial Buffer Zones and Isolated Industrial Sites as identified in Council’s MSS. Industrial 3 zoned land is scattered throughout the municipality and predominantly has residential abuttals. It is applied to industrial properties around the periphery of core industrial areas.

The main difference between the Industrial 1 and the Industrial 3 zones is that the uses ‘industry’ and ‘warehouse’ etc require a planning permit in an Industrial 3 Zone but not in an Industrial 1 Zone.

The same provisions apply to ‘office’ as in the Industrial 1 Zone.

Residential uses are prohibited.


The Industrial 3 Zone is appropriate to apply to existing industrial areas located close to sensitive residential uses, which are intended to remain predominately industrial in nature, and in which freestanding office activities are not considered appropriate to occur. This will usually apply to those industrial areas that retain manufacturing industry(s), or areas that are presently well utilised and in which no need exists to rezone the land to initiate revitalisation or to better utilise the area.

Section 52.10 of the Planning Scheme

Whilst the Industrial 1 Zone allows industry to establish without a permit, Section 52.10 of the scheme specifies a number of types of industrial activity that have the potential to have amenity impacts. This clause has two functions:

it necessitates the need for a planning permit for any industry listed in the table to the clause which has a ‘note’ adjacent to it; and

it requires a planning permit if any of the industrial activities listed are proposed to be located close to a residential zone or other sensitive use than the threshold distance stated in the table.

The clause does not affect the potential to locate new residential development close to industrial areas. However, it does provide additional restrictions (by requiring a permit) on listed uses if they seek to locate within industrial zones. If residential rezonings occur close to the boundaries of existing industrial zones it will effectively extend the degree to which the threshold distance protrudes into industrial areas.



It should be noted that the distances specified in Clause 52.10 are threshold distances not buffer distances. They do not suggest that certain industries should be located that distance from sensitive uses. Rather they are a mechanism that requires a permit application, which allows a proper assessment to be made of the suitability of the use for the site and to consider the imposition of any necessary conditions.

The operation of the clause in relation to the Industrial 3 Zone is not relevant, as all industry requires a planning permit and a change from an existing use to a use listed in Clause 52.10 would necessitate a planning permit.

Business 1 Zone

The Business 1 Zone facilitates a broad range of retailing and other commercial uses, entertainment and community uses. It is generally applied to Yarra’s shopping strips.

The major distinguishing feature of the Business 1 Zone is that shops are permitted without the need for a permit. A permit is required for offices, industries and most associated activities.

Residential uses are permitted in this zone without the need for a permit provided the frontage of the residential use (at ground floor level) is not more than 2 metres wide.


This zone would be appropriate to apply to industrial land adjoining an existing activity centre, or possibly along an arterial road, where it was considered that retail uses and upper level residential uses were required in order to revitalise the area.

Any land identified as appropriate to include in a Business 1 Zone by this study, would need to be confirmed in the context of the Activity Centre being undertaken concurrently by Council.

Business 2 Zone

The purpose of the Business 2 Zone is to encourage the development of offices and associated commercial uses.

Offices and associated commercial uses are as-of-right uses in this zone. Industry and warehousing requires a permit, as does retail (the floor area of which can be restricted by way of a schedule).

Accommodation (residential) is a Section 2 use in this zone and needs a planning permit.



Currently the Business 2 Zone is applied along major roads to provide the opportunity for offices and for residential uses.


This zone would be appropriate to apply to industrial areas undergoing a transition towards employment / business areas, in which office activities are seen as appropriate and in which potential also exists for a residential component, but not for predominately residential uses.

Existing industrial uses in such areas could continue to exist and be further developed subject to the grant of a permit. However a deficiency of this zone in relation to the continued operation of industrial activities is that no reference is made to such uses in the purpose of the zone. This could be addressed by the inclusion of a statement in Council’s local planning framework that explains the context in which the Business 2 Zone is applied in different parts of the municipality.

This zone provides greater control over residential use than the Mixed Use Zone, which is an alternative zone that could be applied in such situations. In the B2Z greater potential exists to manage the degree to which residential development occurs, where the intention is that an area retain a strong employment focus.

Business 3 Zone

The purpose of the Business 3 Zone provides for the integrated development of offices and manufacturing industries and associated commercial and industrial uses.

The Business 3 Zone facilitates a broad range of industrial, warehouse and commercial land uses and is applied to Business Enterprise Areas as presently identified in Council MSS. Specifically, the zone allows a mix of industrial and office uses, neither of which are subject to a permit. No size limit applies for offices, unless specified in the schedule to the zone.

It should be noted that whilst industry is a Section 1 use, if the land is within 30 metres of sensitive uses or a Residential 1 Zone, a planning permit is required.

Residential uses are prohibited in this zone.


This zone is appropriate to apply to existing industrial areas in which a wider range of employment and businesses are envisaged, including offices, and in which residential uses are not considered appropriate.



The Industrial 1 Zone allows a permit to be granted for offices with a floor area of up to 500 square metres. Many existing industrial areas throughout Yarra have small lots, many of less than 500 square metres, which can be used for offices subject to the grant of a permit. However larger lots do not have the same potential.

Given the changing nature of industrial and business activities in most areas within Yarra the Business Zone provides a more flexible alternative to the both the Industrial I and 3 zones. Large areas of former industrial land in Cremorne, Church Street and parts of Collingwood have previously been included within the Business 3 Zone.

The Business 3 Zone is appropriate to apply to most existing Industrial Zone areas within Yarra, except those retaining a strong manufacturing presence.

In comparison to the Industrial 3 Zone, in which industry is a Section 2 use, the requirement that a planning permit is needed for any industry within 30 metres of a sensitive uses or residential zoned land, provides a safeguard for locations abutting residential areas.

The option exists to specify a floor area for the use “office” in the schedule to the zone. Such action necessitates a planning permit for any office use with a floor area that exceeds the specified limit. This would give Council the opportunity to control the degree to which office uses establish in former industrial areas, in situations where an industrial character is desired to be retained in the longer term.

Business 4 Zone

The purpose of this zone is to encourage a mix of bulky goods retailing and manufacturing industry and associated service businesses. Both restricted retailing and industry are permitted without a permit. The same restrictions apply to office as in the Industrial 1 Zone. Residential uses are prohibited in this zone.


It would be appropriate to use this zone in locations identified as appropriate for bulky goods retailing, such as along main roads with high exposure to traffic etc.

The Industrial 1 zone provides the opportunity for restricted retail, but subject to the grant of a permit. Unless a specific development proposal is presented to Council for a multi tenancy peripheral sales or warehouse sales complex, there would seem little reason for Council to take the initiative and rezone industrial land to a Business 4 Zone.



Business 5 Zone

The purpose of this zone is to accommodate a mix of offices and dwellings, both of which are as-of-right uses in the zone. The only situation in which a dwelling needs a permit is if it is in the same building as an office. Industry is a prohibited use.


This zone would be appropriate to apply to locations where a mix of offices and residential activities is identified as appropriate. However, it would not be appropriate to apply where existing industries remained and were identified as appropriate to remain in the longer term.

Mixed Use Zone

The purpose of the Mixed Use Zone is to provide for a range of residential, commercial, and industrial activities.

The name of this zone is misleading in that it provides greater rights for residential uses than for commercial or industrial activities. Residential uses are permitted as-of-right, whereas a permit is required for both industry and office uses.

Experience in Yarra and other inner city locations suggests that the Mixed Use Zone is a de-facto residential zone.

A number of inner city municipalities have identified deficiencies with the Mixed Use Zone, given the inherent preference that exists for residential uses. Some of these Councils have identified the need for a new zone in the VPPs that provide equal status to residential, office, and industrial uses (i.e. a permit required for all uses). This would enable local policy to clarify the land use emphasis to be given in such zones and the balance to be struck between business and residential activities. Merit exists in the Yarra City Council further pursuing such an approach with the Department of Sustainability and Environment.


This zone is appropriate to apply in situations where an industrial area is evolving into an area with a mix of business activities and residential uses, and where there is no policy intent seeking to prevent a total conversion to residential use in the longer term.

The zone is not appropriate to apply where Council is seeking to maintain an ongoing employment function.



Overlays

Overlays provide the opportunity for additional controls over matters such as buildings, works, demolition, tree clearing etc.

Numerous overlays existing Yarra, many of which impact on industrial and business areas. These include:

design and development overlays – which control matters such as build height, setbacks, materials and design considerations, and which may also refer to separate documents such as building siting and design guidelines for land along the Yarra River;

heritage overlays – that apply to sites and buildings of heritage significance;

environmental significance overlays – which apply to land along the Yarra River;

environmental audit overlays – that apply to industrial land proposed to be used for non-industrial uses etc

Only two overlays provide the opportunity to address the ‘use’ of the land as distinct from buildings and works, they are the Incorporated Plan Overlay (IPO) and the Development Plan Overlay (DPO). The difference between these overlays is that an IPO requires a development plan to be incorporated into the planning scheme. This means that the development concept itself is subject to public exhibition, to third party submissions and to a panel hearing etc. The responsibility for approving a development plan for land affected by a DPO rests with the responsible authority and a planning scheme amendment is not required.

Whilst these two overlays can address land use, they are only effective in controlling the use of land in situations where the underlying zoning necessitates a planning permit for the use being controlled. If the use is either as-of-right or prohibited, the overlay cannot control the use. In a Mixed Use Zone the use ‘accommodation’ is an as-of-right use. Whilst a planning permit is required for a residential unit development, the permit is only required for buildings and works and not for land use. Accordingly, these overlays cannot apply additional restrictions over the residential component of a future development if underlying zoning is Mixed Use.


Design and development overlays, heritage overlays, environmental audit overlays may all be applicable to industrial and business zoned land in Yarra. At the time of rezoning any land, consideration should be given to the need for overlay controls to regulate matters other than the use of the land.



The IPO and DPO may be appropriate to apply to control use and development of land where either:

the use of land did not need to be controlled but controls were required over buildings and works; or

the mix of uses that were to be controlled were all permit required uses rather than as-of-right uses in the underlying zoning.

The MSS and Local Planning Policies

As discussed above the suite of zones currently available in a new format planning scheme are inadequate in situations where a mix of uses is sought including office, industrial and residential, but where residential is to be only one component of a mixed use development, and a strong employment component is to be retained in the long term.



7 TOWARDS AND INDUSTRIAL AND BUSINESS STRATEGY

7.1 Introduction

This chapter sets out the key matters to be considered when deciding on the future planning and development, and hence zoning, of land presently included in Industrial 1 and 3 and the Business 3 and 4 zones in Yarra. The matters are grouped under the headings of economic, strategic, municipal and land use planning considerations. The considerations establish the principles and decision making criteria that has been used in arriving at the recommendations contained in this study.

7.2 Economic Considerations - Economic Outlook Industry and Business

While industry will remain an important component of Yarra’s local economy, the demand for industrial land has declined in the past and is expected to continue to decline in the future.

Charter Keck Cramer (CKC) has forecast, based on an anticipated continued decline in employment in industrial and related activities, that over the next 15 to 20 years to 2020, demand for industrial and related land in Yarra is likely to decline by around 20 hectares.

CKC has also forecast a considerable increase in demand for business services activities and office type uses in Yarra over the next 20 years. This continues the evolution of Yarra’s local economy from an industrial base towards a service business base that has been occurring over the past decade in particular. CKC forecast that Yarra demand will exist for around 150,000sqm of office floorspace to accommodate anticipated demand for such employment uses over the next 15 to 20 years. Tables 4 and 5 indicate the average floor space requirements per employee (based on City of Melbourne data) and the estimated change in land use requirements.

The implications of these trends on the existing supply of industrial zoned land in Yarra are that:

it is appropriate to rezone some land currently zoned industrial for alternative uses (potentially up to 20 hectares or more);

given the demand anticipated for service business and office activities in Yarra over the next 20 years, the opportunity should be taken to utilise some of the currently underutilised industrial zoned land for service business and office uses. This could occur through the rezoning of



Industrial 1 and 3 zoned land to either zones such as a Business 2 or Business 3 zone; and

it is appropriate that some existing industrial land be rezoned for non-employment or residential uses. Such rezonings can assist Council in achieving its objectives regarding residential development and population growth in the municipality.

Table 4: Indicative Employment Ratios (City of Melbourne)

Industry Floorspace / Employee Floorspace / Establishment

Employees / Establishment

Manufacturing 62.7 2,195 35.0

Wholesale Trade 74.2 840 11.3

Retail Trade 44.1 397 9.0

Transport and Storage 386.9 6,621 17.1

Finance & Insurance 21.7 1,206 55.6

Property & Business Services 25.2 569 22.6

Public Administration 29.7 4,001 134.6

Total 124.1 3,319 26.7

Source: Charter Keck Cramer, 2004 (City of Melbourne, 2002, Census of Land Use and Employment)

Table 5: Estimated Change in Land Use Requirement 2001-2020

Textiles, Clothing

& Footwear Manufacturing

Non TCF Manufacturing

Wholesale Trade

Total Industrial Property & Business Services

Employment Change 2001-2020

-600 -1,560 -1,020 -3,180 6800

Assumed Floorspace per Employee

63 63 74 - 22

Change in Floorspace Requirement

-37,800 -98,280 -75,480 -211,560 149,600

Site Utilisation (%) 90% 90% 90% 90% Not calculated

Change in Land requirement (ha)

-4.2 -10.9 -8.4 -23.5 Not calculated

Source: Charter Keck Cramer, 2004

7.3 Strategic Considerations

Given existing state and local planning policies there are a number of key elements that exist in Yarra that are considered appropriate to influence decisions regarding the future use and zoning of industrial and business land.



These influences include:

proximity to activity centres;

proximity to public transport and the principle public transport network; and

proximity to the major environmental features such as the Yarra river.

These influences are illustrated on Figure 11 and are discussed further in this section of the report.



Figure 11 - Land Use Influences in Yarra



7.3.1 Activity Centre Policy

Planning policy, especially metropolitan planning policy as expressed in Melbourne 2030, places considerable emphasis on activity centres. Activity centre policy seeks to concentrate retail, employment and entertainment uses, and a wide range of community and other uses, in activity centres. It seeks to make activity centres truly mixed use and in particular to achieve medium to high density residential activities in and around activity centres. Melbourne 2030 encourages a significant proportion of new housing to be located in or close to activity centres.

The proximity of activity centres to industrial zoned land will influence decisions made regarding the future zoning and use of such land. Given current activity centre policy, land close to activity centres is “better used” for medium to high density residential uses, or for office uses than for industry.

This does not mean that existing viable industrial areas close to activity centres should be rezoned for other uses. What it does mean however is if, or when, existing industries close down or relocate, and industrial land close to activity centres does become available for redevelopment, consideration should be given to the potential for higher order uses on such land.

In order to support activity centres, policy discourages what is termed ‘out of centre’ development. This mainly relates to retail and office activities that are located distant from activity centres.

This policy has implications on the potential to reuse underutilised industrial land for alternative employment uses such as offices.

The relevance of Melbourne 2030’s activity centre policy and ‘out of centre’ development policy to the future development of industrial land was addressed by the Panel for Amendment C27 to the Moreland Planning Scheme (the Moreland Industrial Land Use Strategy). The City of Moreland proposed strong policies to retain local employment and to provide alternative employment opportunities (such as offices) on former industrial land. The Panel took a relatively narrow view of activity centres and expressed concern that the location of office uses outside or between activity centres was inconsistent with Melbourne 2030. It commented that having regard to the housing policies of Melbourne 2030, the preferred future use of redundant industrial land outside activity centres would be for medium to high density residential development.

It is considered that the concept of an activity centre as a clearly defined concentration of business (and other activities) adopted by the Panel in relation to the Moreland amendment is inconsistent with the pattern of activity centres that exist in inner city municipalities such as Yarra. Yarra is an intensely developed area with a pattern of long linear activity centres. These centres are often closely spaced along a grid of intersecting main roads. This pattern is



supplemented by excellent public transport in the form of trains, trams and buses. Significant concentrations of business, industry and commercial activity exist outside the narrowly defined commercial strips. However given the compact nature and close spacing of activity centres, such activities form part of the wider sphere of economic activity which in itself functions as an employment precinct and centre of activity.

It is considered that a revised and a more flexible approach to the concept of ‘activity centres’, and in particular to the interpretation of what constitutes ‘out of centre’ development, is required in inner city municipalities such as Yarra.

7.3.2 Public Transport Accessibility

Yarra is well served by public transport, particularly radial routes providing access to central Melbourne.

Integrated land use and transport planning demands that land use decisions have regard to the proximity of land to public transport. Melbourne 2030 has a clear objective to increase the use of public transport. Planning policy encourages medium to high density residential development to be established along principal public transport routes.

Criteria provided in Melbourne 2030 for ‘out of centre’ development, identifies a “location on the principal public transport network” as being one criterion that may justify such development.

Proximity to railway stations and tram / major buses routes are factors that have an influence on decisions regarding the future use and development of underutilised industrial land. Medium to high density residential uses and office uses (depending on the location in relation to an activity centres), provide greater opportunity to maximise public transport use than industrial activities.

7.3.3 Yarra River Corridor

The Yarra River corridor is a major environmental feature in the municipality. Traditionally industry located along the river for waste disposal reasons, and a number of industrial precincts still abut the river corridor.

The river corridor is a prime public asset and an area of high amenity, with high natural environmental qualities. Generally higher order uses such as medium to high density residential and office uses derive greater benefit from abuttal to the river corridor than industrial uses.

Proximity to the Yarra should not be used as a reason to rezone existing industrial areas that presently contain industries with a long term future on their sites (i.e. Amcor, CUB), or industrial areas that are currently operating effectively and which have a high degree of utilisation (i.e. Marine Parade, Harper Street).



However it is appropriate to consider the opportunity to establish higher order uses on existing industrial land adjacent to the river, in situations where that land is presently underutilised and in need of redevelopment (i.e. Flockhart Street, Victoria Crescent).

Council is concerned about the ‘urbanisation’ of the river corridor and loss of its ‘natural environmental quality’. These matters can be controlled by design and development overlays that regulate the built form on sites adjacent to the river and control the nature of the interface, access to the river corridor etc. New residential and commercial land uses and new buildings forms can be established adjacent to the river corridor, without impacting on its ‘natural qualities’, to support Council vision for the river. It all depends on the design of the individual developments and their interface with the river. Such uses are more appropriate along the river than industrial uses, as they provide the opportunity for a greater number of people to live close to, overlook and utilise and benefit from the tranquil natural environment, and the recreational assets associated with the located river. New development along the river may well assist Council in obtaining additional funding for improved landscaping and refurbishment of the natural environment of the river corridor.

7.3.4 The Need for an Integrated Policy Approach

The purpose of this study is to develop a strategy for industrial land in the City of Yarra. However there remains the need to adopt an integrated approach that has regard to Council’s overall strategic planning policies, which balance the often competing needs of different land uses.

The policies for industrial and business activities in Yarra as contained in council’s MSS seek to:

increase in the number and diversity of local employment opportunities;

retain a viable industrial base with emphasis on value-added, export orientated industrial activities;

increase in the proportion of Yarra’s business base involved in the expanding service sector (in particular, property and business services, cultural and recreation services, and health and community services); and

achieve the more efficient utilisation of business premises including improved standards of building design, and site design, presentation and operational efficiency

Other key elements of Council’s overall municipal vision that will impact on decisions made in relation to industrial land include:

Objectives to sustain the municipality’s population and provide housing alternatives suited to the needs of existing and future residents. Additional housing will be required in the municipality to achieve this



objective. Given heritage, character and amenity issues concerning infill housing in established residential areas, Council’s policies seek to encourage major new housing developments in designated mixed use areas and on major redevelopment sites. This has clear implications for the future use of industrial zoned land that may be identified as being redundant.

Objectives to enhance the viability of strip shopping centres and improve access to comparison and speciality shopping within the municipality. This has implications in terms of the use of industrial land, and in terms of intensifying levels of residential and employment activity close to activity centres.

Objectives to improve and enhance the Yarra River environs. As much industrial land in the municipality has traditionally been located adjacent to the Yarra River, this objective has implications in terms of the future use and development of industrial land along the river.

Objectives to facilitate a shift in the City’s economic base from industrial activities towards growth orientated ‘service businesses’. Suggesting a need for greater flexibility for a wider range of employment uses (including offices) in some industrial areas.

Yarra is an established municipality with little vacant land for redevelopment. Any new development that occurs, whether it be residential, industrial, commercial, institutional, public open space etc, will occur at the expense of some other established land use.

In inner and middle ring municipalities such as Yarra, it is industrial land (along with public or institutional land) that provides the opportunity for a municipality to change, to revitalise and to reinvent itself over time. It is important that this revitalisation continues to occur if a municipality is to maintain its population base, its economic base and the ongoing refurbishment and upgrading of the infrastructure and buildings that is required over time.

Council must balance its economic and industrial policies with its social, housing and environmental policies. It must be able to make rational and balanced decisions in relation to the future zoning of industrial land.

7.4 Land Use Planning Considerations

7.4.1 Recognising Yarra’s Mixed Use (Multi-use) Character

Decisions made regarding the future of industrial and business zoned land in Yarra must be made in the context of the mixed use character of the municipality. This aspect of Yarra’s land use pattern is fundamental to the municipality’s history and sense of place.



Council’s MSS specifically refers to the need to retain a mix of uses in the municipality in order to enrich its diverse social and urban character.

Traditionally planning evolved to separate land uses to improve health, safety and amenity for residents and workers in urban areas. Such an approach is not appropriate for Yarra due to the economic significance and to the contribution to local jobs made by industry and business. Also, many of the newer forms of business that operate in industrial zones do not necessarily have unreasonable amenity impacts and are not necessarily bad neighbours.

Issues regarding the future of industrial areas throughout Yarra should be approached from the perspective of maintaining and managing an ongoing mix of uses wherever it is possible and appropriate to do so. This study should not endeavour to resolve what might be considered to be ‘zoning anomalies’ by removing the mix of uses and zones that is essential to the character of Yarra.

This will require a balance between the expectations of businesses and the expectations of residents. Businesses that exist close to residential properties will not be free to operate in an unconstrained manner as would be the case in an industrial zone separated from residential areas. Similarly residents close to industrial operations cannot expect the same levels of amenity as residents of exclusive residential precincts.

The valid right of industry to continue to operate in accordance with the zoning of the land must be respected. However, it is appropriate that industries operating close to areas zoned for residential uses adopt operating standards that respond to the residential amenity of the area, i.e.:

compliance with EPA guidelines and standards regarding emissions;

hours of operating should be limited to reasonable times;

vehicle access to the sites should be managed to minimise the impacts on residential amenity;

buildings and sites should be well maintained and attractively presented; and

activities should be confined to the site and should not spill out onto the street.

Council should strongly support the existence of businesses in the municipality that are ‘good neighbours’ and that make a conscious effort to respect the amenity of residents. Council should use whatever means available to enforce planning and environment regulations against those industries which disregard amenity requirements of neighbours.

Where new residential development is proposed close to existing concentrations of industry, it may be appropriate for Council to impose conditions on any permits granted, in relation to measures to reduce the impacts of nearby industry. For example building design may need to



incorporate means to reduce the impact of noise from external sources. DDOs exist in the Melbourne Planning Scheme (as an example) to ensure that new residential development near noise sources such as Telstra Dome and CityLink incorporate appropriate design techniques to achieve appropriate standards. Such DDOs may be appropriate to apply to areas with the potential for residential development close to existing industrial concentrations in Yarra.

7.4.2 Existing Industries / Industrial Concentrations

The existence of established industries and associated uses is a major determinant of the future zoning of land in an area such as Yarra.

Areas that contain an existing concentration of industries and associated business, that have a high level of site utilisation, that have ongoing potential to be used for industrial and associated uses, which are operating effectively as viable industrial precincts, and which have a reasonable level of amenity, should generally be retained in an industrial or business zone to support ongoing employment uses in such an area.

The same applies to concentrated areas of business activity that are presently included in a Business 3 Zone, for example. Where such areas are functioning effectively, have a reasonably high level of utilisation and appropriate levels of amenity, it is generally appropriate to maintain the existing zoning.

There are a number of major manufacturing industries and large business located in industrial zones in Yarra (i.e. CUB, Amcor). Where such major business have a long term commitment to a site, industrial / business zonings on and around the sites should be retained to provide a buffer to sensitive uses such as residential, which could adversely impact on the ongoing operation of such activities.

Should such major industries relocate in the future, given the significant influence they have on the surrounding land use pattern, a review of the zoning of those sites and of the surrounding industrial / business precincts, may be appropriate (see later comments).

7.4.3 Under Utilised Land

Yarra is a thriving inner city municipality close to Central Melbourne. It is a sought after location for residential as well as business uses. Despite this industrial areas in some parts of the municipality are relatively underutilised. Examples include land in Flockhart Street, Abbotsford; Victoria Crescent, Abbotsford; parts of Johnston Street, Collingwood; and the southern end of Burnley Street, Richmond.

The underutilisation of land is likely to be an indicator of the inappropriateness of the existing zoning of the land. Consideration of alternative zones that allow



a greater range of uses may be an appropriate to enhance the use of land in such areas, encourage redevelopment, and improving the amenity and appearance of such precincts.

7.4.4 Making the Most of Underutilised Industrial Land

According to Department of Sustainability and Environment projections, Yarra’s population is expected to increase from about 67,000 in 2001 to approximately 73,000 by 2011. As mentioned in the previous section, underutilised industrial land provides a key opportunity in to provide new land use development opportunities.

Redevelopment of underutilised industrial land should seek to optimise the development potential available, whether it be for employment uses or for medium and higher density housing.

Many of the larger industrial sites throughout the municipality have the potential to accommodate medium to higher density development. They may have a large land area, a considerable building bulk and form (given existing industrial buildings), and a history of high levels of activity and traffic generation.

Development densities on sites should be optimised, within the context of the character and amenity of the area in which they are located.

7.4.5 Large Industrial Sites

There is a reasonably strong ongoing demand for small to medium sized industrial and associated activities and service business uses in Yarra. This is particularly the case for smaller properties that may be purchased and occupied by companies that benefit from owning their own premises. This demand provides the opportunity to reuse many of the smaller and medium size sites in industrial and Business 3 and 4 zones throughout Yarra.

However larger sites that have been used by traditional large manufacturers, if vacated, are less likely to be reused as the demand for such land by larger companies is more limited. Large scale industrial operations are more likely seek a suburban location rather than one in the inner city.

As large industrial sites vacated by their traditional occupiers will most likely need to be redeveloped to achieve a viable use for such sites. Redevelopment for industrial purposes is likely require a speculative redevelopment that subdivides larger sites into a number of small to medium sized tenancies. Given the comparative market, development costs, and returns on investment for speculative industrial development in the inner city, compared to well located suburban industrial estates, insufficient incentive is likely to exist to attract speculative developers to redevelop larger sites for industrial or associated activities.



Considerable demand exists for alternative employment uses such as offices in Yarra. The inclusion of industrial land into a Business 3 Zone is an option that provides flexibility for larger sites to be redevelopment for office purposes. Limits on the size of offices can be included in the schedule to the zone to trigger the requirement for a planning permit if control over the mix of office and industrial uses is deemed necessary. Residential uses remain prohibited in a Business 3 Zone, which protects the overall integrity of the area for business uses. All buildings and works associated with as-of-right uses such as offices and industry require a planning permit.

7.4.6 Isolated Industrial Sites

A number of industrial operations exist throughout Yarra that are located on isolated industrial sites in residential areas, away from other concentration of business, without access to main roads. It is appropriate that these sites remain in an industrial zone to protect the rights of the existing business. If however existing businesses close or relocate, flexibility should be exercised to consider redevelopment / rezoning options that reflect the predominate pattern of surrounding uses.

7.4.7 Heritage Buildings

There are numerous heritage buildings throughout the industrial areas of Yarra. These buildings contribute significantly to the character and amenity of the municipality. Such buildings are generally not well suited to modern industrial operations. They are often well suited to refurbishment for residential or office purposes, which is not permitted in industrial zones.

Where such buildings are in the form of isolated sites away from existing concentrations of industry it is generally appropriate for them to be rezoned to allow an alternative use, if they are no longer used for industry and a redevelopment proposal is presented to Council.

Where heritage buildings are part of an industrial precinct and an industrial reuse is not viable, Council should adopt a flexible approach to ensure that such buildings can be efficiently utilised and appropriately refurbished. This may include a site specific rezoning to enable an office, a mixed use or a residential development to occur, that might otherwise be prohibited by the zone.

In some cases heritage overlay controls included in the planning scheme allow historic buildings to be used for a use otherwise prohibited in the zone. This may avoid the need for a rezoning.

Site specific solutions to heritage buildings that included a residential component should have regard to the type of industrial uses on adjoining land. They should not be supported if it would unreasonably impact on the ongoing



viability of abutting industrial operations. However given EPA standards and the nature of many businesses the operation from industrial zones in Yarra, many industrial uses are not offensive and are able to co-exist near residential properties.

7.5 The Planning Decisions to be Made

7.5.1 Which Zone is Most Appropriate

The range and nature of businesses that operate in industrial and business zones, and the way the composition of activities is likely to change in the future, is complex. However from a planning perspective the decisions to be made about the future zoning of land are relatively are simple.

The structure of zones in the planning scheme basically revolves around the separation of land uses. As far as relevant to this study the key land use groups involved are limited to industry, office, residential and retail. Different zones allow these uses in different combinations.

The key decisions to be made in considering the zoning of existing industrial areas are:

whether the existing zoning remain; or whether

the land be rezoned to a zone that allows office uses or residential uses, or is some situations, retail uses.

In an inner city area such as Yarra the distinction between industrial and related uses and office activities is blurred. Traditional manufacturing industry is less prevalent in inner city industrial areas than in the past. The type of businesses that now exist generally involve small to medium sized firms. Whilst specialist manufacturing and manufacturing of high value components continues, many firms are involved in warehousing, distribution, storage, marketing, product development and administration. Many businesses have an increasingly large office or administrative component. Rezoning to allow office uses in such areas merely supports the transition to a wider range of business and employment activities that is already occurring. It does not necessarily threaten the underlying viability of existing business activities in the precinct.

In contrast a zone that allows residential uses to occur has a much greater impact on the ongoing viability of the area for industrial and related uses. This is particularly the case in a municipality such as Yarra, given the high demand for inner city residential living. The opportunity for residential uses increases the land value beyond that which can be supported by industrial and related uses. It also increases the potential for land use conflicts. These factors create momentum for a change in the fundamental nature of an area over time from industrial to residential. This is particularly the case in zones in which residential



uses are permitted without the need for a permit i.e. the Mixed Use Zone, Residential 1 Zone, Business 5 Zone. In zones where a planning permit is required for residential uses, i.e. the Business 2 Zone, greater opportunity exists to manage the degree to which residential development occurs through local planning policies.

7.5.2 When and How to Rezone?

Who Takes the Initiative?

Who should take the initiative to rezone industrial land that this strategy identifies as having the potential to be rezoned? The options are:

1. That Council takes the initiative and rezones land identified as appropriate, before any request is made by a land owner; or

2. That Council waits for a rezoning request to be lodged and then proceeds to determine the request in accordance with the principles set out in this strategy.

The second option will provide a more supportive framework for existing industries that remain viable and which desire to remain on their current sites for as long as possible. For Council to take the initiative and seek to rezone land occupied by a viable industry, may well bring forward the decision of that business to close, relocate, or not to reinvest in that site.

Council should initiate rezonings in the following situations:

In respect to larger industrial precents where a rezoning is proposed in accordance with the recommendations of this study.

Where unacceptable interface issues exist between existing industry and residents, which needs to be resolved.

Where redevelopment of the land for industrial purposes would prevent an ultimate change of land use that is logical from a planning policy perspective and supported by this strategy.

Where there is a clear benefit to the wider municipal community from the redevelopment of a site or the transition of an area away from industrial use.

In relation to small industrial precincts containing few individual properties, or site specific industrial zones that are identified as having potential for change as part of this study, Council should retain the existing zoning of the land until such time as a request is made for a rezoning.



7.5.3 Site Specific Rezonings

From a strategic planning perspective site specific rezonings are not normally favoured. They have been seen as inappropriate as they are often ad hoc and not support by a strategic background.

Site specific rezoning requests have merit if the strategic basis of a particular proposal is supported by the directions of a co-ordinated land use strategy, such as presented by this study.

In Yarra’s situation site specific rezonings of industrial land are appropriate as a means of allowing a gradual change in the use of areas, provided the rezonings are consistent with this strategy.

The future use of large strategic sites and heritage buildings should be considered on their merits. Buildings falling in this category include the Richmond Malt Works, Westons, MFB, CUB and AMCOR.

7.6 Conclusion

This chapter has provided an overview of issues that need to be addressed and the principles to be applied to the future use, development and zoning of industrial land in Yarra. The matters discussed in this section provide background to the recommendations made in the following chapters of this report.



8 FUTURE OF INDUSTRIAL AND BUSINESS PRECINCTS

This chapter presents, discusses and makes recommendations regarding the future zoning of those industrial and Business 3 and 4 areas within Yarra in which a change of zoning is recommended or in which specific issues exist that need to be addressed.

A full description of each area is provided in Appendix 1 to this report.

The location of the study precincts and Transport Destination Zones within which each precinct is contained is illustrated on in Figure 3.



8.1 Doonside Precinct

The Doonside Precinct is characterised by a mix of warehouse / distribution, manufacturing and small office type functions, as well as retailing and wholesale trade. Lot size in the area is generally small to medium, with a few larger sites. The area is represented by a mix of established traditional industrial uses and new industries such as a boutique brewery, bakery, marketing merchandisers and technology based businesses. The industrial area is intertwined with pockets of residential development that are included within a Residential 1 Zone.

The area is currently undergoing a transition:

The traditional manufacturing role of the area has been and is continuing to decline as larger scale manufactures move out of the area.

There is an emergence of warehouse / distribution and smaller niche manufacturers and small scale office type functions.

The emergence of Victoria Gardens as an activity centre (not yet recognised by Melbourne 2030) is prompting transition in business types towards restricted retail and showroom uses, particularly at the northern end of Burnley Street.

Extensive residential development has and is continuing to occurring along River Street on land that has been rezoned from an industrial zone in the past.

There are older style industrial buildings in the area that are not suited to industrial reuse, but which would be appropriate to convert to office or residential use.

Given the current industry profile of the area, it is considered that rezoning will not prejudice existing industry and that these uses will be able to co-exist with other non-industrial activities, provided that rezoning does not allow residential as of right.

A number of large, older style industrial buildings exist in this precinct that are vacant and / or underutilised. The current industrial zone limits the potential for larger vacant or underutilised sites in this area to be reused for employment uses such as offices. Given the proximity of the area to Victoria Gardens and the limited demand envisaged for the reuse of large industrial sites, potential is seen to provide the flexibility for a wider range of employment uses, including offices, to locate in this precinct. Rezoning to a Business 3 zone will enable this to occur, without undermining existing industrial activities in the area.

That part of the area to the north of Appleton Street, has the potential to be rezoned to a Mixed Use zone in the future having regard to the nature of industrial / business existing uses in the area (including Victoria Chemicals and



Harry the Hirer, its proximity to Victoria Gardens, and the existence of a Residential 1 Zone along the south side of Appleton Street.

The Vision for this area is as follows:

To provide land use close to the Victoria Gardens activity centre that strengthens and supports the role of the activity centre i.e. higher order medium / high density residential and office uses.

To continue to attract and retain niche manufacturing industry as well as new small to medium sized office development in the area, particularly in the central and southern parts of the precinct.

To prevent residential encroachment into the southern and central parts of the area to maintain a precinct that is well suited to the operation of small scale and niche manufacturers and other industrial operations.

Rezoning recommended to achieve this vision would include:

Mixed Use Zone (MUZ)

For the IN1Z of the area to the north of Appleton Street and fronting Burnley Street between Blazey and North Street to be rezoned to MUZ.

Business 3 Zone (B3Z)

For the balance of the area included in both the Industrial 1 and Industrial 3 Zones.

Figure 12 -

Doonside Precinct Zoning Recommendation Map



8.2 CUB Precinct

This precinct contains the largest remaining manufacturing industry in Yarra, which is CUB. CUB has operated from the area for over 100 years and is the key use determining the future of the precinct. CUB is a major employment generator as well as being a significant manufacturer for the Victorian economy. The company has a long term commitment to the site.

A buffer to CUB is required. In order to further enhance the longevity of CUB at this site, opportunities will need to continue to be provided for associated uses (manufacturers and service industry) to locate in close proximity and further develop business relationships in this area. Management of traffic issues in this area are also required, to ensure business viability for industry.

CUB is the focus of this area and it is appropriate to retain in an industrial buffer around this major industry. However the eastern part of the precinct centred around Flockhart Street is underutilised and requires revitalisation. It has poor access, has limited exposure and is physically separated from the balance of the industrial area to the west by lack of a local road link to Grosvenor Street.

Factors influencing any future land use decision in relation to the Flockhart Street area include:

Its proximity of the eastern part of the area to Victoria Gardens.

The Yarra River frontage available to properties on the east side of Flockhart Street and the opportunity to better utilise this frontage for higher order uses than industrial.

The possibility that the Metropolitan Fire Brigade will vacate its training centre on the corner of Walmer & Victoria Streets.

A current rezoning request that exists for 601 Victoria Street (the Going Going Gone site). The request proposes to consolidate lots fronting Flockhart Street and Grosvenor Street and rezone the land to a Business 2 Zone. This would enable a mixed use development with commercial and residential components.

It is considered that a change to the existing zoning of land in the Flockhart Street area is appropriate to better utilise and revitalise the area, to optimise proximity to public transport and Victoria Gardens, and to improve the relationship of the area to the Yarra River. Given the proximity of the area to CUB, the existing industrial character of the area, the existence of a number of industrial and other business uses in the precinct, and the existence of at least one new modern office use, an employment emphasis is preferred to a residential emphasis. However the opportunity is seen for an element of residential as part of mixed use developments, particularly closer to the river, or above ground floor commercial uses.

The Vision for the CUB area is as follows:



To retain the existing industrial zoning in the central and western parts of the precinct to protect the long term interests of CUB.

To revitalise land in Flockhart Street and along the east side of Grosvenor Street, and establish the area as a location for attractively designed office and mixed use developments containing a residential component, that complement the natural environmental qualities of the Yarra River and take advantage of proximity to Victoria Gardens Activity Centre.

To activate the Victoria Street frontage of the area with commercial uses at ground level and mixed uses above (including office and residential).

The following recommendations are made in relation to the area:

Industrial 3 Zone (IN3Z)

The current IN3Z along Nelson Street and Thompson Street provides an appropriate buffer for CUB, is a suitable zone for the area and should remain and act as an interface between CUB and the nearby residential zoned land.


The current IN1Z should be retained and extend from Church Street (west of CUB) through to Grosvenor Street (to the south).


IN1Z land extending from Flockhart Street to Walmer Street be rezoned to a B2Z.

This will provide the opportunity for existing industries to remain and for office uses to establish on underutilised land in Flockhart Street and along the east side of Grosvenor Street.

The discretion available for residential uses within the B2Z will enable planning permits to be issued for residential development in this area. However, given the vision for the area to emerge as an employment precinct, a local planning policy will be required to ensure that residential uses only occur as part of mixed use developments and do not become the predominate use in the precinct. Residential uses will be discouraged from occurring along the Grosvenor Street frontage of the proposed Business 2 Zone in order to provide an appropriate interface to the IN1Z that will remain to the west.

The Westons site will require special consideration by Council. This site abuts CUB and should be used for either industrial or office purposes. It should not be used for residential uses given its abuttal to CUB.

An existing design and development overlay applies to most of the land in this precinct and ensures that new development must meet the Urban Design Guidelines for the Yarra River Corridor.




Change the zoning of the existing B3Z along the north side of Victoria Street to a B1Z. This will create consistency with land use zonings elsewhere along Victoria Street to the west, encourage increased pedestrian activity and provide the opportunity for ground level retail and upper level residential uses.

8.3 Victoria Crescent / Harper Street

The Victoria Crescent / Harper Street Precinct is characterised by two distinct areas separated by Gipps Street. The area to the north of Gipps Street is characterised by new, high amenity warehouse and office type activities. This area, around Harper Street and Marine Parade, is a well maintained, attractive and viable part of the precinct. It provides evidence of new high amenity industrial / business uses that find Yarra an attractive place to locate.

The area to the south of Gipps Street (around Victoria Crescent) has an older building form and is considerably less utilised, especially along the east side of Victoria Crescent, which abuts the river. The block(s) to the west Victoria Crescent extending to Nicholson Street include a mix of industrial and business uses and has various degrees of utilisation.

Small scale industrial and businesses uses exist on the south site of Mollison Street that have a direct abuttal with residential properties. An outstanding heritage building (the former Brush Fabrics hat factory) sits vacant on the corner of Mollison and Nicholson Streets.

Victoria Crescent has an interesting urban design form that offers great potential to transform the amenity of this street into an attractive tree lined boulevard. Due to the existence of vacant and underutilised industrial buildings, built to the pavement, with little interaction with the street, the road presently presents a harsh and intimidating environment, particularly at night.

Gipps Street and Victoria Crescent are relatively busy roads connecting Johnston Street and Hoddle Street to Victoria Street. Gipps Street and Victoria Crescent, while serving an important access and mobility function, create issues of safety and amenity for residential areas through which they pass.

Characteristics of this area that support a change in zoning and use include the following:

Large underutilised lots along the east side of Victoria Crescent, abutting the Yarra River.

The potential that exist for a greater degree of flexibility to allow a wider range of business uses to assist in promoting redevelopment and



refurbishment in that part of the area between Victoria Crescent and Nicholson Street, south of Gipps Street.

The location of the precinct mid-block, away from major arterial roads and public transport, in an area where vehicle access is along heavily trafficked collector roads that have numerous residential abuttals.

Residential interface issues in areas such as Mollison Street.

The Vision for the Victoria Street / Harper Crescent precinct is:

To maximise the opportunity presented by large underutilised sites abutting the Yarra River to be used for medium to high density residential or commercial development.

To transform Victoria Crescent into an attractive tree lined boulevard that provides a safe and inviting pedestrian environment and a high level of amenity.

To support the continued concentration of high amenity business and industrial activities in the Harper Street / Marine Parade area.

To provide flexibility for a wider range of industrial and business uses to establish to the west of Victoria Crescent to increase the utilisation of that part of the precinct.

To enable a wider mix and range of uses, including residential, on properties along the south side of Mollison Street.

The following recommendations are made in relation to this area:


Apply a B3Z to land currently zoned IN1Z to the west of Victoria Crescent extending west to Nicholson Street, to provide for a wider range of business uses, including offices.

Mixed Use Zone (MUZ)

Apply a MUZ to land currently zoned B3Z to east of Victoria Crescent, abutting the Yarra River. This will allow flexibility for redevelopment of existing underutilised sites for residential and or office uses.

Apply the Mixed Use Zone to land currently included in an IN3Z to the south of Mollison Street. This will allow for the continuation of existing businesses, as well as for residential redevelopment.

Industrial 1 Zone (IN1Z) and IN3Z

Retain the Harper Street / Marine Parade area in an IN1Z and IN3Z as at present.



Figure 13 – CUB & Victoria Crescent / Harper Street Precincts Zoning Recommendation Map

8.4 Gipps Street Precinct

The Gipps Street precinct is operating reasonably well as an industrial area, although it is not operating at full capacity given the number of premises advertised for lease.

The area is characterised by traditional manufacturing, service industries, and a considerable proportion of activities related to the TCF sector. While the role and viability of the TCF sector in Victoria has been in decline over recent decades, there has been an emergence of higher order, value added TCF activities that have a strong presence in this part of Collingwood.

The precinct is generally characterised by older style buildings located in relatively narrow one way streets.

The precinct is experiencing pressure around its edges for transition to a mix of uses, particularly for residential and offices. A large former industrial area to the west of Wellington Street has previously been rezoned to a Mixed Use Zone, and

Victoria Crescent /

Harper Street

CUB Precinct



a Business 2 Zone (which allows residential uses subject to a permit) existing along the Victoria Parade and Hoddle Street abuttals to the precinct.

There are a number of large sites within the precinct that are still used for industrial and related activities that may have difficulty finding new industrial tenants should existing occupants relocate. At present the IN1Z limits the provision of office floorspace to a maximum of 500sqm. Under the existing zoning small sites have the flexibility to be used for office activities, larger sites do not. Rezoning of this area to a Business 3 Zone would allow the opportunity for such sites to be reused for office uses in addition to, or as an alternative to industrial activities.

It is not considered appropriate to enable residential uses to encroach into this relatively large precinct. The precinct is a relatively large intact industrial and business precinct, close to Central Melbourne and with direct access to Victoria Parade and Hoddle Street. It provides the opportunity for a wide range of small to medium sized businesses to operate relatively unconstrained by residential and other sensitive uses. Given the nature of business uses in the precinct, residential abuttals from properties fronting Victoria Parade and Hoddle Street, and from other individual developments that intrude into the area, should not be seen as providing a reason to rezone additional land on the edges of the precinct for residential use.

Key characteristics supporting a change of emphasis in this precinct are:

A reasonable number of vacancies and the need to provide.

Floorspace limitations of employment opportunities associated with office uses imposed by the current zoning.

Unlikelihood that that large industrial sites will be reused or redevelopment for large scale industrial purposes in the future.

Lack of drivers to attract and retain new higher order businesses i.e. building design, streetscape, opportunities for office development etc.

The Vision for this precinct is:

For the area to retain an industrial character but evolve to provide a wider range of employment opportunities, including service business and office uses.

The recommendations for this precinct are as follows:


Rezone all IN1Z land in the precinct to a B3Z.



Figure 14 - Gipps Street Precinct Zoning Recommendation Map

8.5 Johnston Street

Johnston Street is a main gateway and arterial road into the municipality and to central Melbourne. The quality of building stock, the degree of utilisation and the appearance of buildings vary along its length.

Over recent years the western portion of the street (from Smith Street to Nicholson Street) has experienced a rejuvenation with new development and the refurbishment of older buildings for specialist furniture outlets and a range of small businesses. This area benefits from proximity to the busy Brunswick Street and Smith Street activity centres.

The establishment of a large office complex for Computer Share at the eastern end of Johnston Street, along with other redevelopment that has already occurred at the eastern end of the road, has assisted in enhancing the utilisation of land and appearance of that part of the street.



Between Hoddle Street and Smith Street

The central part of Johnston Street between Hoddle Street and Smith Street contains many lower order uses and suffers in terms of the appearance and amenity of a road that is a main entrance to the municipality.

Land along the north side of the street (and a small pocket on the south side at the Smith Street end) is presently zoned Business 3, which allows industrial as well as office uses. This zone extends through to Sackville Street at the rear. Sackville Street generally has residential uses on the opposite (north side).

A change of zoning is considered warranted to enhance the utilisation of land along the north side of Johnston Street and to upgrade its appearance and amenity. Given that the existing Business 3 zone allows office uses as well as industrial uses, and has not resulted in new redevelopment in the area, consideration of a different zone is warranted. A Business 1 Zone is considered the most appropriate zone. This zoning would be consistent with the zoning of land on the south side of Johnston Street, and with the approach taken along other key arterial roads in the municipality which have extensive areas of Business 1 Zoned land. The zone would allow the continuation of existing uses, as well as allowing retail uses at ground level. It would also provide for residential or office uses at upper levels of buildings, which may assist in encouraging redevelopment in this area. A concern is that the intrusion of residential uses into this area may disadvantage existing businesses along both Johnston Street and Sackville Street. It is suggested that the possibility of rezoning the land to a Business 1 Zone be discussed with owners and occupiers of the area, prior to any amendment being formally considered.

Between Smith Street and Wellington Street a more extensive concentration of business uses exist to the north of Johnston Street, extending through to Keele Street. It is not the intention to introduce the opportunity for residential uses into this precinct. Accordingly between Smith Street and Wellington Street, any rezoning to Business 1 should only apply to properties fronting Johnston Street, and should not extend through to Sackville Street.

Between Brunswick Street and Smith Street

This part of Johnston Street is undergoing revitalisation as a focal point for boutique furniture manufacture and showrooms and with the development of a number of new boutique office buildings. It is benefiting from being located between the vibrant Smith and Brunswick Streets. The former industrial character of the area has changed as the former Fitzroy industrial areas have been rezoned to Mixed Use zones and have experienced rapid conversion to residential use. It is anomalous that shop top housing or residential uses on upper floors of new buildings are prevented by the existing zoning of this part of Johnston Street. A zone that allows such to occur is considered appropriate.



The Business 2 Zone is considered preferable to a Business 1 Zone. Its emphasis is on commercial rather than retail uses, and it will provide the opportunity to encourage restricted retail uses in rather than shops at ground level in this connecting street between the Brunswick Street and Smith Street activity centres. A mix of residential or office uses can occur at upper levels of buildings.

8.6 Other Industrial and Business Precincts

8.6.1 Cremorne

The Cremorne precinct is a viable business precinct that includes a wide range of business ranging from large fashion houses to marketing firms, new and emerging businesses, warehouses and offices.

The existing Business 3 Zone that applies to the area is considered appropriate to retain.

Issues relevant to the future development of the precinct include:

The relocation of the Kangan Batman TAFE from its current site in the Cremorne Precinct to the Docklands.

The future use and development of the Richmond maltworks site in Gough Street.

The future use and development of the Stiches Site at the corner of Cremorne Street and City Link.

TAFE

The TAFE occupies two parcels of land in the precinct. The land is zoned Public Use 2, which provides for educational uses and also allows complete discretion for other alternative uses should the TAFE relocate.

The Cremorne precinct is presently operating well as a mix business area and is a thriving business hub in the municipality. Given that the TAFE sites are located in the centre of the precinct, and that demand for business uses in the area is strong, the land should be rezoned to a Business 3 Zone consistent with the zoning of surrounding land. Residential uses should not be supported on the site.

Richmond Maltworks

The Richmond Maltworks site is expected to be vacated within the next 12 months when the maltworks relocates to Geelong. This is a large site in the Business 3 Zone. The Maltworks site has heritage significance. The Nylex sign located on the top of the silos and the equipment within the buildings have heritage significance. This significance provides justification for a more flexible



approach to ensure the successful refurbishment or redevelopment of the site than might otherwise be the case. Given the strong demand that exists for business uses in the precinct, redevelopment of the site should endeavour to achieve at least an employment component. However it would not be inappropriate to consider options for residential uses as part of a mixed use development of the site.

It is understood that redevelopment interest exists in the Stiches site at the corner of Cremorne Street and the Monash Freeway. This is also a large site. Special circumstances do not apply to this site as is the case with the Maltworks, as it does not have heritage significance. The Cremorne area comprises an mixed pattern of business and residential uses and zones. This is part of the character of the area. The site abuts a Residential 1 Zone to the east in Dover Street, and a Comprehensive Development Zone to the north (which supports a mix of residential and commercial purposes). These residential abuttals are not reason to support a residential use on the land (either wholly or partly). The site fronts Cremorne Street, which is the core of the Cremorne Street business precinct. Benefits exist to the integrity of the precinct as a business cluster, from retaining business uses along Cremorne Street wherever possible. The exposure of the site to the freeway also provides excellent visibility for business and commercial purposes.

8.6.2 Trenerry Crescent

The Trenerry Crescent area has undergone transformation from warehouse and manufacturing uses to a mix of uses including commercial and residential.

Like Victoria Crescent, the curved form of the road presents an interesting urban design character. The abuttal of large lots along the east side of the street to the Yarra River is a major feature of the precinct and should be a major influence on the future land use pattern.

The pattern of zonings along the street is ad hoc and has responded to successive individual development proposals. It reflects the varying desires of Council overtime to retain employment uses in this former industrial area. Two sites remain in a Business 3 Zone. The land is considered equally suited to residential as it is to commercial use. Requests for residential use along Trenerry Crescent need not be opposed by Council as such activities are appropriate for the area.

8.6.3 Queens Parade (B3Z) and Alexandra Parade

A small industrial precinct exists in the area bounded by Queens Parade, Alexandra Parade, George Street and Napier Street, in Fitzroy North. The area contains a high proportion of residential properties. Clipsal is the major business in the area.



The opposite side of Queens Parade has been transformed with the construction of modern medium rise apartments over the past 5 years, since the land was rezoned from an industrial zone to a Mixed Use Zone. This has significantly improved the character and amenity of this tree lined section of Queens Parade, which has considerable potential to be further upgraded to present as a major boulevard feature of the municipality.

Zoning of the B3Z land in this area to a Mixed Use Zone is recommended.

Figure 15 - Queens Parade Zoning Recommendations Map

A small industrial / business precinct included in a B3Z also exists on the north side of Alexandra Parade between Smith Street and Wellington Street. A number of underutilised sites exist along Reeves Street. Residential abuttals also exist in this area. It is considered that the business focus of this area should remain, especially at ground level along the main roads of Smith Street and Alexandra Parade. However flexibility should exist for residential (as well as office uses) on underutilised sites abutting residential properties, and on the upper levels of buildings, especially of those fronting Smith Street, Reeves Street and in Little Hilton Street. Rezoning of the area to a Business 2 Zone is recommended, with a local planning policy to give direction regarding the land use mix in the area.

8.6.4 North Fitzroy Village

The North Fitzroy Village operates as a successful neighbourhood shopping centre. Considerable residential redevelopment has occurred around the centre in recent years with the redevelopment of the former Cadet shoe factory in Best Street and the rezoning of industrial land to the east of Taplin Street to Mixed Use. This has lead to the revitalisation of the commercial elements of the centre with new cafes, restaurants and shops.



Figure 16 - North Fitzroy Village Zoning Recommendation Map

An area of land zoned B3Z exists at the north-east corner of Brunswick Street and Michael Street. The existing building on the land does provides an unattractive interface to the street and does not complement the vitality of this popular local shopping centre. The opportunity should exist for retail or other active business uses to establish at ground level, with residential or office uses above. Rezoning of the land to a Mixed Use Zone would provide the flexibility this site to be better utilised and to make a better contribution to this centre.

8.6.5 Amcor, Alphington

The Amcor site in Alphington is a large industrial zoned parcel of land.

The site has frontage to Lower Heidelberg Road and Chandler Highway. It has abuttal to the Yarra River. A corridor of restricted retail, industrial and business uses extend along Lower Heidelberg Road to the east of the site, otherwise the area is essentially residential.

The existing industrial zoning of the site should remain for as long as Amcor is committed to this site. If the present operation ceased sometime in the future and the site became available for redevelopment, the site should be considered as a strategic development site. Council should adopt a flexible attitude in relation to the future development of this site. Residential use of the site would not be inappropriate.

8.6.6 Barkly

This area represents a relatively large precinct of industrial zoned land that is underutilised and offers redevelopment potential. Citipower has a significant

Rezone from B3Z to B1Z



presence in Rooney Street and Holden Special Vehicles has developed an attractive new complex in Madden Grove. City Link previously used part of the area as a depot.

The MFB is investigating the establishment of a new facility in the area. If this occurs much of the redevelopment potential of the area would be taken up.

The precinct is located close to CityLink and has excellent access to Melbourne’s freeway system.

Depending on the possible location of the MFB to this location, this precinct has excellent opportunity to establish as a new business / employment node in Yarra. Uses should include a mix of industrial and related activities as well as service business and office type uses.

Rezoning of all Industrial 3 Zoned land in this area to a Business 3 Zone will provide greater opportunity to maximise the utilisation of land in this area for higher order business and employment activities, whilst recognising the existence of established industries and businesses.

Figure 17 - Barkly Street Precinct Zoning Recommendation Map

8.6.7 Noone

The Australian Dyeing Company operates from 169 Noone Street, Clifton Hill. The company is an isolated manufacturing operation within an essentially residential area. Access to Hoddle Street is via a residential street.

An application has been lodged with Council to rezone the Business 3 zoned land to a Mixed Use Zone to provide the opportunity for a future mixed use or residential redevelopment on the site, if and when vacated by the existing use.

Given that the operation is an isolated industrial activity in a residential area, and the redevelopment of this large site for alternative industrial purposes is unlikely should the existing use cease, a Mixed Use Zone is considered appropriate.



9 INDUSTRIAL AND BUSINESS STRATEGY

This chapter presents a strategy for industrial and business activity in the City of Yarra. It will form the basis of revised policies to be included in Council’s MSS.

Element 3 in Clause 21.05 of the Yarra MSS presents existing policies in relation to industry and commerce in the municipality. That policy framework presents a basis for the policies included in this section of the report. Those policies have been modified to refect the findings of this study.

The overall objectives and strategies of the existing policy identify the importance of retaining an industrial and employment base to the ‘quality of life’ of the Yarra community, and to the intrinsic character and identity of the municipality. They also support the need for the economic base of the municipality to continue its transition from a traditional manufacturing base, towards a wider range of business and employment opportunities, particularly focusing on niche manufacturers suited to an inner city locations, business services and office activities. These objectives remain relevant. Where this strategy differs from the existing policies contained in the planning scheme, is in relation to recommendations made regarding the future use and development of existing Industrial 1 and 3 and Business 3 and 4 Zone land.

9.1 Vision

The vision is for industrial and business areas in Yarra:

To continue to evolve as locations for a wider range of sustainable and innovative industry and business activities that benefit from an inner city location and which contribute to the mix of land uses and employment opportunities that make Yarra such a diverse, vibrant and interesting place to live, work and do business.

To recognise and continue to support the operation of existing industries and businesses in viable industrial / business precincts and on isolated sites, whilst recognising that the demand for industrial zone land will continue to decline, and acknowledging that it is appropriate to rationalise the existing patterns of zones to provide the opportunity for alternative business uses, mixed uses and residential activities, in accordance with the framework presented by this strategy.

To recognise the opportunities that exist to better use underutilised industrial and business land close to activity centres, the principle public transport network and the Yarra River, for higher order uses that better reflect planning policies supporting the intensification of employment and residential uses in such locations.



9.2 Objectives To increase in the number and diversity of local employment

opportunities.

To retain a viable industrial base with emphasis on value-added, export orientated industrial activities and niche manufactures, warehouse and distribution operations that benefit from an inner city location and a location close to the Melbourne CAD.

To continue the evolution of Yarra’s industrial and business base towards an expanded service sector, in particular in the property and business services, cultural and recreation services, and health and community services sectors.

To achieve the efficient reuse of underutilised industrial land and to facilitate its redevelopment for business, mixed use and possibly residential purposes, especially where such land is located close to activity centres, the principal public transport network and the Yarra River, in accordance with the strategic framework provided in this study.

To improve the operating characteristics of industrial and business in Yarra with the aim of improving the environment impacts and amenity impacts of existing businesses.

To encourage industrial and commercial operations in Yarra to adopt environmentally responsible business practices.

To ensure that the needs of industrial and business in Yarra are balanced with the needs of residents when making decisions on public infrastructure, land use interfaces and local traffic management plans, to the degree appropriate in a municipality characterised by a mix of uses and activities.

9.3 Strategies To support existing concentrations of viable industrial and business uses,

and avoid the encroachment of residential and other sensitive uses that could undermine the long term viability of such industrial and business areas.

To support the continued operation of major manufacturing industries that remain in Yarra which have a long term commitment to the municipality, and avoid the encroachment of residential and other sensitive uses in the vicinity of such industries where such may threaten the ongoing operations of such industries.

To provide flexibility for a wider range of employment generating uses, including office activities, to locate in those industrial areas throughout the municipality that already contain a wider range of small to medium



sized industrial and business uses, and have the potential to evolve as viable business enterprise areas.

To consider the opportunity for medium to high density mixed use or residential development in underutilised industrial precincts or isolated industrial sites, which are not well located for industrial redevelopment, which are distance from activity centres and the public transport network, where consistent with this strategy.

To adopt a flexible approach to the redevelopment of sites that contain heritage buildings, that may include the opportunity for mixed use and residential redevelopment in order to ensure the refurbishment and utilisation of such buildings, where such can occur without undermining the ongoing operation of nearby industries or businesses.

To introduce local policies in relation to Business 2 Zone areas to clarify the land use emphasis and mixed of uses to be achieved in different areas.

9.4 Policy

Overall Policy

It is policy to retain the existing zoning of all Industrial 1 and 3 and Business 3 and 4 zoned land in the municipality, except in the following situations.

Burnley and Doonside Precinct

It is policy to:

To retain the core of the area as a key industrial and business area in the eastern part of the municipality, adjacent to the Victoria Gardens Activity Centre, whilst providing greater flexibility for a wider range of business activities to establish, to assist in revitalising and better utilising the area.

To recognise the potential for the northern part of the area adjacent to Victoria Gardens to be used for higher order residential and / or office uses, if and when existing industries relocate from the area.

To recognise the potential for a wider mix of uses, including retail and residential along the Burnley Street frontage of the precinct.

Recommendations for use and activity in the Burnley and Doonside Precinct are:

Rezone IN3Z land to the north of adjacent to Victoria Gardens and fronting Burnley Street & continuing along Murphy Street to a MUZ.



Rezone IN3Z along the Burnley Street frontage, to the north of Blazey Street, to MUZ.

Rezone balance of IN1Z and IN3Z to a B3Z.

The CUB Precinct

It is policy to:

Protect the ongoing operation of key strategic industries (CUB).

Retain the opportunity for industrial and business uses to cluster in the industrial zone around CUB.

Encourage the redevelopment of the eastern part of the precinct (to the east of Grosvenor Street), as a high amenity employment area, with opportunity for residential activities as part of mixed use developments, in a way that complements the Yarra River as a natural environmental corridor.

Recommended rezonings are as follows:

Alter IN1Z boundary to end at Grosvenor Street.

Retain IN3Z around CUB.

Rezone the area from Grosvenor Street east to Walmer Street to B2Z. Include a local policy into the planning scheme that encourages the redevelopment of the area for employment uses, including offices, with the opportunity for residential activities. Residential activities should only occur as a component of a mixed use development. Residential uses should not occur along the east side of Grosvenor Street given the industrial nature of the west side of the street.

Rezone B3Z along north side of Victoria Street to B1Z.

The Victoria Crescent / Harper Street Precinct

It is policy to:

Realise the redevelopment of underutilised and vacant industrial land fronting the Yarra River and in heritage buildings in this precinct.

Recognise and continue to support the concentration of new, high amenity, business and industrial activities that exist in the Harper Street / Marine Parade area.

Retain the core of the area between Gipps Street and Mollison Street, west of Victoria Crescent as an industrial and business area, whilst providing greater flexibility for a wider range of business activities to establish, to assist in revitalising and better utilising the area.



Significantly improve the appearance and amenity of Victoria Crescent as a attractive, high amenity, tree lined boulevard.

Recommendations for the Victoria Crescent / Harper Street Precinct are:

Retain the IN1Z and IN3A in the area north of Gipps Street, around Harper Street and Marine Parade.

Rezone B3Z land south of Gipps Street and east of Victoria Crescent, fronting the river, to a MUZ.

Rezone IN3Z land south of Mollison Street to a MUZ.

Rezone IN1Z and IN3Z to the south of Gipps Street, north of Mollison Street to the west of Victoria Crescent, to a B3Z

The Gipps Street Precinct

It is policy to:

Retain the area as a key industrial and business area close to the Melbourne CAD, whilst providing greater flexibility for a wider range of business activities to establish, to assist in revitalising and better utilising the area.

Improve the overall profile and amenity of the area, traffic movement and the appearance of streetscapes.

Prevent residential and non-sensitive uses from encroaching into this precinct.

It is recommended to:

Rezone IN1Z land to B3Z.

Cremorne

It is policy to:

Retain the area as an industrial and business area close to the Melbourne CAD and CityLink.

Encourage the ongoing development of the area as an industrial and business area.

It is recommended that:

The current B3Z remain in this precinct.

The Kangan Batman TAFE site be included in a Business 3 Zone and be developed for employment uses.



Trenerry Crescent

It is policy to:

Accommodate a mix of uses that have appropriate regard of the environmental sensitivity of the area.

It is recommended:

Flexibility exist to accommodate future mixed use or residential redevelopment proposals in this area.

Queens Parade (B3Z)

It is policy to:

Allow for an appropriate mix of uses fronting Queens Parade, to consolidate the existing character of the area.


The existing B3Z land be rezoned to a MUZ.

Johnston Street

It is policy to:

Revitalise and better utilise land along Johnstone Street, particularly between Smith Street and Hoddle Street.


Between Wellington Street and Hoddle Street, comment be sought from existing land owners and occupiers regarding the rezoning of the existing B3Z to a B1Z.

Between Smith Street and Wellington Street, land fronting the north side of Johnston Street be rezoned from a B3Z to a B1Z.

North Fitzroy Village

It is policy to:

Encourage the redevelopment and reuse of land on the north side of Scotchmer Street, east of Brunswick Road, in a form that includes retail, business or community uses at ground level and residential or office uses above, to complement the role of the North Fitzroy Shopping Centre as a neighbourhood activity centre.




The B3Z land at the north-east corner of Brunswick Road and Scotchmer Street be rezoned to a MUZ.

Barkly

It is policy to:

To provide flexibility for new high amenity industrial and business uses to redevelop on underutilised land in this highly visible and accessible location.


The INIZ land fronting Burnley Street be rezoned to a B3Z.

The IN1Z land west of Burnley Street and South of Madden Grove be rezoned to a B3Z.

Noone / Hoddle

It is policy to:

Provide flexibility for land occupied by the Australian Dyeing Company in Noone Street, Clifton Hill, to be redeveloped for a mixed use or residential development, should the existing use vacate the site.


The B3Z be rezoned MUZ.

The IN1Z land west of Burnley Street and South of Madden Grove be rezoned to a B3Z.

9.5 Implementation

Rezonings

The recommendations of this study will input into the review of Council’s Municipal Strategic Statement (MSS). They will need to be considered by Council in the context of the recommendations contained in other studies being undertaken as part of the MSS review.

Prior to the preparation of a new MSS for the municipality, Council should apply the findings of this study in assessing any requests to rezone industrial land and Business 3 and 4 Zoned land that comes before it, on a case by case basis.

The study provides a strategic framework for the medium to long term planning and development of industrial and business land in Yarra. The strategy should



be subject to ongoing monitoring and review to ensure its continued relevance over time.

The study recommends appropriate future zoning of industrial and business land throughout the municipality. It does not suggest that all land identified as having the potential to be rezoned, be rezoned immediately. Two options exist as to how and when land is rezoned:

1. Council takes the initiative and rezones land as part of the MSS review, prior to any requests being made by land owners; or

2. Council waits for a rezoning request to be lodged and then proceeds to determine the request in accordance with the principles set out in this strategy.

Site specific rezonings of industrial land that are consistent with the strategic framework provided in this report are appropriate as a means of allowing a gradual change in the use of areas that have been identified in this strategy as appropriate for change.

Council should however take a proactive approach in the following situations:

In respect to larger industrial precents where a rezoning is proposed in accordance with the recommendations of this study, which will provide the ongoing operation of existing industries, but provide the opportunity for a wider range of business uses (i.e. rezoning from an IN1Z or IN3Z to a B3Z).

Where unacceptable interface issues exist between existing industry and residents, which needs to be resolved.

Where redevelopment of the land for industrial purposes would prevent an ultimate change of land use that is logical from a planning policy perspective and supported by this strategy.

Where there is a clear benefit to the wider municipal community from the redevelopment of a site or the transition of an area away from industrial use.

Strategic Sites and Heritage Sites

The future use of large strategic sites and heritage buildings should be considered on their merits. Buildings falling in this category include the Richmond Malt Works, Westons, MFB, Kangan Batman TAFE, as well as CUB and AMCOR should either site become available for redevelopment (which is not anticipated at this time.



9.6 Implications of this Strategy

This strategy provides a framework to guide the future planning and development of industrial land in Yarra in the medium-long term. It will result in a change in the land use pattern of Yarra. If the strategy is implemented as envisaged, it is anticipated that it will change Yarra in the following ways:

The industrial areas of CUB, Gipps, Doonside, Barkly, Alphington (AMCOR) will remain as the key locations for industry and employment in the municipality. The recommended zonings within these areas will provide a greater flexibility for other industrial and business activity in the precinct whilst ensuring that residential uses do not affect the ongoing viability of the precincts.

The areas that have been identified for change will largely continue to provide the same mix of activities that they presently offer due to the lack of consistency in use and zoning in these areas. Zoning will allow for greater consistency of use into the future.

The large historic sites in Yarra will change to support a mix of uses in the future, in areas that will not prejudice existing concentrations of industrial and business activity.

The areas to remain unchanged are currently functioning as efficient and viable business or industrial areas. It is anticipated that their role and function will continue into the future, largely representing the same mix of uses and character. It is considered that in the future some of these areas may undergo transition to higher order business and retail areas i.e. those areas fronting roads in high exposure locations such as Hoddle Street and Johnston Street.

Should the strategy be implemented to its full extent it is estimated that the following changes will occur to the amount of Industrial and Business 3 and 4 Zoned land in the municipality.

The following table (Table 6) indicates the extent of proposed zoning changes recommended by this study.



Table 6 - Summary of Rezoning Change

Zoned Existing Area (ha) Change (ha) Future Land Area (ha)

IN1 52.1 -35.05 17.05

IN3 31.4 -12.99 18.41

Total IN1 and IN3 83.5 - 35.46

B3 95.7 +29.43 125.13

B4 8.5 0 8.5

B2 - +7.44 -

B1 - +1.49 -

MUZ - +9.68 -

9.7 What Council Can Do To Promote Industry and Business in the Municipality

In relation to promoting industry, business and employment in the municipality, Council’s attention should be focussed on two key areas:

keeping existing business within the municipality; and

attracting appropriate new businesses to the municipality.

In relation to existing businesses in Yarra, many of the older more traditional industrial uses that exist in the municipality are likely to own their properties. Therefore they are less likely to be forced out of the municipality by rising rents / property values or the like, than tenants of industrial buildings. The location decisions of established businesses are more likely to relate to planning issues such as:

the types of new uses (i.e. residential) that might move into an area and cause constraints that may impact upon their operations in the future (i.e. operating times, noise complaints, the processes they can undertake, increased traffic congestion, loss of on-street car parking etc.);

local traffic management initiatives aimed at reducing through traffic or reducing the speed of traffic, but which may impact on accessibility by commercial vehicles; and

access to sites via the arterial road network and issues such as municipal wide road congestion etc.

The location decisions of new business seeking to move into the municipality, in addition to the above, are likely to be influenced by factors such as:



information regarding the emerging and future profile of Yarra as a business location and likely synergies that might existing with existing businesses already in the area;

knowledge about the availability of vacant land or buildings in the municipality; and

administrative / procedural matters such as the ease of obtaining planning approvals etc.

Council’s efforts in terms of supporting industry and business in the municipality should be directed towards the following four areas in relation to support for industry and business:

supportive whole of Council attitude;

strategic planning certainty;

expedient development approvals process; and

business development support

Supportive Whole of Council Attitude

Business needs a clear and unambiguous commitment from Council that it supports industry and business in the municipality and will fairly and equitably balance the interests of business with the interests of residents and other interest groups in all decisions it makes.

Actions to assist in implementing this initiative include:

Clear statements in Council’s corporate strategy about the importance of industry and business to Yarra, and the measures that Council will adopt to support and appropriately represent the interests of industry and business in the municipality.

Designation of a Councillor responsible for industry and business related matters.

Ensuring that Council’s economic development unit is well resourced and has appropriate linkages with Council’s planning and development sections, and all other sections within Council responsible for making decisions that could impact on business and development in the municipality.

To include industry and business representatives in all consultation processes initiated by Council that might have an impact on industry and business in the municipality.

To convene and resource a municipal wide industry and business group comprising representative from industry and business, to identify issues and actions required to be addressed and to work with Council to implement such actions.



Strategic Planning Certainty

It is necessary for Council to provide clear strategic planning directions regarding the future use, development and zoning of industrial and business zoned land in the municipality.

Actions to assist in implementing this initiative include:

Involving and seeking feedback from the business community on the findings of this study and on the MSS review process currently being undertaken by Council.

Including an appropriately worded industrial and business policy in the MSS that is supportive of industry and business. In particular the policy should comment on how Council will seek to balance the needs of industry with those of residents and other interest groups in the municipality.

Making consistent decisions regarding the future use, development or rezoning of industrial and business zone land, or land adjacent to such land, that is consistent with the Council policy once it is approved.

Expedient Development Approvals Process

It is necessary for Council to provide a fast and efficient development approvals service to those businesses seeking to establish, expand or change their operations in the municipality. Similar comments are relevant to all types of development. Initiatives suggested include:

minimising the need to advertise planning permit applications for land uses and developments that are clearly consistent with the purpose of the industrial or business zone in which they are located;

delegating decisions to a committee within Council wherever possible;

setting ambitious targets regarding timelines in which decisions are to be made and informing the applicants of those targets;

outsourcing applications for assessment by independent consultants where internal staff resources pose a constraint;

working closely with the Council’s economic development unit to provide a consistent attitude to business and in terms of the efforts undertaken by Council to facilitate appropriate development.

Business Development Support

A business development strategy is required to provide information to business to assist business in establishing contacts and linkages with other business existing in the municipality. The key elements of the strategy include the following:



A database of existing business in Yarra, including profiles of the major businesses (ie: who they are, what they do, their market)

A database of vacant buildings and / or sites with the potential to be used for business purposes.

A database of land owners willing to redevelop / refurbish buildings for business use.

A database of successful redevelopments / refurbishments that have occurred.

A hypothetical feasibility study that presents a redevelopment / refurbishment of a building in the area for business purposes. The study should identify likely costs, income and returns on investment. The study should be made available to land owners contemplating redevelopment / refurbishment for business purposes.

Resources within Council economic development unit to: − establish linkages between owners, tenants and developers; and − prepare and update the Business Development Strategy and

associated databases; − undertake target marketing aimed at attracting new businesses to

the area and assisting existing business seeking to expand to find new premises in the area; and

− raise awareness and promote business and industry clusters, particularly where there are progressive business and ‘clean and green’ industry clusters.

9.8 Area Enhancement and Development Contributions

The rezoning of industrial land to a zone that allows higher order uses such as offices or residential uses, has the potential to change the character of an area, to change activity levels and traffic patterns, create demands for improvements to the amenity of the area, and create the need to upgrade or provide new public infrastructure, services and facilities.

Three general options exist whereby Council can seek to recoup some of the cost of necessary amenity or infrastructure improvements from new development.

9.8.1 Development Contributions Plan

Development contributions plans provide a formal means by which Council can seek contributions from new development towards the cost of providing works, services and facilities required as a consequence of that new development. The Planning and Environment Act includes specific provisions in relation to DCPs.



Development contributions plans are generally appropriate to apply in situations where:

the area involved is relatively large and includes multiple properties, all of which will contribute to the need for new or upgraded infrastructure;

a relatively high level of change and new development is anticipated over time, which will generate a need for new and upgraded infrastructure;

area improvement strategies, urban design frameworks, traffic studies or the like, have been prepared that clearly identify the level of change anticipated, the infrastructure or improvements needed as a consequence of that new development, the cost of that infrastructure, the timing of its provision, and the means of equitable apportionment of the cost of new infrastructure between existing and new development;

where it is appropriate to seek contributions from individual developments by way of a levy that relates to scale or intensity of development that occurs over time;

the principles of need, nexus, equity and accountability can be satisfied.

DCPs are not generally appropriate to apply in situations involving:

the redevelopment of a single site or a small number of properties; and

where detailed area improvement plans that identify types and the cost infrastructure to be provided have not been prepared.

To implement a development contributions plan a planning scheme amendment is required. The amendment must include a Development Contributions Overlay over the affected land and a schedule that relates to the specific areas. It may also incorporate a Development Contributions Plan into the scheme.

A considerable amount of work needs to be done to justify the levying of a fee on new development. The level of existing development and amount of new development anticipated to occur must be estimated, the infrastructure or area improvements required as a result of the new development must be identified and costed, the costs of improvements must be apportioned between new and existing development etc and means of funding any outstanding amounts must be determined etc. It is not appropriate to embark on the preparation of a development contributions plan if such background work has not been done or not anticipated to be done.

In Yarra’s situation development contributions plans may be applicable to apply to industrial precincts with the following characteristics:

that involve a large number of properties;

that are expected to undergo a considerable amount of new development and change;



where area improvement programs have been identified and costs;

the need for that infrastructure has been derived from new development and reasonably apportioned to new development.

Potential areas include precincts such as:

Gipps Street

Doonside

Flockhart Street

Cremorne

9.8.2 Conditions on Permit

Discussion

Conditions may be placed on a planning permit that require the provision of, or the payment for, infrastructure improvements that are reasonably related to the development of the land. Section 62 of the act governs the types of conditions that may be included on a planning permit and considerable case law exists in relation to tests regarding the validity of permit conditions.

Section 62 of the Planning and Environment Act govern conditions on planning permits. The provisions of Section 62(2) provide quite wide ranging powers, however the provisions of Sections 62(5) and (6) impose limits as a consequence of the introduction of specific legislation in relation to development contributions plans.

Recent VCAT and supreme court cases such as Curry v Melton Shire Council (2000) VSC 352 and Christian Brothers Vic Pty Ltd v Banyule City Council (2001 VCAT 2120 address issues regarding the validity of conditions that seek contributions for various type of works, services and facilities.

Within this context the Department of Infrastructure’s Development Contributions Guidelines suggest that planning permit conditions can be validly imposed that require:

the provision of or the payment for specified works on, or leading to, a site;

the applicant to enter a Section 173 agreement to provide or pay for work on or to a site;

payment in lieu for parking;

payment or provision of public open space;

payment of an infrastructure levy in accordance with an approved DCP; and



the implementation of an existing agreement under section 173 of the Act to provide facilities and services.

It is generally thought that a permit cannot contain a condition that requires:

a Section 173 agreement to provide services and facilities (as distinct from works);

the provision of the payment for facilities and services in the absence of an approved DCP, regardless of whether the facilities or services are located on or off the site.

Any conditions on a permit are subject to review by VCAT, and hence are subject to common tests regarding the validity of permit conditions, and the validity of contributions etc for different types of infrastructure etc.

9.8.3 Agreements

Agreements provide an alternative means of obtaining a contribution towards the provision of infrastructure, or the construction of the works themselves.

Agreements can be entered into either at the time Council is considering the rezoning of land or when it is considering a planning permit application. Agreements at the permit application stage, which are required subject to a condition on permit requiring the agreement to be entered into, are subject to review by VCAT.

Agreements entered into at the time land is rezoned may or may not be subject to review by the Ministerial Panel considering an amendment, depending on whether or not the agreement is finalised prior to the amendment going on public exhibition.

Agreements provide a means by which Council can obtain a contribution from new redevelopment of former industrial sites that require rezoning.

A legal agreement provides greater flexibility for Council to seek a contribution towards a wider range of improvements to an area that may be associated with a redevelopment.

The use of such agreements may be subject to criticism if Council does not act in a responsible manner n identifying the types of improvements for which a contribution is sought, and costs that are imposed on development.

The development contributions plan system in Victoria is based on recouping a contribution from new development towards the cost of providing infrastructure, services or facilities that are needed as a result of that new development. The system generally prefers contributions via development contributions plans included in the planning scheme, as they provide a formal and a transparent process. The principles of need, nexus, equity and accountability general



apply to the preparation of development contributions plans. Council should seek to apply such principles in relation to any contributions it may seek by way of agreements, to ensure that its approach is fair and reasonable, and is not seen as a burdensome imposition of development.

It is appropriate that Council include a policy in its MSS that sets the framework for contributions it may seek to obtain from new development. Council should identify items of infrastructure required and likely area improvements sought in advance of rezoning requests, or at any early time in the consideration of a request. This is necessary to avoid ad hoc and unreasonable requirements being imposed on new development.

Given legal issues regarding development contributions, Council should seek legal advice to confirm its approach to seeking contributions from new development.

9.8.4 Council Development Contributions Policy

The following is expressed as a draft policy in relation to Council’s approach to development contributions associated with the rezoning and redevelopment of industrial zoned land.

It is policy that Council will seek contributions (or actual works in kind) towards the cost of providing new infrastructure and area improvements required as a result of the rezoning and redevelopment of industrial zoned land for non-industrial purposes. Contributions will be sought as follows:

By way of a development contributions plan for large areas in multiple ownership, and anticipated to undergo considerable new change and redevelopment, and for which area improvement plans have been or are proposed to be prepared.

By way of an agreement with the land owner and proponent of a development at the time a rezoning request is made to rezone industrial land.

The type of infrastructure / improvements towards which contributions may be sought include but are not limited to:

the upgrading of footpaths abutting sites;

street tree planting abutting sites and in the vicinity of developments;

the undergrounding of overhead cables;

the upgrading or provision of walking / cycling paths adjacent to developments or leading to activity nodes likely to be used by occupants of developments;

the upgrading, revegetation etc of the Yarra River corridor where sites abut the river;



the provision of additional open space or upgrading of existing open space;

local traffic management works; and

other civic or community works or improvements in an area.

Council will apply the principles of need, nexus, equity and accountability in identifying infrastructure or area improvement towards which a contribution may be sought.


Hansen Partnership – Charter Keck Cramer Appendix 1 – Page 1

APPENDIX 1 - DESCRIPTION OF INDUSTRIAL AND BUSINESS PRECINCTS

An existing conditions analysis of the Yarra Industrial and Business area was undertaken as background to this report. The aim of this analysis was to determine, current use, opportunities & constraints, suitability of zoning, and to inform overall recommendations for various industrial and business precincts.

In order to undertake an existing conditions review, given the size and scope of industry and business in the municipality, Transport Destination Zones (TDZ) were applied to divide the City of Yarra into precincts for analysis areas. TDZ’s provide the basis for background economic data provided in the accompanying Charter Keck Cramer report regarding employment distribution and change throughout the municipality.

The TDZ’s were broken down further into smaller geographic precincts to provide a more succinct and detailed analysis of the current conditions and future opportunities.

Key findings from the existing conditions analysis is provided as follows.

Statistics and much of the analytical information provided in this section of the report has been derived from the accompanying Charter Keck Cramer report.

An annotated figure is provided for each TDZ area which highlights key features of each area.



TDZ 97 - AMCOR Precinct

PRECINCT LOCATION ZONE

AMCOR Precinct

The AMCOR Precinct is located on the corner of Heidelberg Road and the Chandler Highway.

Industrial 3 Zone

Existing Conditions AMCOR are situated on a large site that occupies the total IN3Z land in this precinct.

The site is less intensely utilised to the rear.

Traffic in the area is an issue, with large trucks regularly accessing the site.

Interface issues are managed as residential uses are located away from this area.

The precinct is located in close proximity to public open space, sporting grounds and abuts the Yarra River.

Opportunities Redevelopment of the site into smaller warehouse unit or commercial lots.

River abuttal is suited to high amenity uses such as residential.

Constraints Traffic and access issues on main surrounding roads.

Recommendations Refer to Chapter 8 of report.



Figure 18 – TDZ 97 AMCOR Precinct Map



TDZ 98 & 103: North Fitzroy Village Precinct & Queens Parade Precinct


Queens Parade & North Fitzroy Village Precincts

The Queens Parade Precinct covers a large area with the main focus being the area between Queens Parade, Alexandra Avenue and Smith Street.


Existing Conditions This precinct is characterised by a mix of residential and business uses, particularly discount retail fashion outlets.

Clipsal is a key large business in the area.

The retail and service businesses located on Alexandra Avenue and Queens Parade have high exposure, however are low amenity buildings that haven’t capitalised on opportunities presented by the location.

A secondary business area to the north of the precinct is located along St Georges Road, at the entry to the North Fitzroy Village.

This area has high main street exposure and is located in a thriving shopping village, however is disconnected from the main centre by use and built form.

Located in this area are small retail and office uses i.e. Video Ezy, Australia Post, real estate, petrol station.

There is limited vacant floorspace in this area, aside from a small space (100-200sqm) on the 2nd storey of the building on the north-east corner of St Georges Road and Scotchmer Street.

Opportunities Utilise main road frontage and exposure opportunities.

Constraints Traffic and access issues.

Residential interface.




Figure 19 - TDZ 98, North Fitzroy Village Precinct Map



Figure 20 - TDZ 103, Queens Parade Precinct Map



TDZ 100 - Heidelberg Road Precinct


Heidelberg Road Precinct

The Heidelberg Road Precinct is located along Heidelberg Road to the north-east of the municipality.


Existing Conditions This precinct fronts Heidelberg Road between Arthur Street and Fairfield Park, and is characterised by businesses that rely on the exposure offered by this location i.e. luxury car retailers and other service and trade related retailers.

The area is in transition from low amenity, service businesses to high quality showrooms and new office / warehouse uses.

Further evidence of this transition, or opportunities for it, is the high rate of vacancies and sites advertised for lease in the precinct i.e. on the corner of Arthur Street there is a 1,300sqm showroom / office for lease.

The precinct has good access, however has limited provision of parking.

The precinct backs on to an established residential area.

Opportunities Encourage the precinct to transition to a high profile showroom strip.

Constraints Interface issues with existing residential to rear of strip.

Parking and traffic issues.

Interface with residential areas.

Recommendations That the area be encouraged to develop as a high profile showroom strip, to support the emerging luxury car retailing and to maximise the main road exposure at this location.

No change to existing zoning.



Figure 21 – TDZ 100, Heidelberg Road Precinct Map



TDZ 101 – Noone / Hoddle


Noone/Hoddle Precinct

The Noone/Hoddle Precinct is located in the area adjacent to Alexandra Parade East & Hoddle Street, Collingwood.

Business 3 Zone & Business 4 Zone

Existing Conditions The B3Z in this precinct relates to the Australian Dyeing Company site on Alexandra Parade East. The site is fully operational and co-exists in a mixed use area, containing residential and other commercial uses. The site has good access to the freeway and is located off Hoddle Street enabling ease for loading/parking etc. However access is via a residential street.

There is also a parcel of B3Z land on the north-west corner of Hoddle and Alexandra Parade which is currently used for warehousing.

Land in this precinct zoned B4 relates to the businesses fronting Hoddle Street, near the corner of Alexandra Parade East. The businesses in this area are predominantly service retail uses i.e. garden centre, antique showroom & manufacturing etc.

Schotts restricted retail business on Hoddle Street comprising a large factory / warehouse specialising in antiques and restoration pieces.

It is noted that since commencement of the study, the B3Z land on Alexandra Parade East, between Rutland and Groom, has been rezoned to Mixed Use Zone.

Opportunities To maximise potential exposure to businesses fronting Hoddle Street.

Potential to rationalise land uses in residential areas i.e. Australian Dyeing Company

Constraints Traffic and parking, particularly on Hoddle Street is difficult

Limited mix of business in the area – limits attractiveness for new businesses.




Figure 22– TDZ 101, Noone / Hoddle Precinct Map



TDZ 105 Nicholson Street - TDZ 106 Alexandra Parade - TDZ 109 Johnston / Brunswick Street Precincts

Nicholson Street Precinct


Nicholson Street Precinct

The Nicholson Street Precinct comprises Business 3 and Business 4 zoned land fronting the east side of Nicholson Street between Johnston Street in the south and Alexandra Parade in the north.



Existing Conditions Captain Snooze, a large retail shop located on corner of Alexandra Parade and Nicholson Street.

Small offices exist to the south of Captain Snooze on the corner of Nicholson Street and Cecil Street.

Retail outlets / small businesses (i.e.: carwash) are the dominant use of the B3Z properties on Nicholson Street between Rose Street and Argyle Street, including Hotel Agencies catering supplies / sales.

Surrounding area predominantly residential, with a Mixed Use Zone to the east.

Nicholson Street / Alexandra Parade are high exposure roads.

Minimal interference with surrounding residential areas given main road frontage for all sites. Businesses generally rely on kerbside parking on Nicholson Street or local streets.

Businesses, particularly retail outlets, are an extension of business function of Johnston Street and factory outlet precinct in Smith Street.

Opportunities Good access to public transport and proximity to the city, with high street exposure, thus retail outlet uses are suitable.

Constraints Car parking is limited both on and off street.

Poor pedestrian amenity on Nicholson Street due to heavy traffic flows.

Recommendations No change to existing zoning.



Alexandra Parade Precinct


Alexandra Parade Precinct

The Alexandra Parade Precinct includes (part of) Officeworks and a storage warehouse between Smith Street and George Street, which are located in the Business 3 Zone.


Existing Conditions Officeworks retails office supplies and is located between Smith Street and Gore Street. The western half of the site is zoned Business 3 whilst the eastern side is zoned Business 1.

Officeworks provides on-site car parking for customers.

West of Gore Street is Cityside Self Storage.

There is no vehicle access through Gore Street to the south of Officeworks, which limits traffic impacts from commercial properties on the residential area to the south.

The properties are high exposure as they front Alexandra Parade, which benefits the functions on the properties.

Opportunities Main road location is suitable for retail / warehouse / industry that benefits from high exposure.

Constraints

Not in close proximity to other like businesses.

Residential uses abut the precinct to the south therefore, use of properties for manufacturing may conflict with residential amenity.




Johnston / Brunswick Street Precinct


Johnston/ Brunswick Street Precinct

The Brunswick Street / Johnston Street Precinct generally includes properties on Johnston Street in the block between Brunswick Street and Smith Street. Some properties also front Argyle to the north and Victoria / Chapel Street to the south.


Existing Conditions Predominant use is either restricted retail or warehousing and distribution with a minority of manufacturing.

No big industries present.

New development in the area is mostly residential.

Lot sizes are predominantly medium, however small lots and large lots are present. Some larger lots have multiple street frontages.

The area is adjoined by residential uses to the north and south with a mixed use area abutting the eastern /north-eastern part of the precinct.

Immediately east and west of precinct are retail and business properties fronting Brunswick and Smith Streets.

The area is highly accessible by tram on Brunswick Street.

Area has access to main arterial roads.

High volumes of traffic use Johnston Street and the surrounding main roads.

Johnston Street provides a high level of business exposure.

Kerbside parking available with restrictions at peak times of the day.

Mix of businesses including auto service, clothing distribution, galleries, manufacturing, homewares retail.

Opportunities Refer to Chapter 8 of report.

Constraints Refer to Chapter 8 of report.




Figure 23 - TDZ 105, 106, 107 - Johnston, Brunswick and Nicholson Street Precincts Map



TDZ 107 - Smith Street (Johnston-Budd) Precinct


Smith Street (Johnston-Budd) Precinct

The Smith Street Precinct includes the land fronting Johnston Street between Smith Street and Hoddle Street and the B3Z land around Budd Street.


Existing Conditions Warwick Fabrics occupies a large area of land fronting Sackville Street and it is a major business in the area.

Most of the area used for small business / industry.

A number of two storey shop buildings on the north side of Johnston Street (in the precinct) are used predominantly as dwellings, with the ground floor vacant or closed off from the street.

Properties fronting Johnston Street are included in Heritage Overlay HO324.

Considerable activity is present on Johnston Street at the eastern and western extremities of the precinct. However the area in between lacks activity.

The area contains a mix of land uses and does not have a strong industrial character.

Most of the precinct contains small business premises that include varying uses that are not strictly industrial / manufacturing related for example, restaurants, PBS radio station etc.

There is a presence of showroom and distribution uses as well as light industry / service related uses such as auto service and printing.

There are a number of art and design studios in the vicinity of Easey Street.

Remnant Victorian era housing adjoining industrial uses are present on Emma Street and to a lesser extent along Sackville Street.

Low level of site vacancy or sites for sale.

Limited investment or new development.

Johnston Street is a Road Zone Category 1 offering medium to high exposure for uses fronting the road.

Street network – two way traffic with comparatively good vehicle access and parking.

The precinct is surrounding by residential uses on all sides except to the west, where the land is zoned Business 1 for properties fronting Smith Street.





Suitability of Current Zone

Refer to Chapter 8 of report.




Figure 24 - TDZ 107, Smith Street (Johnston-Budd) Precinct Map



TDZ 108: CUB - Johnston / Hoddle - Victoria Crescent / Harper Street Precincts

This TDZ accounted for 28% of Yarra’s manufacturing employment in 2001, with 22% of Yarra’s employment within the wholesale trade sector also being located within the area. Together these two sectors accounted for around 45% of total employment activity within the TDZ, with office based activities accounting for a further 20%.

The business services sector expanded its workforce by 385 employees (53%) to 1,120 between 1996-2001. This accounted for 18% of total growth in this sector across Yarra, which is comparable with that achieved in other precincts within Richmond. The majority of office development in the precinct has occurred along Victoria Street near the Victoria Gardens development. Older office developments, such as 675-679 Victoria St (total office area 9,350 sqm), have attracted a number of high profile tenants including British Aerospace, Honeywell and Pacific Access.

TDZ employment contracted by 203 people, or 2.3%, between 1996 and 2001. This decline reflected falls in employment in the manufacturing and wholesale trade sectors by 13% and 18% respectively, which together amounted to a total fall in employment of nearly 600 people across these two sectors.

Food and beverages manufacturing is a major activity within the TDZ with the Carlton and United Brewery a key employer. Employment within food and beverages manufacturing in this precinct declined by 205 (25%) over 1996-2001, with falling employment also reported for the textiles, clothing and footwear sector (165 employees), and machinery wholesaling (274 employees).



CUB Precinct


CUB Precinct

The precinct is located to the north of Victoria Street, near the corner of Burnley and Victoria Streets, and extends to the Yarra River to the north, and CUB to the west. The precinct is largely dedicated to CUB.

Fronting Swan Street is a Business 3 Zone. The rest of the precinct is an Industrial 1 Zone.

Existing Conditions CUB and Westons occupy a large part of the precinct, while the remainder of the precinct is occupied by service industry and warehouse / distribution functions.

CUB has existed in the area for around 100 years and operate their Victorian manufacturing, distribution and head office functions from this location.

CUB generates a large amount of large heavy vehicle traffic through the precinct, particularly on Murray Street and Nelson Street, onto Victoria and then Burnley Streets.

The Westons’ site is the other key site in this precinct, located to the river end of Flockhart Street.

Westons has sold this site and are in the process of moving out of the precinct.

The precinct is represented largely by a mix of small service industry (predominantly auto – which represents the traditional uses of the area), and large warehouse / distribution uses.

There are a number of examples of underutilised lots within this precinct. Flockhart Street is a location where this incidence is high.

Businesses fronting Victoria Street are similar to those found on Swan Street. They include a mix of service and restricted retail uses i.e. furniture manufacturing /sales, auto, retail (wholesaling).

Opportunities Refer to comments in Chapter 8 of report.

Constraints Refer to comments in Chapter 8 of report.

Recommendations Refer to comments in Chapter 8 of report.



Johnston / Hoddle Precinct


Johnston / Hoddle Precinct

The Johnston / Hoddle Precinct is located in Collingwood and refers to Johnston Street (from the River to Hoddle Street) and Hoddle Street (from Johnston Street to Victoria Street).

Business 3 Zone

Existing Conditions This precinct, although spanning a large and dispersed area, is predominantly characterised by old service industry / retail / distribution, with some evidence of the emergence of new modern buildings / office and associated warehouse / distribution functions, particularly near the river.

The Johnston Street part of this precinct is largely representative of the overall character of the area containing service retailing on small sites. Computershare, at the eastern end of the Precinct on Johnston Street, has their Head Office located in a new facilities that also contains conference facilities and distribution / warehouse functions.

A large vacant site exists on the corner of Trennery Crescent and Johnston Street (7,268sqm – Davenport Site).

The Hoddle Street part of this precinct is again characterised by old service industry and retailing. The area has low vacancies given its high exposure to Hoddle Street, however is of a low amenity.

Evidence of new development can be seen on Hoddle Street in the form of a new 3 storey office / retail building occupied by STA & Beacon Lighting, as well as luxury car showrooms closer to Victoria Street.

While the main component of business fronts Hoddle Street, there are also businesses located to the rear fronting the railway line.

The railway line acts as the buffer to residential areas surrounding this precinct.

Opportunities For high exposure businesses to locate along Hoddle Street.

For more neighbourhood type business development to occur in the Johnston Street area to support the emerging resident population in the area.

Constraints Traffic, parking and loading.

Owner occupied sites, which present little opportunity for transition.




Victoria Crescent / Harper Street Precinct


Victoria Crescent / Harper Street Precinct

The precinct is bounded by Nicholson Street (west), Marine Parade (north), Mollison Street (south) and the Yarra River (east).

There is a mix of zones in this precinct: Industrial 1 Zone, Industrial 3 Zone and Business 3 Zone.

Existing Conditions This precinct incorporates a mix of businesses, from small service industry to large office / warehouse developments.

Predominantly the area is characterised by warehouse / distribution functions for textiles, chemicals and other industries.

The precinct is located in close to the Yarra River, with many sites having direct access and views of the river corridor.

There is evidence of new industrial and related development occurring in this precinct i.e. Marine Parade and Harper Street.

The area around Victoria / Gipps Street is quite different to the rest of the precinct, being characterised by head offices with associated warehouse and distribution activities i.e. Nike, Salvation Army and Spotless.

The rate of vacancies in this area are generally low, other than along Victoria Crescent.

Traffic in the precinct is constant, as vehicles use the Victoria Crescent route as a thoroughfare from Victoria Street to Gipps Street and Hoddle Street.

Overall it is apparent that a transition is occurring in this area from manufacturing and services to warehouse / distribution uses.






Figure 25 - TDZ108 CUB, Victoria Crescent/Harper Street & Johnston/Hoddle Precincts Map



TDZ 110 - Gipps Precinct

Total employment in this precinct was just under 6,000 in 2001, or around 11% of Yarra’s total employment. Key activities are manufacturing (21% of precinct employment), wholesale trade (17%), health services (13%), retail, cafes and restaurants (15%) and office based activities (14%).

Within the manufacturing sector ‘printing, publishing and recorded media’ and ‘textiles, clothing and footwear’ are the main industries accounting for 70% of total manufacturing employment. Similarly, the wholesale trade sector is dominated by ‘personal and household goods retailing’ and ‘machinery wholesaling’ which together account for just over 90% of employment in the sector.

This precinct accounts for a significant share of employment (29%) in Yarra’s printing, publishing and recorded media’ sector. Interestingly, employment in the precinct increased by nearly 50% between 1996-2001, despite increasing by only 6% for the municipality overall.

Total employment contracted by 118 people between 1996-2001 in this precinct mainly due to significant falls in the textiles, clothing and footwear sector (down 150) and the communications sector (down 698). However strong employment growth was recorded in the following sectors:

Printing, Publishing and Recorded Media, 228 employees;

Personal and Household Good Wholesaling, 105 employees;

Road Transport, 145 employees; and

Business Services, 147 employees.




Gipps Precinct

The Gipps Street Precinct is located in the Collingwood, between Hoddle Street (to east), Wellington Street (to the west), Vere Street (to the north) and Victoria Parade to the south.

Industrial 1 Zone

Existing Conditions Historically the area contained a high proportion of textiles, clothing and footwear activities.

The area is now a mix of light manufacturing and industrial uses.

The industrial area has an interface with remnant Victorian housing along its northern edge, whilst along the western edge is a mixed use area comprising mostly residential dwellings and remnant industrial uses.

New development and investment is occurring along Wellington Street, which comprises showroom / restricted retail uses.

Land uses found in the precinct are predominantly service industry (i.e.: printers, auto service), office / showrooms and office / warehouses related to the traditional textile, clothing and footwear sectors.

Within the area there are some medium sized warehouse / distribution operations, however there are no key anchor industries located in the precinct.

North of Langridge Street are more medium to large sized properties.

Few properties are advertised for sale in the area, however a medium number of properties are available for lease.

Within the precinct the majority of properties front narrow streets with one-way traffic movements.

Langridge, Gipps and Wellington Streets provide high exposure frontages for businesses.

New clothing distribution and office businesses are moving into the area, particularly around Langridge Street. The buildings in this part of the precinct are older and provide an affordable cental location in proximity to the CAD, and reasonable road access to all areas of Melbourne for distribution.

There is a mix of lot sizes with some large manufacturing factories in operation.

There is pressure for residential and non-industrial uses in the area, particularly with residential warehouse conversions occurring to the west and the construction of new apartments occurring between Islington Street and Hoddle Street, south of Langridge Street.

New development is occurring on the James Hood Silo Site and along the east side of Islington Street (these sites also front Hoddle Street and are in the B2Z).

There are examples of warehouse buildings in side streets that are being used for residential purposes.

There are small numbers of building vacancies.

A number of properties are for lease along Cromwell and Rupert Street



(approximately 4 premises).

The area is no longer strictly industrial.

New businesses have started up in older (more affordable) buildings such as in Gripp Jeans and Sass and Bide. These companies supply clothes to boutique shops and do not require new high amenity headquarters as the properties are used predominantly for office and distribution.






Figure 26 - TDZ 110, Gipps Precinct Map



TDZ 111 – Risely Precinct

The health services sector anchored by the Epworth Hospital in Bridge Road, is a key employer in this precinct, accounting for 28% of total employment, followed by retailing (19%) and business services (15%).

The Hospital is not located in or adjacent to the Risely Industrial Precinct, which is located off Church Street.

Business services, health services and motion picture, radio and television services sectors have been key sources of employment growth offsetting falls in the manufacturing and wholesaling sectors.

Activity within both the manufacturing and wholesale trade sectors has contracted at rates noticeably higher than that that which has occurred across the municipality generally.




Risley Precinct

The main portion of the Risley Precinct is located west of Church Street adjacent to the Richmond Public Housing Area. The Business 3 Zoned land near the intersection of Victoria Street and Hoddle Street is also included in this precinct


Existing Conditions The Risley Precinct is generally characterised by medium sized warehouse / offices.

The precinct has a low amenity in terms of general streetscape, however there is evidence at some of the newer developments, of higher amenity buildings as well as landscaping.

There is evidence of new development occurring in this precinct i.e. a new multi unit development at Vere Street, backing on to the Bromham Street warehouse development.

New development in this precinct comprises well designed buildings, with landscaping and on-site parking. These new developments are being taken up by higher order businesses such as advertising, technology etc.

At the corner of Risley & Bromham Streets there is a large lighting company (traffic signals) that performs manufacturing, warehousing and distribution functions from the. This site is relatively large in comparison to the rest of the precinct and represents a more traditional industrial use, compared to the emerging business uses in the area.

A large site on the corner of Risley Street and Church Street is currently for sale, with the remainder of Church Street frontage being characterised by service retailing uses such as a convenience store and bank, and small offices.

Vacant warehouses and storage facilities are located to the rear of the Seven-11 that fronts Church Street. These warehouses are overgrown with vegetation and it is questionable whether they have been accessed at all in recent times.

The precinct also contains an area of Business 3 zoned land around the West Richmond station, namely Butler Street, Elizabeth Street and the corner of Victoria & Hoddle Streets.

Butler and Elizabeth Streets are locations for medium – large warehouses where the main function is distribution or service retail.

Near the corner of Hoddle and Victoria Streets in this precinct, there are a few small service retail sites including a building owned by Australia Post and a large car wash.

Access in and around this precinct is generally good considering the proximity to main roads such as Church Street and Victoria Street, and key through roads such as Highett and Elizabeth Streets.

Opportunities Given the development of new warehouse / office spaces in this precinct, there are opportunities for encouraging higher order business and office activities to this area.



Opportunities for the redevelopment of the warehouse / storage units to the rear of Seven-11 should be investigated, with new uses to support or be consistent with other new use and development in the precinct.

Constraints Interface issues with residents, of both private & public housing, are the main constraint in this area.

Recommendations Retain the existing zoning.



Figure 27 - TDZ 111, Risley Precinct Map



TDZ 112 - Swan Street and Burnley Precincts

In 2001 the manufacturing and wholesale trade sectors together accounted for 20% of employment in this precinct, compared to 21% for office-based activities within the finance, insurance, property & business services sectors. A further 27% of total employment was within the retail and café and restaurant sectors, reflecting the inclusion of a portion of Bridge Road and Victoria Street within this TDZ. Within the manufacturing sector, employment within the textile, clothing and footwear sector has contracted significantly relative to this precinct’s share of total industrial related employment.


Swan Street and Burnley Precincts

The Swan Street and Burnley Precincts refer to the business area north and south of Swan Street between Burnley and Church Streets.

Zones in this area include Business 4 Zone, Business 1 Zone and Business 3 Zone.

Existing Conditions This precinct, due to its high exposure along Swan Street, is largely occupied by restricted retailing uses including trade supplies, auto related businesses as well as furniture retailing. The precinct experiences issues with parking and loading availability on-street, due to high levels of traffic and also tram operation on Swan Street. Existing B3Z land fronting Burnley and Neptune Street (near Bridge Road) comprises office and warehouse.

Opportunities To expand the retailing role of this part of the Swan Street Activity Centre.

Constraints Traffic and access is an issue. Current retail mix.

Recommendations Retain the existing zoning.



Figure 28 - TDZ 112, Swan Street and Burnley Precincts



TDZ 113 - Doonside, Stawell (GTV 9), Stawell (B4Z) Precincts

This TDZ, which includes the industrial precincts east along Burnley Street, has been subject to considerable development over recent years in the form of Victoria Gardens, as well as residential and commercial developments. In 2001 (i.e. before the opening of Victoria Gardens, manufacturing and wholesale trade accounted for approximately one-third of employment within the TDZ, with office based activities accounting for a further 17% of employment. Retail and related activities such as cafes and restaurants accounted for 16% of employment in 2001.

While some activities within the manufacturing and wholesaling sector have experienced employment growth, overall both these sectors have contracted. In particular, metal products manufacturing and machinery wholesaling has contracted significantly. This contrasts with the business services sector that expanded by around 30% between 1996-2001 and which accounted for 5% of total employment growth within the sector across Yarra. This sector also accounted for just under half of total employment growth in the TDZ over the period.

The attractiveness of this area for further commercial development is shown by the tenancy profile for the office component of the recently completed Victoria Gardens development.

Proximity to Victoria Gardens shopping centre and the Yarra River, as well as the location of this precinct at gateway location to Yarra, which allows traffic congestion further west to be avoided, has contributed to the demand for office space in this development.



Doonside Precinct


Doonside Precinct

The main component of the Doonside Precinct is located to the east of Burnley Street, and is bounded by the Yarra River (east), Bridge Road (south) and Doonside Street (north).

A number of zones exist in this Precinct: Industrial 1 Zone, Industrial 3 Zone, and Business 5 Zone.

Existing Conditions This precinct is located in an area that is undergoing transition, given its location, emerging trend for residential development (particularly along the River), and the recent Victoria Gardens development which is supporting a new trend for retailing in the precinct.

IN1Z:

The component of the precinct which is zoned IN1Z, around Palmer, Murphy and Vaughan Streets to River Street is characterised by traditional service industries, located on large lots, with warehouse, manufacturing and office activities.

Industry in the area predominantly accommodates food manufacturing / wholesale, printing, auto / panels and other service industry.

A key business in the area is NHP, which operates its head office and manufacturing facilities in River Street.

The area has low vacancies, and is characterised by a large proportion of established businesses. The area has a fairly low amenity with limited landscaping or new or refurbished buildings.

The area has good access due to its proximity to major roads as well as the Monash Freeway. It also has relatively wide internal streets that allow for ease of commercial vehicle access and opportunities for on-street parking and loading zones.

The area is under pressure from emerging major residential developments along River Street (river side), and interface issues with the Residential 1 Zone at the end of Clark Street.

IN3Z:

There are two key IN3Z in this Precinct: one is located between Appleton Street and Victoria Gardens, and extends from Burnley Street to Clark Street. The general character of this area is for service industry in old buildings on large lots with low vacancies. However there is a current trend for different uses to locate here as a result of recent development at Victoria Gardens. For instance, located on Burnley St (next to Victoria Gardens) are a number of furniture showrooms that enjoy high exposure to passing traffic. There is also evidence of new offices & warehouses in the area around North & Clarke Streets.

The second IN3Z in this precinct relates to the strip of lots fronting Burnley Street between North Street and Murphy Street. There is little evidence in this area of industrial activity. For instance, between Appleton & Blazey Streets on Burnley Street, uses include milk bars, laundromats, and offices. These uses support the residents, particularly new residential apartments along Burnley street opposite, as well as local businesses. They will also support new residential uses emerging between North & Vaughan Streets (close to Burnley Street).



B5Z:

The B5Z affects the land riverside on River Street.

This area is largely under development (luxury apartments), but also contains NHP and Rydges Hotel.

Overall this whole precinct provides high exposure to businesses located on Burnley Street (a number of which have low industrial utilisation).

River Street is emerging as a key location for high amenity / luxury apartments, with construction currently occurring.






Stawell Precinct (GTV9)


Stawell Precinct (GTV9)

The Stawell Precinct (containing GTV9) is located in Bendigo Street, Richmond.


Existing Conditions GTV9 is an established industry in the area and occupies a large site between Bendigo & Stawell Streets.

The site is used for production / transmission, offices, and storage.

Access to the site is reasonable, however Swan Street experiences traffic congestion throughout peak periods and may create problems for vehicles entering the precinct.

Opportunities Dependant on future use by GTV9.

Constraints Dependant on future use by GTV9.




Stawell Precinct (Business 4 Zone)


Stawell Precinct (B4Z)

Business 4 Zones in the Stawell Precinct are located on Bridge Road, adjacent to Stawell Street, and to the south of the Precinct on Swan Street extending from the Railway line to Burnley Street.


Existing Conditions The Bridge Road part of the Stawell Precinct contains one retail use – Officeworks.

Officeworks is located on a large site and incorporates retailing, warehouse and distribution functions on the one site.

A large car park is located on-site at the front of the store, adjacent to Bridge Road, providing reasonable parking for customers without impacting on traffic flows on Bridge Road.

The Swan Street component of the precinct contains predominantly service retailing and associated warehouse / distribution uses i.e. trade supplies, auto, etc.

Some old terrace houses exist at the western end of Swan Street, one of which is used as a business (dentist).

The Swan Street precinct is poorly served in terms of parking and loading, as well as access due to traffic issues.

Opportunities Opportunities exist in the Bridge Road area to encourage other bulky goods retailers within this activity centre to maximise the high exposure of the area.

Opportunities exist to improve amenity and parking in the Swan Street precinct to better serve users and through traffic.

Constraints Large bulky goods retailing could potentially impact on the current character of this end of Bridge Road and competition could drive out smaller retailers.

Parking and loading on Swan Street.




Figure 29 - TDZ 113, Doonside, Stawel (GTV 9) & Stawel (B4Z) Precincts Map



TDZ 114: Cremorne and Dover – Barkly - Church Street Precincts

This precinct accounted for half of Yarra’s total employment growth over 1996-2001, largely as a result of strong growth in office based activities within the business services and finance sectors. Personal and household goods retailing and wholesaling also contributed significantly to employment growth in this precinct. Growth in activity in these sectors offset large declines in textiles manufacturing and machinery wholesaling sectors that were generally consistent with falls across the municipality.

These trends in activity have been reflected in the changing land use mix in the precinct, with the emergence of Church Street as a recognised office precinct. Church Street has also developed as a showroom precinct with a number of higher-end furniture retailers establishing in the street.



Cremorne & Dover Precinct


Cremorne & Dover Precinct

The Cremorne & Dover Precinct is located in Richmond, and is bounded by Church Street (east), Stephenson Street and the railway line (north), Punt Road (west), and by the Monash Freeway (south).


Existing Conditions The precinct is in transition from traditional small manufacturing and service industry uses to new distribution / warehouse / office functions for higher order industries.

The trend in this precinct is for high amenity buildings. While there are a number of large warehouses throughout the precinct, there is a particular trend towards 2-3 storey redevelopments with office and warehouse components in modern style buildings i.e. Gwynne & Stephenson Streets.

There is considerable evidence in this precinct of supportive industries to the fashion houses that exist in and around Church Street i.e. large warehousing / distribution sites off Balmain Street, on Palmer Parade and closer to Church Street.

The types of businesses moving into this precinct are graphic designers, architects, and the like.

The precinct is a high for lease area, particularly in and around Stephenson Street – representative of the transition that is occurring in this precinct.

Balmain & Cremorne Streets are the main thorough fares for the area, with local traffic from surrounding streets being directed here via the use of one way streets.

Due to its access role, Cremorne Street is a medium-high exposure street in the precinct and accommodates a number of showrooms.

The Kangan Batman TAFE occupies two large sites in the area. The TAFE is to relocate to a new location in Docklands, which will create considerable redevelopment potential within this area.

Opportunities Access to Monash Freeway and proximity to major arterials is high.

There are opportunities to consolidate the area for higher order manufacturing and warehousing / distribution, to support the soft furnishing & textile role of Church Street and business located in the Melbourne CAD.

Constraints The emerging presence of residential activities in the precinct (via ‘caretaker’ housing). Residents impact on the operation of the business zone in terms of conflicts generated by traffic generation, lack of parking, and amenity issues such as noise.

Parking and loading area availability is limited on street, and traffic is high through the area. Church Street is poor in terms of access for



commercial vehicles to this precinct.

Recommendations See comments in Chapter 8 of report.



Barkly Precinct


Barkly Precinct

The Barkly Precinct is located to the south of the study area. It is bounded by the Monash Freeway to the south, Burnley St to the east, Swan Street to the north and Church St to the west.


Existing Conditions This area is characterised by a mix of residential and light manufacturing and industrial uses.

The industrial area has an interface with remnant Victorian housing that exists on the western fringe of the precinct.

The focus for industrial land in the area is located around Burnley Street and Madden Street. It represented by a mix of uses including showrooms, small offices, warehousing & distribution.

A power station and its associated uses occupy a large portion of the industrial land in the precinct, located towards the freeway end of the precinct, and bordered by Madden Street.

The area is in transition, making room for bigger industry types as opposed to small manufacturing & service industry, in new, medium – large, high exposure buildings i.e. Madden Street & the corner of Burnley & Barkly Streets.

As evidence of this transition, a number of vacant sites are located in this Precinct:

Large vacant warehouses adjacent to Burnley Street, between the railway line and the freeway;

A large vacant site zoned IN3Z is located on the cnr of Burnley Street and the Monash Freeway (Burnley exit). While not vacant, the underutilised Council depot adjacent to Burnley Street is another site that requires consideration in terms of appropriateness of use within this precinct.

Primary access to the area is via Burnley Street. With its easy connection to the Monash freeway city bound, and non-city bound, this location provides high levels of access and mobility for industry and business within the Precinct.

Madden Street east bound provides an important role as a key thoroughfare to the Monash Freeway for this precinct. Aside from Madden Street, local traffic conditions and narrow internal streets make manoeuvrability through the precinct difficult.

The Swan Street component of this precinct is served largely by service type businesses and industry related retailing i.e. auto, timber supplies, trade etc.

No vacancies exist in the high exposure, well established, Swan Street restricted retail strip.

Opportunities There are opportunities to position this area in the future as a location for industries and business that support the nearby soft furnishings and



textile precinct of Church Street. The development of a cluster of value adding activities in this area would create a new mix of industry / business to the area and act to enhance amenity through new buildings and potentially reduce heavy vehicle traffic through the area.

The Precinct is in a high exposure area and is considered a good location or commercial uses (offices, showrooms).

Strategic opportunities to build on include:

Vacant sites;

Lot size;

Accessibility; and,

Exposure (to street).

Constraints Melbourne 2030 Activity Centre Policy acts as a constraint to transition in use and development in this precinct for pure office uses. The linear nature of Yarra’s activity centres defined by Melbourne 2030 restricts opportunities for ‘out of centre’ development towards the freeway end of the precinct. Despite the strategic nature of the site, access and mobility features for both commercial vehicles and public transport trips, and future possible connections with open space environs in the area.

Narrow internal streets, traffic & parking limitations exist.

Amenity of the existing industrial/business area is poor.

Recommendations See comments in Chapter 8 of report.



Church Street Precinct


Church Street Precinct

The Church Street Precinct refers to the area on Church Street between Swan Street and the Yarra River.


Existing Conditions This precinct is characterised by its soft furnishing & textiles role.

The precinct has high exposure to passing traffic and trade on Church Street as well as to traffic on the Monash Freeway for the businesses located at the Yarra River end of Church Street i.e. Just Jeans & Country Road.

The precinct has a large number of furniture showrooms and fashion houses, with associated warehousing / distribution & head office functions.

There is a mix of lot sizes in the precinct. Traditionally the area contained small lots (service) but the emerging trend is for larger showrooms / warehouses (eg furniture).

A number of large business developments are located on Church Street including the 658 Church Street development. This site contains Head Offices and Distribution for predominantly textiles businesses i.e. Just Jeans, Peter Alexander, Country Road etc, as well as other large offices.

The large business sites have good access, good internal road networks & parking, and generally contain new pr refurbished buildings in a landscaped environment (good amenity).

Off Church Street there are largely distribution and warehousing, and service industry uses that support car / furniture showrooms.

Due to the high exposure of Church Street and the high order retailing in the general area, there are a number of luxury car showrooms located in the precinct.

Traffic is a problem as is parking and loading (on street). Small loading areas to the rear of Church Street are also problematic, with access to these streets limited due to the local traffic regulations in the area.

Opportunities The precinct has high exposure on Church Street.

The precinct has a strong textiles / furnishings base which could be further developed.

The proximity to major retailers as well as good access via the Monash Freeway, are key strategic opportunities for the precinct.

Constraints Traffic, parking and loading issues are a key constraint for this area.

Recommendations It is recommended that this precinct continue to develop as a key textile, footwear & clothing precinct for Yarra, and that value adding industries and businesses be encouraged to locate within the precinct in order to develop industry clusters and strengthen the strategic role of



the precinct.

The existing zoning be retained.



Figure 30- TDZ 114, Cremorne, Dover, Church and Barkly Street Precincts Map

Documents

YARRA INDUSTRIAL AND BUSINESS LAND STRATEGY REVIEW Final Report