economic development strategy - city of frankston · this document presents frankston city...

ECONOMICDEVELOPMENT

STRATEGY2011

Executive Summary 02

01 Introduction 04

1.1 Purpose 04 1.2 Economic Development Defined 04

02 Economic Vision and Objectives 05

2.1 Economic Vision 05 2.2 Putting the Strategy into Action 06 2.2.1 Sustainable Economy (SUST) 06 2.2.2 Innovative Economy (INN) 07 2.2.3 Inclusive Economy (INC) 07 2.2.4 Preferred Place (PP) 07

03 Spatial and Economic Context 08

3.1 Focus Area 08 3.2 Economic Context 09 3.3 Spatial Context 10 3.3.1 Activity Centre Network 14 3.3.2 Poly-Centric City: Diffusing 14

Opportunities and Boosting Productivity 3.3.3 Relative Disadvantage of Frankston CAA 15 3.3.4 Catchment Opportunities and Risks 16 3.3.5 Industrial Areas 17 3.3.6 Employment Generation

and Skills Development 18 3.3.7 Port of Hastings Connectivity 18 3.3.8 Valuing our Green Wedge 19 3.3.9 CAA Analysis and Prospects 20 3.3.10 Frankston CAA Growth Scenarios 21 3.3.11 Making It Happen:

A Review of Case Studies 24

04 Economic Development 26 Strategy Action Plan

4.1 Role of Council 26 4.2 Action Plan 29 4.3 Performance Indicators 30

05 Review Period 31

06 Appendices 32

6.1 Appendix 1 – Full List of Actions 33 6.2 Appendix 2 – Catchments of 38

Competing Centres 6.3 Appendix 3 – Strategy Development 40 Process and Supporting Information

Contents

Economic Vision

Frankston City is the preferred place to live, learn, work, visit and invest based on a local economy that is sustainable, innovative and inclusive.

These attributes are reflected in the community’s perception of the City and in the number and type of jobs available in the City in 2025.

ExecutiveSummary

It is widely recognised that

Frankston City has significant,

yet unrealised potential and

that it is on the cusp of a major

socio-economic transformation.

Those involved in the property

market regularly refer to

Frankston as the ‘next big thing’

and with many significant

private and public investment

projects imminent, it is clear

that these are exciting times

in Frankston City.

Frankston City has numerous regionally significant facilities and, as a result, has an influence which extends into the southern metropolitan region and Mornington Peninsula. A number of factors, including Frankston City’s bay side location, its transport infrastructure, its education & health precinct, and the size of Frankston city centre, provide the municipality with a competitive advantage in attracting investment and a workforce who are drawn by the area’s ability to provide a great work/life balance. The proximity to the Mornington Peninsula means that Frankston continues to be able to capitalise on the broad array of tourism opportunities, as well as benefit from the Peninsula’s unique business community and lifestyle options.

However, Frankston City still has a significant economic development challenge in front of it. The City currently has a low stock of jobs relative to its population size, and does not have an obvious economic specialisation of note. In addition to this, the capacity of the traditionally strong inner metropolitan region to service outer regions like Frankston City with higher order jobs and services is becoming more difficult due to increasing congestion.

As a result, the State Government is seeking to distribute higher order opportunities to suburban regions, with the plan (in Melbourne @ 5 million) being to concentrate such activity into six priority suburban centres or Central Activities Areas (CAA) of which Frankston city centre is one. Without successful CAAs, large segments of the urban population are expected to become increasingly vulnerable to poor

access to jobs and services and social exclusion. Additionally, without a central focus for development, increasing pressure is placed on Green Wedge zoned land to be developed.

The challenge for Frankston City is significant. The wider region in and around Frankston City is growing strongly. Frankston, Mornington Peninsula and the Cranbourne component of Casey combined had about 328,000 people in 2006 and this potential catchment is expected to expand to approximately 471,000 residents by 2026.

This presents Frankston City with significant opportunities for economic growth and investment. However, the flip side of this opportunity is significant risk of establishing a large urban sub-region that has relatively few jobs and services. Social exclusion issues that currently exist in some pockets could expand significantly without a coherent strategy to deliver jobs and services to the greater Frankston and Mornington Peninsula region and in particular to its nominated capital, Frankston CAA.

Therefore economic development in Frankston City will need to be structured to ensure delivery of jobs and opportunities for a large population. Frankston CAA provides an ideal opportunity to consolidate the existing State and Federal government services, while decentralising new State government services – thereby providing local jobs, enabling people to work closer to home, reducing travel time and improving family and community connection.

Through three different scenarios, this strategy outlines the potential impacts of different levels of intervention into employment creation, commercial development and associated residential accommodation within Frankston CAA. Potential employment growth scenarios project Frankston CAA employment growth could range between an additional 3,400 – 10,700 jobs by 2036, although the capacity for the CAA to accommodate this growth over the next 25 years needs to be further investigated.

Frankston City Council has a strategic role to further facilitate the growth of an innovative, inclusive and sustainable business community. The City has other centres and employment areas that will need to be harnessed for future job and service delivery, including important industrial areas at Carrum Downs, which is the City’s flagship sustainable industrial park, Seaford and Frankston North. The municipality also has environmentally significant habitats within the Green Wedge zone that need to be carefully managed to ensure valuable agricultural land and amenity is retained.

Frankston City also has the great potential to leverage off key partnerships with existing key stakeholders to strengthen Frankston’s position as a hub of health & wellbeing, and education.

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01 Introduction

1. Document what Frankston City Council wants to achieve in economic development terms over the next 10 to 15 years (using a notional 2025 time horizon). To this end, an economic vision statement is established along with supporting objectives in Section 2 (followed by a contextual review in Section 3). The supporting objectives provide more detail on the vision.

Section 4 of this report provides: an introduction to the role of Local Government in economic development; the action plan for this strategy, which is essentially Council’s workplan in economic development, designed to give effect to the objectives and vision of this strategy; and performance indicators to monitor progress against the strategy.

The delivery of this strategy, its key themes and notional time horizon ensures that Frankston City Council is undertaking activities which are consistent with the Frankston City Community Vision 2025, and Council’s economic vision for the City.

2. Document the role Frankston City Council - in partnership with business and other spheres of Government - can assume in delivering the vision and objectives to 2025. Council cannot deliver the objectives and overall vision by itself, but can act to coordinate activities and investments of other levels of government and the private sector to deliver the strategy.

1.1 PurposeThis document presents Frankston City Council’s Economic Development Strategy. The purpose of the strategy is to:

In broad terms, ‘economic development’ is defined as: increasing an area’s level of income and capital (wealth) and distributing that wealth through local expenditure and jobs to the community. This notion applies equally to geographic areas of any size, whether it is a nation, State, region or Local Government Area.

On this basis, a fundamental performance measure in economic development is the number and type of jobs that are provided locally and regionally.

1.2 Economic Development Defined

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Economic Vision02 and Objectives

2.1 Economic VisionThe economic vision for Frankston City is:

Frankston City is the preferred place to live, learn, work, visit and invest based on a local economy that is sustainable, innovative and inclusive.

These attributes are reflected in the community’s perception of the City and win the number and type of jobs available in the City in 2025.

To provide structure for the achievement of Council’s Economic Vision for the City, four themes have been identified:

• SustainableEconomy(SUST)• InnovativeEconomy(INN)• InclusiveEconomy(INC)• PreferredPlacetolive,learn,work,visit andinvest(PP)availableintheCityin2025.

SustainableEconomy

Preferred place to Live, Learn, Work, Visit & Invest

InclusiveEconomy

InnovativeEconomy

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2.2 Putting the Strategy into ActionUnder each of the themes sits a number of strategic objectives which have been derived from research and extensive consultation on the strengths and weaknesses of Frankston City and the opportunities and threats facing the City.

The implementation actions shown in Appendix 1: Action Plan provides the detail on the activities, projects, and programs required to deliver Frankston City Council’s Economic Vision for 2025. The life of this strategy is five years (2011-2015), with specific attention placed upon identified priority projects during this time.

The list of actions is comprehensive and involves considerable time and resources for implementation. Based on the research and analysis shown in Section 3 of this

strategy report, the list of Actions marked with are deemed to be of priority. The delivery of these priority actions also has numerous flow-on benefits to the Frankston CAA, the whole of the municipality and the broader Frankston and Mornington Peninsula region.

The full list of actions supports comprehensive implementation of this Economic Development Strategy more broadly throughout the municipality.

2.2.1 Sustainable Economy (SUST)

A sustainable economy:• Buildsonexistingeconomic,businessandworkforce strengths of the region to deliver most new jobs and business investment;• Sensitivelyutilisesthehighlysignificantnaturalresource base of Frankston City and Mornington Peninsula for business development purposes; • Producesgoodsandservicestohelpmeetenvironmental challenges relating to pollution and waste reduction and resource minimisation; and• Undertakesprocessesofcontinuousimprovementto strive to adopt best practice environmentally sensitive and socially sustainable behaviours and processes.

Specific objectives that Frankston City will strive to achieve in order to deliver a more sustainable economy by 2025 are as follows.

• Objective SUST1 – To grow the number and diversity of jobs in the City to: - better match the size and structure of the Frankston and Mornington Peninsula’s population base; - minimise work-related commuting from the region; and - encourage reverse-commuting (against the main peak hour flows).

• Objective SUST2 – To position Frankston City as a national leader in sustainable industries, such as in recycling and sustainable energy and resource use technology and resource sharing.• Objective SUST3 – To support and grow the micro, small and medium sized business base of the City, focusing on sustainable industries, advanced manufacturing, creative industries, office-based business services, home-based business and Central Activities Area activities.

02 Economic Vision and Objectives cont’d

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2.2.3 Inclusive Economy (INC)

An inclusive economy:

• Providesopportunitiesforallsegmentsofthecommunity to participate in work, training and career development, in a diversity of occupations and industries; • Iswellintegratedviatransportandtelecommunications systems to other major business and service hubs in the metropolitan area and beyond; and• Isintegratedwith,andwellconnectedto,the Mornington Peninsula region and South East Melbourne.

Specific objectives that Frankston City will strive to achieve to deliver a more inclusive economy by 2025 are as follows.

• Objective INC1 – To establish a seamless integration between employers and service providers (including pre-employment, career, education and training services) to enable the most disadvantaged and least active members of the community to gain employment.• Objective INC2 – To consolidate a shared regional economic understanding with surrounding municipalities, in particular Mornington Peninsula Shire.• Objective INC3 – To take full advantage of the resident skills base of the wider Frankston and Mornington Peninsula region as a driver of local business development.

• Objective INC4 – To support business and community networks in the municipality that are led by stakeholders who are passionate about Frankston City and willing to form effective strategic alliances.• Objective INC5 – To deliver a high quality, high amenity and safe environment in the City.• Objective INC6 – To improve transport infrastructure links and services (particularly rail and bus) to the Mornington Peninsula, South East Melbourne and Melbourne CBD. • Objective INC7 – To ensure telecommunications and information technology services are delivered to best practice standards across the City.

2.2.2 Innovative Economy (INN)

An innovative economy:• Hasthebusiness,workforceandtechnologicalcapacityto adapt to change to improve the delivery of existing goods and services and generate new goods and services;• Adaptstoandtakesadvantageofthechallengesposed by ongoing structural change and globalisation;• Hasafocusonvalue-addingandknowledgedriven change within existing sectors of strength; and• Hasanintegratedandflexibleeducation,trainingand industry system.

Specific objectives that Frankston City will strive to achieve to deliver a more innovative economy by 2025 are as follows.

• Objective INN1 – To expand the role of Frankston City as a primary, secondary and tertiary education and training hub for south east Melbourne and the Mornington Peninsula, and where possible provide a seamless relationship between regional education and training providers and local businesses.

• Objective INN2 – To nurture an environment that facilitates the emergence of: - New ways of working and relating; - New organisational forms; - The generation and sharing of knowledge; - Inquiring and questioning; - Fostering creativity; and - An embedded life-long love of learning.• Objective INN3 – To promote export activity and import substitution (by better understanding local economic dynamics and supply chains).

2.2.4 Preferred Place (PP)

A preferred place to live, learn, work, visit and invest:• Combinestheuniquecoastal,ruralandbushland environments of Frankston City with high quality urban environments, jobs, services and visitor attractions; and• Providesasupportiveandattractivebusinessinvestment environment.

Specific objectives that Frankston City will strive to achieve to deliver the City as a preferred location for residents, visitors and businesses by 2025 are as follows.

• Objective PP1 – To consolidate and expand the role of Frankston as the Frankston and Mornington Peninsula’s regional capital for retail, education, health & wellbeing, government and business activity and light manufacturing.• Objective PP2 – To deliver Frankston CAA as a high density, mixed use, 24-hour suburban city centre that has a very positive brand and image, in accordance with State policy.

• Objective PP3 – To establish Frankston City as a regional tourism and visitation hub.• Objective PP4 – To boost the number of business owners and managers living in the City (by providing diverse housing opportunities that take advantage of the unique natural environment).• Objective PP5 – To raise awareness of, and enhance and protect the lifestyle and investment opportunities available in the City.

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• TheFrankstonandMorningtonPeninsularegion, which is referred to as the ‘region’ in this strategy;• TheMelbourne South East group of 10 councils, which has developed an overarching regional economic strategy for the municipalities of Cardinia, Casey, Greater Dandenong, Kingston, Frankston, Knox, Monash, Maroondah, Mornington Peninsula and Whitehorse; and• TheMelbourne metropolitan area.

Additionally Frankston’s city centre is nominated as one of Melbourne’s six Central Activities Areas (CAA’s). This therefore means that there is significant focus in this strategy on Frankston CAA.

3.1 Focus AreaThis strategy is focused on the Local Government Area of Frankston City(referfigure1).Thestrategyalsohas regardtothreeregionalareasofinterest,thesebeing:

Spatial and 03 Economic Context

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3.2 Economic ContextThe following data provides a snapshot of economic variables that are relevant to this strategy. Refer to the documents listed in section 6.3 for sources of more detailed economic analysis. This indicates that Frankston City has a low stock of jobs in relation to its population size, and does not have an obvious economic specialisation of note.

Frankston City

Population 2006 121,587 % of Melbourne Statistical Division (SD) 3.2%Population Growth 2001-2006 1.3% paNo. of Businesses >9,100

Jobs 2006 33,863 % of Melbourne SD 2.2%Jobs Growth 2001-2006 2.0% pa Job / Population Ratio 2006 27.9%Melbourne SD 41.3%

Land Area 129.5 sq km% of Melbourne SD 1.6%

Unemployment 2006 6.0%Unemployment Melbourne SD 2006 5.3%

No. of Tertiary Students Monash University – Peninsula 4,000 Chisholm Institute of TAFE - Frankston 15,000

Figure 1 . Geographic Context

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Frankston CAA

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03 Spatial and Economic Context cont’d

Frankston CAA in Context:• FrankstonTransitInterchange(includingFrankstonTrain Station) has approximately 2.2 million users annually;• BaysideShoppingCentreattractsapproximately12 million users annually, and is the sixth largest regional shopping centre in Melbourne (by floor space and revenue). With over 89,000sqm of commercial floor area, Bayside Shopping Centre (Colonial First State’s) assets equate to 22.6% of the CAA’s commercial floorspace;• FrankstonCAAgeneratesapproximately$1.3Bin Gross Revenue (Output) annually;• Thereareover800businesses/organisationswithin Frankston CAA;

• TheCAAbusinessesprovideemploymentforover6,300 individuals and over 800 volunteers ;• Approximately$442Mofwagesandsalariesare generated in the CAA annually;• FrankstonCentral(theareainandaroundtheCAA)had a population of 9,444 at the last census (2006);• TheareaofthefloorspaceoftheCAA(including residential, commercial and vacant; but excluding transport and open space) is just over 411,000sqm, with the area of available commercial floorspace being over 393,000sqm2.

Carrum Downs/Seaford Industrial Estate in Context:• Estimatedoutputofthisareais$2.39B(25.9%of Frankston City). The Manufacturing sector accounts for 68.8% of this, with Construction also providing 11.9%;• Totalemploymentinthisprecinctisestimatedtobe 4,632 (13.8% of Frankston City);• ThepercapitaGrossRegionalProductforthisprecinct is$138,2953.

The industry sectors that Frankston City has strength relative to the Metropolitan Melbourne average are:

• Health&CommunityServices• RetailTrade• PersonalandOtherServices• Construction• EducationSource: Derived from ABS Census 2006

Total employment in the municipality is estimated at 33,554 (2010), with the Retail Sector being the largest employer (22.2%), followed by Health and Community Services (17.1%) and Manufacturing (12.5%). The largest individual employers within the municipality are Peninsula Health, Monash University, Chisholm Institute of TAFE, Frankston City Council and Australian Arrow.

The total output of the local economy is estimated to be $9.22Bperannum(2010)withtheManufacturingsectorbeing the largest contributor to this (30.6%), followed by

Construction (12.6%) and Property and Business Services (11.9%). The Tourism industry (while not a separately classified industry sector by the Australian Bureau of Statistics)isagrowingsectorandisestimatedtobe$252Mper annum.

The Per Capita Gross Regional Product (the total value of final goods and services produced over the period of one year, which includes exports but subtracts imports) forFrankstonCityCouncilis$36,728–wellbelowVictoria($59,127)andAustralia($63,113)1.

1 SOURCE: REMPLAN 20102 SOURCE: VicCLUE 2009 – “Summary of Floorspace, Establishments and Employment by Industry”3 SOURCE: REMPLAN Carrum Downs/Seaford Nov 2010

3.2 Economic Context cont’d

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3.3 Spatial Context

The spatial context for economic development in Frankston City is shown in Figure 2. This also shows that there is a hierarchy of commercial centres that service a range of local through to regional needs. This is further expanded upon in Figure 5.

Figure 3 . Potential Catchment/Effect of Frankston City Economy

Frankston

Port ofHastings

Cheltenham

Mentone

Mt Eliza

Mornington

StonyPoint

Flinders

Dromana

Rosebud

Sorrento

Berwick

10 km radius

10 km radius

Dandenong

Clayton

Caulfield

CowesPHILLIP ISLAND

FRENCHISLAND

Cranbourne

LEGEND

Catchment Area

Monash University Campus

Chisholm TAFE Campus

Holmesglen TAFE Campus

Peninsula Health

Freeway

Eastlink

Peninsula Link

Railway Line

Passenger Ferry

Figure 3 shows the potential catchment of customer and employees for Frankston City, and the potential sphere of influence of the broader Frankston City economy.(NB/ different industry sectors and organisations have different market reach, with some having a localised catchment, while others (eg. Monash University and some manufacturers) have an international catchment.)

Figure 2 . Broader Spatial Economy

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Figure 4 . Internal Spatial Economy

Figure 4 provides a snapshot of the spatial analysis of Frankston CAA and the key economic nodes distributed throughout Frankston City. Frankston City accommodates over 20 shopping precincts (ranging from regionally significant through to neighbourhood centres) and over five distinct industrial precincts.


Seaford – Station St / Nepean highway – strip shoppingGFA = 11,900 sq. m

Seaford – Seaford RdGFA = 3,770 sq. m

Excelcior – strip shoppingGRA = 2,225 sq. m

Pines – strip shoppingGFA = 1,900 sq. m

Ashleigh AveGFA = 3,300 sq. m

Beach Street eastGFA = 4,470 sq. m

Foot StreetGFA = 1,860 sq. m

HillcrestGFA = 2,100 sq. m

TowerhillGFA = 4,110 sq. m

The Local Village 1095 Frankston- Dandenong RdGFA = 4,360 sq. m

Langwarrin Plaza 385 Frankston- Cranbourne RoadGFA = 6,230 sq. m

LangwarrinGFA = 12,260 sq. m

KaringalGFA = 45,350 sq. m

Frankston CAAGFA = 120,000 sq. m

Frankston Power CentreGFA = 60,000 sq. m

BelvedereGFA = 8,120 sq. m

Carrum DownsGFA = 22,230 sq. m

Norman AveGFA = 1,360 sq. m

3.3 Economic Context cont’d

Frankston CAA

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Figure 5 . Economic Priority

STRIP SHOPPING CENTRES

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KARINGAL

FRANKSTON INDUSTRIAL ESTA

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CAAFRANKSTON

As represented in Figure 5 there is a clear hierarchy of commercial and industrial precincts within the municipality whose sphere of influence ranges from serving local through to regional needs. These needs vary considerably and include employment clusters, transportation hubs, place of learning, meeting and gathering places, service centres, places to source daily essentials through to luxury goods etc. The commercial centres or economic nodes are strongly interdependent – but a greater economic priority is placed on those precincts closer to the centre of the circle.

As one of Melbourne’s six declared CAAs, and given the importance of Frankston city centre’s role as a regional economic hub for the greater Frankston and Mornington Peninsula region, the health and prosperity of Frankston CAA – real or perceived - impacts upon other commercial precincts and economic nodes within the municipality.

Significant attention needs to be focussed on strengthening Frankston CAA’s role as the Frankston and Mornington Peninsula region’s capital, and reinforcing its role in metropolitan Melbourne. If the CAA is deemed to be a desirable place in which to invest and operate a business

– it will support other industry sectors and smaller commercial precincts throughout the municipality.

Similarly through our Strategic Planning processes (and specifically through the Frankston City Municipal Strategic Statement) Frankston City Council has the opportunity to formalise this hierarchy of priority of commercial centres – preserving Frankston CAA as the primary commercial hub in the municipality. An example of this is the Structure Planning process relating to Karingal and Seaford, as well as the implementation of the Frankston City Industrial Strategy.

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3.3 Spatial Context cont’d

3.3.1 Activity Centre Network

Frankston’s city centre is nominated as one of six suburban Central Activity Areas in State Government metropolitan policy. A CAA is envisaged to perform a similar role to Melbourne’s Central Business District, but at a regional level. A CAA is expected to be established as a centre of commercial, retail, specialised personal, entertainment, education, government and tourism activities and accommodate high job numbers and mixed use living and working environments.

Significant population levels are expected to be accommodated in and around CAAs. High levels of walking, cycling, public transport and car accessibility are expected. The clustering of development within the CAA’s around public transport hubs positively contributes to lowering the carbon footprint of metropolitan Melbourne, while making these regionally significant centres more productive and accessible for a broad range of communities.

In relation to Frankston CAA, Dandenong is the closest CAA to the north, and other activity centres of significance are the Principal Activity Centres of Southland, Fountain Gate and Cranbourne. The Major Activity Centres of Mornington, Rosebud and Hastings to the south and Karingal to the east (the only listed activity centre also within the municipality).

3.3.2 Poly-Centric City: Diffusing Opportunities and Boosting Productivity

The CAA concept is central to the implementation of Melbourne @ 5 million, which is the State Government’s updated Melbourne 2030 metropolitan strategy.4

Primary suburban centres have been nominated in the revised policy framework to help manage economic and service development across the growing metropolis. Melbourne has reached a point where effective job and service delivery to much of the population in outer suburbs and growth areas is increasingly difficult. Increasing inner

and middle region congestion necessitates that high order opportunities be provided in suburban regions, with the plan being to agglomerate such activity into priority centres (i.e. the CAAs).Without successful CAAs, large segments of the urban population will become increasingly vulnerable to poor access to jobs and services and social exclusion.Establishment of effective CAAs is not only about managing risks, but also about creating and taking economic opportunities.

A study of the relationship between effective job density5

and business productivity shows that regions that have higher effective job densities (as observed in successful business districts and activity centres) generate higher levels of economic productivity. Analysis suggests that a doubling of effective density delivers a 7% boost in productivity on average. This varies by economic sector, with benefits to activity centre businesses being even stronger.

4 NB/ as a result of the November 2010 Victorian State Government election results which resulted in a change of Government, there may be a change in state planning policy. However, at the time of authoring and printing of this Strategy, other than altering the titled Frankston CAD to CAA the outcome and impact of this is not known.5 Effective job density refers to the weighted average travel time from one point to all other points in the metropolitan geography, and is therefore a proxy for agglomeration. (SOURCE: SGS Economic and Planning)


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3.3.3 Relative Disadvantage of Frankston CAA

Frankston has by far the lowest access to employment of all the CAAs in Melbourne. In 2006, just over 72,000 jobs were within 30 minutes drive from Frankston. While this number was predicted to increase to over 132,000 by 2011, Frankston will still have the lowest access to jobs. This reflects Frankston’s location more on the fringe of the metropolitan area and the relatively dispersed nature of the region. That Frankston CAA is a bayside city is its greatest advantage, but also

Frankston CAA’s existing catchment, based on drive time, is shown in Figure 6. The same information for selected competing centres is shown in Appendix 2. 6&7 Estimates are based on travel times during weekday morning peak (7am – 9am) in a private vehicle.

causes some difficulties. We have many beautiful coastal advantages that the other metropolitan CAAs don’t have (including beaches, tourism appeal, general coastal lifestyle and amenity), it also means that Frankston CAA’s potential catchment area is immediately reduced to 180º rather than the full 360º that the other CAA’s benefit from. Footscray’s high figure in part relates to its proximity to central Melbourne, and Box Hill’s 519,878 jobs can be deemed a benchmark for relative success in the suburbs.

Table 1 – Frankston CAA Comparison Variables, 2006

Number of jobs within Drive time to Drive time 30 minutes drive Melbourne CBD6 to Airport7

Footscray 573,854 26 25

Box Hill 430,602 37 52

Dandenong 216,532 62 90

Ringwood 208,162 51 67

Broadmeadows 164,088 51 22

Frankston 72,088 90 115

SOURCE: Department of Infrastructure and ABS JTW, analysis by SGS Economics and Planning

Table 2 - Frankston CAA Comparison Variables, 2011 Projections

Number of jobs within Drive time to Drive time 30 minutes drive Melbourne CBD to Airport

Number % of MSD

Footscray 712,466 46.1% 18 38

Box Hill 519,878 33.6% 34 58

Dandenong 456,857 29.6% 40 63

Ringwood 394,761 25.5% 40 65

Broadmeadows 240,222 15.5% 36 26

Frankston 132,311 8.6% 59 82

SOURCE: SGS Economics & Planning (Derived from Melbourne Integrated Transport Model, Department of Transport)

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3.3.4 Catchment Opportunities and Risks

The extent to which Frankston can fulfil a CAA role will in large part depend on its capacity to service a large catchment via transport links. The effective role of activity centres is constantly evolving due to:• Urbandevelopment,demographicandpopulation changes within the region; • Changesinthecompetitivecontext,intermsof investment in and attractiveness of competing activity centres in the region; and • Investmentintransportsystems,whichinfluences accessibility to centres and their relative attractiveness.

The anticipated opening of Peninsula Link (formerly known as the Frankston Bypass) in 2013 will provide significant advantages and challenges to Frankston CAA. The additional route from Eastlink to the Mornington Peninsula (without traffic calming measures) will provide an appealing alternative to through traffic. This should alleviate congestion pressures within, and on the periphery of Frankston CAA. However, Peninsula Link will also divert traffic away from the CAA, and with it potential customers and visitors.

Although the opening of Peninsula Link also brings with it great opportunities to reconfigure and reprioritise existing transport routes within the CAA – most notably it will enable the improvement of the amenity of Nepean Highway in the CAA. While not confirmed at the time of adoption of this Strategy, this could include reducing Nepean Highway from a six-lane highway to a boulevard that attracts business as well as facilitates an east-west pedestrian movement between the Frankston Waterfront and the CAA.

The most relevant areas in terms of Frankston CAA are Frankston City, Mornington Peninsula Shire and the Cranbourne component of City of Casey. The population of that area is shown below, along with the population of Frankston City and a regional super-catchment of four municipalities. The data suggests significant opportunity to position Frankston CAA for growth and investment.

Table 3 - Population Estimates and Projections

Area 2006 2011 2016 2021 2026

FRANKSTON LGA 121,587 130,465 139,262 147,766 155,813

FRANKSTON LGA, MORNINGTON PENINSULA LGA AND CRANBOURNE SLA 328,391 374,106 416,310 450,323 470,571

FRANKSTON LGA, MORNINGTON PENINSULA LGA AND CASEy LGS 484,672 549,191 605,532 659,133 693,056

SOURCE: VIF 2008


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Figure 6 . Frankston CAA’s Catchment

3.3.5 Industrial Areas

Local and regional industrial areas are a significant part of the economy – providing 12.5% of local employment andcontributing$2.8B(30.6%)outputtothelocaleconomy.Growth in businesses and jobs is expected in the industrial areas which will generate flow-ons through the economy via supplier and customer relationships. This will include increased demand for business services input into industrial processes and in this regard Frankston CAA is positioned to play a strategic role in hosting business service firms in fields like accounting, engineering, marketing and other specialist input.In Frankston City, important industrial areas are located at Carrum Downs (the City’s flagship sustainable industrial park), Seaford and Frankston. Smaller industrial precincts are also located at Langwarrin and Frankston East.The combined Carrum Downs/Seaford industrial precinct contributesapproximately$2.4Btotheeconomy(25.9%ofFrankston City) and employs 4,632 individuals (13.8% of all employment within the municipality)8.Further afield, Dandenong South accommodates one of Australia’s most significant industrial nodes for manufacturing and logistics. In addition to this area, the Hastings industrial area is positioned to perform a strategic future role in shipping and logistics, and the Port of Hastings could be established as the primary container hub for Victoria in the future. Frankston would be ideally positioned to perform the business centre role for that hub in the future, assuming strategic transport connections are improved.

map to come

8 SOURCE: REMPLAN – Carrum Downs/Seaford November 2010 Sou

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3.3.6 Employment Generation and Skills Development

Frankston City Council, in partnership with key stakeholders, is committed to facilitating an environment that supports an innovative and resilient business community which provides sustainable economic growth and diverse employment opportunities. A strong focus on up-skilling our labour force is applied to assist with enabling our community to secure accessible and fulfilling employment opportunities.

This Strategy recognises that Frankston City has the most potential to improve local employment opportunities through focusing on our existing industry-sector strengths and leveraging off our key points of difference – including our ability to deliver a good work/life balance. To this end, the Strategy seeks to strengthen the following sectors:• HealthandWellbeing; • Education(increaseddeliveryofhighereducation);

• TourismandHospitality; • BusinessServices;and • Retail(anexpandedretailoffer).

It also proposes the targeting new employment opportunities, specifically in: • Clean-TechandGreenBusiness;and • GovernmentServiceswithinFrankstonCAA.

3.3.7 Port of Hastings Connectivity

After rigorous consideration of the full environmental, social and economic impacts and benefits of any proposed expansion of the Port of Hastings, should the State Government pursue the expansion, there will need to be significant investment in the rail linkages from the Port.

The short-medium term proposal to transport freight along the existing Frankston and Stony Point rail line (with potentially 40 freight movements in each 24 hour period) poses serious concerns – impacting upon the amenity of residents in the vicinity of the rail line as well placing

additional pressures on passenger transport and at current road and rail crossings. Government and private sector need to invest in the preferred solution of rail transportation along the Western Port Highway corridor to mitigate this risk.


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3.3.8 Valuing our Green Wedge

While it is important for economic prosperity to strategically expand the regional catchment, with a view to generate a critical mass of people to support higher order services and jobs and make efficient use of existing and planned infrastructure, this should be done in a carefully evaluated manner that does not negatively impact on the amenity of our area.Frankston City and Mornington Peninsula have significant land stocks zoned ‘green wedge’ between settlements, including along rail lines and along major road corridors. Since the early 1970’s Frankston City Council has endorsed the retention of the Green Wedge Zones within the municipality as important open spaces in their own right, as well as providing significant buffer zones around high

significance environments – most notably Seaford Wetlands, Langwarrin Flora and Flora Reserve and the Pines Flora and Fauna Reserve, amongst others. In addition to providing local, state and nationally significant environments, the green wedge (as well as other non-Green Wedge zoned open spaces) contribute to the health and wellbeing of our local communities through improved physical and mental health, lower mortality rates and the development of young children.9

Additionally the Green Wedge Zone to the north of the municipality provides an important buffer to the Eastern Treatment Plant.The Green Wedge zoned land is recognised as providing local agricultural opportunities, which is significant given the fresh food drought that is evident within the municipality.

Linking in with other recycled or reclaimed water projects (such as the Bunyip Food Belt in adjoining municipalities) the capacity for the Green Wedge land to provide and protect productive agricultural areas, employment and even agri-tourism opportunities is even more important.Given the conversion of adjacent land in Dandenong South and Cranbourne West into industrial and residential estates, and the recent announcement of the State Government to evaluate logical inclusions into the Urban Growth Boundary – it is critical for Frankston City Council to develop a Green Wedge Management Plan to be better able to respond to redevelopment requests relating to the South East Green Wedge and the Mornington Peninsula Green Wedge.

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9 Vic Health CEO, Tedd Harper – as reported in the Age (20/12/2010) – “’Garden State’ at risk as population flourishes.”

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3.3.9 CAA Analysis and Prospects

Job trends in the core areas of the six suburban CAAs in Melbourne are shown in Figure 7. This is based on Census job counts within defined core areas of each CAA.

For Frankston, the defined core is shown by the blue in Figure 8. Jobs and services are located outside the defined core - including the Hospital, TAFE, bulky goods precinct and light industrial areas - and as such the following analysis provides a core-based comparative assessment of CAAs.

Towerhill Rd

Woodlands Gr

Liddlesdale Av

Hastings Rd

Cranbourne Rd

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CHISHOLMTAFE

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Area

14,438

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1996 2001 2006

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Box HillBroadmeadowsDandenongFootscrayFrankstonRingwood

Figure 8 . Frankston CAA

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Figure 7 . Past Job Trends in the Six Suburban CAAs (Core Areas Only)

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3.3.10 Frankston CAA Growth Scenarios10

The Economic Development Strategy has been developed to provide a strategic framework for identified opportunities for sustainable and manageable growth of our local business community and workforce. The following section provides an overview of some scenarios that have been modelled demonstrating the potential impact of different levels of intervention. The figures provided in these scenarios are not targets, and should not be construed as such.

Employment

As the result of analysis of past employment and industry patterns in metropolitan Melbourne and its six suburban CAAs three employment projections have been developed for Frankston CAA. The three projections are based on the following scenarios:

Minor Policy Intervention Scenario In this scenario, investment that can be directly influenced by Government, such as government services, education and health spending, is directed into the CAAs and Frankston CAA.

Enhanced Policy Intervention Scenario In this scenario, the above stated Government intervention is undertaken and additional initiatives are undertaken to attract a greater share of private sector investment to the CAAs.

Business As Usual Scenario In this scenario the CAA maintains its 2006 share of metropolitan employment into the future.

10 SOURCE: SGS Economics and Planning

18,013

Business As Usual

Minor Policy Intervention

Enhanced Policy Intervention

14,601

10,642

1996 2001 2006 2011 2016 2021 2026 2031 2031 2036

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4,000The results of the three pathways for Frankston CAA are shown in Figure 9. So

urc

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Figure 9 - Job Projections for Frankston CAA

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Development to support projected Employment Growth These job figures can be expressed in floor space terms per square metre. Assuming that an activity centre average worker rate is 30 sqm per job (across all types of industry sectors), the above figures translate as follows:

• BusinessasUsual +3,400 jobs = 102,000 sqm of development;

• MinorPolicyIntervention +7,300 jobs = 219,000 sqm of development; or

• EnhancedPolicyIntervention +10,700 jobs = 321,000 sqm of development.

Based on the final VicCLUE survey results from 2009, the Enhanced Policy Intervention Scenario would result in an increase of 82% over existing commercial floor space11.

11 SOURCE: VicCLUE 2009 – “Summary of Floorspace, Establishments and Employment by Industry”

These scenarios suggest that an elevated development trajectory could be taken with policy intervention as follows:

Minor Policy Intervention Scenario In this scenario, Frankston CAA could achieve about 14,600 jobs in 2036, or about 3,900 more than on current (Business as Usual) trends (or +7,300 jobs on the 2006 job estimate). This is roughly equal to the size and influence of Box Hill in 2006.

Enhanced Policy Intervention Scenario In this scenario, Frankston CAA would achieve about 18,000 jobs in 2036, or about 7,300 jobs more than on current trends (or +10,700 jobs on the 2006 job estimate). There is no current equivalent centre of this size in suburban Melbourne.

On a current trend (Business as Usual Scenario) basis, Frankston CAA is likely to grow its stock of jobs from about 7,300 jobs in 2006 to about 10,700 jobs in 2036 (or +3,400 jobs on the 2006 job estimate).

To put this into context, this suggests that in 2036, Frankston CAA is still likely to be smaller than what Dandenong CAA was in 2006 in economic terms.

Dandenong CAA is not considered a completely successful CAA at the current time, and on that basis “success” for Frankston CAA is unlikely to be realised in the long term future based on its current trajectory.

Therefore two additional employment projection scenarios are provided based on the assumptions previously noted.



Employment cont’d

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Residential Growth

In addition to this job generating development estimate, a floor space allowance for housing needs to be added into the capacity equation. Assuming 1.5 persons per CAA dwelling and a gross space allowance of 80 sqm per apartment, the floor space allowances shown below would need to be made for apartments depending on the population target. With respect to the population target, case study research suggests that vibrant and successful centres have an equal mix of residents and jobs and on that basis a target of 18,000 residents could be explored for Frankston CAA.

• 1,000residents = 54,000 sqm of development;

• 5,000residents = 267,000 sqm of development;

• 10,000residents = 534,000 sqm of development; and

• 18,000residents = 960,000 sqm of development.

With approximately 155,000 residents expected to be accommodated in Frankston City (as a result of Melbourne’s growth estimates), and the earlier projection that the City’s greenfield sites will be at capacity by 2016 – it is not unrealistic to expect a significant proportion of residential accommodation to be centred in Frankston CAA – especially given that State Government planning policy encourages higher density living in the CAAs. Frankston CAA has the capacity to accommodate the redevelopment of existing residential properties on the northern and southern fringes, as well as the opportunity to encourage the development of structures within the CAA that incorporate a residential component.

Total Development

Using the two high end estimates shown - 18,000 jobs at 2036 (or net change of 10,700 jobs) and a total of 18,000 residents - the CAA and it’s adjoining residential fringes would require up to 1.28 million sqm of development capacity over the next three decades or so. For Frankston CAA, the challenge is to understand if, and how can the CAA accommodate the 1.28 million sqm of new development by 2036. Therefore, further investigation into the CAA’s capacity to cater for this level of development needs to occur.

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Availability of large scale development sites and development capacity For some development types, especially large scale projects, it is necessary to obtain a large parcel of land. The bigger the site, the greater the interest from the top tier developers. Large scale developers, that deliver master-planned projects, generally avoid overly complex sites that require significant and risky site consolidation and planning complexity unless the project value is significantly high (such as in inner metropolitan sites).

Capitalising on unique selling points Major developers seek to differentiate their projects from others by locating in an area that offers some advantage, such as being near water or having views or being near an established urban attractor. In greenfield developments, where there are few unique locational features, major developers will now routinely build water and landscape features to offer a point of difference. Frankston CAA has a clear unique selling point advantage by virtue of its bayside location, and by the high quality of the water and beaches in the region. The challenge is to fully capitalise on this advantage by better connecting the CAA to the bay.Frankston City also has the opportunity to leverage off its beautiful bayside location, rich natural environmental assets and its proximity to the Mornington Peninsula to develop a robust year round tourism sector.

Direct and indirect investment generation from large scale tertiary education campuses Demand can be significantly increased from the establishment of a major institution such as a large-scale tertiary education campus. Major tertiary education campuses have been observed to directly and indirectly stimulate demand and activity in a number of property markets, including food, entertainment, housing and officesCase studies show that students play an important role in:• Directlystimulatingthelocalconsumptioneconomy for food, entertainment and services, which boost street level activity, vibrancy and perceptions of safety.• Directlystimulatinganapartmenthousingmarket. Developers are often reluctant to be ‘pioneers’ in building apartments in areas that have little price and leasing evidence. In this context, large student populations have been observed to justify investment and provide the broader property market with price evidence to support ongoing investment and development in apartments.• Supportingthelongertermdevelopmentofthe commercial office market via the up-skilling of the workforce and retention of graduates in existing and new businesses in the local area.The challenge for Frankston CAA is to capture a critical mass of higher education activity to generate investment and wider social and economic benefits. It is assumed in the Minor and Enhanced Policy Intervention Scenarios that future regional investment in higher education is channelled into Frankston CAA.


3.3.11 Making It Happen: A Review of Case Studies

Selected case studies on activity centre investment activationandbroaderurbandevelopmenttrendshavebeenreviewedandareavailableuponrequest.Thecasestudiesexaminethelatesttrendsinurbandevelopmentandurbanrenewalwithaviewtoidentifying lessons for Frankston CAA.

Themainlessons,whicharedeemedrelevantforFrankstonCAA,areasfollows.

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Direct and indirect investment generation from hospitals and government offices Similar to tertiary education, demand can be increased from the establishment of major hospitals and government offices. However, as a general rule, the broader impact on the local consumption and housing markets appear to be less significant than a major tertiary education campus because the staff of hospitals and government offices tend to be less concentrated in their place of work compared to students and their place of study.Like, higher education, it is assumed in the Minor and Enhanced Policy Intervention Scenarios that future regional investment in higher order government services and health is channelled into the CAA.

Importance of residential element in CAAs Increased residential accommodation has been found to significantly contribute to the prosperity of commercial precincts. By virtue of increased patronage in commercial precincts it contributes to the safety and the ongoing monitoring of safety, cleanliness and maintenance issues. Additionally the local residents are more likely to actually increase consumption of goods and services in a local area – thereby also further perpetuating the prosperity of a commercial precinct.

Investment generation from transport infrastructure and service improvements Transport infrastructure has long been observed to directly impact on demand and land values. Investment in centres has been facilitated by improved access between a centre and its catchment area and from improving access between a centre and other important economic nodes. For Frankston CAA, the spatial structure of the region presents a range of challenges in effectively and positively linking the CAA to its large and growing catchment population. Catchment related challenges relate to effectively linking the CAA to:• ThedispersedcatchmentsofFrankstonCityand Mornington Peninsula, given the relatively large and spread out nature of development in the region; • TheCaseygrowthareas,inparticulartheexistingand proposed growth areas of Cranbourne; and• TheWesternPortlogisticshubatthePortofHastings.Improving links between the CAA and these areas will require a significantly improved transport system via better road links and better public transport links and services. This should include consideration of electrifying the existing rail lines to Stony Point and/or re-establishing former rail lines to Mornington East.

The effect of transport systems on the CAAs catchment is shown in Figure 6 (using travel time). This shows that a 20 minute catchment from Frankton CAA in the morning peak is fairly limited due to local area congestion. The same measure for Dandenong CAA (see Figure 10, Appendix 2) shows a much larger catchment due to superior transport networks in and around that centre, as well as access to a 360º catchment (where as Frankston’s bayside location halves its geographical catchment).

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This section presents an overview of local government’s role in economic development facilitation. Specifically, this section provides an overview of the sorts of activities Council can pursue, acknowledging that it has jurisdictional and funding limitations. These limitations must be understood when moving from the strategy vision and objectives to implementation.

4.1 Role of Council

Economic Development 04 Strategy Action Plan

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Addressing the Preconditions for Investment

Council clearly has a valid and important part to play in promoting and facilitating local economic development. However, Council must work within its jurisdiction and resource limitations to support sustainable growth.

Articulating (and budgeting for) the economic development activities and priorities in this regard is expressed in the action plan of this strategy.

Council is not the main ‘driver’ of local economic development. This is the role of business and industry.

Experience shows that councils can play an effective role in influencing what are termed the ‘pre-conditions for a competitive environment’, which include:• Efficientandeffectiveinfrastructure;• Anappropriatelyskilledworkforce;• Supportivegovernancestructures;and• Stronglinksbetweenresearchandlearning institutions and business to encourage industry innovation.

Strategic infrastructure is a critical economic foundation input. Traditional (hard) infrastructure, while critical for local and regional economic prosperity, is not on its own sufficient. Globalisation and structural change have shifted the drivers of regional competitiveness to areas that have both high quality ‘old economy’ infrastructure and ‘new economy smart infrastructure’. The latter is those elements that support and encourage creativity and the diffusion of ideas in the local economy. This includes skills, culture, good governance, social cohesion and quality of life.

Local Government as an Existing Leader in Economic Development Facilitation

Frankston City Council, like any local government authority, has a charter to serve its local community. This includes nurturing a spirit that will help its businesses and residents adjust to economic change and to identify and capitalise on opportunities for economic growth and development as they arise.

The existing role of Council in economic development includes:• Strategiclandusemanagement.• Managingtheearlystagesofprojectdevelopment through its role in development approvals (eg. planning, building, engineering).• Investingintheprovisionofdevelopmentinfrastructure that facilitates business and community activity and

sustains environmental quality (eg. roads, drains, community facilities and parks, gardens and reserves).• Deliveringcommunityservicesthatsupporteconomic activity and promote the health and well-being of the local population (eg. child care, recreation and cultural services, aged care services).• Being(inmanycases)thefirstpointofcontactforlocal businesses and the community in relation to day-to-day concerns that affect the immediate environment for business production and quality of life (eg. local land use conflicts and their resolution, lobbying other spheres of government for attention to problems outside Council’s responsibility, providing information on changes to regulations).

In undertaking these activities, Council is directly influencing the way in which the local economy (and its surrounding region) develops.

Even though Council has an Economic Development Team dedicated to working to improve the economic environment, the responsibility for the delivery of the above roles are dispersed across many areas of Council. Therefore the effective implementation of this Strategy must be viewed as a whole of Council approach.

Additionally there are many projects and programs referred to in this Strategy that are provided or delivered by external stakeholders – not Council. Therefore the implementation of this Strategy must necessarily in its broadest sense be seen as a community-wide responsibility.

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4.1 Role of Council cont’d

Prioritising Council Activities and Resources

Frankston City Council can have an effective impact in economic development by developing actions from the following topics.

Supporting a conducive business (and people) environment; for example:

• AmendingthePlanningSchemetoreflectstrategic economic objectives; • Undertakingspecificinfrastructureand/ordevelopment projects; • Providingbusinessinformationandadvisoryservices;and • Managingaco-ordinatedapproachtoregionaleconomic development (eg. regional partnerships).

Facilitating business investment from local and external sources; for example:

• Establishingandfacilitatingbusinessnetworks and clusters; • Undertakinglabourmarketinitiatives; • Businessincubationinitiatives; • Importreplacementinitiatives; • Exportmarketdevelopmentinitiatives;and • Marketing,promotionandpublicrelationsactivities.

Delivering Frankston CAA: State and Council Investment to Date

FrankstonCAAhassecuredapproximately$24.4millionofinvestmentfromStateGovernmentasattheStateGovernmentelectionsinNovember2010, whichrepresentedabout4.9%ofallCAAinvestmentaccordingtoFrankstonCityCouncil.Aone-sixthshare(16.7%)wouldbeequivalentto$86million.

Frankston City Council is developing a work program to examine the following matters in relation to the Frankston CAA.

• UpdatingtheFrankstonTAFEtoBayStructurePlan (2005) to meet projected population growth in the CAA and realise its full potential as the capital of the Frankston and Mornington Peninsula region. • UndertakegrowthscenariomodellingfortheCAA to determine its residential and employment capacity, floor space requirements and social and physical infrastructure needs.

• UpdatingtheStreetscapeStrategy(especiallyinrelation to Frankston CAA) to inform and guide public land development. • Reviewingthepotentialoflargelandholdingsto facilitate CAA development, especially land owned by Council and Government agencies. • CompletingtheFrankstonYachtClubandLongIsland Precinct redevelopment and facilitate the activation of the Kananook Creek and Frankston Waterfront. • Seekinginfrastructureandseedinvestmenttoleverage private sector investment. (As an example, State Government investment in the Geelong foreshore of $55millionhasleveragedalmost$500millionofprivate sector investment).

• Continuingtopartnerwithleadinginstitutionssuch as Chisholm Institute of TAFE, Monash University and Peninsula Health Network (incorporating Frankston Hospital). • DelivertheFrankstonRegionalAquaticCentre. • ObtainingStateGovernmentcommitmentandfunding to deliver the Frankston Train and Bus Transit Interchange and rail line extension to Baxter. • DevelopaCarParkingandTrafficStrategyfor Frankston CAA.


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A list of actions has been identified to help deliver the objectives of the Economic Development Strategy. These are shown in Appendix 1. Each relates to an objective with some objectives having multiple tasks identified for them. The actions have been developed based on an understanding of Council’s role in economic development, experience elsewhere, and via consultation with Council staff.

4.2 Action PlanWhat can Council do to help achieve the objectives and the overall vision of this Economic Development Strategy?

The list of Actions marked with is deemed to be of priority. The delivery of these priority projects also has numerous flow-on benefits to the Frankston CAA, the whole of the municipality and the broader Frankston and Mornington Peninsula region.

The list of actions supports comprehensive implementation of this Economic Development Strategy more broadly throughout the municipality.

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4.3 Performance Indicators


Overarching Performance Indicators Four overarching metrics that can measure progress against the strategy are as follows:

Action Plan Performance Indicators

Achievement of the priority of actions in the period 2011–2015 will begin the process of strategy implementation. It is recommended that actions listed in Appendix 1 of this strategy be subsequently undertaken to give full effect to this strategy.

1. The community’s perception of Frankston City with respect to the vision statement of this strategy • measured(everytwoyears)bymarketresearchsurveying • withinterimsuccessbeinganimprovingperceptionrating • withultimatesuccessbeingahighlyfavourable perception rating 2. Job density in the municipality • measuredeveryfiveyearsbyABSCensusdatasources as a ratio between jobs in the municipality and population living in the municipality • withinterimsuccessbeinggrowthinjobsinrelation to population size • withultimatesuccessbeingajobtopopulationratio equal to the 2006 metropolitan average (41.3% = +13.4%) • %vacancyratesinselectedcommercialprecincts and economic nodes

3. Job counts by industry sector in the municipality respect to the vision statement of this strategy • measuredeveryfiveyearsbyABSCensusdatasources • withinterimsuccessbeinggrowthinindustrysectors and sub-sectors that are targeted in this strategy • withultimatesuccessbeingestablishmentoftargeted industry sectors and sub-sectors as recognised advantages of the local economy 4. Job counts, resident population and floor space stock in Frankston CAD. • measuredeveryfiveyearsbyABSCensusdatasources for jobs and population, and by Council development data for floor space stock and/or VicCLUE survey • withinterimsuccessbeinggrowthinjobs,population and development in the CAD • withultimatesuccessbeingdeliveryofthe Frankston CAD

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05 Review PeriodFrankston City Council’s Economic vision is aspirational for 2025.

The life of this strategy is five years (2011-2015), with specific attention placed upon identified priority projects during this time.

A full review of this Strategy will commence in 2014 to ensure continuity with subsequent Strategy.

The Actions listed in this Strategy will be reviewed a minimum of bi-annually to ensure currency with current economic conditions, Government policy, and specific economic development needs that may change during the life of this Strategy.

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06 Appendices

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Objective Action No. Actions (ie. how can council influence this objective)

THEME: Sustainable EconomyObjective SUST1 To grow the number and diversity of jobs in the City to:• bettermatchthesizeandstructureoftheFrankstonand

Mornington Peninsula’s population base; • minimisework-relatedcommutingfromtheregion;and• encouragereverse-commuting

(against the main peak hour flows).

1 Prepare an investment attraction strategy aimed at facilitating investment from existing businesses in the area, attracting new investment from external sources and winning a higher share of State and Federal grant funding (refer also Action 62).

2 Review the capacity of the Frankston Planning Scheme to deliver jobs by making an estimate of the ultimate employment capacity of the City.

3 Identify ways of revising the planning scheme to deliver more investment and employment in the municipality, while accommodating more CAA based residential development.

4 Identify, rank and advocate delivery of infrastructure projects in terms of their capacity to stimulate investment and jobs growth and work with other agencies and the private sector to deliver priority projects.

THEME: Sustainable EconomyObjective SUST2 To position Frankston City as a national leader in sustainable industries, such as in recycling and sustainable energy and resource use technology and resource sharing.

5 Through a range of programs and projects, encourage businesses to operate in a socially sustainable and environmentally sensitive manner.

6 Undertake an audit of the sustainable industry sector of the City and region and identify ways Council and other partners can assist in growing the sector.

7 Lobby State / Federal government to deliver projects and programs identified in the sustainable industry audit.

8 Continue to explore ways in which recycled water from the Carrum Treatment Plant and water reclaiming projects can be used for business investment and household benefit.

9 Prepare a marketing and promotion campaign to raise awareness of the sustainable industry sector and to attract investment.

10 Develop a Green Wedge Management Plan to reflect Council’s and Government’s position on the Green Wedge Zone within Frankston City. This should include:• AnalysisofmarginalGreenWedgeZonedland;• AssessmentofeconomicopportunitiesthatareconsistentwiththeGreenWedgeZoning;and• Identificationandimplementationofprojectswhichassistourcommunitytodeliverfreshfoodsecurity.

THEME: Sustainable EconomyObjective SUST3 To support and grow the micro, small and medium sized business base of the City, focusing on sustainable industries, advanced manufacturing, creative industries, office-based business services, home-based business and Central Activities Area activities.

11 Undertake an audit of the micro and small business sector of the City and region and identify ways Council and other partners can assist in growing the sector.

12 In partnership with key stakeholders, explore the feasibility of establishing a business incubation service in Frankston City geared to supporting micro and small businesses in target sectors either onsite or in a virtual capacity.

ThefollowingtableprovideafulllistingofactivitiesthatwillassistwithachievingCouncil’sEconomicVision.Astheselistedactionsaregenerallythehigherorderstrategicactivities,itmaynotreflecteveryactionthatCouncilundertakesthathasanimpactuponthelocaleconomyandit’slearningopportunities.ActionsmarkedwitharedeemedtobeofprioritytoassistwiththedeliveryofFrankstonCAA.

6.1 Appendix 1 - Action Plan

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THEME: Innovative EconomyObjective INN1 To expand the role of Frankston City as a primary, secondary and tertiary education and training hub for south east Melbourne and the Mornington Peninsula, and where possible provide a seamless relationship between regional education and training providers and local businesses.

13 Strengthen and expand the regional education cluster group with a view to better understand the sector and emerging trends and ways in which the local sector can be improved and supported, including facilitating the development of a local Trade Training Centre.

14 In collaboration with Frankston Learning City Partners, provide support for the education cluster group including lobbying of State and Federal Government on the cluster's behalf.

15 Facilitate annual industry and education cluster group forums to better share information, communicate industry training needs and trends, and identify ways industry can better partner with the education sector.

THEME: Innovative EconomyObjective INN2 To nurture an environment that facilitates the emergence of:• Newwaysofworkingandrelating;• Neworganisationalforms;• Thegenerationandsharingofknowledge;• Inquiringandquestioning;• Fosteringcreativity;and• Anembeddedlife-longloveoflearning.

16 Annually review and implement the Frankston City Learning City Action Plan.

17 Explore opportunities to boost sustainable industries education, training and research (via regional education and training providers).

18 Strengthen the role Frankston City as a health and wellbeing hub, understand the sector’s emerging trends and identify ways in which the local sector can be improved and supported - including lobbying of State and Federal government.

19 Work with and involve the education cluster group in undertaking the audit of the sustainable industry sector and implementing subsequent projects and programs that strengthen the sector.

20 Undertake a detailed economic supply chain analysis of the City and regional economy that maps economic dynamics including export and import activities.

THEME: Innovative EconomyObjective INN3 To promote export activity and import substitution (by better understanding local economic dynamics and supply chains).

21 Prepare an annual economic indicators bulletin to monitor key economic, demographic and property market indicators for the City in relation to the region and metropolitan area.

22 Use the economic analysis information to identify strategies Council can undertake to boost local export performance, import substitution, employment and training opportunities.

THEME: Inclusive EconomyObjective INC1 To establish a seamless integration between employers and service providers (including pre-employment, career, education and training services) to enable the most disadvantaged and least active members of the community to gain employment.

23 Undertake a detailed audit of social and workforce disadvantage in the community, focusing on youth and young adults, with a view to better understand the challenges and develop initiatives to improve education, employment and social outcomes in the community.

24 Lobby State and Federal government, using the social and workforce audit information, to deliver better services and programs to advance training and employment outcomes in the community.

25 Continue to be an active partner in the development and review of the Centrelink Local Connection to Work Australian pilot project.

6.1 Appendix 1 - Action Plan cont’d

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THEME: Inclusive EconomyObjective INCL2 To consolidate a shared regional economic understanding with surrounding municipalities, in particular Mornington Peninsula Shire.

26 Undertake an annual regional development forum with Mornington Peninsula Shire and other surrounding councils to develop economic development and investment attraction initiatives for the region.

27 Work with south east regional partners to identify ways of improving economic outcomes that benefit Frankston City.

28 Utilise the Melbourne South East group to explore whether a southern Melbourne employment corridor that includes Frankston City can be identified for presentation to State Government for inclusion in the next version of the metropolitan Strategy (given that an employment corridor is not identified for the Frankston City and surrounding region in Melbourne @ 5 million).

THEME: Inclusive EconomyObjective INC3 To take full advantage of the resident skills base of the wider Frankston City and Mornington Peninsula region as a driver of local business development.

29 Undertake an audit of regional journey to work patterns and explore ways in which local employment containment can be improved (including maximising reverse commuting).

30 Utilise a wide range of programs to promote work-place-based experience and learning opportunities that increase awareness of career pathways, and improve connectivity between students, mentors and prospective employers.

THEME: Inclusive EconomyObjective INC4 To support business and community networks in the municipality that are led by stakeholders who are passionate about Frankston City and willing to form effective strategic alliances.

31 Continue to work with, and support effective business and community networks such as the Frankston City Economic Development and Frankston CAA Advisory Committees, the Greater Frankston Business Chamber and other relevant groups.

32 Provide regular communications for local business that consists of a summary of all relevant State and Federal government initiatives, programs, legislation updates and grant funding opportunities.

THEME: Inclusive EconomyObjective INC5 To deliver a high quality, high amenity, accessibility and safe environment in the City.

33 Develop and implement urban and streetscape strategies in partnership with landowners, tenants, other tiers of Government and the broader community.

34 Undertake regular audits of range of key performance indicators that provide a gauge on the health and prosperity of local business communities.

35 Continue to identify and implement opportunities to improve access to, and within, local communities.

THEME: Inclusive EconomyObjective INC6 To improve transport infrastructure links and services to the Mornington Peninsula, South East Melbourne and central Melbourne.

36 Work with regional transport stakeholders to improve transport and accessibility outcomes for the CAA, City and region – including lobbying of rail links to Port of Hastings along the Western Port Highway Corridor.

37 With the completion of Peninsula Link, ensure delivery of improved links between, into and around Frankston, including the reconfiguration and reprioritisation of existing transport routes within the CAA.

38 Explore opportunities to establish significantly improved local transport links between Frankston CAA and Cranbourne, Hastings and Mornington.

39 Explore opportunities to established significantly improved transport links between Frankston CAA and Dandenong CAA and Melbourne CBD.

THEME: Inclusive EconomyObjective INC7 To ensure telecommunications and information technology services are delivered to best practice standards across in the City.

40 Undertake a municipal audit of existing and proposed telecommunications and information technology services benchmarked to best practice.

41 Use the telecommunications and information technology audit information to lobby for best practice provision within the municipality and as a basis for winning grant funding.

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THEME: Preferred PlaceObjective PP1 To consolidate and expand the role of Frankston as the Frankston and Mornington Peninsula’s regional capital for retail, education, health & wellbeing, government and business activity and light manufacturing.

42 Review the existing municipal wide activity centre and employment areas strategic documents with a view to identifying opportunities and projects to facilitate appropriate development opportunities, while preserving the economic hierarchy of various commercial precincts within the municipality.

43 Explore feasibility of establishing one or more place management positions to deliver activity centre and employment area strategies and initiatives.

44 Continue to work with the CAA Advisory Committee and State government to deliver the Frankston CAA in accordance with State and local policy and adopted structure plan.

45 Undertake a retail and services brand and gap analysis with a view to identify gaps in the City and initiatives to attract investment where service gaps exist.

THEME: Preferred PlaceObjective PP2 To deliver Frankston CAA as high density, mixed use, 24-hour suburban city centre that has a very positive brand and image, in accordance with State policy.

46 Secure and deliver Government and Council infrastructure and seed funding to leverage private sector investment in Frankston CAA.

47 Attract one or more large-scale tertiary education campuses into Frankston CAA, and program all future major regional higher education investments into the CAA.

48 Attract regional scale government service, health and education investment into Frankston CAA.

49 Deliver the Frankston Regional Aquatic Centre as one of the key projects to deliver the redevelopment and revitalisation of Frankston CAA.

50 Develop the implementation plan for the TAFE to Bay Structure Plan, including assessing the CAA’s capacity to deliver significant new development.

51 Explore improved integration of foreshore and Kananook Creek precincts into a broader CAA area with a view to harness Frankston CAA’s main point of difference – the waterfront.

52 Audit Council and State Government and Agency owned land in and around Frankston CAA and develop a strategy to attract investment and release surplus land to the private sector.

53 Obtain funding to deliver the Frankston Train Station and Transit Interchange.

54 Continue to implement the Place Making activities in partnership with key stakeholders to help revitalise the CAA business community.

55 Work with the health cluster group to identify measures that can be undertaken to improve health and well-being services in the City.

6.1 Appendix 1 - Action Plan cont’d

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THEME: Preferred PlaceObjective PP3 To establish Frankston City as a regional tourism and visitation hub.

56 Implement the 2010 Frankston Tourism Strategy in partnership with industry.

57 Work closely with existing businesses to encourage them to recognise and build upon their role in the local tourism industry and the tourism potential of the greater Frankston region.

58 Support and facilitate the Safe Boat Harbour project.

59 Undertake a feasibility/demand study in relation to the capacity of Frankston City to become a conference industry centre.

60 Target investment opportunities that strengthen Frankston’s tourism sector and offer – particularly the provision of a variety of accommodation options.

THEME: Preferred PlaceObjective PP4 To boost the number of business owners and managers living in the City (by providing diverse housing opportunities that take advantage of the unique natural environment).

61 Undertake a housing market and labour force analysis and strategy with a view to develop initiatives geared to boosting in-migration to address skilled worker gaps.

THEME: Preferred PlaceObjective PP5 To raise awareness of, and enhance and protect the lifestyle and investment opportunities available in the City.

62 Undertake ongoing marketing and promotion campaigns to raise awareness of the local lifestyle opportunities and to improve the image and profile of the City.

63 Implement the business and investment attraction campaign to improve the awareness and perception of Frankston City as a preferred place to live, work, learn, invest and play.

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6.2 Appendix 2 – Catchments of Competing CentresFigure 10 . Dandenong CAA’s Catchment Figure 11 . Cranbourne PAC’s Catchment

Source: SGS Economics & Planning (Derived from Department of Transport Data) Source: SGS Economics & Planning (Derived from Department of Transport Data)

Figure 13 . Mornington MAC’s Catchment

Source: SGS Economics & Planning (Derived from Department of Transport Data)

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Figure 12 . Southland PAC’s Catchment

Source: SGS Economics & Planning (Derived from Department of Transport Data)

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6.3 Appendix 3 - Strategy Development Process and Supporting Information

Refer to the following body of supporting information for additional information:

• DraftSituationAnalysis(SWOT)(FrankstonEconomic Development Committee, December 2009)

• DraftFrankstonCityCouncilEconomicDevelopment Strategy 2008-2013 and Action Plan (Frankston City Council, September 2008)

• FrankstonEconomicDevelopmentStrategyBackground Report, July 2008 (The Planning Group for Frankston City Council, July 2008)

• Frankston2025–Avisionforourcommunity’sfuture;

• StateoftheCityReport2009(Frankston2025)

• FrankstonCityLearningCityActionPlan

• FrankstonCityCouncil’sHealthandWellbeingPlan

• FrankstonCityCouncil’sIndustrialStrategy

• FrankstonCityPlanningScheme–specificallythe Municipal Strategic Statement

• MelbourneSouthEastRegionalEconomicStrategy (2008) (SGS Economics and Planning Pty Ltd for Melbourne South East, September 2008) (not currently

endorsed by Frankston City Council)

• EconomicandDemographicRegionalProfile:South East Melbourne (SGS Economics and Planning Pty Ltd for Department of Innovation, Industry and Regional Development, May 2008)

• VicCLUESurvey,2009

• REMPLAN,2010

• SouthernRegionalHousingStatement,2006

• FrankstonCityCouncil’sCouncilPlan2010-2014,and

• Melbourne@5million(VictorianStateGovernment).

Thisdocumentpresentstheessentialfeaturesoftheeconomicdevelopmentstrategyandisbasedonasignificantbodyofsupportinginformationwhichhasbeencompiledinanumberofstudyprocessesoverthepastthreeyears.ThisdocumenthasbeenpreparedbyanalysingthesupportinginformationandviaconsultationwithtwospecialistadvisorycommitteesestablishedbyFrankstonCityCouncil:EconomicDevelopmentAdvisoryCommitteeandFrankstonCentralActivities Area Advisory Committee.

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Frankston City - the preferred place to live, learn, work, visit and invest . . .

Civic Centre, Corner Young Street and Davey Street, Frankston VIC AustraliaMail: PO Box 490, Frankston VIC 3199

Telelphone: 1300 322 322Telelphone: 1300 BALANCE

Facsimile: 03 9784 1094

Email: [email protected]: www.frankston.vic.gov.au/business

Website: www.businessfrankston.com.auWebsite: www.worklifefrankston.com

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