I DSDIP- BRIEF FOR DECISION

SUBJECT: Proposed approach for the development of a Gold Coast cruise terminal and associated development at the ~thport &oadw~r

Kece1veu RECOMMENDATION:

That you:

•

•

approve strategies and deliverables"JIPQ!t f;old Coast cruise terminal and associated S~r't-'Broadwater property development initiatives; and sign the attached Letter of Intent (Attachment 1)

Ref No: MBN12/270

J Date: 3 October 2012

Ho eff Seeney MP De uty Premier, Minister for State Development, Infrastructure and Planning

Date: t? I.e>~ <-.. . addressed to the Mayor of the Gold Coast City Council (GCCC) setting out the arrangements to deliver a cruise terminal and associated development.

BACKGROUND:

The government has expressed broad support for the Gold Coast Mayor's objective to deliver a cruise terminal on the Southport Broadwater to promote tourism and create jobs. To realise the opportunities the State's approach will be based on the following principles: • The Project is undertaken at no cost or risk to government; • The outcome minimises the ongoing maintenance dredging costs (and rrurunuses other

hydrological issues within the broader Broadwater environment) through innovative design and management;

• The Project is delivered by 2018; and • The Project, via associated development, contributes to the further economic development of the

Broadwater (for example residential, entertainment I tourism infrastructure, and retail).

KEY ISSUES:

Proposed approach:

In the attached map (Attachment 2) there are three key zones identified: • Cruise Ship Terminal Zone - this shows the Broadwater locations in which cruise ship

infrash·ucture and operation is considered to be technically feasible; • Development Opportunity Zone - this shows the landside areas that could undergo

complementary development in support of the cruise ship terminal; and • A Habitat Protection Zone - as identified by the Australian Government.

Two-part Approach to Market:

t. Expression of Interest (EOI) - State and GCCC to conduct an EOI process in order to: - draw out all proposals for the Broadwater (broadly within the defined areas) - signal to the market the transaction being sought; the timeframes associated; and allow for

consortia to form ahead of the commencement of the Request for Proposal (RFP) phase - seek information regarding the proponents' financial credentials to fund such a development

and experience in delivering similar scale projects - seek information on the proponents' approach to minimising ongoing dredging costs and

hydrology issues within and around the Broadwater - formalise the process immediately and ensure an appropriate level of probity to current

activities.

Author: Damien Walker, GM Endorsed by: Chris Mills, A/DDG Endorsed by: David Edwards Position: Major Projects Business Group: Major Projects Director-General Telephone: 3898 0430 Telephone: 32473055 Telephone 3227 8451

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Ref No: MBN12/270

2. Request for Proposal - State and GCCC to conduct an RFP process that identifies the preferred bidder. On offer to the preferred bidder is: - Development Agreement; - Management Deed; and - The State Government's facilitation of key approvals and assessments.

Deliverables and timing

The immediate deliverables and associated timelines are detailed in Attachment 3.

Risks and mitigation

The primary risk for this proposal is that the viability of a cruise ship terminal without significant associated development to offset its costs. Namely, it is anticipated that developers will offset cruise ship terminal costs by proposing other activities such as a casino, hotel, residential or other tourism infrastructure.

The department is actively identifying risks and developing mitigation strategies. Other immediate and key risks that are being addressed include the following: • Potential competition between proposed Cruise Ship Terminals at the Southport Broadwater and

the Port of Brisbane (proposed at Luggage Point); • The commitment or otherwise of the cruise ship industry to support the proposed Southport

terminal; • Community concerns around environmental harm from the development of State land north of

Seaworld and on Wavebreak Island; • Market place uncertainty as a result of the Council's plans to pursue an interim Cruise Ship

Terminal (to be operational by 2014); and • Transport and utility constraints to development on the Broadwater.

Budget

The project plan will identify the required project budget, which will be submitted for consideration and approval.

CONSULTATION:

The Coordinator-General has been consulted and supports the proposed approach.

Mr Pah·ick Quirk from Maritime Safety Queensland has been engaged. He is aware of the proposed approach and is comfortable with this approach, subject to DTR involvement in the project governance arrangements.

Patrick Quirk flagged concerns that any cruise ship terminal proposal does not significantly increase the State's dredging task within the Broadwater.

Contact was made with Mr Gary Baildon, the nominated Chair of the Gold Coast Waterways Authority. Mr Baildon is currently overseas and was unable to provide a view at this point in time. Further contact is being sought with Mr Baildon.

GCCC has reviewed the letter of intent and is supportive, albeit they would like to see the le tter of intent make specific reference to an interim cruise ship terminal solution on State land north of Seaworld. DSDIP has concerns with the viability of this approach, however it can be further explored during October 2012 while the EOI documentation is finalised.

RIGHT TO INFORMATION: Contents/ attachments suitable for publication D Yes fZI No

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Cruise Ship Terminal Zone and Development Opportunity Zone - Southport Broadwater

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Mackay

Cairns

Brisbane

Mount Isa

Townsville

Rockhampton

Maryborough

WA

NTQLD

SANSW

VIC

TAS

ACT

0 250 500125

Metres

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(i) The Coordinator-General accepts no responsibility for any loss or damage suffered howeverso arising to any person or corporation who may use or rely on this

plan in contravention of the terms of this clause or clauses (ii) & (iii)

(ii) The dimensions, areas, number of lots, size & location of corridor information are approximate

only and may vary.

(iii) This plan may not be copied unless this note is included.

Based on or contains data provided by Department of Environment and Heritage Protectionand Department of Natural Resources and Mines, Queensland 2012 which gives no warranty in relation to the data (including accuracy, reliability, completeness or suitability) and acepts no warranty in relation to the data (including accuracy, reliability, completeness or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data.

Prepared BySDA Services

Drawn: Smithjoh

Date: 3/10/2012

Path: S:\Projects\SEIAU\Clients\Government Development Projects\Southport Broadwater\CruiseShipTerminalZone_DevelopmentOpportunity 03.10.2012.mxd

Coordinate System: GDA 1994 MGA Zone 56Projection: Transverse MercatorDatum: GDA 1994False Easting: 500,000.0000False Northing: 10,000,000.0000Central Meridian: 153.0000Scale Factor: 0.9996Latitude Of Origin: 0.0000Units: Meter

Department of State Development, Infrastucture and Planning

µGold C

oast Seaw

ay

Wave Break Island

The Spit

Legend

INDICATIVE ZONESHabitat Protection Zone

Development Opportunity Zone

Indicative Only - For Discussion and Refinement Not State or Local Government Policy

Cruise Ship Terminal Zone

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SDIP

Attachment 3

Deliverables and Timing

Timeframe Deliverables Mid October 2012 Letter of Intent Project Management/Governance First meeting to occur week commencing 22 October 2012

Establish a Project Control Group

Probity Plan finalised and implemented week commencing 29October 2012

Engagement of a Probity Advisor and implementation of a project Probity Plan

Late October 2012 Development of a Project Plan including key deliverables; milestones; and timeline

Late October 2012 Memorandum of Understanding between the State and the Gold Coast City Council

Procurement process Early November 2012 Announcement of the State and Gold

Coast City Council’s invitation to go to market for the development of the Southport Broadwater

Early/mid November 2012 and concluding early 2013

EOI - 6 weeks in duration

Early 2013 and concluding around May 2013

RFP - 16 weeks in duration

Mid 2013 Preferred Developer identified Conclude mid December 2012

State Asset due diligence Investigate and resolve key information required for inclusion in the forthcoming approach to market. This will include: Tenure assessment Assessment of environment factors Assessment of regulation / statutory

impacts Preparation of a Data Room

(gathering historical / relevant data to expedite developer proposals).

The department shall include officers of GCCC in the approach to market process. GCCC has commenced a planning exercise for the Broadwater, which will provide useful input into the concurrent approach to market

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Ref No: MBN12/284

I DSDIP- BRIEF FOR MEETING Recei ve<doate: 12 October 2012

DETAILS OF THE MEETING 1 1 •, i ~J~l

•

•

You are meeting with Cr Tom Tate, Mayor of'i~ <itatd Coast City Council (GCCC) on Tuesday 16 Octo.Ji2n~i2J

There are no departmental representatives currently attending the meeting with you, however should you think this necessary, Mr Damien Walker, General Manager, Major Projects is available.

on. Jeff Seeney MP Deputy Premier, Minister for State Development, Infrastructure and Planning

Date: /0~ /2...

• The primary purpose of the meeting is to discuss the arrangements to attract private sector development on the Southport Broadwater which may include construction of a Gold Coast cruise terminal.

BACKGROUND:

As a mayoral candidate for the Apri12012 Local Government election, Cr Tate committed to deliver a cruise terminal for the Gold Coast, if elected to office.

Several unsolicited cruise terminal proposals have arisen from property developers seeking to integra te hotels and other tourism, casino and residential components to support the cruise terminal concept. The Government is prepared to make Wavebreak Island and other State owned land on the Spit available for development to stimulate economic activity on the Gold Coast, but is committed to a competitive process to achieve development.

Officers from the Department of State Development, Infrastructure and Plarming (DSDIP) are working with GCCC officers to draw together information to undertake a competitive process to select a preferred developer. A key requirement is that development would be at no cost or risk to the State.

The arrangements are expressed in a Letter of Intent (with a subsequent Memorandum of Understanding (MOU) to formalise this in greater detail). The MOU will address the joint governance and management anangements of the proposed competitive process.

ISSUES AND SUGGESTED APPROACH:

The below issues are considered important for discussion with Cr Tate.

Interim cntise tenninal In addition to the competitive process to determine market interest for a potential cruise terminal, Cr Tate has requested that his staff investigate an interim cruise terminal option located immediately north of Sea world Nara Resort.

The department has concerns that an interim cruise terminal: • may compromise future development opportunities (including a permanen t cruise terminal); • may place a cost burden on the State; and • as yet provides no certainty on visitations by the cruise industry companies.

GCCC is pursuing an interim cruise terminal in order to secure cruise visitations from year 2015. This is in advance of completion of the potential permanent solution which may not allow for visitations until 2017 or 2018. The department's concern with GCCC's interim terminal proposal is the impact on commercial arrangements with cruise operators. It adds a further level of complexity to the proposed transaction.

Author details Endorsed by: Chris Mills, A/ DOG Endorsed by: Name: Damien Walker, GM Business Group: Major Projects Direct - eneral David Edwards Position: Major Projects Telephone: 3247 3055 Tel 322 78451 Telephone: 3898 0430 c.;::r- , '1-j,o j, ~

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Ref No: MBN12/284

Critically, the DSDIP is concerned with the underlying business case of the interim cruise terminal. A significant cost to delivery is the capital dredging works which could be around $50 million (exclusive of any annual maintenance dredging costs). Additional dredging may be necessary if a permanent cruise terminal is located elsewhere (e.g. should the competitive process deliver a scheme on Wavebreak Island).

Given the potential dredging cost for an interim terminal, the GCCC may approach the State for funding. It is understood that the budget for the Gold Coast Waterways Authority (the Authority) for the forward estimate period is fully committed and there are limited discretionary funds for additional dredging within the Department of Transport and Main Road's (DTMR) annual budget.

The interim cruise terminal approach assumes significant risk, in that GCCC will need to secure commitments from cruise companies to use the interim facility. The competitive process currently being developed transfers this risk to the proponent.

Gold Coast Waterways Authority The final scope of responsibility of the Authority is still being finalised, however DSDIP consider its fundamental responsibilities to involve: • the orderly operational management of the Broadwater for the benefit of marine users; and • oversight of ongoing maintenance dredging of the Southport Broadwater.

It is understood that the Authority will have a maintenance budget of around $30 million over 4 years (with no capital dredging allocation). The Authority will be an important stakeholder in the competitive market process, particularly with regard to any enduring maintenance requirements of a cruise terminal.

Mr Damien Walker, General Manager, Major Projects has spoken with Mr Patrick Quirk, Executive Director of Maritime Safety Queensland, regarding the proposed competitive market process, with the only issue raised being the need to ensure that the State is not exposed to significant ongoing maintenance dredging costs from a cruise terminal. The Chairman of the Authority Mr Gary Baildon is currently overseas and contact has been attempted, without success. It would be useful to understand the outcome of any conversations Cr Tate may have had with Mr Baildon regarding the interim cruise terminal proposal.

Project Governance Arrangements Following the Deputy Premier's release of the Letter of Intent to GCCC, DSDIP officers will then seek to formalise an MOU with GCCC.

GCCC has proposed a joint governance model that sees the establishment of a project steering committee and project control group. Both governance groups would include key State stakeholders (e.g. DTMR), GCCC, and be chaired by DSDIP. The project governance model, as recommended by GCCC, is based upon the successful Gold Coast Rapid Transit governance approach. Critically, given the project involves the use of State owned land, the ultimate point of decision making rests with State Cabinet. However, the model proposed does ensure a significant degree of GCCC involvement and ownership. In light of the expected community and local planning/ infrastructure challenges, such an approach is considered appropriate. This approach will be formalised within the MOU and an associated Project Plan.

GCCC has chosen to undertake an initial planning exercise for the Broadwater. DSDIP considers that this will assist the competitive market approach, however recognises that this is a GCCC exercise with no expectation that the State will contribute funding. On a few occasions, GCCC has raised a desire for the State to part fund aspects of their work, however officers of DSDIP have consistently stated that they believe this to be a GCCC activity to which the State will not be a financial contributor. There invariably will be joint investigations by GCCC and the State as part of the examination of proponent proposals that will require joint funding (e.g. a probity advisor), however it is suggested that this be identified in the Project Plan.

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Ref No: MBN12/284

It should be noted that a process of this complexity will require State resourcing and, as part of the formalisation of the MOU and Project Plan, the Major Projects Office will need to seek additional funding to ensure that it can adequately fulfil its responsibilities (some level of cost recovery from the final preferred bidder will be examined).

GCCC's current planning exercise DSDIP expects a number of useful outputs from the current GCCC planning exercise, however it does have concerns that GCCC may be overly prescriptive as to development options within the Southport Broadwater. It is considered important that the market be given every opportunity to innovate and think laterally on development options which best support the successful operation of a cruise terminal. GCCC should be encouraged to allow the Expression of Interest phase to be conducted so that proposals are not unnecessarily constrained. Post receipt and examination of the EOI submissions, the State and GCCC can consider the optimal planning framework for the Southport Broadwater. It is considered prudent that this 'market led' approach be discussed and agreed with Cr Tate to ensure the development of the Southport Broadwater has the highest possible chance of success.

CONSULTATION WITH STAKEHOLDERS

The Coordinator-General has been consulted and supports the proposed approach.

Mr Patrick Quirk from Maritime Safety Queensland is comfortable with the proposed approach, subject to DTMR involvement in the project governance arrangements.

GCCC has reviewed the letter of intent and is supportive, albeit they would like to see the letter of intent make specific reference to an interim cruise ship terminal solution on State land north of Sea world.

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Gold Coast Cruise Terminal in Broadwater Capital Works Dredging Costs

Cruise Terminal Location options

Total Dredge Volume m3 $ 10.00 $ 12.00 $ 13 00 $ 15 00

Seaway 3,220,000 $ 32,200,000 $38,640,000 $41,860,000 $48,300,000 Wavebreak South 3,590,000 $ 35,900,000 $43,080,000 $46,670,000 $53,850,000 North of Seaworld 3,720,000 $ 37,200,000 $44,640,000 $48,360,000 $55,800,000 South of Seaworld 5,090,000 $ 50,900,000 $61,080,000 $ 66,170,000 $ 76,350,000

NOTES: 1 Dredging rates ($m3) source: DTMR Dredging Unit 2 Current spoil disposal approved off South Stradbroke Island & off Surfers Paradise for beach replinishment 3 Rates may go as high as $201m3 if the disposal volumes requires extension as far south as Coolangatta 4 Total dredge volume includes the chanel and swingbasin

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Ron Jeff Seeney MP Deputy Premier

QIJI'lN<,fANil (,( 1\ I KNMlNI

Minister for State Development, Infrastructure and Planning

Our ref: IvffiN12f270

i a OCi 21111

Councillor Tom Tate Mayor Gold Coast City Council P0Box5042 GOLD COAST MC QLD 9729

Dear Mayor

We have previously discussed the common objective of promoting economic development on the Gold Coast to create business opportunities and deliver jobs. This Letter of Intent outlines arrangements for the delivery of these outcomes.

Economic opportunities exist within the State-owned land on the Southport Broadwater, including the Spit and Wavebreak Island (the Broadwater). There are opportunities to seek private sector investment in projects. As you are aware, a number of projects are being proposed that may be advanced by our joint facilitation.

The key opportunities on the Broadwater include a cruise ship terminal together with integrated activities such as a casino, hotel, super yacht facility, residential development or other tourism related infrastructure. It is my view that the market place will determine the opportunity, and it is important that we provide leadership and clear direction that allows the market place to innovate and invest in the Broadwater and tourism on the Gold Coast.

Consistent with our discussions, the Government's willingness to participate in this exercise is conditional on the proposed developments being subject to rigorous assessment and evaluation in every respect and proceeding without financial or other material risk to the State. I recognise the State and Gold Coast City Council will incur some costs in facilitating development of the Broadwater. To address these matters of detail, I expect a Memorandum of Understanding will be developed between the State and Council.

The State's responsibilities are to be led by the Department of State Development, Infrastructure and Planning (DSDIP) who will provide a coordination role between the Council and the State. DSDIP will provide expertise with regard to procurement processes, technical analysis of proposals and fast tracking approval processes.

Level12 Executive Building too George St Brisbane PO Box 15009 City Ea$t Queensland 4002 Australia Telephone +617 3224 4600 Facsimile +61 7 3210 2185

Email d ep u typrem i er@mi nisteria l.ql d.gov .au

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I have instructed my department to prepare for an approach to market for the development of a cruise ship tenninal within the Broadwater (including associated development). The department advises that the following timeline is possible:

• Expression of Interest (EOI) - 6 weeks in duration- commencing early /mid November 2012 and concluding early 2013;

• Request for Proposal (RFP) - 16 weeks in duration- commencing early 2013 and concluding around May 2013;

• Preferred Developer Identified- mid 2013.

I am advised that EO! proposals sought will:

• seek the submission of development concepts for the Broadwater broadly within a defined area;

• provide clarity to the markel place mgarding the transaction on offer; the timeii:ames for the process; and encourage finalisation of consortia formation ahead of the commencement of the RFP phase;

• seek information regarding the proponents financial credentials to fund I fmance such a development and experience in delivering similar scale projects; and

• seek information on the proponents approach to minimising ongoing dredging costs and hydrology issues within and around the Broadwater.

The EO! process will ensure appropriate probity arrangements for this market approach.

The RFP will seek a greater level of detail from the shortlisted proponents regarding their proposals, and provide greater detail from the State and Council with regard to what is on offer to the preferred bidder. Key to the offer to the market place is the provision of:

• a Development Agreement and Management Deed for the State held land; and

• the facilitation of key approvals and assessments.

I have asked that the department work with officers of Council throughout finalisation of the approach to market process.

I under~tand that Council is commencing a planning exercise fur the Broadwater, and that this will be a useful input into the approach to market.

Attached is a draft map of the Broadwater which describes a zone where a cruise ship terminal is considered most appropriate, and a zone where integrated or associated development is considered most appropriate. As the requirements for the approach to market are finalised and Council's planning exercise progresses, it will be important for the State and Council to finalise this development precinct in the coming few weeks.

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If you are in agreement, I would like to mmounce our intentions to the market as soon as possible.

Yours sincerely

JEFFSEENEY DEPUTY PREMIER Minister for State Development, Infrastructure and Planning

Enc

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Hon Jeff Seeney MP Deputy Premier

QU[ [NSlAN O (,0\TRNM[N I Minister for State Development, Infrastructure and Planning

Our ref: MC12/ 414

Your ref: M$#37681198

2 0 DEC 2012

Councillor Tom Tate Mayor Gold Coast City Council PO Box 5042 GOLD COAST MC QLD 9729

r..--Dear~

Thank you for your letters dated 1 and 8 November 2012, confirming that the Gold Coast City Council (GCCC) will work closely with the Department of State Development, Infrastructure and Planning (DSDIP) on an Approach to Market for private sector investment in an integrated tourism development (including a cruise terminal) on state owned land on the Spit and Wavebreak Island.

I note that a Project Control Group (PCG) has been established and is jointly chaired by Mr Damien Walker, General Manager, Major Projects, DSDIP and Mr Darren Scott, Director, Economic Development, GCCC. I believe that it is in our best interest that the PCG supervises all aspects of the Approach to Market.

The agreed position is that the project's scope must be as unfettered as possible so that the market place has every opportunity to think innovatively and laterally, in order to identify and progress economically viable development proposals. As you are aware, previous attempts to facilitate development on the Broadwater have failed, largely due to the level of prescription placed on the market place by government. In this regard, there are a number of matters arising from your letters which I need to address.

I agree that an operational cruise ship terminal should be an early piece of infrastructure delivered within the proposed development. The delivery of a terminal by the end of 2015 is a preferred outcome; however, as a prescriptive requirement, it is a potential constraint upon the market, particularly considering the known planning and regulatory matters to be resolved prior to commencing construction. I would rather be guided by the market place's realistic view of what is in fact achievable. The earliest possible delivery of a terminal is favoured; however, we must resist the urge to burden the market with constraining conditions.

To this end, I would urge GCCC to consider its community and media documentation in this light. There is an emerging trend to describe, in detail, the Broadwater Marine Project ahead of having received proposals from the market. We should resist this in order to allow the market place to be as innovative as possible.

Level 12 Executive Building too George St Brisbane PO Box 150 09 City East Queensland 4002 Australia Telephone +61 7 3224 46oo Facsimile +61 7 3210 2185

Email deputyprem ier@mi nisterial.q ld.gov.au

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I was surprised to read in your letter GCCC s intention to purchase the cruise terminal (once constructed) for $1.00. This poses a risk to the upcoming transaction in that it significantly impacts the commercial viability of a cruise terminal. Further, it adds a condition to the market place when the success of the Approach to Market will be to minimise significantly the conditions we impose. I am advised that the intention of GCCC assuming ownership of the cruise terminal, once constructed, is to ensure market access is not restricted. If this is indeed the reason, I can assure you that this matter will be addressed via other more appropriate measures in the development of the Request for Detailed Proposal (RFDP) documentation.

The funding arrangements expressed within the Memorandum of Understanding to share the costs of the Approach to Market (should the transaction not succeed; and should it succeed, the state would fund entirely) are the only funding arrangements which I am aware of and approve. I note that GCCC continues to seek a commitment from the state government that it will fund infrastructure network upgrades necessitated by the proposed development. This is inconsistent with the state's 'no net cost/no risk' approach to this project. I propose that we await the responses to the Expression of Interest (EOI) invitation to assess the extent to which the state and GCCC infrastructure may be impacted. The RFDP documentation would then need to reflect to what extent, if any, the state or GCCC may play a role in these impacts.

Further, at the conclusion of the EOI stage, with responses in hand, we will better understand the scale and scope of development proposals. At that point, I am happy to examine ways to streamline approvals and assessments, including granting the project special status within existing legislative and regulatory frameworks. I am comfortable that the EOI expresses the state's commitment to facilitate expedient movement through the approval process. However, again I do not want to be too prescriptive too early.

The inclusion of Doug Jennings Park in the land on offer signals to the market that this Approach to Market differs from previous approaches and is an invitation to the market to think laterally about what is possible, and to outline this in their EOI. This will allow for informed decisions about the offering to be made in the RFDP stage.

The public release of the EOI and the recent information briefing to industry have been well received and there is considerable interest in the project from potential proponents. I look forward to the end of January 2013 when the EOI responses outline the scale, extent and diversity of developments offered by the market.

Yours sincerely

JEFFSEENEY DEPUTY PREMIER Minister for State Development, Infrastructure and Planning

Page 2 of2

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Received ~ 1 NOV 20tZ Ref No: MBN12/298

DSDIP- BRIEF FOR MEETING Date: 26 October 2012

DETAILS OF THE MEETING NOTED or APPROVED/ NOT

You are meeting on Wednesday 31 October 2012 with Gold Co4st MPs about progress on the Gold Coast Broadwater Cruise Terminal. AP~

~ Deputy Premier, Minister for State The members of Parliament you are meeting with are:

Hon John-Paul Langbroek

Mr Rob Molhoek Hon Rosslyn Bates

Mr Ray Stevens

Dr Alex Douglas Hon Jann Stuckey

Mr Michael Crandon Mr Michael Hart Miss Verity Barton Mr Mark Boothman

Minister for Education, Training Employment and Member for Surfers Paradise

Development, Infrastructure and Planning

Date: ~"();/ .i; ~ "l..

Assistant Minister for Child Safety nd Member for Southport Minister for Science, Information T chnology, Innovation and the Arts and Member for Mudgeeraba Assistant Minister to the Premier on e-government and Manager of government business and Member for Mermaid Beach Member for Gaven Minister for Tourism, Major Even~, Small Business and Commonwealth Games and Member for Currumb1 Member for Coomera Member for Burleigh Member for Broadwater Member for Albert

Should you require a Departmental representative to attend the meeting with you then Mr Damien Walker, General Manager, Major Projects can attend.

The primary purpose of the meeting is to inform attendees of thJ status of the Gold Coast Broadwater Cruise Terminal, including the process to identify suitable devel9per(s) to deliver for jobs and economic development on the Gold Coast.

BACKGROUND:

The Government has been discussing with the Gold Coast Ci~ Council (GCCC) the common objective of promoting economic development on the Gold Coast to create ~usiness opportunities, tourism and deliver jobs.

The key opportunities on the Broadwater include a cruise sJ p terminal together with the possibility of integrated activities such as a casino, hotel, super yacht facilit§, residential development or other tourism related infrastructure. Opportunities exist within the State-qwned land on the Southport Broadwater including the Spit and Wavebreak Island. Development propos~ls from the private sector will be sought via an approach to market, commencing in mid November 2012.

Officers from the Department of State Development, Infras· [ cture and Planning (DSDIP) are working closely with GCCC officers to finalise material for a competitil process to select a preferred developer. A key requirement is that development would be at no cost or risk ~o the State.

Author details Name: Paul Toloui-Wallace

Endorsed by: David Eades l Endorsed by: David Edwards Deputy Directo General Director-General

Position: Project Manager Business Group: Major Projects 322 78451 Telephone: 3898 0449 Telephone: 3247 3055

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Ref No: MBN12/298 These arrangements were expressed in the Letter of Intent (Attachment 1) sent to the Mayor, GCCC on 18 October, 2012. DSDIP officers are working on a subsequent Memorandum of Understanding (MOU) between the State and GCCC, to formalise this in greater detail. The MOU will address the joint governance and management arrangements of the proposed competitive ~rocess and is expected to be finalised in November 2012.

PROJECT PLANNING

Government is likely to announce the State and GCCC are to seek private sector involvement in the delivery of new infrastructure on the Gold Coast by making State owned ~and on the Southport Broadwater available for development.

A summary of project planning processes and timeframes is pro ided as Attachment 2. An aerial photo showing the areas contemplated for developme tis provided at Attachment 3.

Project objectives

The State's objectives are based on the following principles:

• The Project is undertaken at no cost or risk to government; • The development outcomes minimise any ongoing mainterance dredging costs (and minimises other

hydrological issues within the broader Broadwater environment) through innovative design and management;

• The Project is delivered by 2018; and • The Project, via associated development, contributes to the further economic development of the

Broadwater (for example residential, entertainment/ tourism infrastructure, and retail).

Proposed approach

In the map (Attachment 3) there are three key zones identified: • Cruise Ship Terminal Zone- this shows the Broadwater loc, tions in which cruise ship infrastructure and

operation is considered to be technically feasible; • Development Opportunity Zone - this shows the landsidf areas that could undergo complementary

development in support of the cruise ship terminal; and • A Habitat Protection Zone- as identified by the Australian Government.

Th e marketplace will be asked to identify where a cruise terminal is proposed and the location of associated development on land.

Two-stage Approach to Market:

1. Expression of Interest (EOI) - likely to commence mid Nove ber 2012. State and GCCC to conduct an EOI process in order to: - draw out all proposals for the Broadwater (broadly with the defined areas)

signal to the market the transaction being sought; the t:iJlneframes associated; and allow for consortia to form ahead of the commencement of the Request for Proposal (RFP) phase seek information regarding a proponent's financial credentials to fund such a development and experience in delivering similar scale projects seek information on a proponent's approach to rnin.ifilising ongoing dredging costs, disruption to other waterways and hydrological user issues within andi around the Broadwater formalise the process immediately and ensure an appro~riate level of probity to current activities.

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Ref No: MBN12/298 2. Request for Proposal - likely to commence in early 2013.

State and GCCC will conduct an RFP process that iden~~es the preferred bidder(s). On offer to the preferred bidder(s) is: - Development Agreement; - Management Deed; I

The State Government's facilitation of key approvals and assessments; and - A preferred bidder is anticipated in mid 2013.

Market driven approach

It is considered important that the market be given every opportunity to innovate and think laterally on development options. The EOI phase is to be conducted so thatlproposals are not unnecessarily constrained by prescriptive planning instructions in the documentation provided to bidders. Post receipt and examination of the EOI submissions, the State and GCCC can c0nsider the optimal planning framework for the Southport Broadwater.

Deliverables and timing

The immediate deliverables and associated timelines are detaile in Attachment 2.

Project Governance Arrangements

DSDIP officers are seeking to formalise an MOU with GCCC. A joint governance model is proposed that sees the establishment of a project steering committee and project control group. Both governance groups would include key State stakeholders (e.g. DTMR), GCCC, I and be chaired by DSDIP. The project governance model, as recommended by GCCC, is based upol the Gold Coast Rapid Transit governance approach.

Critically, given the project could involve the use of State-ow~ld land, or requires other state assistance the ultimate point of decision making rests with State Cabinet. wever, the model proposed does ensure a significant degree of GCCC involvement and ownership. In ight of the expected community and local planning/ infrastructure challenges, such an approach is constdered appropriate. This approach will be formalised within the MOU and an associated Project Plan.

Gold Coast Waterways Authority (GCWA)

The final scope of responsibility of the Authority is still being f,. lalised, however DSDIP understands its fundamental responsibilities will involve: • the orderly operational management of the Broadwater for t1!te benefit of marine users; • oversight of ongoing maintenance dredging of the Southpor~ Broadwater; and • it is understood that the Authority will have a maintenanc~ budget of around $30 million over 4 years

(with no capital dredging allocation). The Authority will be an important stakeholder in the competitive market process, particularly with regard to any enduring m intenance requirements of a cruise terminal (if proposed).

DSDIP has liaised with the GCW A Chair, Mr Gary Baildon, wh~ has not raised any objection to a Gold Coast Broadwater Cruise Terminal.

There is a need to ensure that the State is not exposed to significL t ongoing maintenance dredging costs from a future cruise terminal.

RTI Document No. 19

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Ref No: MBN12/298

Risks and mitigation

The viability of a cruise ship terminal on the Gold Coast · s arguable without significant associated development to offset its costs. It is anticipated that developer will only propose a cruise ship terminal if supported by other activities such as a casino, hotel, residentiall other tourism infrastructure.

DSDIP is actively identifying risks and developing mitigation s tegies including:

• •

•

•

The commitment or otherwise of the cruise ship industry to Jupport a Gold Coast terminal; Potential competition between existing (or future) cruise Jhip terminals at Brisbane and a proposed terminal on the Southport Broadwater; ? Community concerns around environmental harm from the evelopment of State land north of Seaworld and on Wavebreak Island; and Transport and utility constraints to development on the Broaliwater .

RTI Document No. 20

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RTI Document No. 21

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RTI Document No. 22

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RTI Document No. 23

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Attachment 2

Gold Coast Broadwater Cruise Terminal

An approach to market is proposed for development of State owned land on the Southport Broadwater. The intent is to provide an opportunity for the market place to innovate and propose developments that will proceed in a timely way; foster economic development; deliver jobs; and provide new tourism infrastructure (including a Cruise Terminal).

Timeframe Deliverables

Mid October 2012 Letter of Intent Project Management/Governance

First meeting to occur week commencing 22 October 2012

Establish a Project Control Group

Probity Plan finalised and implemented week commencing 29 October 2012

Engagement of a Probity Advisor and implementation of a project Probity Plan

Late October 2012 Development of a Project Plan including key deliverables; milestones; and timeline

Late October 2012 Memorandum of Understanding between the State and the Gold Coast City Council

Procurement process

Early November 2012 Announcement of the State and Gold Coast City Council’s invitation to go to market for the development of the Southport Broadwater

Early/mid November 2012 and concluding early 2013

EOI - 6 weeks in duration

Early 2013 and concluding around May 2013

RFP - 16 weeks in duration

Mid 2013 Preferred Developer identified Conclude mid December 2012

State Asset due diligence Investigate and resolve key information required for inclusion in the forthcoming approach to market. This will include: Tenure assessment Assessment of environment factors Assessment of regulation / statutory

impacts Preparation of a Data Room

(gathering historical / relevant data to expedite developer proposals).

The department shall include officers of GCCC in the approach to market process. GCCC has commenced a planning exercise for the Broadwater, which will provide useful input into the concurrent approach to market

RTI Document No. 24

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Cruise Ship Terminal Zone and Development Opportunity Zone - Southport Broadwater

!

!

!

!

!

!

!

Mackay

Cairns

Brisbane

Mount Isa

Townsville

Rockhampton

Maryborough

WA

NTQLD

SANSW

VIC

TAS

ACT

0 250 500125

Metres

°

(i) The Coordinator-General accepts no responsibility for any loss or damage suffered howeverso arising to any person or corporation who may use or rely on this

plan in contravention of the terms of this clause or clauses (ii) & (iii)

(ii) The dimensions, areas, number of lots, size & location of corridor information are approximate

only and may vary.

(iii) This plan may not be copied unless this note is included.

Based on or contains data provided by Department of Environment and Heritage Protectionand Department of Natural Resources and Mines, Queensland 2012 which gives no warranty in relation to the data (including accuracy, reliability, completeness or suitability) and acepts no warranty in relation to the data (including accuracy, reliability, completeness or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data.

Prepared BySDA Services

Drawn: Smithjoh

Date: 3/10/2012

Path: S:\Projects\SEIAU\Clients\Government Development Projects\Southport Broadwater\CruiseShipTerminalZone_DevelopmentOpportunity 03.10.2012.mxd

Coordinate System: GDA 1994 MGA Zone 56Projection: Transverse MercatorDatum: GDA 1994False Easting: 500,000.0000False Northing: 10,000,000.0000Central Meridian: 153.0000Scale Factor: 0.9996Latitude Of Origin: 0.0000Units: Meter

Department of State Development, Infrastucture and Planning

µGold C

oast Seaw

ay

Wave Break Island

The Spit

Legend

INDICATIVE ZONESHabitat Protection Zone

Development Opportunity Zone

Indicative Only - For Discussion and Refinement Not State or Local Government Policy

Cruise Ship Terminal Zone

RTI Document No. 25

RTI RELEASE - D

SDIP

Renee Jones

From: Walker, Damien

Sent: Tuesday, 27 November 2012 2:45 PM

To:

Subject: Re: Gold Coast Marine Project - Industry Briefing

Page 1 of 1

1/02/2013

Thanks. Only asking as gccc keep chasing me. Thanks corinne

From: Corinne Amos [mailto:

Sent: Tuesday, November 27, 2012 02:42 PM

To: Walker, Damien

Subject: RE: Gold Coast Marine Project - Industry Briefing

Damien, John said it is still being considered from our end, and he will get back to you when he has a confirmed

position on the matter. Sorry, I know that’s not much help.

From: Walker, Damien [mailto:Damien.Walker@deedi.qld.gov.au]

Sent: Tuesday, 27 November 2012 2:18 PM

To: Corinne Amos

Subject: Fw: Gold Coast Marine Project - Industry Briefing Corinne,

Please see below. If you get a chance can you check in with john and see if the dp has an interest in

attending? Of not I will need to press on and arrange with public servant(s) from the state presenting.

From: Walker, Damien

Sent: Tuesday, November 27, 2012 07:42 AM

To: 'John Wiseman' <John.Wiseman@ministerial.qld.gov.au>

Cc: 'Alison Brown' <Alison.Brown@dsdip.qld.gov.au>; Kathy Laurence

<Kathy.Laurence@dlgp.qld.gov.au>; Chris.Bishop@dlgp.qld.gov.au <Chris.Bishop@dlgp.qld.gov.au>;

Toloui-Wallace, Paul; 'ian.mcfarland@dsdip.qld.gov.au' <ian.mcfarland@dsdip.qld.gov.au>; John Strano

<John.Strano@dlgp.qld.gov.au>

Subject: Gold Coast Marine Project - Industry Briefing

John , Further to our discussion of yesterday, would the DP have an interest in attending / speaking at the industry briefing that is tentatively proposed for the week of December? As mentioned, GCCC have advised that the Mayor has flagged an interest in attending / speaking. From a project perspective the industry briefing is standard practice. This is usually something that public servants lead. However, there is an opportunity to have elected leaders speak at this event to further reinforce the importance of the project. We will shortly need to lock in a day and a venue for the briefing. Your feedback would be appreciated. Regards Damien Walker General Manager Major Projects Department of State Development, Infrastructure and Planning Level 7, 63 George Street Brisbane QLD 4000 PO Box 15517 City East QLD 4002 Phone:07 3898 0430 Mobile:Email: Damien.walker@deedi.qld.gov.au

This email, together with any attachments, is intended for the named recipient(

If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and /or publication of this email is also prohibited.

Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government.

Please consider the environment before printing this email.

********************************DISCLAIMER**************************** The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notify the sender immediately and delete it from your computer system network.

Sch. 4(3)(3)

Sch. 4(3)(3)

Sch. 4(3)(3)Sch. 4(3)(3)

Sch. 4(3)(3)

RTI Document No. 26

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---------......., DATE DUE TO MINISTER'S OFFICE: \Iimwriuf Uj/lct: l. ~\ .: only:

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GOLD COAST CITY

OFFICE OF THE MAYOR

Gold Coast City Council

1 November 2012 MS#37681198 MBN12/270 WF22/76/03/01(P1)- #37660734v1

(ij) ~©~ O'¥~ n n -7 NOV " J12

t.::'l

The Hon Jeff Seeney MP Deputy Premier Minister for State Development, Infrastructure and Planning PO Box 15009 CITY EAST QLD 4002

Dear Deputy Premier

Thank you for your letter dated 18 October 2012 regarding the opportunity to seek private sector investment on State-owned land on the Southport Broadwater, including the Spit and Wavebreak Island. The Broadwater Marine Project will be an important contributor to two of the key pillars of our economy, tourism and construction. Major projects such as this will be required to significantly increase overnight visitor expenditure by 2020 and boost the construction industry across the south-east corner of the State.

I confirm that Gold Coast City Council will jointly facilitate this opportunity to provide a significant tourism oriented development that could include a cruise ship terminal, casino, hotel, super yacht facility, supporting residential development and other tourism related infrastructure for the city. As discussed at our meeting, the Council envis~g~_s_the 9etiy~ry .._oLa _cruis.e ... ship terminal .hY-..ihe eo9.c,QL20..1.§_§1s part of the market process. We are confident that this will deliver significant economic benefit to the city and the State.

The specific resolutions of Council in response to the matters raised in your correspondence, that will become public following the announcement on Friday, are as follows:

Council, at its meeting on 23 October 2012 resolved G12.1023.002:

"1 That the report/attachment be deemed non-confidential except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(9) of the Local Government Act 2009.

2 That Council endorse the recommendations contained within Section 15 of the report, subject to the revisions adopted at the meeting, both of which are to be initially communicated to the Deputy Premier and then incorporated in Part 3 below.

3 That the Mayor be authorised to prepare and distribute a suitable public information pack for distribution to Councillors on Friday 2 November 2012.

...12

PO Box 5042, Gold Coast MC, Qld 9729 Austral ia Ph: +61 7 5581 5283 Fax: +61 7 5581 6054 Email: mayor@goldcoast.qld.gov.au Web: www.goldcoast.qld.gov.au

RTI Document No. 28

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4 That Council again expresses its strong reservations in relation to any potential development of Doug Jennings Park and the southern peninsular, and urges their exclusion from the State Government's Expression of Interest process.

5 For the purpose of the process, it is assumed for now that the cruise ship terminal is to be built at no cost to Gold Coast City Council and is to be the first piece of infrastructure built.

6 For the purpose of the process, it is assumed for now that the cruise ship terminal, once built, is to be handed over to Gold Coast City Council for $1.

7 That Council commits to appropriate community consultation prior to any final decisions at the Expressions of Interest and potential Request for Proposals stages.

Council noted that this is the start of the approach to market and that there are a number of decision points ahead. Crucially, it endorsed the planning intent for the project area which will be the primary signal to the market place of what is State Government's and Council's desired outcome from the project.

I feel strongly that a number of actions will be required to avoid the failures of past tender processes that resulted in expense for bidders and no outcomes for government and the local community. These include:

• Government guaranteeing the delivery of the related infrastructure upgrades required for the Broadwater Marine Project and clearly communicating this to proponents;

• Designation of prescribed project powers to highlight the project's significance;

• Establishing a streamlined planning framework in the form of a legislated Act for the land areas;

• A meaningful program of works to assist project acceptance by the community;

• An integrated Council I State project team;

believe that it is crucial that the Queensland Government Implement these measures to maximise and maintain market confidence through to fipancial close (two to three y~aJ§) to achieve the best possible return to it.

These matters have been outlined in the Memorandum of Understanding (MoU)that is currently under development between Council and the State.

I understand that the MoU will be supported by a detailed funding agreement between the State and Council that will be worked up over the coming weeks.

I look forward to announcing our intentions to Queensland and the market on Friday, 2 November 2012.

Yours sincerely

~1;1 TOM TATE MAYOR

RTI Document No. 29

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\4inisterial Office Us<! M~\"

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RTI Document No. 30

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8 November 2012 Your Ref: MBN12/270 Our Ref: MS#3771 7650

Hon Jeff Seeney MP Deputy Premier

GOLD COAST CITY OFFICE OF THE MAYOR

u~©~n~~~ . r\

1

<; NOV 2012 u ~ ~

Minister for State Development, Infrastructure and Planning PO Box 15009 CITY EAST QLD 4002

Dear Deputy Premier

Gold Coast City Council

Please accept this updated correspondence that replaces my letter dated 1 November 2012 (Our Ref MS#37681198) regarding the Broadwater Marine Project.

Thank you for your letter dated 18 October 2012 regarding the opportunity to seek private sector investment on State-owned land on the Southport Broadwater, including the Spit and Wavebreak Island. The Broadwater Marine Project will be an important contributor to two of the key pillars of our economy, tourism and construction. Major projects such as this will be required to significantly increase overnight visitor expenditure by 2020 and boost the construction industry across the south-east corner of the State.

I confirm that Gold Coast City Council will jointly facilitate this opportunity to provide a significant tourism orientated development that could include a cruise ship terminal, casino, hotel, super yacht facility, supporting residential development and other tourism related infrastructure for the city. As discussed at our meeting, the Council envisages the delivery of a cruise ship terminal by the end of 2015 as part of the market process. We are confident that this will deliver significant economic benefit to the city and the State.

The specific resolutions of Council in response to the matters raised in your correspondence, that will become public following the announcement on Friday, are as follows:

Council, at its meeting on 31 October 2012 resolved 812.1031.002:

"1 That the report/attachment be deemed non-confidential except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(9) of the Local Government Act 2009.

2 That Council endorse the recommendations contained within Section 15 of the report, subject to the revisions adopted at the meeting, both of which are to be initially communicated to the Deputy Premier and then incorporated in Part 3 below.

3 That the Mayor be authorised to prepare and distribute a suitable public information pack for distribution to Councillors on Friday 2 November 2012.

4 That Council again expresses its strong reservations in relation to any potential development of Doug Jennings Park and the southern peninsular, and urges their exclusion from the State Government's Expression of Interest process.

. . ./2

PO Box 5042, Gold Coast MC, Qld 9729 Australia Ph: +61 7 5581 5283 Fax: +61 7 5581 6054 Email: mayor@goldcoast.qld.gov.au Web: www.goldcoast.q ld.gov.au

RTI Document No. 31

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Broadwater Marine Project MS#37717650

Page 2

5 For the purpose of the process, it is assumed for now that the cruise ship terminal is to be built at no cost to Gold Coast City Council and is to be the first piece of infrastructure built.

6 For the purpose of the process, it is assumed for now that the cruise ship terminal, once built, is to be handed over to Gold Coast City Council for $1.

7 That Council commits to appropriate community consultation prior to any final decisions at the Expressions of Interest and potential Request for Proposals stages."

Council noted that this is the start of the approach to market and that there are a number of decision points ahead. Crucially, it endorsed the planning intent for the project area which will be the primary signal to the market place of what is State Government's and Council's desired outcome from the project.

I feel strongly that a number of actions will be required to avoid the failures of past tender processes that resulted in expense for bidders and no outcomes for government and the local community. These include:

• Government guaranteeing the delivery of the related infrastructure upgrades required for the Broadwater Marine Project and clearly communicating this to proponents

• Designation of prescribed project powers to highlight the project's significance

• Establishing a streamlined planning framework in the form of a legislated Act for the land areas

• A meaningful program of works to assist project acceptance by the community

• An integrated Council/ State project team

I believe that it is crucial that the Queensland Government implement these measures to maximise and maintain market confidence through to financial close (two to three years) to achieve the best possible return to it.

These are matters that I would like addressed by the Memorandum of Understanding and/or Funding Agreement between the State and Council that will be prepared over the coming weeks.

I look forward to announcing our intentions to Queensland and the market on Friday, 2 November 2012.

Yours sincerely

TOM TATE MAYOR

RTI Document No. 32

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