memorandum of understanding - creation of the win convention & entertainment centre through the...

7/25/2019 MEMORANDUM OF UNDERSTANDING - Creation of the WIN Convention & Entertainment Centre through the Refur

1/10

MEMORANDUM OF UNDERSTANDING

Between

Coalition

of Parties

for

Creation

of the

WIN

Convention

Entertainment

Centre through the

Refurbishment of the

WIN

Entertainment

Centre

1. Purpose

The

purpose

of the Memorandum

of Understanding

(MOU)

is

to:

facititate

cooperation, advocacy and coalition

between

parties

for

the

purpose

of

promoting

the

position

identified

betow;

promote

a

consistent

position

for

the

refurbishment

of the WIN Entertainment Centre

(wEC)

:

o

regional

cottaborative

support

for

the refurbishment of the

WEC

from a

venue

hosting

entertainment

and

sporting events

to

a

fier 2

Convention Centre

hosting

exhibitions, entertainment, conventions, sporting

and

other anciltary

activities.

(see

Appendix

1)

As

a

Tier 2

convention venue

this witt

provide

the opportunity

to create

further

momentum

and

market

share

for the region,

justifying

a [onger term

btueprint

for

a

new

purpose

buitt facitity.

ln

the

medium

to tong term, a master vision be

estabtished across

the city

centre which

assembtes,

promotes

and activates the arts, entertainment

and

cuttural

aspects

of our city as wett as

meeting facitities,

and

hightights

the

strategic

nature

of this and

other

sites;

and

Provide

a signed

copy

of the

MOU

to the

parties

and

to

Venues

NSW for

utitisation

in

advocacy and

grant

and

funding

opportunities.

A[[

parties

are committed

to cottaborating

and

supporting

the

purpose

of the MOU

a

a

o

o

a

MOU Between

Coalition

of

Parties for

Convention

and Entertainment

Centre

1

|

Page

V6

1215116


2/10

2. Parties

The

parties

to this MOU

are:

.

Wottongong

City

Councit

.

lltawarra

Business

Chamber

.

WIN Corporation

.

Property

Counci[

-

ltlawarra

Branch

o

DestinationWotlongong

.

lttawarra

Joint

Pilot Organisation

.

Regionat Devetopment

Australia

-

lltawarra

.

University

of Wotlongong

3.

Background and Rationale

The

refurbishment

of

the

WEC

from

a venue hosting

entertainment

and

sporting

events

to a

Convention and

Entertainment

Centre

which hosts

exhibitions,

entertainment, conventions,

sporting

and other

anciltary

events

woutd

provide

significant

benefits

to the

Region

and State,

by attracting

visitors

to

NSW

and contributing to

Destination

NSW's visitation

targets.

The following

justifications

are

presented

in

support

of

the

business

case

for

that

refurbishment:

a.

Strategic

Alignment

NSW Government

lllawarra

and Shoalhaven Regional

Plan

The lttawarra and

Shoalhaven Regional Plan

Goal

I

-

Grow

the

nationol

competiveness

of

metro Wollongong

to

provde

housing

and

jobs

identifies

that the city's

growng

vitalty

is

enhancing

its

appeol

to

tourists and as a

place

to

host

event ond exhibitions. This

statement

supports

the

requirement

for

the

refurbishment

of the WEC

atong

with

the

Plan's

specific Action 1.1.1

-

Create new

ond

innovative

opportunities

for

commercal

development n

the

commercial core

by

making it more

attractive

for

investment

ond

business.

This is

evidenced

by

the

recent

release

of

Destination

NSW's

year

ended December

2015

Travel to lttawarra

Sub

Region

report, which identifies visitor nights

for

business

in

the

ltlawarra

has

grown

by 132%.

b.

Refurbishment

vs New Purpose Built

Facility

The funds required

to

refurbish

the WEC

are

significantly

less

than the

funds required

for

a new

purpose

buil.t

facitity

The

current site

-

On

the

Beach

-

in

the

City '-

is an ideal

site

for

a Convention/

Conference

location,

being

situated near

the ocean and beaches and adjacent to retail

and

restaurants,

just

one

btock

away

in the

CBD.

The

opportunity

to

refurbish

an existing

State

asset

(The

WEC

is

18

years

old and in

need

of a major refurbishment,

but

is

structuralty

sound)

a

a

a

MOU Between

Coalition

of

Parties for

Convention and Entertainment

Centre

2lPage V6

1215116


3/10

Avaitabte

market

-

currentty

Wottongong/lllawarra

could

not

support

a new

purpose

built Convention/Conference Centre as we[[

as an

Entertainment

Centre.

To

activate

the WEC

precinct

by supporting

cafs and

restaurants,

bars and

accommodation

and supporting the

Woltongong

City

Council 'City

Life'

objectives,

along the Foreshore

c.

Economic

Outcomes

The

WIN Convention

and Entertainment Centre business

case

maintains this

project

will

resutt in

the

fottowing

benefits

for the

city and

region:

a

a

a

a

Attract

at

least an additionat 80 events

(a

total

of

40,000 visitors) to

Wollongong/ltlawarra

annualty.

The

new Centre witl

increase visitation

and

overnight

accommodation

-

ptus

provide

an

impetus

for

new businesses

opening

up in

convention

support,

accommodation

(hotets),

dining

and

tours.

Create a

range

of regional

economic

benefits vatued at

512

miltion

per

year,

in

addition

to

the

current

annuat 527

mittion

regional economic benefits generated

by

the WEC

(resulting

in

5g

mittion

per

year).

This

is based on average

detegate

spends

of

SZSO

per

day

(inctuding

accommodation,

meats, transport, shopping, tours,

attractions

and

venue/event

spends).

Construction

lmpact:

o

The

tabte

betow

shows the impact

over a 3

year period

for

the upgrade

works

of the

WEC into

a Convention

centre

and

the

construction

of

an associated

carpark.

a

lmpact

Summary

Direct Effect

lndustriat

Effect

Consumption

Effect

Totat

Effect

Output

(SM)

Emptoyment

(Jobs)

s40.000

45

532.367

88

s10.732

39

s83.099

172

Totat Effect

a

Ongoing

Employment

o The

WEC

currently supports

270

full-time

equivalent

positions.

Additional

direct

and

indirect

emptoyment

of between

240 and 287 ongoing

jobs

wit[

be

generated

across

a

range

of fietds including hospitality, events

and

technicat.

Annual impact upon completion

o The below

tabte shows the impact of the

forecast 40,000

pa

additional

visitors

to

Wollongong

expected

if

the WEC

was

refurbished to

a

Tier

2

Convention

Centre.

o

This

anatysis assumes

a break-up

of the

fottowing,based on

research

conducted

by Tourism

Research

Australia

in

2010

on conference

detegates

to the

lttawarra

region,

referenced

in the Macro

Ptan

Market

Assessment

report:

.

29/o Daytripper's

.

58 Overnighters

(average

2

nights)

.

17Yo internationat

(average

3

nights)

lmpact Direct Effect

lndustrial Effect

Consumption

Effect

a

Output

(SM)

57,172,000.00 52,893,000.00

52,540,000.00 512,605,000.00

MOU Between Coalition of

Pafties for

Convention and

Entertainment

Centre

3

|

Page V6

1215116


4/10

.

Sociat

Benefits inctude

a

lift

in

the

brand

of

the

city

(due

to

being

chosen by

venue

organisers), increased

urban

activity,

more

hospitatity

venues

and attractions

to

service

visitors

(that

witt

atso

service residents)

and an increase in

cuttural

activity

-

with visitors

enjoying what the

locols enjoy .

With

the

right

facitities

-

the

refurbished

WlN

Convention

and Entertainment

Centre

-

can

attract

more

events

to

this

city and region.

4.

Key

Principles

and Responsibilities

The

fottowing

key

principtes

underpin

this

MOU

:

A[[ parties

wit[

continue

to

operate

autonomousty, however

wi[[

work cooperatively

to

facititate

advocacy

for

the

refurbishment

of

the

WIN Convention

and

Entertainment

Centre.

A

Case

Study of

the

possibte

economic

benefit is

the

Australasian

Cross Fit

Games

-

which has

been hosted

for

the

last

4

years.

800

athtetes take

part,

over four

days

in

May

-

creating

an estimated

5800,000

of

economic

benefit. Wotlongong

has

become

Cross

Fit

ready

with

many

cafes, restaurants

and hotets

providing

specia[

menus

and

facilities

for these

athtetes.

The

event

is shown

on

ESPN around

the

world.

Where

appropriate,

a[[

parties

witl

endeavour

to

communicate

to

at[

other

parties

any

information

which impacts

positivety

or

adversely

upon

the

purpose

of

this

MOU

Appropriate

and realistic

expectations

will

be

developed

by the

parties

for

any

cottaborative

activities.

5.

MOU

Contacts

a

a

a

a

On

behalf

of :

Contact

Name

and

Title Contact

email

Wol.tongong

City

Councit

Lord

Mayor

Cr Gordon Bradbery

OAM

[ordmayor@wotlongong.

nsw.

gov.

au

l[lawarra

Business

Chamber

cEo

Debra Murphy

Debra.

murphy@i

[awarrabusiness.

com. au

WIN

Corporation

cEo

Andrew

Lancaster

lancastera@wi ncorp.

com. au

lllawarra

Chapter

of

the

Property CounciI

Chair

Mark Jones

[email protected]

Destination

Wollongong

Chair

Tania

Brown

[email protected].

au

lttawarra

Pilot

Joint

Organisation

Chair

Cr Gordon Bradbery

OAM

[ordmayor@wottongong.

nsw.

gov.

au

RegionaI

Devetopment

Austratia

-

lttawarra

Chair

Eddy De

Gabriete

eddydoedmen.com.au

University

of

Wotlongong

Chief

Administration

Officer

Metva Crouch

CSM

[email protected]

MOU Between

Coalition

of

Parties

for

Convention and Entertainment Centre

4

|

Page

V6 1215116


5/10

Date

ignature

ontact

Name

and

Titte

On

behalf

of

:

,4\r4tn

/'.a'

z5l5ltt

Lord

Mayor

Cr Gordon

Bradbery

OAM

Wotlongong

City

CounciI

zs

Isltu

v(-/

Itawarra

Business

Chamber

cEo

Debra

Murphy

WIN

cEo

Andrew

Lancaster

zs

lsl

l

hair

Mark

Jones

lllawarra

Chapter

of

the

Property

Council

z


6/10

APPENDIX

1

TIER

1

AND

TIER

2

CONVENTION

CENTRE

DEFINITIONS

Sou r

c e

:

D

e sti

nati

on

Ma

r

ke

t ng Associ

ati

on

I

n

te

r

nati

on

a

I

(20

I

3

)

Tier I

Tier

2

Airport

with

ampte

domestic

access.

internationaI

and

Regional

airport

with

less

direct

airlift

-

or

access

to major

airport

within

t hour s

drive

Hotel

inventory

that includes

multipte

maj

hoteI

brands

or Affordabte

better

vatue

in

accommodation

Abundant

dining,

entertainment

and

attraction

options

for

attendees

Productive

market

and

supportive

locaI

business

10,000

minimum

committable

sleeping

rooms

Largest

conference

centre

is

either

a

singte

hotel

or

convention

centre

Convention

centre

with

a

minimum

of

500,000

gross

square

feet

of exhibition

space

Convention

centre

with

less

than

500,000

gross

square

feet

of

exhibition

space

Considered

one

of the

top

25

destinations

for

group

business

Attracts

a

regional

drive

market

Distinctive

re

travel

appeal

Distinctive

leisure

travel

appeal

Major

metropotitan

hub

Major

regional hub

Strong

destinational

travel

infrastructure

in

place

Strong

destinational

appeaI

Reputation

for

amenities

world-ctass

services

and

Abitity

to

suppty

first-ctass

services

and

amenities

MOU Between

Coalition

of

Parties

for

Convention

and

Entertainment

Centre

6

|

Page

V6

1215116


7/10

a.

b.

c.

d

e

f

g

h

ADDENDUM A

QU|CK

FACTS

-

WtN ENTERTATNMENT

CENTRE

DETAILS

There

are

1.5 mittion who

live within

t hour's

drive

of

the WEC

-

this

is

a

simitar

catchment

to

the

Adetaide Entertainment Centre

and

the

Adetaide

Convention Centre

Since

1998, the

WEC

has

already

hosted

14

conferences

of over

400

pax

each.

Of the

20,857

patrons

who attended Cirque

Du

Soteil's

season of

Quidam

at the WEC,

from 23/12/15

to

7/1/16

(13

shows),

56%

came

from the

ltlawarra, 41To from

other

locations

in NSW, 8%

from interstate and 1% from

overseas.

For

Quidam

the

fottowing

areas

of Greater

Sydney

visited Woltongong

for the show

-

4%

from the City and

Eastern

Suburbs,

6% from

the North

and North-west,

12lo from

Western

Sydney andT%

from

the

South/Suthertand

area.

For

four

years,

the WEC

has

hosted

the

Austratian

Regional Cross

Fit

Games.

Last

year

800 athtetes,

famity

and

friends attend

this

event,

over

4

days, creating

5800,000

of

regionaI economic

benefit

from

this singte

event.

ln 2016, the

WEC

witt host

7

conventions,

exhibitions

and conferences

(over

18 event

days),

detivering

S3.375

mitlion in regional

economic

benefit,

from these

MICE

events

atone.

lf

the

WCEC is created, it witt be the second

largest convention

centre

in

NSW and

witt

be

abte

to compete

against

other states and locations,

to attract

more

business

to NSW.

ln

2012

lRlS

conctuded

that

the

WSEC venues

created

S27

mittion of

regional

economic

benefit

per year

from

the

events

it

hosted and

supported

270

Full Time Equivalent

jobs.

With

its

proximity

to

the

beach and to the city centre,

the WSEC occupies

arguably

the

most unique

and

desirabte

site for

a

venue,

in Austratia.

With

its

two

venues

and

function

business,

the

WSEC already

hosts

one of the

widest

variety of

events, held

on one site,

in

Australia.

Since

opening

in

1998,

the

WEC

has

hosted 3,076,776

patrons,

WIN

Stadium

has

hosted

1,963,750

patrons

and the

WSEC

Function

Rooms have

hosted93,576

patrons.

Since

1998

the

WEC, WIN

Stadium and

its

Function

Rooms have

hosted5,134,102

patrons

The

6,000 seat

WIN

Entertainment

Centre

was

opened

in

1998

and

constructed

at a cost

of

520

mittion

-

funded

by

the

NSW

Government.

No

funding

was

attocated

for

fit-out, with this

costing

about

58

mittion

and

not

paid-off

untit

2008.

Since

1998, no significant capitat works

or improvements

have taken

ptace,

thus

impacting

on

the WEC to remain

retevant and

viabte.

J

k

t.

m

n.

o.

MOU

Between

Coalition

of

Parties

for

Convention

and Enteftainment

Centre

7

|

Page V6

1215116


8/10

a.

b.

ADDENDUM B

KEY

MESSAGES AND

FACTS

Business

and [oca[

government

are

joining

together

in

support of

an

initiative

to

upgrade

the

WIN

Entertainment

Centre

(WEC).

The

initiative

would be

a

major

economic

boost for

the

region.

Economic

analysis of the

proposal

estimates

the

refurbishment has

the

potentia[

to:

Attract

a

minimum

of

80

events, bringing

an

estimated

additional 40,000

visitors

to

Wotlongong

annuatty and

supporting

the tocat

accommodation,

hospitatity

and

retail

sectors

Create regional

economic

benefits

vatued

at

512

mitlion

per year,

in

addition

to the

current annual

527

mittion regionat

economic

benefits,

generated

by the WSEC venues

(resutting

in

a total

potential

economic

benefit of

539

mittion

per

year).

Support new

direct and indirect

employment

of up to

287

ongoing

jobs,

in addition

to

the current 270

FTE

generated

by

the

venues

Upgrading

the WEC

woutd

position

the

lttawarra

as the

State's

prime

satettite

conference

venue,

providing

business

leaders, sporting

and interest

groups

with

a

high

quatity

venue

for their

events.

This

is not

a

proposal

to

provide

a 'lick

of

paint'

to the

existing conference facitity.

This

upgrade

woutd transform

the

WEC

from

a

sporting

onty

venue to a high

quality,

fulty

equipped

convention

centre.

The

upgrade

would come

at

a

cost which is

not prohibitive (est.

S40

mittion)

and

which

woutd

extend the

life

of the

WEC

by

more

than

20

years.

Bittions

of dottars

are

being

dedicated

to

purpose

built

facitities

and

upgrades

in

Western

Sydney

and the Sydney

CBD.

Wottongong,

a

major

tourist centre and

regional

centre

only

1.5 hours

away

from

Sydney,

deserves the

funds and

attention

to

boost

its

share of the visitor economy.

Recent

statistics

from Destination

NSW's

year

ended

December 2015

Travel to

lltawarra

Sub

Region

report,

identifies

visitor nights

for

business in

the

lttawarra

has

grown

by

137 .

c

o

e

f

o

5

h

)

k.

MOU

Between

Coalition

of

Parties

for Convention

and Entertainment

Centre 8

|

Page

V6 12/5116


9/10

ADDENDUM

C

Tabh 3.

Wcc

-

Net Benefit

Summary

(NPV

2011-20311

NET BENEFIT

SUMMARY

$6,Eol,zzz

s81,902,214

lnduced

prlvate

lnvestment

(Wollongong

CBDI

Net lourlsm

(pendlture

Beneflts

S6,t03,277

s63,923,679

S6,8o3,zzz

s99,88O,749

Bose

Cose

(SNPV)

ENEFIfS

Optinislit

(5NPv)

ansetvative

Economic Benefts

Socol

Publlc Realm

Benets

Value

Upllft

55,s6E

27o

s4,738,676

s5,56A270

S5,568,270

s4,73&676

tluvelSovfngs

Tlmeecongeston Svlngs

Sahty

lrrp.ovments

ses2,6so

S3,o1t

sesa6s0

S3,018

s9s2,6s0

S3,018

l{cse

lr

Pollutlon

Wtr Pollutlon

Greenhouse

{ature

and

landscape

s1162,61s

9U,262,515

$1r,262,615

s38O

s1,13e

s165

s8r3

s161

S38o

s1,r3e

s165

$813

s16r

$380

s1,r39

S16s

s813

s161

Envi ronmentol Benefts

ldJ

Br$rnmGntl

Bgl

cosfs

s2,65t

s1,657

SE1,992,22E

s2,6s7

$u7,949,297

S10,599.308

S99,970,763

s4O,599,308

8ereJ5t

Cost,oto

IECR/

Summary

Suntmory

25 2.Gr

2.91

The Benefit to Cost Ratio

(BCR)

is the total of

State benefits or

outcomes

divided by

the total

monetary

pubtic

costs of

obtaining

them.

lf

the

project

is detivering

a

net

benefit to

society

it has a ratio

greater

than one.

The extent of this benefit

is

measured by

its

variance

above the

breakeven

point

of one.

Source : Wottongong Convention Centre:

Pretiminary

Business

Case

Fina[ Report

-

28

March

2012

MOU Between

Coalition

of

Parties

for Convention and

Entertainment Centre 9

|

Page

V6 1215116


10/10

Document

Control

Date

Version

Number

Comments

18 4 2016

V1

Original draft

19 4 ?016

v2

Changes

requested by

parties

via

emaiI

20t4 2016

V3

Changes

requested by

parties

via email

2 5 2016

v4

Changes

requested by

parties

via email

3 5 2016

V5

Changes

requested by

parties

at

meeting

of

z 5t16

12 5 2016

V

Confirmation

of

signatory

for

UOW and change

of

title

MOU Between

Coalition of Parties

for

Convention and Entertainment Centre

10

|

Page

v6 12t5t16

memorandum of understanding - creation of the win convention & entertainment centre through the...

Documents