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TOWN PLANNING REGULATIONS
Form No. 4: Regs 16(1) & 20(2)
PLANNING & DEVELOPMENT ACT 2005
TO:
Chief Executive Officer of the City of Busselton
SUBMISSION ON
LOCAL PLANNING SCHEME No. 21 - SCHEME AMENDMENT No. 5
REZONING LOT 1 SSPLN 46392 HSE NO 1/700 CAVES ROAD MARYBROOK TO INTRODUCE SPECIAL PROVISION
NO.58
Name .................................................................................................................. Phone ................................................
Address ..............................................................................................................................................................................
SUBJECT OF SUBMISSION:
(State how your interests are affected, whether as a private citizen, on behalf of a company or other organisation, or
as an owner or occupier of property)
............................................................................................................................................................................................
ADDRESS OF PROPERTY AFFECTED BY SCHEME (if applicable):
(Include a lot number and nearest street intersection)
............................................................................................................................................................................................
SUBMISSION:
(Give, in full, your comments and any arguments supporting your comments. Continue on additional sheets if
necessary)
............................................................................................................................................................................................
............................................................................................................................................................................................
............................................................................................................................................................................................
............................................................................................................................................................................................
DATE ..........................................................................................
SIGNATURE ................................................................................
(Forms No 4A, 4B, 4C. Deleted by GG 15/1/81, P.1494)
(Form No. 5. Deleted by GG 7/3/86, P.709)
AMD21/0005
City of Busselton
Local Planning Scheme No. 21
Amendment No. 5
rpsgroup.com.au
File No.: _______________
Part of Agenda_______________
MINISTER FOR PLANNING
Proposal to amend a Local Planning Scheme
1.
LOCAL AUTHORITY
:
City of Busselton
2.
DESCRIPTION OF TOWN
PLANNING SCHEME
:
3.
TYPE OF SCHEME
:
Town Planning Scheme
4.
SERIAL NUMBER OF
AMENDMENT
:
5
PROPOSAL
:
To include Lot 700 Caves Road, Marybrook into the
‘Special Provisions’ Area to enable unrestricted
occupation of no more than 25% of the total
accommodation units on the Site.
5.
PR119241: January 2015
PLANNING AND DEVELOPMENT ACT 2005
RESOLUTION DECIDING TO AMEND A LOCAL PLANNING SCHEME
CITY OF BUSSELTON
LOCAL PLANNING SCHEME NO. 21
AMENDMENT NO. 5
RESOLVED that the Council, in pursuance of Section 75 of the Planning and Development Act 2005, amend
the above local planning scheme by:
(a) Inserting the following particulars into Schedule 3 – Special Provision Areas of the Scheme:
No.
Particulars of Land
Zone
Special Provisions
SP58
700 Caves Road, Marybrook
Tourist
Notwithstanding any other provision of the
Scheme, an unrestricted length of stay is
permissible for up to 25% of the total
accommodation units, but will be located in the
area occupied by Lots 6 – 15 as shown on the
current Strata Plan 46392 (approved on 8
September 2005).
(b) Amending the Scheme Map accordingly.
Dated this
day of
201__.
_________________________
CHIEF EXECUTIVE OFFICER
AMENDMENT REPORT
City of Busselton, Town Planning Scheme No. 21
Amendment No. 5
Contents
1.0
INTRODUCTION ...................................................................................................................................... 1
2.0
LOCATION AND OWNERSHIP ............................................................................................................... 2
3.0
2.1
Location ........................................................................................................................................ 2
2.2
Cadastral Information .................................................................................................................. 2
PLANNING CONTEXT ............................................................................................................................ 4
3.1
Zoning and Land Use ................................................................................................................... 4
3.1
Planning Bulletin 83/2014 Planning for Tourism - Section 7 Considerations ........................ 4
3.2
City of Busselton Local Tourism Planning Strategy ................................................................ 7
3.2.1
Response on Net Tourism Benefit .................................................................................. 8
4.0
RESPONSE TO LOCAL TOURISM STRATEGY: UNRESTRICTED STAY CRITERIA ......................14
5.0
PROPOSED DEVELOPMENT CONCEPTS .........................................................................................20
6.0
PROPOSED SCHEME AMENDMENT ..................................................................................................22
7.0
CONCLUSION .......................................................................................................................................23
Figures
Figure 1
Figure 2
-
Locality Plan
Site Plan
Appendices
Appendix 1
Appendix 2
Appendix 3
-
Certificate of Title
Original Concept Plan
Proposed Site Concept Plan
Amendment No. 5
1.0
Introduction
Strata Lots 6-15, 700 Caves Road, Marybrook (herein referred to as the subject site) form part of the
Wyndham Vacation Resort.
The City of Busselton seeks to amend Town Planning Scheme No. 21 to allow development on the subject
site to be unrestricted in terms of the length of stay. The report:
 describes the subject site
 sets out the applicable town planning and economic framework within which future development can
progress and
 provides justification for the proposed scheme amendment.
The proposed Scheme Amendment will provide a net tourism benefit to the City through delivering a range of
tourism accommodation units not previously provided within the resort and increasing the number of
accommodation units on the site. More significantly the proposed Scheme Amendment will allow finance to
be sourced that is not restricted for a tourist only (commercial) rate, which means that the development can
be achieved now and not until the economic conditions within the south west improve.
The site is currently developed as an 88 key resort complex, with a range of accommodation options,
services and facilities. Strata Lots 4-15 lie to the east of the main resort complex. Lots 4 and 5 are developed
with the balance Lots 6-15 being vacant. These strata lots are the only remaining ones within this complex
that has further development potential. The original development concept was to develop these strata lots
with 12 three-storey terrace units, however only 2 have been constructed to date.
The current ‘Tourist’ zoning of the resort site restricts the period of stay for any family or group in these
tourist accommodation units to no more than 3 months in any 12 months.
It is proposed that accommodation on the subject site (only) be unrestricted in terms of the period of stay.
This will allow the remaining lots to be occupied on a permanent basis or released to be rented within the
resort management for normal tourist accommodation. This will significantly improve the feasibility of
developing these lots and enable a range of accommodation types to be provided.
It is proposed to insert ‘Special Provision Area’ provisions into Schedule 3 of Town Planning Scheme No. 21
to allow tourist accommodation units developed on Strata Lots 4 to 15 (inclusive) to be occupied with an
unrestricted length of stay, thereby allowing people to permanently live in these units, but for these units to
also remain within the pool of available tourist accommodation units.
Page |1
Amendment No. 5
2.0
Location and Ownership
2.1
Location
The subject land forms part of the Wyndham Vacation Resort, which is located on Caves Road between
Busselton (15 kilometres) and Dunsborough (8 Kilometres). The resort currently offers luxury
accommodation with direct frontage onto Geographe Bay. The resort offers 100 air-conditioned Deluxe King
Rooms and fully equipped 2 bedroom apartments, restaurant, bar, function and conference facilities.
Facilities also include a 25m swimming pool, a day spa, a gym, tennis courts, a putting green, a business
centre, wedding chapel, BBQ picnic areas and children’s playground (refer Figure 1).
The resort site has a 274 metre frontage to Caves Road, and has a depth of between 50 and 133 metres to
the adjacent foreshore reserve. The eastern extent of the Toby Inlet extends to the northern side of the resort
complex.
Accommodation on the resort ranges from studio rooms to fully self-contained one and two-bedroom
apartments, all with a balcony or patio. The 2 ‘Azure Beach Residences’ comprise four- bedroom
apartments, but have access to room service and the adjacent resort facilities (refer Figure 2).
2.2
Cadastral Information
700 Caves Road, Marybrook is divided into 13 Strata lots on Survey Plan 46392; Volume 2608 Folio 332343, which comprise the main resort buildings, common land covering the resort facilities, car parking and
access, utilities and Lots 4-15, 700 Caves Road (herein referred to as the subject site). This is structured as
follows;
Lot
1
3
Vol.
2586
2
Folio.
Land Use
Land Area (m )
767
Resort Buildings
4,576
Resort facilities, gardens, car parking, access
18,112
Common Property
4
2608
332
3 storey, four-bed apartment
262
5
2608
333
3 storey, four-bed apartment
280
6
2608
334
Vacant
276
7
2608
335
Vacant
273
8
2608
336
Vacant
270
9
2608
337
Vacant
262
10
2608
338
Vacant
301 *
11
2608
339
Vacant
201 *
12
2608
340
Vacant
223 *
13
2608
341
Vacant
238 *
14
2608
342
Vacant
240 *
15
2608
343
Vacant
240 **
* Lots 10-14 have exclusive use of an additional 4.2 metre wide area along the eastern boundary of each lot
** Lot 15 has exclusive use of an additional 6.0 metre wide area along the eastern boundary
Page |2
Legend
Subject Area
Waterbody
3
Dunsborough
(8km)
Recreation Reserve
GEOGRAPHE
QUINDALUP
BAY
Land
Road Network
Lot 4857
CAV
ES
1
1
Wyndham Resort
2
Four Seasons Holiday Resort
3
Toby Inlet Bed & Breakfast
A
Flame Tree Winery
Disclaimer - The contents of this plan are conceptual only, for
discussion purposes. All areas and dimensions are approximate only subject to
relevant studies, Survey, Engineering and Council approval.
A
ROA
D
2
231
Lot 102
Lot 101
MARYBROOK
Lot 1
Lot 2
Lot 3
166
Lot 6
782
Lot 8
CHAIN
AVENUE
Busselton
(15km)
597
Lot 34
SIESTA PARK
Lot 60
197
Lot 61
Lot 3
358
Lot 220
Lot 51
ANNIEBROOK
Lot 222
708
Lot 7
438
Lot 101
Lot 21
Lot 225
Margaret River
(46km)
RPS Australia East Pty Ltd
ACN 140 292 762
ABN 44 140 292 762
Wyndham Resort, Marybrook
PO Box 465 Subiaco WA 6904
38 Station Street
Subiaco WA 6008
Locality Plan
0
500
1000
1500
© COPYRIGHT PROTECTS THIS PLAN
Unauthorised reproduction or amendment
not permitted. Please contact the author.
T +61 8 9211 1111
F +61 8 9211 1122
W rpsgroup.com.au
Scale 1:15000@A3 l Date September 2013 l Project No 119241-5-001a
Legend
Subject Area
Subject Site (Lot 4-14 / 700)
Existing Public Road
Existing Private Road
Beach Access
The contents of this plan are conceptual only, for
discussion purposes. All areas and dimensions
are approximate only subject to relevant studies,
Survey, Engineering and Council approval.
4/700 5/700
6/700 7/700
Lot 4
8/700
Lot 5 Lot 6
9/700
Lot 7 Lot 8
10/700
Lot 9
Lot 10
WYNDHAM
RESORT
11/700
Lot 11
12/700
Lot 12
13/700
Lot 13
14/700
Lot 14
15/700
Lot 15
CAV
ES
RO
AD
ACN 140 292 762
ABN 44 140 292 762
Wyndham Resort, Marybrook
Site Plan
0
38 Station Street
Subiaco WA 6008
25
50
T +61 8 9211 1111
F +61 8 9211 1122
W rpsgroup.com.au
Scale 1:1000@A4 l Date September 2013 l Project No 119241-5-002a
Amendment No. 5
A 0.1 metre wide ‘spite strip’ extends along the Caves Road frontage, which prevents the resort from
obtaining separate access onto Caves Road. All access to the site is off Vernon Track to the eastern end of
the subject site.
Various Management Agreements have been adopted by the Strata Company relating to the use,
maintenance, management and apportionment of management and associated fees. These include the
requirement that all tourist accommodation is managed by a common booking agency (in order to prevent
private arrangements).
The Strata Company By-Laws address various other issues, including acknowledging the planning restriction
pertaining to the restricted length of stay (not exceeding 3 months in any 12 months) and the fact that no
person shall occupy the land inconsistent with this restriction. The by-laws, however, acknowledge that:
“Notwithstanding by-law 31(b)(i), the Strata Company and each Proprietor acknowledge that the
town planning scheme referred to in the endorsement above relating to those lots may be subject to
change to allow the use of the relevant lots for greater periods than 3 months in any 12 month
period. If this occurs, it is acknowledged by the Strata Company and each Proprietor that the lots
may be used by their Proprietor accordingly.”
Refer Appendix 1 for the Certificate of Title.
Page |3
Amendment No. 5
3.0
Planning Context
3.1
Zoning and Land Use
The subject site is zoned ‘Tourist’ under the City of Busselton’s Town Planning Scheme No. 21 (TPS 21).
The land abuts the foreshore ‘Recreation’ local reserve to the north and west, and ‘Residential R5’ zoned
land to the east.
Other waterfront properties land to the east of the subject property are zoned at a relatively low residential
density (R2.5), whereas the land to the west has a prevailing density of R2.5 along Caves Road and R12.5
along Geographe Bay Road, increasing to R15 and R30 as Dunsborough town site is approached.
The Zoning Table (Table 1) of TPS 21 establishes the land use permissibility in the Tourist zone. ‘Tourist
Accommodation’ is discretionary use in the Tourist zone.
TPS 21 defines Tourist Accommodation as:
“a building or group of buildings substantially used for the temporary accommodation of tourists, visitors
and travellers which may have facilities for the convenience of patrons such as restaurants, convention
areas and the like but not include a building or place elsewhere specifically defined in this Schedule or a
building or place used for a purpose elsewhere specifically defined in this Schedule.”
Grouped and Multiple Dwellings are not permitted in the Tourist zone in TPS 21. This means that the Council
cannot separately approve normal residential dwellings on the subject land (with an unrestricted period of
stay).
In respect to the period to which Tourist Accommodation can be occupied, Clause 5.18.1 of TPS 21 states
that:
“(1) no person shall occupy a tourist accommodation unit, chalet, caravan, camp or any other form of
tourist accommodation for more than a total of 3 months in any one 12 month period.”
This is clause is not a discretionary clause.
The City’s consideration of a request to rezone the site ‘Special Purposes’ will be based partly on the Local
Tourism Planning Strategy. To this extent, detailed justification of the tourism significance has been
established (refer below).
3.1
Planning Bulletin 83/2014 Planning for Tourism - Section 7 Considerations
The WAPC’s Planning Bulletin 83/2014 Planning for Tourism states that “A key outcome of this review was
the need for a more strategic and flexible approach to tourism planning to encourage and support investment
in the industry.” The proposed unrestricted stay component of this site allows for flexibility by allowing for a
mix of complimentary uses that are better equipped to respond to changes in the market and seasonal
variations. The ability to secure investors, and obtain finance for a 100% tourism based development is
exceedingly difficult, as the long term return on investment combined with large initial capital outlay limits the
feasibility of such developments.
Page |4
Amendment No. 5
The proposed approach is suitable for the location as it provides financial security and greater economic
sustainability to the development and region. The provision of an unrestricted stay component does not
significantly affect the opportunities for tourism within the Shire or the region, as there are numerous sites the
council has argued should be exclusively held for tourism development. The development of the unrestricted
stay component will also include development of short stay accommodation. Furthermore, there is no
shortage of tourist accommodation in the Shire of Busselton as can be demonstrated by the following:
 Kookaburra Caravan Park
 Best Western Dunsborough Motel
 Amblin Caravan Park
 Surfside
 Bayview Geographe Resort
 Regency Beach Club
 Quay West Resort Bunker Bay
 Geographe Cove Resort
 Yallingup Beach Holiday Park
 Dunsborough Beach Cottages
 Caves House
 Whalers Cove Villas
 Caves House Caravan Park
 Waterfront Dunsborough
 Locke Estate
 Beachlands Caravan Park
 Dunsborough Beach House YHA
 Siesta Park Holiday Resort
 Busselton Beach Resort
 Busselton Holiday Village
 Busselton Holiday Village
 Forte Cape-View Apartments
 Beachlands Holiday & Caravan Park
 Dunsborough Seaside Villas
 Mandalay Holiday Resort and Tourist Park
 Country Life Farm
 Lazy Days Caravan Park
 Busselton Jetty Chalets
 Four Seasons Holiday Resort
 Grand Mecure Busselton Apartments
 Sandy Bay Beach Front Holiday Resort
 Bayshore Beachside Resort
 Busselton Villas and Caravan Park
 Banyula Plants and Banamah
 Geographe Bay Holiday Park
 Amalfi Resort
 Peppermint Park Eco-village
While this is not an exhaustive list, and does not include private residences rented out for short stay
purposes, it demonstrates the level of tourist accommodation available in the City of Busselton LGA alone.
The tourist accommodation yield could be increased by 2 to 3 times the original concept plan proposal, thus
having the potential to deliver a significant increase in tourist accommodation options into the resort pool.
The approach of applying short stay blanket restrictions over strategic tourist sites in effect limits the flexibility
of the site, and increasing the difficulty to raise the necessary capital to finance the development. There are
many examples of primarily short stay oriented development accommodating for more permanent residency
without affecting the primary short stay function. There are examples in the City of Busselton such as the
Pullman Resort at Bunker Bay and the Broadwater Resort and Cape View Resort all provide both residential
and short stay accommodation with no significant conflict. Although providing an unrestricted stay
component gives the option of permanent residency, it is more profitable for the owner to charge on a short
stay basis. Particularly in the summer peak periods, it is highly likely that owners will seek to maximise the
return on investment through making the premises available for short stay purposes.
Page |5
Amendment No. 5
The Wyndham Resort has sufficient capacity for permanent residential land uses and provides an adequate
level of access to residential services and amenities that warrants further consideration in this regard.
The site will:
 Provide a small permanent population that would complement and reinforce the existing and future tourist
operations proposed on the land;
 Enable permanent and short stay residents to access and be in close proximity to the civic, retail, sporting
and cultural activities in and around the Busselton-Dunsborough localities; and
 Encourage a permanent presence on the land (in addition to the future tourist facilities to be provided) in
seasonal low periods, encourage activity and vibrancy, and thereby enhance public safety and
surveillance of the site.
 As previously stated, access to this site and the areas of highest amenity will not be affected by this
proposal. Currently, the subject site is cleared and undeveloped providing no positive impacts on the site
whatsoever, in fact if anything it reduces the otherwise high amenity of the site. The ability to make this
development economically viable rests on the provision of this unrestricted stay component, alternatively
the site could remain bare and undeveloped, continuing to provide no benefit to the Shire or the south
west region.
3.2
City of Busselton Local Tourism Planning Strategy
The City’s Local Tourism Planning Strategy proposes a comprehensive change to the way tourism
development is considered. For example, the existing ‘Tourist’ zone is proposed to be replaced by the
following tourism zones in the new town planning scheme, including;
a.
b.
c.
d.
Tourist A
Tourist B
Caravan Park
Chalet Park
Under this framework the subject site (known as Site 23) is identified as Strategic Tourism site. The Strategy
also recommends that the subject site is rezoned to Tourism A, however it may be considered for inclusion in
the ‘Tourist B’ zone in accordance with Recommendation 3.7(b) of the Strategy (see below).
The proposed ‘Tourist A’ zone is similar to the current ‘Tourist’ zone, where there is no provision for
accommodation units for unrestricted length of stay (i.e. greater than 3 months by any person in any 12
month period). The Tourist B zone, however has more flexibility and allows up to 25% of accommodation
units available for unrestricted length of stay (i.e. on a permanent basis).
According to recommendation 3.7(b) of the Strategy, consideration of amending sites to ‘Tourist B’ or to
otherwise allow an unrestricted length of stay component (outside the ‘Caravan Park’ zone) is possible. With
respect to strategic tourism sites, these are to be assessed on a case-by-case basis and only supported
where a ‘net tourism benefit’ can be demonstrated, and the proposal is assessed against the following
criteria:
 Located within an existing urban settlement;
 Any unrestricted length of stay component units/development shall be of a design and scale that is
subsidiary to the tourism component of the development;
 The restricted length of stay component having to be completed to the City's satisfaction, prior to the
occupation of the unrestricted stay component; or
Page |7
Amendment No. 5
 The City being satisfied through a legal agreement, bond, bank guarantee, or other legally agreed
commitment from the developer to ensure the development will be undertaken and satisfactorily
completed;
 The City being satisfied with the separation of the two uses or the management arrangement to prevent
land use conflict;
 On all sites, the unrestricted length of stay component being generally located away from the areas of the
site providing the highest tourism amenity; and
 On coastal sites, the unrestricted length of stay component being generally located in areas further from
the coast.
What constitutes ‘net tourism benefit’ is not defined in the Strategy, however, this is addressed below.
In respect to the subject site the Strategy also states;
Tourism Potential
The resort is essential in the diverse mix of accommodation offered within the City. Four star luxury
accommodation has its own market and this site plays an important part in catering to that market.
Tourism Risks
Redevelopment of the resort should be discouraged unless it is for Resort purposes to ensure a diverse
range of accommodation remains available.
Guidelines
Maintain foreshore and coastal setback and continue to manage the environmental attributes of the site
including the peppermint trees which are indigenous to the area, provide a natural habitat for fauna and
birds and including habitat for the Western Ring Tail Possum.
3.2.1
Response on Net Tourism Benefit
Tourism is a key driver of the Busselton economy and the need to maximise the potential of this sector to
create innovative, successful and sustainable tourism developments is critical to attracting future visitors to
the region. This is both for the benefit of the economy and the community. The Busselton - Dunsborough
region is dire need of more quality tourism developments however, the necessary investment in this sector
will not occur unless these projects can be demonstrated to be financially viable.
It is acknowledged that the Wyndham Vacation Resort has a role to play in delivery of resort style
accommodation for tourists, however it is questionable whether it is considered ‘strategic’ in the broader
tourism context, whereby permanent residential accommodation is prohibited.
Further, the site does not have an element of scarcity that warrants it being considered as being the only
opportunity to achieve significant tourism development in the area.
In addition the background report for the Tourism Planning Strategy acknowledges that many residential
dwellings within the City are used for short term holiday stays. The Tourism Planning Strategy establishes
the position that allowing unrestricted length of occupancy compromises the use of these sites for tourist
purposes however, this is simply conjecture. For example, in the adjoining Shire of Augusta – Margaret
River, the existing Margaret’s Forest resort at the entry to the Margaret River townsite which has a dual
approval has in fact few permanent residential occupants but its implementation was enabled by the fact that
financiers were confident that the residential opportunity provided certainty of a viable project for the
developer. The project was constructed in a more secure financing and growing tourist market compared to
the challenges the industry is confronted with in 2012 but it remains as an example of where a mixed use or
‘dual approved’ resort continues to be used for tourist accommodation without generating adverse impacts
for either class of occupant.
Page |8
Amendment No. 5
It is widely acknowledged in the tourist development industry and in numerous economic reports that tourism
development can only be made feasible by supporting a level of unrestricted occupancy.
The blanket restriction of key tourism sites for short-stay purposes only, irrespective of market conditions,
leads to challenges in raising finance for construction and means that land is often left undeveloped and
effectively sterilised to the detriment of the tourist economy. There is therefore a high potential for vacant
strategic sites to never be developed.
There are many examples of this unrestricted use outcome both within the City of Busselton and adjacent
Shire of Augusta Margret River such as Margaret’s Forest Resort and Darby Park Apartments in Margaret
River, Pullman Resort at Bunker Bay, and the Broadwater Resort and Cape View Resort in Busselton.
Furthermore, the City of Bunbury has also recognised this issue and subsequently adopted a Local Planning
Policy with the specific purpose of permitting the development of dual use permanent residential/short stay
accommodation for new build single houses, grouped dwellings and multiple dwellings, to provide
landowners and investors with greater flexibility in the use and leasing of residential property.
Allowing for a mix of permanent and short-stay uses (to satisfy demand at any given time) provides flexibility
which will then provide additional support to the future resort facilities from those owners who do choose to
live on site without compromising the role the resort plays in the general tourist economy within the town.
The Strategy allows this site to be considered for inclusion in the ‘Tourist B’ zone and therefore affirms the
view that residential accommodation is appropriate (but this needs to be further justified). Moreover, strategic
tourism sites should enable flexibility for a residential component to be considered given the difficulty to
secure funding for projects with a 100% short stay component. This is particularly supportable in the case of
less intensive infill type development such as that proposed for the subject site as the potential for conflicting
uses of properties is further limited. Further, it is difficult to attract potential investors to invest in tourism
projects largely due to the risk involved in developing a purely tourism project. Flexibility needs to be
introduced to enable development proposals to be considered on a case-by-case basis to determine if a
component of permanent residential accommodation may be appropriate in that area.
As mentioned earlier, the model of a component of unrestricted stay within even strategic sites has been
applied in the South West in the past in a successful manner. Two examples in the City of Busselton that are
considered to be strategic sites are the Pullman Resort at Bunker Bay and the Broadwater Resort in the
Busselton town. Both these resorts have a component of residential included within the project but they
continue to operate successfully as tourist resorts with no evidence of the resort experience being
compromised by the residential component.
Flexibility improves the viability of some projects. A percentage of residential use of the accommodation also
assists with creating vibrancy on a site throughout the year. Due to the cyclical nature of the tourism industry,
there are many times during the year where local accommodation operators are very quiet. Permanent
residents can assist with the sustainability of an area by shopping locally, and using other local facilities
throughout the year and more importantly for the resort’s viability, using the resort facilities.
There are examples of similar types of complexes being occupied by a greater proportion of permanent
residents through the low season only to be vacated to allow for higher value occupation by tourists during
the high season.
The ability to develop a portion of land for residential use should not be limited to ‘non-strategic’ tourism
sites. Residential development is a complementary land use that should be assessed on a case-by-case
basis for all sites ensuring that the residential component is responsive to the site’s qualities whilst achieving
the overarching objective of retaining the predominant tourism function on the landholding.
Page |9
Amendment No. 5
3.2.1.1
Economic Considerations
The tourism demand analysis of the Local Planning Tourism Strategy effectively illustrates the historical,
current and likely future characteristics of the tourism market in the Busselton Local Government Area (LGA).
Key characteristics of the LGA’s tourism market include:
 The two primary reasons for visitors coming to the Shire are holiday/leisure, and visiting friends/relatives.
 The majority of visitors stay in the accommodation types Hotels, Resorts, or Motels.
 A high percentage of overnight visitors, who come to the City to stay with friends/relatives and do not
book formal accommodation (Hotels, Motels, Chalets, Caravan Parks or multiple self-contained
apartments).
 Occupancies are mostly between 75%-100% in peak season and an average of 43% percent for off-peak,
with the numbers of visitors gradually increasing.
 Guesthouses and Bed and Breakfasts have lower peak and off season occupancy than other
accommodation types.
 The City has over 13,185 tourism beds available on any one night.
 Tourist/Caravan Parks are in high demand during peak season and suffer low off season occupancy
rates.
The current state of formal accommodation supply (Hotels, Motels, Resorts, Caravan Parks and selfcontained accommodation – not home holiday accommodation) in the City of Busselton is summarised in the
following table.
Accommodation
Type
No.
Operators
surveyed
No of
Tourism
Beds
Average
Star
Rating
Average
Peak
Season
Occupancy
Rates %
Average Off
Season
Occupancy
Rates %
Average Trend in
Occupancy Rates
Tourism
Development
Proposals Beds
Multiple
Apartment/ Hotel
5
1567
4
75%-100%
25%-50%
Static
500
B&B
23
168
4.5
50%-75%
25%
Increasing
gradually
10
Guesthouse
5
78
4
50%-75%
25%
Unpredictable/
increasing
gradually
8
356
Hotel
3
160
3
75%-100%
75%
Static
Motel
6
540
3.5
75%-100%
50%
Increasing
gradually
Resort
8
1924
4
75%-100%
50%
Unpredictable/
increasing
gradually
Self Catering
32
1233
4
75%
50%
Increasing
gradually
492
Summary
104
13185
4
80%
43%
Increasing
gradually
1614
Source: Shire of Busselton Local Tourism Planning Strategy (Table 12)
These indicators characterise a tourism market that is currently in the stagnation phase of its development
Tourism Area Lifecycle.
P a g e | 10
Amendment No. 5
Tourist visitor night projections indicate flat growth in domestic visitors and stronger growth in international
visitors (off a smaller base), resulting in slight positive growth in tourism demand.
Findings from the Accommodation Audit survey indicate that despite an occupancy rate of 42.3%, according
to the Australian Bureau of Statistics for 2005/2006, formal accommodation operators estimate an overall
occupancy rate of 26.3%.This is well below the 65% industry average for whole-of-Australia that is generally
required to sustain operationally profitability. It is also below a 75% occupancy rate level that is regarded by
investors as triggering the need for new accommodation capacity.
There are however, current difficulties in developing resort, hotel and serviced apartment style product in
Busselton LGA. In fact, even under a high demand scenario, Hotel development in the LGA has a large
negative Net Present Value and a 0% Internal Rate of Return. This also reflects issues relating to access to
finance, land and construction cost and high levels of seasonal volatility.
In contrast, development feasibility is enhanced if tourist accommodation provision is provided in
combination with residential dwellings, as the earlier realisation of value subsidises the longer term
operational return of the tourist accommodation establishment.
The shift away from in-house serviced accommodation (such as hotels, motels and resorts) with associated
high operational costs, towards more self-contained, flexible product types (such as serviced apartments and
residential rentals), reflects changes in the expenditure and visitation of tourists, as well as the increase in
global tourism competition.
Additionally, the GFC and the availability of credit has had major implications for the capability of
developments to raise necessary funds to support development/redevelopment of tourism accommodations,
reflecting poor development feasibilities, internal rates of return and high risk-based discount rates.
3.2.1.2
Role of Permanent Residential Development
The increasingly critical role that residential development plays in facilitating and enabling tourism
accommodation investment, capacity increases and quality improvements is well documented. This includes
improvements to the feasibility assessment of hotel developments through the inclusion of (or ability to
provide) a permanent residential component. However, the treatment of permanent residential development
in Strategic Tourism sites generally in the Local Planning Tourism Strategy Background Report (May 2010)
appears to contradict this evidence. Firstly, the Tourism Analysis of the Background Report states that
“Housing development pressures have the potential to override the need for tourism accommodation and
facilities in the Shire. Land is more valuable for residential development purposes than tourism and there are
ongoing closures and redevelopment of affordable coastal family accommodation.” The relationship
between Residential and Tourism uses is positioned as one of conflict, with no consideration given to the role
that residential development is increasingly playing nationally in facilitating otherwise unfeasible tourism
accommodation developments.
Secondly, the Strategy extols a flexible, merits-based approach to assessing the appropriateness of mixed
use development on tourism sites in line with Planning Bulletin 83/2014. This includes a criteria based
methodology. While this approach is suitable, it is contradicted by the overarching planning-led criteria that
the development align with the settlement strategy. The inclusion of this criterion undermines the flexibility of
the approach promoted by the Strategy, pairing the decision making process, not to evolving and dynamic
market forces, but instead to more rigid planning ideologies and frameworks.
P a g e | 11
Amendment No. 5
Greater consideration and acceptance of the role and purpose of residential development, as an enabler and
facilitator of increased tourist accommodation capacity and quality, must be given if the goals and objectives
of the Strategy are to be achieved.
3.2.1.3
Supply-Based Approach
The Strategy identified an increase in resort and hotel accommodation product availability in the market as a
potential means to increase demand, particularly through the international tourism market. This supply based
approach – commonly referred to as a “build it and they will come” ideology - is contrary to basic economic
theory and fails to consider fundamental investment drivers.
While it is acknowledged that international visitors generally seek a higher quality of accommodation, the
primary driver of international visitation, particularly from emerging Asian markets, is the quality and diversity
of tourism experiences. These factors are the determinants of visitation, with accommodation capacity and
quality playing an enabling and facilitation role.
Currently, hotel product has an average occupancy rate while resort style product has a very poor occupancy
rate. This in part reflects a slowing in the traditional domestic overnight market, as well as the age of current
product (previously developed in the 1980’s and 1990’s).
A lack of capacity in the high quality segment of the tourism accommodation market will only be addressed
when occupancy rates exceed the annual average 75% threshold utilised internationally as a trigger for
investment (65% is used for operational sustainability). This reflects the fact that investment is generally
reactive to market indicators, due to the inherent risk of the endeavour. Currently, only serviced apartment
product is likely to exceed this threshold in the next 10-15 years.
From the perspective of an investor (either a private individual developer or a larger superannuation
investment fund), the risk profile of investing in a high-end development in order to induce demand to a
location is too high.
Instead, private sector investment activity responds most effectively to Government investments in tourist
activities and attractions. Therefore, it is public sector investment in amenity and attractions, not private
sector investment in accommodation that is required to accelerate visitor demand growth.
3.2.1.4
Opportunity Cost of Long-Term Protection of Tourism Sites
Projections of tourist accommodation demand are for only minor growth in total tourist visitation levels over
the next decade, with growth in international visitor numbers offset by flat and potentially declining domestic
visitation levels. Based on this fact, it is possible that any Strategic Site, which is restricted in terms of
residential development, maybe prevented from redeveloping for over a decade.
The Economic Opportunity Cost of such an outcome is significant. This reflects the Present Value of Money
– the fact that due to potential alternate returns and overall investment risk, money in one year is worth less
than it is now in Present Value terms. The difference depends on the Discount Rate used – 6% is the social
rate of return used for Government projects, while 15% is the rate used in the development feasibility
assessments. This applies to both financial and economic benefits.
As an example, assume a project yields a real $1 million worth of economic benefit to a local community. If it
occurs in Year One (say next year), then it is worth between $869,000 and $943,000 in Present Value terms.
However, if it occurs in Year 10, it is worth between $247,000 and $558,000 in Present Value terms. This
represents the opportunity cost in terms of a delay in investment and is outlined in the following table.
P a g e | 12
Amendment No. 5
Table 1 Economic Benefit Value
Discount Rate
Year 1
Year 10
Multiple
6%
$943,396
$558,395
1.69
8%
$925,926
$463,193
2.00
11%
$900,901
$352,184
2.56
15%
$869,565
$247,185
3.52
Another way of looking at this opportunity cost is to calculate the ratio of between the Present Value sizes of
the benefit of both Years. Based on this approach, at the 15% discount rate, $1 million worth of economic
benefit realised in Year 1 is over 3.5 more than $1 million being realised in Year 10. In other words, a project
in 10 years time would need to generate more than 3.5 times the economic benefit than the same project in
Year 1 to justify the delay.
The Opportunity Cost of the long-term designation of Strategic Sites for tourism is a critical issue that should
be considered when selecting and encouraging the development of strategic tourism sites.
Given the tourism environment, ignoring or ineffectively adopting the recommendation relating to allowing
residential development on tourism sites could have considerable implications on the local economy.
It is important to note that this comment does not amount to a recommendation to simply allow the highest
and best use, as determined by the market, for a tourism site in the current market (which would likely be a
combination of retail and residential development). Government and Local Government has an important
and appropriate role to play in looking beyond short-term economic volatility and cycles to facilitate medium
and long-term growth. As such, it is economic justifiable for sites that currently or have the potential to play a
strategic role in the local tourism industry to be afforded a degree of regulatory protection. The issue is that,
in affording the protection, the local tourism sector and wider economy is actually disadvantaged and
negatively impacted in both the short and long-term due to the opportunity cost associated with foregone
accommodation development and quality enhancement investments.
3.2.1.5
Delivery of Additional Tourist Accommodation within this Resort
Section 5 discusses the development potential for the subject site. This illustrates that the tourist
accommodation yield could be increased by 2 to 3 times the original concept plan proposal. With the
financing incentives discussed above, this has the potential to deliver a significant increase in tourist
accommodation options into the resort pool.
One key aspect in delivery is the ability for the developer to initially obtain finance to build the tourism
development. Developers of course must be able to sell their end product. As lending practices have
tightened significantly since the GFC, lending institutions will only lend to purchasers up to 40% of the
purchase price for tourist developments. This means that an investor has to fund the balance 60% of the
purchase price. Unrestricted stay means the lending institutions will deem the investment as residential and
can lend to purchasers up to 80% of the purchase price. Therefore this can attract a greater number of
investors into the tourism market than could otherwise be achieved.
In accordance with the strata title by-laws this tourist accommodation is required to be managed by the
central resort administration. This prevents the situation of individuals seeking to manage their tourist
investment separately.
P a g e | 13
Amendment No. 5
4.0
Response to Local Tourism Strategy: Unrestricted Stay
Criteria
Section 3.7(b) of the City’s Local Planning Tourism Strategy outlines the criteria by which strategic tourism
sites will be considered on a case by case basis - for designation as “Tourist Zone B” or otherwise granted
an unrestricted stay component. In response to the City’s request for more information regarding how this
proposal meets the aforementioned criteria, the criteria have been addressed individually to allow for a clear
assessment. RPS notes, however, it is unlikely that in drafting these criteria the City intended that all criteria
must be met cumulatively.
Table 2 Criteria for Unrestricted Stay Proposal - Local Tourism Planning Strategy
Criteria to be Addressed
Addressed
1. Any unrestricted length of stay units/development shall be of a design and scale
that is subsidiary to the tourism component of the development
Section 2.1.2
2. The unrestricted length of stay component having to be completed to the City’s
satisfaction, prior to the occupation of the unrestricted stay component; or
Section 2.1.3
The City being satisfied through a legal agreement, bond, bank guarantee, or
other legally agreed commitment from the developer to ensure the development
will be undertaken and satisfactorily completed;
3. The City being satisfied with the separation of the two uses or the management
arrangement to prevent land use conflict
Section 2.1.4
4. On all sites, the unrestricted length of stay component being generally located
away from the areas of the site providing the highest tourism amenity
Section 2.1.5
5. On coastal sites, the unrestricted length of stay component being generally
located in areas further from the coast
Section 2.1.6
6. All units in the development shall be designed primarily for tourist occupation,
form part of an integrated complex and shall not be subject to compliance with
the Residential Design Codes of Western Australia to the extent necessary to
meet these requirements, unless specified under the planning scheme
Section 2.1.7
7. Design differentiation between tourism and residential-no occupancy restriction
units within a complex shall be limited to that required to accommodate the
various components of the tourism market
Section 2.1.8
8. Unrestricted length of stay units may be concentrated in an area of the complex
and provided with specific recreation and amenity facilities but shall be
designed to enable management and use as an integrated part of the overall
complex. In assessing the location of units, the potential for a residential/no
occupancy restriction component to provide a transition between tourism
development and surrounding residential uses should be taken into account
Section 2.1.9
9. The development shall incorporate those facilities normally associated with
tourist accommodation developments such as recreation, entertainment
facilities and integrated management facilities
Section 2.1.10
P a g e | 14
Amendment No. 5
The following represents a response to the key issues raised in the Local Tourism Strategy:
4.1
Design and scale that is subsidiary to the tourism component
“Any unrestricted length of stay units/development shall be of a design and scale that is subsidiary to the
tourism component of the development”.
The proposed unrestricted stay component of this proposal accounts for only 12.5% of the total site area,
and the remaining 5 lots (6, 7, 8, 9 and 10) with foreshore frontage account for only 7.6% of the total area of
the site. In this regard the scale can certainly be said to be subsidiary to the short stay component, which
holds the balance of the total site area.
Furthermore, the unrestricted stay component is contained within 12.5% of the total frontage to Caves Road,
with the existing short stay use taking up the remaining 87.5%.
The remaining 5 lots fronting the foreshore (Lots 6,7,8,9 and 10) to be developed as part of this proposal
count for a total of 16% of the foreshore frontage compared to 84% for the existing short stay
accommodation.
Given the existing extent of short stay tourist accommodation units on the site, the proposed percentage of
unrestricted stay units would be 22.5% which is within the 25% maximum. The short stay accommodation
will remain the prominent land use on this site, and even if an unrestricted stay provision was made for this
development, it is highly likely that many will be leased as short stay accommodation by the owners due to
the high values during peak season.
4.2
Restricted length of stay component being completed prior to the occupation
of unrestricted stay component
“The restricted length of stay component having to be completed to the City’s satisfaction, prior to the
occupation of the unrestricted stay component; or
The City being satisfied through a legal agreement, bond, bank guarantee, or other legally agreed
commitment from the developer to ensure the development will be undertaken and satisfactorily completed”.
This proposal covers the undeveloped portion of the site. The developed portion of the site contains the
Wyndham Vacation Resort. This resort offers luxury short stay accommodation consisting of 100 Deluxe
King Rooms and fully contained 2 bedroom apartments, a restaurant, bar, function and conference facilities,
25m swimming pool, day spa, gym, tennis courts, putting green, business centre, wedding chapel, BBQ
picnic areas and a children’s playground. This component is being progressively upgraded.
In addition, Lots 4 and 5 are already developed as short stay accommodation, the ‘Azure Beach Residences’
comprise four bedroom apartments and have access to room service and existing resort facilities.
The unrestricted stay and the restricted stay components of this development would be constructed
simultaneously, more specific information regarding the design concepts can be found in section 5 of this
report.
4.3
Separation of the two uses or the management arrangement to prevent land
use conflict
“The City being satisfied with the separation of the two uses or the management arrangement to prevent land
use conflict”.
P a g e | 15
Amendment No. 5
Given that the Wyndham Resort has been established for several years, it is unlikely that any occupant
seeking longer term residency would be adverse to the close proximity of the hotel. Many people are
attracted to hotel style accommodation for the security and access to facilities, providing convenience and a
relaxed resort atmosphere. Given the proposed expansion of the Busselton airport, this option may be
particularly attractive to ‘fly in/fly out’ residents, which may prefer the ‘lock and leave’ capability of resort style
accommodation. The presence of a certain number of permanent residents would provide more certainty for
owners on the value and income potential from each unit, and provides flexibility. This is particularly
applicable to the Shire of Busselton, where the considerably high rate of short stay occupancy during the
warmer months is matched by the significantly low rate occupancy during the winter months.
The Tourism Planning Strategy establishes the position that allowing unrestricted length of occupancy
compromises the use of these sites for tourist purposes, however this is simply conjecture. For example, in
the adjoining Shire of Augusta – Margaret River, the existing Margaret’s Forest Resort at the entry to the
Margaret River townsite which has a dual approval has few permanent residential occupants, but its
implementation was enabled by the fact that financiers were confident that the residential opportunity
provided certainty of a viable project for the developer. The project was constructed in a more secure
financing and growing tourist market compared to the challenges the industry is confronted with in 2012, but
it remains as an example of where a mixed use or ‘dual approved’ resort continues to be used for tourist
accommodation without generating adverse impacts for either class of occupant.
The City of Bunbury has also recognised this issue and subsequently adopted a Local Planning Policy with
the specific purpose of permitting the development of dual use permanent residential/short stay
accommodation for new build single houses, grouped dwellings and multiple dwellings, to provide
landowners and investors with greater flexibility in the use and leasing of residential property.
It is widely acknowledged in the tourist development industry, and in numerous economic reports, that,
tourism development can only be made feasible by supporting a level of unrestricted occupancy.
The Busselton LTPS allows this site to be considered for inclusion in the ‘Tourist B’ zone and therefore
affirms the view that residential accommodation is appropriate (but requires justification). Furthermore,
strategic tourism sites should enable flexibility for a residential component to be considered given the
difficulty to secure funding for projects with a 100% short stay component. This is particularly supportable in
the case of less intensive infill type development such as that proposed for the subject site as the potential
for conflicting uses of properties is further limited. Moreover, it is difficult to attract potential investors to invest
in tourism projects largely due to the risk involved in developing a purely tourism project. Flexibility needs to
be introduced to enable development proposals to be considered on a case-by-case basis to determine if a
component of permanent residential accommodation may be appropriate in that area..
The strata title by-laws also clearly state that all short stay tourist bookings within the proposed development
must be managed by the existing resort administration. This means that any potential occupants must meet
the same standards and checks, that any other occupant of the existing hotel, preventing private renting of
the premises.
4.4
Unrestricted length of stay component being generally located away from
areas of highest tourism amenity
“On all sites, the unrestricted length of stay component being generally located away from the areas of the
site providing the highest tourism amenity”.
As previously mentioned, the unrestricted stay component of the development comprises only 12.5% of the
total area of the lot. Given the existing Wyndham Resort facilities have direct frontage to the foreshore, with
unimpeded views of Geographe Bay, it is possible to state that this facility occupies the highest amenity area
on the site. The total frontage of the foreshore component of this proposal (Lots 6,7,8,9 and 10), is only 16%
of the total, 21% if the already developed lots are included, however they serve a short stay tourist function.
P a g e | 16
Amendment No. 5
The foreshore lots (4-10) view to the foreshore is blocked by existing Peppermint Trees, which serves to
significantly decrease the assumed “higher amenity” associated with proximity to the beach. The existing
resort enjoys a considerable view-shed to the foreshore and for this reason enjoys a higher amenity than
Lots 4-10.
The existing hotel site is more amenable to tourists given its luxury accommodation, extensive facilities (see
section 2.1.3) and superior coastal frontage/access. The Wyndham Resort complex therefore enjoys the
highest tourism amenity, and the proposed development is separated from the existing hotel site in built form
and physical location.
4.5
Unrestricted length of stay component being generally located in areas
further from the coast
“On coastal sites, the unrestricted length of stay component being generally located in areas further from the
coast”.
Lots 4-10 are of the closest proximity to the coast, although as aforementioned vegetation limits the visual
permeability from these lots to Geographe Bay. The existing Wyndham resort facilities, in particular the pool
and tennis court, have been strategically positioned closer to the coast to maximise amenity for recreation,
and do not face the same level of impedance on views of the foreshore. While the units to be constructed on
Lots 6,7,8,9 and 10 will be technically the closest buildings to the coastline, in reality the resort facilities are
closer to the beach.
The current proposal over the site is for 10 large four bedroom units, essentially the same design currently
constructed on Lots 4 and 5. This proposal is not viable given the costs of operating short term
accommodation, is a very inefficient use in terms of land area, and limits the product to one type of
accommodation which currently would be in excess of $1000 per night. At this price range high occupancy
rates could not be sustained, and it would be outside the price range of most tourists.
The preferred options are for smaller units with a more diverse mix of accommodation, providing a greater
number of units for a greater price range diversity, and therefore diversity of tourists. Provision of additional
facilities for the use of resort patrons could be placed on the coastal side of Lots 4-10, and utilised by all
patrons. This smaller unit mix will allow for the provision of a greater amount and variety of tourist
accommodation.
4.6
All units in the development shall be designed primarily for tourist occupation
“All units in the development shall be designed primarily for tourist occupation, form part of an integrated
complex and shall not be subject to compliance with the Residential Design Codes of Western Australia to
the extent necessary to meet these requirements, unless specified under the planning scheme”
The proposed design of the development seeks to provide a higher density and variety of units than the
current concept plan. This provides more potential for a range of uses and users, thus attracting a greater
variety of tourists than the current “high end” accommodation offered on the two already developed Lots 4
and 5. The site is characterised by its tourism function, and the proposed development is designed in such a
way that this character will be maintained or enhanced, while increasing the amount of accommodation
available on site.
All of the proposed units can function as tourist accommodation in terms of built form, with enough variance
in the size of units throughout the development to cater for a range of requirements and budgets. The high
value of short stay accommodation in the region, (particularly over the peak season), means that it is highly
likely most of the units will be available for short term occupancy in any case. This provides a versatile
approach with the sole aim to increase investment and encourage the development of tourism infrastructure,
while making investment in the sector more attractive.
P a g e | 17
Amendment No. 5
4.7
Design differentiation between tourism and residential no-occupancy
restriction units within a complex shall be limited
“Design differentiation between tourism and residential no-occupancy restriction units within a complex shall
be limited to that required to accommodate the various components of the tourism market”.
The design is proposed to be almost uniform across the proposed development, excepting existing variations
in lot size and the already constructed Lots 4 and 5. While the proposed development will differ significantly
from the existing Wyndham Resort, this is inevitable given the clear differences in lot size, layout and the
large scale nature of the existing resort. Thus this proposal would not have any greater impact in this regard
than what has already been developed, exemplified by Lots 4 and 5.
The greater variety and lot yield of the proposed development gives this development the potential to cater
for a wider variety of customers, and a larger number, thus adding to the diversity of tourist accommodation
available in the region. Any development will be sympathetic to the existing character of the site, and will be
suitable for short stay purposes.
4.8
Unrestricted length of stay units shall be designed to enable management and
use as an integrated part of the overall complex
“Unrestricted length of stay units may be concentrated in an area of the complex and provided with specific
recreation and amenity facilities but shall be designed to enable management and use as an integrated part
of the overall complex. In assessing the location of units, the potential for a residential/no occupancy
restriction component to provide a transition between tourism development and surrounding residential uses
should be taken into account”.
The proposed development is located in a separate cluster on the western end of the site. Bookings in the
unrestricted stay component will still be managed by the central hotel administration, so that all tourist
bookings will be managed and integrated into the site as a whole as mandated by the survey strata by-laws,
preventing private agreements and reducing potential for land use conflict. The provision of additional
facilities will be considered if reasonable and necessary, in order to further enhance the facilities in the resort
pool.
In addition, providing an unrestricted stay component on this portion of the site can serve as a transition
between the existing short stay tourist function of the existing Wyndham Resort, and the residential zone to
the immediate west of the site.
4.9
Development shall incorporate facilities normally associated with tourist
accommodation developments
“The development shall incorporate those facilities normally associated with tourist accommodation
developments such as recreation, entertainment facilities and integrated management facilities”.
The survey strata by-laws state that both occupants and proprietors of the proposed development will have
access to all existing resort facilities, located within the existing Wyndham Resort. The full extent of these
facilities is outlined in section 2.1.3 of the scheme amendment report, and would certainly be more than
adequate to address the requirements of the LTPS for the unrestricted component of this development.
Provision of additional facilities or enhancement of existing facilities is a possibility to be explored, and
options can be discussed as necessary.
As a result of the proposed development for both short stay and unrestricted stay components, significant
upgrades to resort facilities have been undertaken to accommodate the expansion of activities.
P a g e | 18
Amendment No. 5
To date this includes a major upgrade of the MATV system to provide 5 local TV channels and 8 Foxtel
channels, to the estimated value of $23,815.74. In addition to this, a complete refurbishment of the existing
pool facility will be undertaken, at a total cost of $81,650. This represents a significant investment undertaken
by the client, which was triggered largely as a result of the proposed development in order to significantly
improve the facilities for both classes of occupant.
P a g e | 19
Amendment No. 5
5.0
Proposed Development Concepts
Within the Resort complex it is established that there are 88 units and 2 townhouses, with 118 communal
parking bays + 4 parking spaces for the townhouses available. Depending on how car parking is calculated,
and if only 1 car parking bay is required to be provided per unit then there are around communal 30 bays
available (i.e. 90 existing units = 92 bays, accounting for 2 per townhouse).
There are currently 10 vacant strata title lots the subject of this proposal. Presently the site is proposed to
yield an additional 10 large 4 bedroom tourist units into the resort complex (12 in total). Refer Appendix 2.
This is grossly inefficient in terms of land area, and financially unviable given that the capital costs of
developing these sites for short term accommodation is high.
A number of development options are still being considered over the subject site that either accord with the
existing strata arrangements, or are based on a reconfigured strata title layout (i.e. ignoring the current strata
title layout). A number of site concept plans were prepared with the scheme amendment documentation
based on the total available vacant land. This more conservative proposal considers 8 two storey
townhouses along the foreshore, with 4 apartments above, and 7 two storey townhouses, with 2 apartments
over the southern portion of the site.
A second option is to increase the range of tourist accommodation units to reduce the size and increase the
number of potential tourist units to provide a combination of 1, 2 and 3 bedroom units.
This latter concept will more closely approximate the existing tourism accommodation product, and will rely
on communal parking, as opposed to fully allocated parking bays. This is also in the spirit of the Local
Planning Tourism Strategy in that the accommodation is clearly not of a ‘traditional’ residential type, and
occupiers of these units can fully access all resort services and facilities.
A third option, Concept Plan C, is presented in Appendix 1 which proposes 30 additional units in total. This
2
proposal consists of five (5) 85m two bedroom short stay tourist units, on the ground floor of Lots 6-10,
2
which are located closest to the foreshore. Lots 6-10 also contain five (5) two storey townhouses of 107m ,
which are contained on the first and second floors of these lots.
2
Lots 11 to 15 contain 5 two bedroom units of 85m on the ground floor, and 10 two bedroom units on the first
2
2
floor of either 65m or 85m . The second floor of Lots 11 to 15 contains 5 units, of which those on Lot 11 and
2
2
15 are dual key premises of 120m , with Lots 12, 13 and 14 having an area of 90m .
The tourist accommodation yield could be increased by 2 to 3 times the original concept plan proposal, thus
having the potential to deliver a significant increase in tourist accommodation options into the resort pool.
Existing Units
Previously
Prepared
Concept Plan
(# Units)
Concept Plan
A
(# Units)
Concept Plan
B
(# Units)
Concept Plan
C
(# Units)
Foreshore Frontage
(Strata Lots 4-10)
2
7
2 Existing
12 New
2 Existing
12 New
2 Existing
10 New
Internal
(Strata Lots 11-15)
0
5
9 New
23
20 new
TOTAL TOURISM
ACCOMMODATION UNITS
2 Units
12 Units
23 Units
37 Units
32 Units
P a g e | 20
Amendment No. 5
The total number of unrestricted units, however, will not exceed 25% of the accommodation units within the
resort.
This latter concept will more closely approximate the existing tourism accommodation product, and will reply
on communal parking, as opposed to fully allocated parking bays. This is also in the spirit of the Local
Planning Tourism Strategy in that the accommodation is clearly not of a ‘traditional’ residential type, and
occupiers of these units can fully access all resort services and facilities.
Initial market research indicates that the smaller units will provide an attractive market opportunity for
investment, and this will significantly increase the number and range of tourist accommodation options within
this resort. From an operation point of view, this will also reduce overall strata maintenance fees. All of these
outcomes are consistent with the overall objectives of the Local Planning Tourism Strategy.
P a g e | 21
Amendment No. 5
6.0
Proposed Scheme Amendment
It is proposed to insert ‘Special Provision Area’ provisions into Schedule 3 of Town Planning Scheme No. 21
to allow tourist accommodation units developed on Strata Lots 4 to 15 (inclusive) to be occupied with an
unrestricted length of stay, thereby allowing people the option to permanently live in these units.
No.
Particulars of Land
Zone
Special Provisions
SP58
Tourist
September 2005).
P a g e | 22
Amendment No. 5
7.0
Conclusion
Tourism is a key driver of the Busselton economy and the need to maximise the potential of this sector to
create innovative, successful and sustainable tourism developments is critical to attracting future visitors to
the region. This is both for the benefit of the economy and the community. The Busselton - Dunsborough
region is dire need of more quality tourism developments however, the necessary investment in this sector
will not occur unless these projects can be demonstrated to be financially viable.
The proposed unrestricted stay component of this development will have minimal impact on the amenity of
the site for tourism, and overall will have a positive impact on the economy of the City of Busselton,
enhancing sustainability. The assumption that because the building envelope of the unrestricted stay
component is close to the foreshore and therefore is of the highest amenity is unfounded, in fact the existing
resort facilities enjoy primacy with regard to both proximity and views. Allowing this unrestricted stay
component will serve to consolidate the provision of an economically viable, functional mix of short and
unrestricted stay accommodation. This will only benefit the City of Busselton and enhance the amenity of the
subject site, while providing a net increase in the amount and variety of tourist accommodation.
P a g e | 23
Amendment No. 5
APPENDIX A
Certificate of Title
Amendment No. 5
APPENDIX B
Original Concept Plan
Amendment No. 5
APPENDIX C
Proposed Site Concept Plan
TOWN PLANNING AND DEVELOPMENT ACT 2005
CITY OF BUSSELTON
LOCAL PLANNING SCHEME NO. 21
AMENDMENT NO. 5
The City of Busselton under and by virtue of the powers conferred upon it in that behalf by the Planning and
Development Act 2005 hereby amends the above Local Planning Scheme by:
No.
Particulars of Land
Zone
Special Provisions
SP58
Tourist
September 2005)
(b) Amending the Scheme Map accordingly.
ADOPTION
Adopted by resolution of the Council of the City of Busselton at the Ordinary Meeting of the Council held on
the
day of
201__.
________________________
MAYOR
________________________
SCHEME AMENDMENT MAP
City of Busselton
Amendment No. 5
Legend
LOCAL SCHEME RESERVES
Recreation
ZONES
Residential
Tourist
Agriculture
OTHER
R Codes
Coastal Management Area
Special Provision Area
Landscape Value Area
Wetland Area
SP58
ACN
140 292 762
ABN
44 140 292 762
Scheme Amendment Map
0
250
500
38 Station Street
Subiaco WA 6008
T +61 8 9211 1111
F +61 8 9211 1122
W rpsgroup.com.au
Scale 1:12500@A4 l Date January 2015 l Project No 119241-5-003a
FINAL APPROVAL
Adopted for final approval by resolution of the City of Busselton at the Meeting of the Council held on the
day of
201__ and the Common Seal of the City of Busselton was hereunto affixed by
the authority of a resolution of the Council in the presence of:
________________________
MAYOR
________________________
Recommended/Submitted for Final Approval
________________________
DELEGATED UNDER S.16 OF
THE PD ACT 2005
DATE ________________________
Final Approval Granted
________________________
MINISTER FOR PLANNING
DATE________________________

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Transcription

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