Item 8.6 - Attachment 1

Assessment of the preliminary rezoning concept for land at 2 Factory Street, Granville

ATTACHMENT 1 – Assessment of the preliminary rezoning concept for land at 2 Factory Street, Granville

This assessment of the preliminary rezoning concept includes comments made by the following Council teams; Land Use Planning, Urban Design, Economic Development, Transport Planning, Traffic Services and Catchment Management.

THE SITE

The subject site adjoins the south side of Clyde Railway Station at 2 Factory Street, Granville (Refer to Attachment 1). The site is 10,700sqm in size. The site is currently zoned for industrial purposes and is occupied by a group of industrial buildings, generally of brick construction, 2 to 3 stories in height. Large vehicle parking areas are also located on the site.

The site is adjoined at the northern boundary by the Clyde Railway Station, and at the southern and eastern boundaries by the Australia Post International Mail Centre. To the north-west of the site across Factory Street is located an industrial building occupied by a Tabcorp call centre. To the south-west of the site across Factory Street are located low density residential dwellings.

Context map

Site map

BACKGROUND

In November 2011, Council received a preliminary rezoning concept (located at Attachment 2) from Lockrey Planning & Development Solutions Pty Ltd, acting on behalf of the landowners MDM Pty Ltd. The proposal relates to the site known as 2 Factory Street, Granville, located adjacent to the south side of Clyde Railway Station.

The submission of a preliminary rezoning concept is to seek Council’s initial feedback and to determine if the proposed concept has merit for further investigation. Should Council be willing to explore the concept presented, the applicant would be invited to submit a planning proposal together with the requested studies for further assessment by Council, that addresses the issues and makes the amendments recommended.

PLANNING CONTROLS

The subject site is currently zoned IN1 General Industrial under the Parramatta LEP 2011. The IN1 General Industrial zone provides for a range of industrial and warehouse land uses.

The lands adjacent to the northwest, south and east are also zoned General Industrial under the Parramatta LEP 2011. The lands to the west across Factory Street are zoned R4 High Density Residential and R2 Low Density Residential. The R4 zone provides for high density residential development, whilst the R2 zone provides for low density residential development.

Land use zoning map, Parramatta LEP 2011

The maximum building height permitted for the subject site under the Parramatta LEP 2011 is 12m. The industrial zoned lands to the northwest and south have a maximum building height of 12m. The R4 zoned lands to the west have a maximum building height of 14m, whilst the R2 zoned lands to the west have a maximum building height of 9m.

Maximum building height map, Parramatta LEP 2011

The maximum FSR permitted for the subject site under the Parramatta LEP 2011 is 1:1. The industrial zoned lands to the northwest and south have a maximum FSR of 1:1. The R4 zoned lands to the west have a maximum FSR of 1:1, whilst the R2 zoned lands to the west have a maximum FSR of 0.5:1.

Maximum floor space ratio map, Parramatta LEP 2011

THE PROPOSAL

The preliminary rezoning concept seeks a significant departure to the current zone, height and FSR limits in Parramatta LEP 2011.

The preliminary rezoning concept seeks a R4 High Density Residential zone at the southern portion of the subject site so as to facilitate two rows of residential flat buildings consisting of 176 apartments, associated landscaping and 228 residential parking spaces. The development would have a predominant building height of 15.8m (4 storeys) and a maximum building height of 18.8m (5 storeys).

The proposed FSR of 1.9:1 would only apply to the residential component. The totalling of floor space across the residential component theoretically achieves an overall maximum allowable floor space of approximately 17,400sqm.

The residential development is also proposed to incorporate a 190sqm community centre with 12 car parking spaces.

An SP2 Infrastructure zone is sought for the northern portion of the site to facilitate a commuter carpark. The land owner has provided plans illustrating a four-level, 148 space commuter carpark (refer to Figure 4 in Attachment 2). The land owner has shown interest in entering into a Voluntary Planning Agreement (VPA) with Council in relation to the dedication of this portion of land to Council and construction of the commuter carpark.

Council’s current planning controls as prescribed under the Parramatta LEP 2011 permit a maximum building height of 12m for the site and other industrial lands on Factory Street. It is noted that the existing R4-zoned site on the opposite side of Factory Street (corner of William and Factory Streets) has a maximum building height of 14m (3 storeys). The maximum FSR currently permitted for the subject site, the other Factory Street industrial lands, and the existing R4-zoned site corner of William and Factory Streets is 1:1.

The proposed building height of the development exceeds the existing heights permitted on the site and on neighbouring sites by between 1.8m to 4.8m. The proposed residential component is a significant intensification of the site, almost double the FSR which is currently permitted on the site and on neighbouring sites.

THE ISSUES

Land Use Planning

Loss of employment land

Employment lands located in strategically important centres being the Parramatta CBD, Westmead, Rydalmere and Camellia as identified in Council’s Economic Development Strategy 2011-2016 should be retained for “knowledge jobs”.

The Factory Street industrial lands and the Clyde Railway Station are not currently regarded as strategically critical employment assets. Rather, the Auburn industrial lands, that abut the area, as well as the Camellia peninsula lands are regarded as critical. It is regarded that the proposed rezoning of land would not represent a significant loss of employment lands (10,700sqm) and therefore does not represent an overly significant risk to Parramatta’s economic development future.

The existing industrial area at Factory Street is geographically constrained and isolated. The area is unlikely to grow or intensify significantly. It is also noted that Factory Street is currently residentially-zoned on one side of the street.

The information provided in the preliminary rezoning concept demonstrates that there is currently a low demand for existing industrial floorspace/property at the site.

The proposed rezoning has raised Council’s awareness as to the need for Council to form a clear, long term policy regarding the future of existing employment lands outside the strategic employment areas to address aspects such as the nature and demand for these out of centre industrial lands. This study is planned upon release of the 2011 national census data in the latter half of 2012.

Despite this, it is considered that the proposed loss of employment land is unlikely to cause a significant negative impact on the Parramatta economy, and that the proposed rezoning may be suitable given the characteristics of the locality.

Suitability of site for residential development

The preliminary rezoning concept meets the objectives of Council’s Draft Residential Development Strategy by encouraging the intensification of residential development around public transport infrastructure, in this case being the Clyde Railway Station. Locating a greater number of residents close to public transport encourages a greater utilisation of public transport services.

It is also noted that the preliminary rezoning concept meets the objectives of the Metropolitan Plan for Sydney 2036 by locating increased residential densities near railway stations that provide service to the Parramatta CBD. Residential development in feeder suburbs like Clyde being well connected to the Parramatta CBD is supported.

Compatibility with surrounding uses

The preliminary rezoning concept seeks to extend the existing R4 High Density Residential zoning eastwards from the corner of William and Factory Streets across Factory Street into an established, industrial-zoned area located on the east side of Factory Street. The proposed zoning would allow the construction of a high density residential development within an established industrial area.

The property to the south and east of the subject site is zoned IN1 General Industrial and is owned by Australia Post which operates the Australia Post International Mail Centre. This is an established operation, generating a high amount of heavy and light vehicular movement in and out of the site per day. Staff parking is provided on site, along with an area for the parking of and loading/unloading of heavy vehicles, and a large warehouse building.

The proposed residential apartments on the subject site would be located adjacent to the Australia Post site. Concern is raised with respect to the compatibility of the two land uses, given their close proximity to each other. The Australia Post operation is quite active with regular truck movement. Issues (design and ongoing) regarding the amenity (noise, visual and air) of future residents on the subject site and the compatibility of the proposed use with surrounding existing land uses, particularly Australia Post will need to be further investigated in a planning proposal. Such recommended amendments are later discussed in this report and include amending aspects such as increasing the setback/buffer between the proposed residential development and the adjacent Australia Post site. The hours of operation of the Australia Post operation are not known and this could also impact adversely on residents at night.

Urban Design

The proposed development concept seeks a major intensification of development for the site. The planning proposal should address the following issues and incorporate the recommended amendments:

§ Building B is setback 6.5m from the driveway and Building A and B are setback on the eastern boundary by 6.75m. These setbacks will not provide an adequate buffer from the noise and exhaust fumes generated by heavy vehicle movements on the Australia Post site. These setbacks are to be increased.

§ The proposed buildings are very large and bulky compared to what would be permitted under the maximum height and FSR controls applied to nearby high density residential land. The overall height and FSR is to be reduced to complement the adjoining residential land. This will ensure good visual amenity and a transition in building form from the surrounding low density areas to the higher density development in the area. The length of the buildings is also to be reduced by providing breaks.

§ Setbacks of 5 to 7 metres are be provided along streets so as to enable adequate deep soil landscaping and street definition. All ground floor units should be provided with street entrances so as to activate the street. It is also suggested that communal open space be provided on site for residents.

§ It is suggested that the internal street network for the site be amended so as to offer an improved address to the street from the dwellings and to provide for passive surveillance, and provide an appropriate buffer between the site and the adjacent Australia Post site.

§ The design of the development must be of high quality and comply with State Environmental Planning Policy no.65 - Design Quality of Residential Flat Development.

§ Concern is raised in respect to the safety and security of the site. The presence of the proposed commuter carpark raises the need to clearly define the public areas of the carpark and the private areas of the residential buildings.

§ Passive surveillance is to be provided at the interfaces between the railway, the commuter carpark and the residential buildings. It is suggested that consideration be given to incorporating shops into the development on the ground floor of the commuter carpark so as to activate the street frontage and provide for passive surveillance.

§ As the development fronts the nearby rail line, it is important that the development provides a positive image to all travellers utilising the rail line. Not only is there an opportunity to achieve a positive development outcome within the site boundaries, but there also exists an opportunity to improve street amenity as a component of the development, such as in upgrading the street frontages and improving the pedestrian experience in the locality.

Traffic

A site visit conducted of the Clyde locality identified that street parking is well utilised by employees accessing the Clyde industrial area and by rail commuters.

It is critical that a traffic impact assessment be prepared and lodged with the planning proposal. This report would provide an assessment of the potential traffic generation, the likely impacts of the proposed development (residential and commuter carpark) on the traffic network and any required road/intersection upgrades. Without the presence of a detailed analysis and based on available information it appears that the traffic generated by the proposed development and commuter car park could be accommodated by intersections in the local area.  In this regard, the construction of a commuter car park at Clyde, rather than at Granville, is a preferred location. 

Social

It is important to ensure a range of housing options are provided in the proposed development so as to accommodate a variety of persons. Affordable housing should be provided to accommodate for community workers, students and aged persons. Further information is required with the planning proposal outlining the proposed residential market segment and pricing structure the development is targeting. A balanced price-point target market will be required to avoid possible social issues and a negative image to travellers on the rail line who will be able to see the development.

The proposed development is located within proximity to a suitable amount of community infrastructure, such as medical facilities, public transport, community services and educational facilities. However, it is also noted that the increased population as a result of the proposed development may generate a demand for additional services and facilities. Further information will be required with the planning proposal investigating the need for additional services and facilities.

Specific information is also required for the proposed community centre within the proposed development, such as the demand for the facility, and the proposed use and management of the facility. Consideration should be given to incorporating a shared community centre and child care centre in the development.

Heritage

The subject site is not part of a heritage conservation area and does not contain a heritage item.

Flooding

The subject site is not affected by the 100 year flood level. The property is however partly affected by floods greater than the 100 year level. Future development of the site will need to comply with all relevant planning and development controls as outlined in Council’s Local Floodplain Risk Management Policy and Development Control Plan. The applicant must provide detailed analysis at the Development Application stage in respect to compliance with relevant flooding provisions, particularly as the development incorporates basement car parking.

VOLUNTARY PLANNING AGREEMENT

Background

A VPA offer has been made by the landowners of 2 Factory Street, Granville in conjunction with the planning proposal. The indicative offer is the dedication of the northern portion of land abutting Clyde Railway Station of approximately 1,535sqm in size to Council for the purposes of a multi-storey commuter car park. The applicant has also shown interest in constructing the commuter carpark.

Council’s endorsement is sought to proceed with negotiations for the VPA and that this be reported

back to Council at a later date.

Planning Agreements

A planning agreement can be made under section 93F of the EP&A Act and is a voluntary agreement between Council and the developer, under which the developer is required to dedicate land free of cost, pay a monetary contribution or provide other material public benefit, or any combination of these, to be used towards a public purpose. This may be in lieu of a s94A development contribution, as a part substitution or an additional benefit.

The Act specifies that a public purpose includes the provision of public amenities or public services, the provision of affordable housing, the provision of transport or other infrastructure relating to the land, the funding of recurrent expenditure relating to any of these, the monitoring of the planning impacts of a development and the conservation or enhancement of the natural environment.

Council has an adopted VPA policy which sets out the principles governing such agreements, matters that Council will consider in negotiating agreements, steps in the negotiating process, public probity, notification requirements and implementation. The EP&A Act and Regulation sets out the legal and procedural framework for planning agreements.

The negotiation of a planning agreement is at Council’s discretion. Key principles of Council’s policy are that:

- planning decisions will not be bought or sold through planning agreements,

- development that is unacceptable on planning grounds will not be permitted because of the benefits of a planning agreement,

- the benefits of the planning agreement will bear a relationship to the application,

- Council will not give undue weight to a planning agreement when making a decision on a development application, and

- Council will not improperly rely on its position in order to extract unreasonable public benefits under planning agreements.

Procedurally, Council’s policy requires:

- a Council resolution to undertake negotiations on a planning agreement,

- appointment of a Council officer with delegated authority to negotiate a planning agreement on behalf of Council (this is not to be an officer with a key responsibility for the development application),

- consideration of whether an independent person is required to facilitate the negotiations,

- public exhibition of the draft agreement, once prepared, and

- the elected Council will ultimately make the decision as to whether to approve the planning agreement.

Draft VPA for 2 Factory Street, Granville

An indicative VPA offer has been made by the land owners for 2 Factory Street, Granville being the dedication of the northern portion of land abutting Clyde Railway Station of approximately 1,535sqm in size to Council for the purposes of a multi-storey commuter car park. The applicant has also shown interest in constructing the commuter carpark.

Council’s endorsement is sought to commence formal negotiations of the VPA, including the assessment of the suitability of the land to be dedicated for a multi –storey commuter carpark, details relating to the size, construction and funding of the commuter carpark, the public benefit value of this dedication, the potential for additional contributions for example the dedication of unit(s) to Council for affordable housing purposes and the timing of the contribution(s).

The public benefit of this contribution would provide for a much needed commuter carpark in the Granville/Clyde area.

Preliminary comments

The indicative offer will need to be fully investigated and assessed under the terms of Council’s policy & the Act and Regulations. As part of this process, the following will need to be assessed:

- The suitability of this site for a commuter car park;

- If considered suitable, discussions with Transport NSW will be required to secure a commitment in assisting in the delivery of the commuter carpark within a nominated timeframe;

- The suitability of the actual area to be dedicated to Council;

- The number of carparking spaces;

- The party(ies) funding the construction of the commuter carpark;

- Timing of the dedication of the land to Council and the construction of the carpark;

- If the commuter carpark is considered unsuitable, consider a contribution of unit(s) for affordable housing purposes; and

- Assessment of the value of the VPA.

If Council wishes to continue with the process, a cross functional team will be established to assess

all aspects of the proposed VPA and to report directly to the CEO. Transport for NSW (and RailCorp) will be consulted with during the negotiations of the VPA with the proponent, particularly in relation to the suitability of construction, funding and delivery of the commuter carpark.

Transport for NSW is currently reviewing the Commuter Car Park and Interchange Program to address the needs of the local communities to ensure appropriate prioritisation of work and to establish the program of work and associated funding. Initial investigations of this indicative VPA offer with Transport for NSW have revealed that although Clyde Railway Station is mid-ranked on the commuter prioritisation list, Transport for NSW is willing to review the prioritisation list and explore this proposal in greater detail in conjunction with Council given the offer of land dedication and construction of the carpark by the applicant (land owner).

Initial investigations have revealed that a commuter carpark at this location may be feasible given that it is adjacent to Clyde station yet on the periphery of the Granville Town Centre, being 600 metres (approximately) to the Granville Railway Station. This would give commuters a choice of accessing rail services from Clyde station or Granville station.

The Granville Town Centre Pedestrian Movement, Parking and Transport Study 2008 investigated opportunities for providing additional long term car parking at Granville town centre on the principle that this did not include multi-storey car parking which requires a large land area and is costly in a centre where key sites are limited and are better utilised for commercial and residential uses. Opportunities included piecemeal solutions such as long term parking at the Granville RSL, on-street parking at Railway Parade, on-street parking at Memorial Drive, and utilisation of the former Granville bus interchange lands for off-street parking.

The close proximity of the proposed commuter car park to Clyde Railway Station as well as the attractive walking distance (approximately 600m) between it and Granville town centre means that it is likely that the Clyde commuter carpark would be well utilised by commuters, considering that many commuters who access Granville town centre already currently park a similar walking distance away from Granville compared to the distance between the Clyde and Granville Railway Stations.

There are potential planning and public benefits in the indicative offer that should be further explored. Accordingly, this report recommends that, as required by Council’s VPA policy, a formal resolution be made to proceed with negotiations and an appropriate officer be given delegated authority to negotiate the VPA on Council’s behalf. The draft VPA will also need to be reviewed by Council’s legal representative. It is recommended that delegation be given to the CEO of Council to negotiate the VPA.

The outcome of the negotiations will be reported back to Council for a decision about whether or

not to execute the agreement together with the planning proposal.

NEXT STEPS

Should Council be willing to explore a planning proposal to rezone land at 2 Factory Street, Granville for high density residential uses the applicant would be invited to submit a planning proposal with the required studies that addresses the matters raised in this report for further assessment.

The planning proposal must be prepared in accordance with Section 55 of the Environmental Planning and Assessment Act 1979 and the Department of Planning and Infrastructure’s ‘A guide to preparing a planning proposal’ and ‘A guide to preparing local environmental plans’. The planning proposal must be accompanied with the following studies:

Urban Design Structure Plan

This plan is to include a revised development concept that addresses all urban design issues and incorporates the urban design recommendations in this assessment (Attachment 3). The Plan is to also include a site anaylsis, context analysis and indicative design principles (that includes envisaged staging).

Land Use Planning Report

This report is to address the loss of employment land, the suitability of the site for residential and its compatibility with adjoining land (i.e. land use conflicts including amenity, particularly from the adjoining Australia Post site).

Traffic Impact Assessment

This report is to provide an assessment of the potential traffic generation, the likely impacts of the proposed development (residential and commuter carpark) on the traffic network and any required road/intersection upgrades.

Social Impact Assessment

This report is to include the proposed residential market segment and pricing structure the development is targeting as well as the unit structure (i.e. number of 1, 2, 3 bedrooms). This report will also need to investigate the need for additional services and facilities, details of the proposed community centre (such as the demand for the facility, and the proposed use and management of the facility)

Acid Sulfate Soil Assessment

This report is to provide an assessment in accordance with the current Acid Sulfate Soils Manual published by the Acid Sulfate Soils Management Advisory Committee.

Land Contamination Report

This report is to provide a preliminary assessment of all contaminants on the subject site in accordance with the NSW Environment Protection Authority’s (now known as the Office of Environment and Heritage) Contaminated Sites – Guidelines for Consultants Reporting on Contaminated Sites and Contaminated Sites – Sampling Design Guidelines.

Additional studies may be required following an assessment of the planning proposal.

A report will be put to Council following the assessment of the planning proposal and VPA. At this point, should Council proceed to support the planning proposal it will be submitted to the Department of Planning and Infrastructure for Gateway Determination.

CONCLUSION

The preliminary rezoning concept proposes to rezone the southern portion of the subject site to R4 High Density Residential under the Parramatta LEP 2011 so as to permit residential flat buildings. The proposal seeks a predominant building height of 15.8m (4 storeys) with a maximum building height of 18.8m (5 storeys). The northern portion of the site is proposed to be rezoned to SP2 Infrastructure under Parramatta LEP 2011 to facilitate a 148 space multi-storey commuter carpark. The applicant has made a VPA offer to Council for the dedication of this portion of land to Council for the purposes of a commuter carpark. The applicant has also shown interest in constructing the commuter carpark.

The industrial uses on the land are reaching, or have reached the end of their economic life. The site is well located in proximity of the Granville Town Centre and would rejuvenate the locality. The loss of employment land can be justified.

More detailed technical studies and investigations are required to justify different aspects of a future planning proposal including traffic, amenity, building height and floor space ratio.

Council’s endorsement is required to further explore the concept presented by way of a planning proposal with the necessary studies submitted by the applicant that addresses the matters raised in this report.