ECONOMIC DEVELOPMENT STRATEGY

Transcription

1 ECONOMIC DEVELOPMENT STRATEGY

2 CONTENTS GLOSSARY OF TERMS 2 A MESSAGE FROM THE MAYOR 3 EXECUTIVE SUMMARY 4 Background 4 Economic Vision 4 Value of Economic Development in Port Phillip 4 Port Phillip Strategic Context 5 Strategic Policy Context 6 Economic Context 6 Strategic Directions 7 SECTION 1 INTRODUCTION 10 Background 10 Vision 10 Economic Development Strategy Framework 11 SECTION 2 ECONOMIC DEVELOPMENT AND THE ROLE OF THE CITY OF PORT PHILLIP 12 What Is Economic Development? 12 The Value Of Economic Development to the City Of Port Phillip 12 What Can Council Do to Influence Economic Development Within Port Phillip? 14 SECTION 3 STRATEGIC CONTEXT 16 Strategic Location Context 16 Strategic Strengths 17 Strategic Weaknesses 17 Strategic Opportunities 18 Strategic Threats 18 SECTION 4 STRATEGIC POLICY CONTEXT 20 Economic Development Policy and Direction 20 Centres of Industrial and Business Activity 21 Environmental Sustainability Policy and Direction 22 SECTION 5 ECONOMIC CONTEXT 24 Key Findings 24 Population Trends 26 Demographic Profile 27 Social Disadvantage 28 Commuting Patterns 28 Economy 29 SECTION 6 STRATEGY ACTION PLAN 40 Strategic Direction 1: An Integrated and Inclusive Local Community 42 Strategic Direction 2: Sound Environmental Leadership 48 Strategic Direction 3: A World-Class Tourism Destination Which Balances Visitation and Amenity 51 Strategic Direction 4: Flourishing Activity Centres 56 Strategic Direction 5: Strong Economic Clusters 58 Strategic Direction 6: The Creative City 63 SECTION 7 MONITORING & EVALUATION 68 FIGURES Figure 1: Economic Development Strategy Framework 11 Figure 2: City Of Port Phillip 16 Figure 3: Port Phillip Age Profile, Figure 4: Spatial Distribution Of Professional Services & Property Businesses In Port Phillip 31 Figure 5: Map Of Manufacturing, Trade & Industry Businesses In Port Phillip 32 Figure 6: Map Of Activity Centres In Port Phillip 35 Figure 7: Concentration Of Creative Workers By Municipality 36 Figure 8: Spatial Distribution Of Creative Industries, Arts & Recreation Businesses In Port Phillip 37 Figure 9: Clustering Of Performing Arts Businesses In Port Phillip 37 TABLES Table 1: The Value of Economic Development to the City of Port Phillip 13 Table 2: Population Trends, Table 3: Population Forecasts, Table 4: Seifa 2006 Analysis (Index of Relative Socio-Economic Advantage) 28 Table 5: Employment by LGA Location, Table 6: Industry Sector Performance 30 Table 7: Major Industry Categories 31 Table 8: Overnight Visitors to City of Port Phillip 34 Table 9: % Of Home Workers, Acknowledgement City of Port Phillip acknowledges Urban Enterprise Pty Ltd in the development of the Port Phillip Economic Development Strategy Disclaimer Parts of this document may contain estimates based on assumptions that may be subject to error. Although all care has been taken to verify such estimates readers must not alter their position or refrain from doing so in reliance on them. If you have any doubts about the accuracy of this document, we would advise that you find out from alternative sources. Photos (opposite top and front cover, top-right): John Gollings

3 GLOSSARY OF TERMS A MESSAGE FROM THE MAYOR ABS APBCC C CBD CD CL CLUE CRM CSR DIIRD DoT EDU ESD FYC IMAP LGA LLEN PCA PS SD Australian Bureau of Statistics Albert Park Business & Community Committee Council Central Business District Community Development (City of Port Phillip Council Department) Culture & Leisure (City of Port Phillip Council Department) Census of Land Use & Employment Customer Relationship Management Corporate Social Responsibility Department of Innovation, Industry and Regional Development Department of Transport Economic Development Unit (City of Port Phillip Council Unit) Ecological Sustainable Development Families, Youth & Children (City of Port Phillip Council Department) Inner Melbourne Action Plan Local Government Area Local Learning and Employment Networks Property Council of Australia Property Services (City of Port Phillip Council Department) Statistical Division The City of Port Phillip is a great place to do business. Visitor numbers are up, our local economy is strong and the first class facilities we are famous for have never looked so good. The job of the Council and City in helping local business is an important one. Each year, we produce an Action Plan which supports our five-year Economic Development Strategy. The strategy has three objectives. These are to: Enhance competitive advantage for businesses in the municipality Council s role is as an enabler of better business. Our job is to facilitate and influence so that local businesses are supported to grow and prosper. In order to do this we work with businesses and business groups, we promote innovative ways of doing business, we partner with State and Federal Government agencies, and we conduct activities, programs and campaigns to stimulate economic growth. The City of Port Phillip is a great place to live and it s a terrific place to work. Local businesses have an exciting future ahead. If you would like more information on this Economic Development Strategy, please call ASSIST on SEIFA SKTA SMM SLA SP SUS Socio-economic Indexes for Areas St Kilda Tourism Association South Melbourne Market (City of Port Phillip Council Department) Statistical Local Areas Strategic Planning Unit (City of Port Phillip Council Unit) Sustainability (City of Port Phillip Council Department) Increase connections between the business, not-for-profit sector, visitor and residential communities Drive prosperity across the entire Port Phillip community. Rachel Powning Rachel Powning Mayor SWOT Strengths, Weaknesses, Opportunities & Threats VFR Visiting Friends & Relatives VIC Visitor Information Centre

4 5 EXECUTIVE SUMMARY Photo: St Kilda Road Parkview Hotel BACKGROUND The City of Port Phillip Economic Development Strategy is a key strategic document that will deliver Council s vision by presenting a coherent and actionable plan for the next five years. It has been informed by consultation with the community (residents, businesses and their key representatives) and is underpinned by the Local Government Act 1989, the Council Plan and other strategic documents including Municipal Strategic Statement, Towards Zero Sustainable Environment Strategy, Health and Wellbeing Plan and the Sustainable Transport Plan. ECONOMIC VISION The purpose of the Economic Development Strategy is to identify timely, practical and evidence-based strategies and actions that will: Enhance competitive advantage for businesses in the municipality Increase connections between the business, not-for-profit sector, visitor and residential communities Drive prosperity across the entire Port Phillip community Focus on green business through supporting sustainable business operations and promoting participation in green business programs. Port Phillip will be a vibrant, inclusive, prosperous and sustainable local economy that meets the needs and aspirations of our community. VALUE OF ECONOMIC DEVELOPMENT IN PORT PHILLIP Economic development promotes prosperity and improved quality of life across the whole community by supporting, serving and advocating for local businesses. This is achieved through a range of value-added services which foster a sustainable, vibrant business environment. The value of economic development to the Port Phillip community is multi-faceted. It: Develops skills, knowledge and experience that can be celebrated and utilised by the community Tackles climate change by providing local businesses with practical advice and measures to reduce carbon emissions and reduce operational costs, thereby increasing the capacity of business Maximises local multiplier effects (where an increase in one economic activity starts a chain reaction in others) Facilitates social inclusion Enhances the vibrancy, atmosphere, diversity and liveability of the area Fosters economic growth and business prosperity Encourages local access to goods and services for the City of Port Phillip community, which supports local jobs and business growth in the municipality. The City of Port Phillip recognises that, although it does not directly deliver business outcomes, its role is as an enabler. The Council s objective is to facilitate and promote economic development within the context of its wider environmental, social and cultural sustainability objectives. As such, Council s role is to influence appropriate investment and business development in line with Council goals and facilitate a conducive business environment. Achieving these outcomes requires a partnership approach i.e. close coordination between the Economic Development Unit, other units within Council and other levels of Government and business groups/representatives. Council is an enabler of economic development. Its role is to create the environment where businesses can grow. PORT PHILLIP STRATEGIC CONTEXT The City of Port Phillip enjoys a drawcard location. Strategically positioned between the Melbourne CBD, the bay and the port, the City of Port Phillip is a landmark for a range of reasons. The area has convenient transportation access for freight and distribution as well as excellent public transportation links. The City of Port Phillip has first class tourism assets and infrastructure and is home to some of Victoria s best known attractions. Renowned for its unique atmosphere and diversity, the area is an attractive destination for a wide cross-section of residents, visitors and businesses. The City of Port Phillip is an iconic Victorian location with first class tourism assets, sophisticated infrastructure and celebrated diversity. The City s image is somewhat threatened by perceptions that there are safety/security issues in some areas which may impact on amenity. There are similar concerns relating to the impact of high rents on maintaining the City s unique diversity and vibrancy. Stakeholder consultation conducted in development of this strategy revealed that some business people felt that major and neighbourhood activity centres within Port Phillip were becoming increasingly homogenised in their retail, food and entertainment offer. Finally, Council s development of this strategy aims to strengthen its engagement with local business and community members.

5 EXECUTIVE SUMMARY 7 STRATEGIC POLICY CONTEXT A review of the existing regional and local policy context revealed a number of policy directions relating to creating a sustainable economic future for Port Phillip. These are outlined on page 20 of this document and key points include: The importance of seeking to achieve social, environmental and cultural sustainability aims, not just economic growth at whatever cost Port Phillip has a strong competitive advantage in professional services and property quality and that retaining these competitive strengths should be a priority The City of Port Phillip has a vision for a vibrant well-managed tourism industry and encourages visitation (local, domestic and international) which delivers benefits to the local community The importance of retaining the significant role of Fishermans Bend (Port Melbourne) as a manufacturing, trade and industry hub The City of Port Phillip supports a diverse, creative city with safe and affordable cultural events The development of lively, viable, diverse and attractive retail precincts Support for green business and encouraging businesses and organisations to be environmentally sustainable Social inclusion, health and well being, and social justice are underpinning principles in a range of existing policy. A sustainable business environment in the City is underpinned by a range of government and businessbased policies. ECONOMIC CONTEXT Port Phillip's population is growing fast and this is set to continue in the short-medium term Port Phillip has a significant proportion of working age adults indicating a large resident workforce. Evidence suggests that people over 60 years of age are moving to Port Phillip, while at the other end of the scale, younger people under 24 years of age are moving out of the area Port Phillip is an area where a significant proportion of the population earn above the average Melbourne weekly income, suggesting that it is a relatively affluent area, however, there are localised pockets of social disadvantage within the municipality Although there are more jobs than working residents in Port Phillip, 75 per cent of working residents are employed outside the municipality. This diminishes local multiplier effects and impacts on environmental sustainability Professional services and property, manufacturing, trade and industry, tourism and retail trade account for over 75 per cent of jobs in the municipality Emerging sectors within the municipality include green businesses and home based businesses. The City of Port Phillip has a strong economic foundation. Further growth is predicted. STRATEGIC DIRECTIONS The strategic directions are the bridge between vision and strategy. They reflect the areas of focus and priorities for Council to achieve its vision. Council has defined six strategic directions, each of which links back to the Council Plan. A Strategy Action Plan is included in the final section of this document which outlines strategies and actions linked to each of the strategic directions. Council has developed six strategic directions to set a course for the future. STRATEGIC DIRECTION 1: AN INTEGRATED AND INCLUSIVE LOCAL COMMUNITY The Port Phillip community will be one where business people, residents, visitors and community organisations value and benefit from each other s strengths to contribute to a greater sense of vitality, vibrancy, sustainability and liveability. Opportunities to meaningfully participate in community life by way of employment, recreation, education and social and civic activities are open to all community members. Feature activities: Create partnerships between business and the community to promote diversity, support community interaction and create local employment Deliver the biennial Business Excellence Awards (to be held in 2012 and 2014) to reward and recognise the success and achievements of businesses in the Port Phillip community Host a series of networking events, training and mentoring sessions to strengthen the business community, build capacity and support growth of businesses Establish an Economic Development Advisory Panel to provide guidance to Council in relation to economic issues and to foster and encourage the achievement of sustainable economic development within the municipality. STRATEGIC DIRECTION 2: SOUND ENVIRONMENTAL LEADERSHIP Environmental sustainability will be at the forefront of the Port Phillip economy both in relation to existing business practices and development of innovative green business clusters. Feature activities: Encourage participation in the CitySwitch program by employing a dedicated CitySwitch Officer to recruit participants to the program Collaborate with (or promote) Council, State and Federal Government climate change programs to local businesses in the City of Port Phillip Evaluate the effectiveness of the pilot Green Business Program and develop a staged implementation plan that progressively rolls out the program to various activity centres across the municipality over the next three years. STRATEGIC DIRECTION 3: A First class TOURISM DESTINATION WHICH BALANCES VISITATION AND AMENITY Port Phillip will encourage sustainable tourism experiences and respectful visitation which does not compromise local amenity or the natural environment. Feature activities: Collaborate with City of Melbourne, City of Stonnington and City of Yarra through the IMAP Tourism Working Group to strategically develop and position Inner Melbourne as a vibrant and welcoming destination Help build the capacity of the St Kilda Tourism Association Partner with Destination Melbourne in the development of tourism publications, which will continue to grow all parts of Port Phillip as an exceptional visitor experience Promote and support the Tourism Accreditation Program, which enhances industry professionalism and improves standards.

6 EXECUTIVE SUMMARY 9 STRATEGIC DIRECTION 4: FLOURISHING ACTIVITY CENTRES The Port Phillip community will be supported by a number of strong, vibrant, differentiated and accessible major and neighbourhood activity centres providing convenience and a connection to the local community for residents and visitors. Feature activities: Continue the ongoing administration and governance of Special Rates Schemes, in partnership with Business Associations, to enable: > Business Associations to develop individual business plans which maintain a point of difference and diversified business mix > Local self-sufficiency in the retail offering available to the community > The facilitation of business development and coordinated marketing and promotion. Provide governance training and capacity building for board members of Business Associations Facilitate Building Connections Business Associations Network between the Business Associations across the municipality. STRATEGIC DIRECTION 5: STRONG ECONOMIC CLUSTERS Port Phillip will continue to be home to a number of industry clusters of state-wide significance supported by a variety of emerging industry clusters that serve to make the municipality a premium destination for employers and employees alike. Feature activities: Promote the strong competitive position of St Kilda Road as a core commercial hub Establish a dedicated business forum for Fishermans Bend Industrial Precinct Undertake primary research on Fishermans Bend to collect and analyse key data and information on businesses to support economic development and planning initiatives Explore the significance of Fishermans Bend to the state and regional economy, and advocate on behalf of Fishermans Bend with other levels of Government Actively promote Fishermans Bend to a range of stakeholders using a variety of communication strategies and media formats. STRATEGIC DIRECTION 6: THE CREATIVE CITY The City of Port Phillip will be renowned within Victoria and nationally as the creative city, respected for its high proportion of creative businesses and workers, creative events and leading arts and cultural institutions. The City of Port Phillip operates and/or is involved with a number of organisations, festivals, events and attractions across the municipality. This support and collaboration contributes to the cultural development, vibrancy and ongoing success of Port Phillip creative sector (refer page 63). Feature activities: Undertake an economic benefit analysis to understand the value of the creative sector to Port Phillip s economy and identify opportunities for future business development and clustering Work with Business Associations in Albert Park and Elwood to support community festivals in non-levied neighbourhood activity centres to provide creative, community-based activities that stimulate business growth and development.

7 SECTION 1 11 INTRODUCTION BACKGROUND The City of Port Phillip Economic Development Strategy is a key strategic document that seeks to deliver Council s vision by presenting a coherent and actionable plan for the next five years. It is informed by consultation with the community (residents, businesses and their key representatives) and is underpinned by the Local Government Act 1989, the Council Plan and other strategic documents including the Municipal Strategic Statement, Towards Zero Sustainable Environment Strategy, Health and Wellbeing Plan and the Sustainable Transport Plan. The purpose of this document is to identify timely, practical and evidence-based strategies that will enhance competitive advantage for businesses in the municipality, increase connectivity between the business, residential and visitor communities, and drive prosperity within the Port Phillip region. The strategy is intended to provide an achievable plan for the future while responding to the challenges and opportunities presented by the local economic context (actions that underpin the strategy are outlined further in this document, commencing on page 44). In addition, Council is moving to position economic development in a much wider context of environmental, social and cultural sustainability, while being conscious of the need to balance these aims against the continued financial viability of local businesses. This strategy has been informed by a detailed economic profile and situation analysis, and consultation with stakeholders across the Port Phillip business community. VISION The City of Port Phillip s vision for economic development is as follows: Port Phillip will be a vibrant, inclusive, prosperous and sustainable local economy that meets the needs and aspirations of our community. Our community refers to the residents, businesses and visitors who have a stake in the Port Phillip economy. ECONOMIC DEVELOPMENT STRATEGY FRAMEWORK Figure 1 shows how the economic development strategy has been developed. The key components of the strategy are as follows: Consultation with internal departments of Council (e.g. Community Development, Sustainability, Strategic Planning, Communications and Engagement) and external stakeholders (e.g. community Vision & Themes Strategy Action Plan Consultation External: Business owners, Business Associations Internal: City of Port Phillip stakeholders Strategie Policy Context groups, Business Associations and local businesses) has helped to shape the vision and determine the strengths, weaknesses, opportunities and threats that apply to the City of Port Phillip economic context The strategic directions are informed by the vision and supported with background research to define the directions in which Council is heading with regards to economic development in the municipality SWOT Strategic Directions Where Council should be going to achieve its Vision Strategies How Council can get there Actions What Council can actually do Strategies define how Council will move towards achievement of its strategic directions Actions relate to the specific, tangible and measurable activities that Council undertakes to achieve realisation of the strategies, strategic directions and vision. Economic Situation Analysis Socio-Economic Profile Figure 1 Economic Development Strategy Framework

8 SECTION 2 13 ECONOMIC DEVELOPMENT AND THE ROLE OF THE CITY OF PORT PHILLIP WHAT IS ECONOMIC DEVELOPMENT? Economic development is the practice of stimulating, attracting or maintaining business activity and/or employment within a defined geographic region. The task of economic development is usually undertaken by a responsible governing authority but can also be performed by community organisations and/or other independent agencies. Successful economic development is typically characterised by an improvement to the economic wellbeing of an area and is commonly quantified via measures such as an increase in the number of jobs, higher incomes, greater investment and/or higher tax revenues to fund infrastructure and services. In the case of Port Phillip, the focus of economic development is to achieve sustainable economic growth that delivers positive outcomes for environmental, social and cultural sustainability within the municipality. As such, in addition to traditional measures of job growth and investment attraction, indicators relating to social inclusion, environmental business practices and creativity will also be relevant. THE VALUE OF ECONOMIC DEVELOPMENT TO THE CITY OF PORT PHILLIP Economic development promotes prosperity and improved quality of life across the whole community by supporting and serving the needs of local business people. This is achieved through a range of value-adding services that foster a sustainable, vibrant business environment. Investing in economic development should not only deliver outcomes for the local business community but also create benefits for the wider community. Table 1 shows the value that economic development brings to the entire Port Phillip community, mapped against the Council Directions in the Council Plan. Achieving these outcomes requires close coordination and co operation between the Economic Development Unit and other departments and units within Council which influence economic development directly or indirectly. For example, Sustainability, Strategic Planning, Events, Community Development, Communications and Engagement, and South Melbourne Market. Council Direction The Value of Economic Development 1. Engaging and Governing the City The business community in Port Phillip contains a wealth of skills, knowledge and experience. Economic development facilitates sharing of these skills and knowledge with the wider community through facilitation of corporate citizenship, leadership and/or networking programs. 2. Taking Action on Climate Change Economic development can play a lead role in tackling climate change by advocating emissions reduction strategies for businesses in areas such as: > Retrofitting buildings > Maximising renewable energy opportunities > Reducing water use. 3. Strengthening our Diverse and Inclusive Community Economic development can help encourage green businesses to relocate to Port Phillip. Economic development is effective in maximising local multiplier effects in terms of getting more residents to work and shop locally, consequently minimising the need for car travel. Economic development influences the take-up of more sustainable modes of transportation and advocates for improvements to public transport infrastructure. Economic development can address social exclusion by increasing employment opportunities amongst disadvantaged groups. For example, by developing partnerships between industry and community organisations with the purpose of identifying jobs and training opportunities for the less advantaged. It also provides a mutual benefit for business and community organisations as relationships are created, skills and expertise are shared and networks are extended. Economic development leverages from the City s existing creative economic base to further enhance the vibrancy, atmosphere and cultural diversity of the area. 4. Enhancing Liveability Economic development, as its central aim, seeks to improve quality of life for all community members through supporting local businesses, and strengthening the links between local community and businesses. Economic development broadens working opportunities available to residents by providing support for home-based businesses and entrepreneurs. Economic development enhances the overall appeal and attractiveness of the area through well-managed tourism visitation and retail diversification, and access to a range of goods and services. Table 1 The Value of Economic Development to the City of Port Phillip

9 SECTION 2 15 WHAT CAN COUNCIL DO TO INFLUENCE ECONOMIC DEVELOPMENT WITHIN PORT PHILLIP? Through its networks with local businesses and knowledge of industry, Council aims to strengthen business within Port Phillip, facilitate economic growth and reduce the barriers that impede growth within the municipality. Within the City of Port Phillip, Council aims to produce a range of benefits for the business and community by: Improving financial returns for business through various workshops and seminars Facilitating business and community partnerships to reduce unemployment and underemployment Exhibiting community leadership and building community relations Creating networking forums for businesses to share knowledge, ideas and issues Improving environmental efficiency within business and educating business on sound environmental practises Increasing the level of visitation within the municipality while ensuring the impacts to the residential community are minimised Strengthening business capacity and resilience in major and neighbourhood activity centres in Port Phillip through building networks and promoting individual precincts Increasing investment and retention of business in the municipality Empowering different industries critical to Port Phillip s economic success through clustering Strengthening the creative industry within Port Phillip, building on our competitive advantages to attract, retain and integrate businesses within this sector. PARTNERSHIPS WITH GOVERNMENT AND NON- GOVERNMENT AGENCIES In addition to delivering on its own initiatives, Council also aims to partner with the State and Federal Government to successfully deliver programs, services and information to local businesses. The State and Federal Governments have a range of initiatives that target all industry types within Victoria and the City of Port Phillip is focused on selecting and communicating these initiatives that best suit the business, industry and community needs of the municipality, and which also contribute to the overarching Council Plan. Accordingly, local knowledge and understanding of local business and community needs allows Port Phillip to achieve maximum value and effectiveness for these initiatives. The State and Federal Governments do not have the networks or the capacity to engage business at a local level as effectively as the City of Port Phillip. Therefore, it is considered part of the City of Port Phillip s responsibility to ensure local businesses are made aware of the State and Federal Government s offerings, disseminating information in a consistent, targeted and efficient manner. Council has the local knowledge, the networks and understanding to interpret State and Federal Government initiatives most appropriate to local businesses. In terms of partnership opportunities, Council is focused on a number of initiatives that meet local business needs and contribute to the goals and priorities of the City of Port Phillip. For example, Council has developed, and is currently developing, partnerships with a number of agencies including Tourism Victoria, the Department of Business and Innovation, Sustainability Victoria and AusIndustry. These partnerships will contribute to a number of economic development strategies, such as delivering business mentoring, increasing visitation in the municipality and improving energy efficiency among local businesses. Council also works with a number of local, non-government agencies and organisations in order to achieve economic development for Port Phillip. For example, Council is working closely with Destination Melbourne and the Victorian Employers' Chamber of Commerce and Industry (VECCI), focusing on a number of partnership opportunities in the areas of tourism marketing and development, and sustainability, specifically targeting small business. Council also collaborates with other local government associations around Victoria, working together to improve the team s service delivery and exploring ideas to better address key areas of economic development. Additionally, Council also works closely with Business Associations across the municipality s major activity and neighbourhood centres to promote their precincts in Port Phillip and beyond, and to address issues impacting their ability to grow and prosper. PARTNERSHIP WITH BUSINESSES Council works with businesses themselves. While it s impossible for Council to engage with all of Port Phillip s estimated 16,500 businesses individually, it is able to gain valuable information and knowledge by consulting with a large number of businesses within the municipality in a range of different industries. Therefore, Council has an accurate assessment of local needs, and understands the key factors that not only contribute to economic growth, but the collective issues that impede economic growth. Subsequently, Council can use this knowledge to create a favourable framework to do business in Port Phillip by harnessing existing strengths, and reducing or removing barriers that suppress economic growth. The City of Port Phillip operates and/or is involved with a number of organisations, events and attractions across the municipality. This support and collaboration contributes to the ongoing success and vibrancy of Port Phillip. Council has involvement with the following: Markets: South Melbourne Market Council operates the South Melbourne Market, Melbourne's oldest continuing market, which has achieved remarkable status within the community as a leading market in Melbourne St Kilda Esplanade Market established in 1970 as an arts incubator and opportunity for the sale of arts and crafts produced by the local artists community. Art galleries: The Gallery located at the St Kilda Town Hall, The Gallery presents exhibitions which encourage an appreciation for arts and culture, and are of particular relevance to the area and its community The Linden Gallery this gallery has been devoted exclusively to the exhibition of art produced by living artists for over 20 years Gasworks Arts Park owned by the City of Port Phillip, this precinct is leased by Gasworks Arts Inc, a community based non-profit organisation which presents an annual program of festivals, events, exhibitions and performances. The City of Port Phillip works closely with local businesses and business representative groups to research, develop and promote initiatives which assist local businesses.

10 N SECTION 3 17 STRATEGIC CONTEXT STRATEGIC LOCATION CONTEXT The City of Port Phillip is an inner city Local Government Area (LGA) within metropolitan Melbourne. It is bordered by the City of Melbourne to the North and West, the City of Stonnington to the North East, the cities of Bayside and Glen Eira to the South East and Port Phillip Bay to the South and South West. The City contains the suburbs of South Melbourne, St Kilda, St Kilda West, Elwood, Albert Park, Middle Park, Ripponlea and Balaclava and parts of St Kilda East, Windsor, St Kilda Road (Melbourne) and Port Melbourne. PORT OF MELBOURNE city of port phillip neighbourhoods kilometers PORT MELBOURNE MELBOURNE CBD SOUTH WHARF SOUTH BANK PORT PHILLIP BAY SOUTH MELBOURNE ALBERT PARK MIDDLE PARK CITY OF MELBOURNE ST KILDA ROAD ST KILDA WEST ST KILDA ELWOOD WINDSOR CITY OF BAYSIDE CITY OF STONNINGTON ST KILDA EAST BALACLAVA RIPPONLEA CITY OF GLEN EIRA Figure 2 City of Port Phillip Source: City of Port Phillip & Land Victoria data September 2011 STRATEGIC STRENGTHS The City of Port Phillip enjoys a drawcard location for residents, visitors and workers alike. Port Phillip s strategic position between the Melbourne CBD, the Bay and the Port has allowed it to prosper economically and socially. The area has convenient transportation access for freight and distribution as well as excellent public transportation links to the CBD and elsewhere by train, tram and bus. The City of Port Phillip has first class tourism assets and infrastructure and is home to some of Victoria s best known attractions including Luna Park, the St Kilda Foreshore, Station Pier and the popular beaches along Port Phillip Bay. Port Phillip is renowned for its unique atmosphere and cultural STRATEGIC WEAKNESSES The City of Port Phillip s image is somewhat impacted by perceptions that there are safety/security issues in some areas which effect amenity for residents, visitors and businesses. There are similar concerns relating to the impact of high rents on maintaining the City s unique diversity and vibrancy. For example, there is anecdotal evidence of a creativity drain whereby artists and arts businesses are relocating to the inner North because they cannot afford Port Phillip rents. Stakeholder consultation also revealed that some business people felt that major and neighbourhood activity centres within Port Phillip were becoming increasingly homogenised in their retail, food and entertainment offer. diversity which makes the area an attractive destination for a wide Additionally, despite the abundance of local job opportunities, the vast cross-section of residents, visitors majority of residents work elsewhere and businesses. which leads to poor job containment.

11 SECTION 3 19 STRATEGIC OPPORTUNITIES The strategic opportunities for the City of Port Phillip build on the comparative advantages of the municipality. Specifically, opportunities exist to: Strengthen relationships between the business community and local residents Facilitate employment partnerships to address social disadvantage and take the lead in creating a conducive business environment to attract green and creative businesses Increase the degree of connectedness between business and council and enhancing knowledge capital through research Continue to develop strong business networks with industry partners Develop Fishermans Bend to maximise the area s business development potential Maximise the city s location on port phillip bay for tourism development, including leveraging from cruise ships and st kilda as a key tourism destination for local, domestic and international visitors Harness the creative communities of port phillip to grow and develop new business in the arts, production and media industries Strengthen the city s unique activity centres to meet the needs of local residents and visitors Further attract and retain professional business services in St Kilda Road and South Melbourne. STRATEGIC THREATS External threats are where Council has little to no control. For example, fluctuations in the Australian dollar affect a number of industries, particularly tourism. A higher Australian dollar results in more outbound international travel and decreases the level of inbound travel. Additionally, Council programs can hinge on the policies of the State and Federal Government, such as the introduction of the price on carbon, State Government related planning decisions and changes in interest rates. While Council has little to no control over these external factors, the key concern for Council will be knowledge sharing with industry and educating businesses on these factors and how it will affect them, including strategies that can mitigate their impact.

12 SECTION 4 21 STRATEGIC POLICY CONTEXT A review of the existing policies underpinning this Strategy revealed a number of general policy directions (as outlined below) that relate to creating a sustainable economic future for Port Phillip. The City of Port Phillip Economic Development Action Plan outlined a number of strategic directions for economic development in the municipality including fine-tuning (not structural change) of the local economy; a greater council role in economic development leadership; marketing and promotion of local businesses; creation of vibrant, bustling activity centres for neighbourhood shopping; and development of a business advisory board. In addition, the City of Port Phillip Tourism Strategy sought to manage visitation; encourage visitor respectfulness; focus on promoting existing tourism strengths over building new product; develop stronger networks with industry partners; and provide positive support to the local tourism industry. The strategy also encouraged active participation by local residents in what the community has to offer. ECONOMIC DEVELOPMENT POLICY AND DIRECTION The City of Port Phillip Council Plan aimed to: > Facilitate economic development which supports a diverse and sustainable community and underlines the importance of seeking to achieve social, environmental and cultural sustainability aims, not just economic growth at whatever cost > Implement strategies to encourage positive behaviour from visitors > Promote the development of safe and affordable cultural events and the development of integrated arts and learning hubs whilst building a creative community. The Fishermans Bend Planning and Economic Development Strategy 2010 provides a number of initiatives that identify directions for further development into a high technology industrial precinct. This would deliver increased opportunities for employment and business development within an environmental industry business cluster, while redefining the role of industrial land in South Melbourne to accommodate a shift in land use to better utilise existing infrastructure The Port Phillip Business Confidence Survey 2011 identified up-skilling in advertising and marketing as the most popular business development services that Council can provide for businesses, followed by networking programs. These findings are consistent with the Port Phillip Business Confidence Survey 2009 which found that businesses regarded networking and professional development as key services that council can provide. CENTRES OF INDUSTRIAL AND BUSINESS ACTIVITY Many of Port Phillip s major activity centres are viewed as rejuvenated and powerful economic engines, drawing in visitors and destination shoppers from overseas, interstate and country Victoria as well as greater Melbourne. However, there is a need to ensure that Port Phillip s activity centres serve the weekly shopping and convenience needs of the local population. The City of Port Phillip Activity Centres Strategy 2006 provided a holistic understanding of the complex role and function of activity centres. It further provides an understanding of the contribution activity centres make to creating and supporting sustainable communities The Municipal Strategic Statement seeks to build on Port Phillip s competitive strengths to maximise job opportunities in a changing economy through: > Protecting the core industrial hub of Fishermans Bend and its association with the Port > Maintaining the role of st kilda road as the city s premier commercial strip > Facilitating the transition of key business clusters to capitalise on the proximity to the melbourne central business district, and the emerging demand for advanced business services and knowledge based industries. The Fishermans Bend Planning and Economic Development Strategy 2010 laid out a number of strategies for the Fishermans Bend precinct including strengthening existing business clusters, rolling out skill building programs and investigating the potential for limited rezoning in the area to attract different uses The South Melbourne Central Structure Plan 2007 aimed to establish South Melbourne Central as the principal retail, business, cultural and community centre within the local area The South Melbourne Activity Centre Business Plan vision is to develop the South Melbourne Business Precinct as the preeminent shopping, business and community centre in the City of Port Phillip and as one of the significant traditional activity centres in Melbourne The Port Melbourne Activity Centre Business Plan sought to position the precinct as the heart of Port Melbourne, offering vibrant street life, local convenience shopping and a destination for tourists The Fitzroy Street Strategic Business Plan sought to create a Fitzroy Street brand and diversify the business mix to ensure the future viability of the precinct

13 SECTION 4 23 The St Kilda Village (Acland Street) Business Plan aspired to a vision of St Kilda Village becoming Melbourne s most famous and loved seaside village, with a special vibe and atmosphere that is unique to St Kilda The Carlisle Street Activity Centre Structure Plan 2009 sought to enhance Carlisle Street s retail offer and facilitate the evolution of a multi-functional activity centre The Creative Futures Strategy 2008 aimed to promote Port Phillip as a home-base for cultural organisations, maximising the economic and cultural contribution of the arts industry to the municipality. ENVIRONMENTAL SUSTAINABILITY POLICY AND DIRECTION The City of Port Phillip Council Plan focuses on the role of environmental sustainability as a driver for development in the municipality The City of Port Phillip Budget announced significant funding for climate change programs including environmental retrofits of commercial buildings The Fishermans Bend Planning and Economic Development Strategy 2010 addresses the impact of industrial development on climate change, and is focused on establishing Fishermans Bend as the premier environmental industry business cluster in Victoria The City of Port Phillip s 2007 Toward Zero, Sustainable Environment Strategy set community emissions reduction targets to reduce the community s greenhouse gas emissions by 50 per cent by 2020 > The City of Port Phillip s Draft 2011 Greenhouse Plan further outlines how Council intends to work with the community to reduce its greenhouse gas emissions > The City of Port Phillip s Water Plan sets targets for the community to reduce mains water consumption by 50 per cent by 2020 and outlines Council s role in building community capacity to achieve this > The City of Port Phillip s Sustainable Transport Strategy has a vision for Port Phillip to be a connected and liveable city where residents, visitors and workers can live and travel car-free by improving the convenience, safety, accessibility and range of sustainable travel choices across our City > The City of Port Phillip s Walk and Bike Plans set out proposed strategies and actions to improve walking and bicycle riding in the City of Port Phillip from These plans will help Council, together with the community, to take action on climate change by encouraging the use of sustainable transport modes that minimise energy use > The City of Port Phillip s Climate Change Adaptation Plan recognises the need for climate change adaptation in the future design and development of the municipality. To this end, the City will work with all sectors of the community, regional, state and federal stakeholders to deliver good planning policy and urban design, and ensure that development of infrastructure and public spaces are climate-adept > The Waste Management and Resource Recovery Plan sets a target to achieve a 75 per cent reduction in per capita community waste to landfill by 2020, in collaboration with regional, state and federal partners. The City of Port Phillip s Public Transport Advocacy Statement outlines what upgrades to our public transport infrastructure are required to make the city more liveable and accessible, and to reduce our reliance on vehicle use The Port Phillip Business Confidence Survey 2011 found that 73 per cent of businesses agree that there is a role for Council in assisting local business understand and respond to issues arising from climate change. The most commonly identified was the need for Council to assist local businesses respond to climate change including awareness, information and education and advice for/ communication with business The Municipal Strategic Statement encourages the operation of commercial and industrial buildings to be environmentally sustainable. Review and analysis of government, economic and environmental policies have been central to development of this strategy.

14 SECTION 5 25 ECONOMIC CONTEXT KEY FINDINGS The City of Port Phillip s population is growing rapidly and this is set to continue in the short to medium term Port Phillip has a significant proportion of working age adults indicating a large resident workforce. Evidence suggests that people over 60 years of age are moving to Port Phillip, while at the other end of the scale, younger people under 24 years of age are moving out of the area, as outlined in section 5 Port Phillip, as a whole, is an area of significant social advantage. However, there are localised pockets of social disadvantage within the municipality. Opportunities exist to develop partnerships between industry and community organisations with the purpose of identifying employment, education and training opportunities for the socially disadvantaged and under-employed Although there are more jobs than working residents in Port Phillip, 75 per cent of working residents are employed outside the municipality. This diminishes local multiplier effects and impacts on environmental sustainability Professional services and property, manufacturing, trade and industry, creativity and knowledge, tourism and retail trade account for over 80 per cent of jobs in the municipality. Opportunities exist to: > Leverage from Port Phillip s competitive advantage in professional services and property to develop the area s reputation as a hub for advanced business services > Transition Fishermans Bend towards the production and distribution of higher valued industrial products and services > Drive increased tourism yield and dispersal, better leverage from growth in the Australian cruise sector and maximise potential from events > Position Port Phillip as the creative city and develop key industry-attracting clusters to promote economic development within the municipality > Brand and differentiate each of the major retail precincts to avoid homogenisation. There is also the potential to build on South Melbourne Central s existing core retail role and transform it into a premier retail destination for an expanded catchment base. Emerging sectors within the municipality include green businesses and home based businesses. Opportunities exist to: > Develop an environmental business cluster in Fishermans Bend and encourage existing businesses to adopt environmentally sustainable practices > Recognise and nurture the home-based business sector (acknowledging the important role these businesses play) by facilitating networking events and providing a small business hub.

15 SECTION 5 27 POPULATION TRENDS Table 2 shows the City of Port Phillip s resident population for 2001 and The population rose from 80,552 in 2001 to 90,458 in 2006, representing an average annual growth rate of 2.45 per cent which is 0.88 per cent higher than the growth rate for Melbourne Statistical Division during the same period. The significant growth in the Port Phillip West SLA reflects the recent trend towards high density brownfield and infill redevelopment in the Port Melbourne vicinity. The City of Port Phillip resident population is forecast to grow by 31.1 per cent to 118,616 in 2026 (refer Table 3). This represents an average annual growth rate of 1.46 per cent, outstripping the expected annual growth rate for Melbourne Statistical Division. The greater opportunities for residential development intensification that exist in Port Phillip West (especially around Port Melbourne, Queens Road and St Kilda Road) are likely to continue to drive growth in the northwestern areas of the municipality. The City s resident population is forecast to grow by 31.1 per cent to 118,616 in Estimated Resident Population Average Growth Port Phillip (C) 80,552 90, % 2.45% St Kilda (SLA) 48,545 52, % 1.74% Port Phillip West (SLA) 32,007 37, % 3.01% Melbourne (SD) 3,471,625 3,744, % 1.57% Estimated Resident Population Average Annual Growth Table 2 Population Trends Source: ABS Census 2001, 2006 Port Phillip (C) 90,458 96, , , , % St Kilda (SLA) 52,770 55,790 59,097 62,707 67, % Port Phillip West (SLA) 37,688 40,345 43,887 47,274 50, % Melbourne (SD) 3,471,625 4,018,336 4,334,338 4,644,070 5,000, % Average Annual Growth Table 3 Population Forecasts Source: VIF 2008 DEMOGRAPHIC PROFILE Figure 3 shows that in 2006, 39 per cent of Port Phillip residents were aged between 25 and 39 years compared to only 23 per cent in Melbourne Statistical Division. Port Phillip is also significantly under-represented in the 5-19 years category (8 per cent compared to 19 per cent for Melbourne). This data suggests that the primary demographic for Port Phillip is young couples, young families and single adults under 40. The large number of working age adults is indicative of a significant resident workforce within Port Phillip. 16% 14% 12% 10% 8% 6% 4% 2% 0% Between 2001 and 2006, there was a significant decrease in the 5-24 years age cohort and very low growth in the 65+ group which may indicate forced emigration of young people and older residents from Port Phillip due in part to housing stock suitability, affordability and gentrification pressures. The highest proportion of Port Phillip residents are aged between 25 and 39 years Port Phillip (C) Melbourne (SD) The primary demographic for Port Phillip is young couples, young families and single adults under Figure 3 Port Phillip Age Profile 2006 Source: ABS Census 2006