Welcome
Expression of Interest Opportunity
The City of Greater Geelong (the City) is seeking Expressions of Interests (EOI's) from tourism operators in the opportunity to lease part of land at 360 Melbourne Road, Norlane, known as Seagull Paddock.
The site
The site is in close proximity to the Spirit of Tasmania Terminal, with more than 450,000 passenger movements annually, and the nearby Pivot City precinct with a mix of dining, beverage and retail. The site is adjacent to the main traffic thoroughfare in Geelong, with several services and businesses nearby, and is a pivot point for travel to and from Melbourne, Parks Victoria sites, and coastal locations.
The land is zoned PPRZ, however, it is not constrained by any other overlays. We are aware that the site is significant from a Cultural Heritage point of view, however an Aboriginal Heritage Overlay does not exist.
The site is a former landfill from the 1970s with remnant contamination, making it suitable only for uses that do not involve disturbing the subsurface soil.
Proposals
The City is inviting proposals from tourism operators interested in leasing the site and making it suitable for their use to establish tourism operations that enhance the visitor economy and the park along Cowies Creek. With new developments boosting the region’s appeal, this site presents a unique opportunity to maximise tourism benefits in the surrounding area.
This EOI is not an offer of financial or operational support from the City. Operators will be responsible for all aspects of fit-out, redevelopment, setup, and ongoing operations or maintenance of the project. The City seeks proposals from financially secure and development-ready operators capable of delivering a successful tourism enterprise.
Currently, no permits have been issued for the use or development of the site. The operator will be responsible for obtaining all necessary permits and meeting all requirements for every aspect of their proposal.
Through this EOI, interested operators are invited to demonstrate their vision by submitting a business case. Proposals should outline how the property aligns with their operational needs, and provide evidence of financial and project management capacity to establish and manage a tourism operation effectively.
The City will assess all submissions, and if an operator is successful, the City may invite them to enter into a lease agreement to formalise their use of the site.
Opportunities
In the year ended June 2024, Geelong and The Bellarine attracted 6.4 million visitors who stayed 6 million nights and spent $1.83 billion.
The Sustainable Destination Master Plan (SDMP) highlights the ‘Experience Gap’ identified in the connectivity and precinct around the new Spirit of Tasmania.
The SDMP also outlines the overall need for additional accommodation in the region. It is a particular challenge in the You Yangs and Avalon sub-region, adjacent to the precinct for this EOI, where the lack of accommodation limits the ability to turn day trips into overnight stays.
Future target markets outlined by the SDMP include Active Enthusiasts, Conference Travellers, Cultural Enthusiasts, Gourmet Travellers, Lifelong Learners and Wellness Travellers.
The objectives of this EOI are:
- Identify the most appropriate use(s) for the land connected to the tourism opportunities identified in the nearby precinct
- Seek potential uses that align with longer-term regional tourism priorities outlined in the Sustainable Tourism Destination 10 Year Master Plan
- Understand the potential this land presents to the regional visitor economy and its potential for it to support tourism sector growth
- Explore the vision potential operators have for operations in this site and how it connects with broader opportunities in the precinct
- Support Councils Strategic priorities as detailed in Our Community Plan 2021-2025
Site Details
Net useable area:
- 1ha approx.
Existing uses/activities:
- Recreational Reserve
Planning:
- Public Park and Recreation Zone (PPRZ)
Services and infrastructure:
- Dump point infrastructure available
- Water supply
Other Considerations:
- Barwon Water pump station, neighbouring the land
Currently, no permits have been issued for the use or development of the site. The submitter will be responsible for obtaining all necessary permits and meeting all requirements for every aspect of their proposal.
The respondent will be required to hold their own insurance as required by law and the contract conditions and will be required to provide evidence of this insurance coverage within seven days of it being requested by the City.
The City will consider the most appropriate form of tenure based on submissions received.
Additional requirements in relation to conditions and asset management and maintenance responsibilities will be negotiated at the offer stage.
A Council's power to lease any land to any person is limited to a term of 50 years or less.
The City will consider the most appropriate fee structure based on the submissions received.
The Citys process for establishing the rent on City land is outlined below:
- The City will establish the market rent for the premises with the market rental valuation providing clarity on the subsidy available.
- The City offers community organisations subsidies for Market Rent, the level of subsidy depends on the type of community use lease category.
- The City categorise Leases as follows:
Community
Under the community use category there are three different methods for calculating rent depending on whether they are:
- Full community leases where there are no commercial activities, and the applicant demonstrates a low or medium capacity to generate profit, The Minimum Community Lease fee is $500 + GST pa.
- Mixed-use community leases where there are commercial activities, and the applicant demonstrates a low or medium capacity to generate profit
- High profit community leases where the tenant has a high capacity to generate profit from the use of the leased premises. It is irrelevant whether commercial activities are conducted or not.
The rent paid by tenants for community use leases involves a subsidy from market rent. The level of subsidy depends on the type of community use lease category.
Commercial
The site is used predominantly for commercial or private purposes. In exchange for exclusive use of public land the tenant may provide some public benefits but there is no discount of market rent.
The table below outlines each category and the summary of rent calculation.
The proposed use must be permitted under the current zone, proposals for rezoning will not be considered.
The purpose of the zone is:
- To recognise areas for public recreation and open space;
- To protect and conserve areas of significance where appropriate; and
- To provide for commercial uses where appropriate.
