INDUSTRIAL LAND USE STRATEGY - City of Darebin

CITY OF DAREBININDUSTRIAL LAND USESTRATEGYA FRAMEWORK FOR DECISION MAKINGC i t y o f D a r e b i n N o v e m b e r 2 0 0 1

PNovemberThe City of DarebinIndustrial Land Use StrategyA Framework for Decision Makingwas adopted by Council on 19Pth2001For further information please contact:Strategic Planning Unit, Darebin City CouncilPhone: 9230 4465 Fax: 9478 1866Multilingual Telephone Line: 9230 4353TTY (Hearing Impaired): 9230 4696Email: HTUplanning@darebin.vic.gov.auUTH Website: HTUwww.darebin.vic.gov.auUTHDarebin Municipal Offices: 274 Gower Street, PrestonCity of Darebin, PO Box 91, Preston VIC 3072

Contents1 INTRODUCTION ................................................................................................................... 12 GENERAL PRINCIPLES ...................................................................................................... 32.1 EXISTING POLICY ........................................................................................................................................32.2 BEYOND EXISTING POLICY ..........................................................................................................................33 CHANGES IN THE DAREBIN ECONOMY........................................................................... 53.1 ACTIVITIES ON INDUSTRIAL LAND .................................................................................................................53.2 DEMOGRAPHIC SHIFTS...............................................................................................................................63.3 CONCLUSION .............................................................................................................................................64 INDUSTRIAL DEVELOPMENT GUIDE ................................................................................ 74.1 INDUSTRIAL LAND HIERARCHY.....................................................................................................................74.1.1 Core Industrial Areas ............................................................................................... ....................94.1.2 Secondary Industrial/ Employment Nodes............................................................... ....................94.1.3 Single Users Sites.................................................................................................... ....................94.1.4 Service Business Areas........................................................................................... ..................104.2 PLANNING SCHEME CONTROLS .................................................................................................................104.2.1 Existing Zones and Planning Scheme Provisions ................................................... ..................104.2.2 Proposed Zones....................................................................................................... ..................114.3 ZONING STRATEGY ...................................................................................................................................134.4 LOCAL AREA PLANS .................................................................................................................................164.5 CONTRIBUTIONS TO DEVELOPMENT ..........................................................................................................174.5.1 Development Contributions Policy........................................................................... ..................184.5.2 Development Contributions Plans ........................................................................... ..................194.5.3 Negotiated Section 173 Agreements....................................................................... ..................184.5.4 Special Rate Levy .................................................................................................... ..................195 INDUSTRIAL DEVELOPMENT & DESIGN OBJECTIVES ................................................ 206 A DECISION-MAKING FRAMEWORK............................................................................... 226.1 PRINCIPLE QUESTIONS.............................................................................................................................226.2 REZONING REQUESTS..............................................................................................................................236.2.1 Request for Rezoning – Industrial to Residential .................................................... ..................236.2.2 Impact on Surrounding Uses ................................................................................... ..................246.2.3 Planning Balance Sheet........................................................................................... ..................256.3 PERMIT APPLICATIONS..............................................................................................................................277 CONCLUSIONS .................................................................................................................. 288 RECOMMENDATIONS ....................................................................................................... 29APPENDICESAPPENDIX 1 DESCRIPTION OF ZONES..................................................................................... 31APPENDIX 2 MAPS OF DESIGNATED AREAS .......................................................................... 34APPENDIX 3 REFERENCES ....................................................................................................... 35APPENDIX 4 EXECUTIVE SUMMARY - JUNCTION INTEGRATED DEVELOPMENT PLAN... 36

1 INTRODUCTIONCouncil is faced with an increasing numberof demands on industrial land for housingand other non-industrial activities. In somecases, the industrial land in questionprovides legitimate and needed space foreconomic activity and jobs; in other cases,the land is not generating economic benefitsfor the community and could be consideredfor other uses.In considering rezoning requests and permitapplications, Council requires a coherentpolicy by which to judge the effects of theproposal and the best ways to deliver netcommunity benefit. The alternative is an adhoc approach that will inevitably be seen asinequitable and open to appeal.This strategy document provides a decisionmakingframework for the consideration ofrezoning requests and permit applicationsfor industrial land. It draws on workundertaken by Essential Economics andCouncil in 1999 and 2000 including landusesurveys, demographic analysis andconsultation processes documented in theissues paper entitled “Linking EconomicDevelopment to Land-Use Planning”.The issues paper provides a broad anddetailed discussion of the changes affectingthe Darebin economy as well as a detailedland-use survey of some of the industrialand commercial areas in the municipality.This document provides:1. General principles that should guideand manage land-use change.2. A brief description of the changesthat are occurring in the Darebineconomy.3. Revisions to the strategic planningframework for industrial land.4. A hierarchy of industrial land withinthe City of Darebin.5. Recommendations on the future useand zoning of Darebin’s industrialzoned land.6. A decision-making framework thatCouncil officers can use to assistassessment of rezoning requests andpermit applications.These recommendations will requiremodification of the Municipal StrategicStatement and amendment of the LocalPlanning Policy Framework with theinclusion of industrial policies to give effectto this strategy.A comprehensive review of the Municipal Strategic Statement is to beundertaken in 2002. The review of the industrial segment of the MunicipalStrategic Statement will be based on this Industrial Land Use Strategy. Therevised Municipal Strategic Statement will then give effect to elements of thisstrategy.City of Darebin Industrial Land Use Strategy 1

2 GENERAL PRINCIPLES2.1 Existing policyCouncil’s existing planning and economicdevelopment principles provide the starting pointfor the development of new policy. The Vision ofthe Municipal Strategic Statement (MSS) is toprovide for:“A vibrant, sustainable and harmonious Citycreating community pride”.The overall objectives of the Municipal StrategicStatement are provided in the accompanying box.In addition, the MSS recognises, under theStrategic Element of Economic Development, theneed to support business growth and localemployment. One of the objectives is to create a:“...diverse local economy which is responsive toexternal economic change”.The Economic Development Strategy 1998/2002(EDS) is even more explicit about the need tocreate jobs, with the vision for action by Councilbeing:“For the City of Darebin to have an environmentwhich encourages, promotes and facilitatessustainable business development and investmentactivities which will increase sustainable localemployment”.ObjectivesVibrant• To provide for a dynamic, diverse,interesting and truly unique city.Sustainable• To maintain a quality of life forexisting and future generations bypromoting a strong local economy,diversity of opportunities, efficienttransport system, accessibility ofservices and protection of thenatural environment.Harmonious• To minimise conflict by balancingland use and ensuring that oneaction does not adversely imposeupon another.Darebin Municipal StrategicStatement, 19992.2 Beyond Existing PolicyLand-use planning is Council’s main statutory influence on local economic development andthere is a need to make a stronger policy link between land-use and local economicperformance. There is also a need to recognise that conditions change and that economicoutcomes will depend on how well the municipality can adapt to those changes.Finally, Council needs to be committed to improvement and to be proactive in instigating thatimprovement, since to remain at the same level of development will mean that our communitybecomes less and less able to participate in the future, with less and less control of its owndestiny.Accordingly, the following key principles should be added to the Economic Developmentelement of the Municipal Strategic Statement.City of Darebin Industrial Land Use Strategy 3

Through its land-use policies and practice, Council will improve:1. SustainabilityChange in economic land-use will be encouraged where that will improveenvironmental, economic, social and cultural sustainability, recognising that someexisting land-uses are not sustainable and are not likely to be sustainable in thelonger term.2. Local job stockImproving the number and quality of jobs in the municipality will improve localincomes and thereby generate local economic development. Council will, otherthings being equal, give preference to land-uses that generate skilled jobs. In doingso, Council recognises the need to work with enterprises and educational institutionsto improve the skill levels of local residents.3. Urban designA high quality environment is a key attraction for investors in both economic activitiesand housing. Council will strive to achieve the highest quality urban design inprojects submitted for approval and in its own investments. Council will encourageinnovation such as mixed-use living and working areas in key specified developmentprecincts.4. Diversity of economic activityDarebin needs to develop a more diverse and vibrant local economy, to provide awider variety of both jobs and services.5. Protection of key economic assetsMany economic activity areas are relatively attractive and performing well. Theseareas require protection from ad-hoc intrusions to ensure that they remainsustainable into the future.These general principles will inform more detailed policies, specifically lookingat the issue of changes to industrial land-use zoning. Firstly, though, it isnecessary to examine the drivers of change in Darebin’s industrial economy.City of Darebin Industrial Land Use Strategy 4

3 CHANGES IN THE DAREBIN ECONOMYThe Darebin economy is changing.The industrial structure is shifting tosmaller and more locally orientedproduction and the skills of the locallabour-force are becoming moreoriented to the service economy.3.1 Activities on IndustrialLandTraditional manufacturing industries aredeclining, especially the largest employerssuch as footwear and automotivecomponents.There is a trend to firms with feweremployees (although there are still manylarge firms in the municipality).There is a trend for local firms to producemore for local and regional markets than fornational or export markets, and this isreflected in the growth of service and salesactivities.Whilst overall manufacturing activities inthe municipality have grown, much of thisgrowth has occurred outside industrial areas,including shop-front bakeries, printingservices and so on.The local economy has not benefited fromthe growth of advanced manufacturing orother highly skilled activities on industrialland. Indeed, it has lost jobs in these areas(through relocation of the CSIRO BuildingDivision, and Ericsson, for example). TheTechnology Park at La Trobe University hasnot yet proved to be a significant draw-cardfor advanced-technology enterprises after 10years operation.There are several reasons for the changesin industrial structure:• Land-extensive industries – large-scalemanufacturing and associatedcomponents manufacturers,distribution and warehousing – havefound locations on the metropolitanfringe and with easy access to themetropolitan freeway network to havelower operational costs (rents,transport, flexibility of land-use etc).• The skills of the accessible labourforcehave not been suitable foradvanced manufacturing activities,compared with other areas inMelbourne (Mulgrave, Clayton, PortMelbourne etc).• The building stock and widerenvironment have not been attractivefor advanced manufacturing andresearch enterprises. These firms mustcompete to attract skilled staff andprefer areas with high cultural and/orenvironmental attributes, includingvibrant activity centres, knowledgeprecincts or parkland. Darebin hasbeen unable to package its attributes toattract firms in these sectors.Notwithstanding the trends fordecline, Darebin retains a large anddiverse industrial sector.Industrial activity is concentratedprincipally in the three core industrialareas of Reservoir, East Preston andFairfield/Alphington, although with avariety of small and medium-sized(secondary) industrial areas scatteredthroughout the southern half of themunicipality.City of Darebin Industrial Land Use Strategy 5

3.2 Demographic ShiftsIn line with broader trends, the Darebinlabour-force is shifting to occupations inservice industries. However, the rate ofchange in Darebin has been faster than forMelbourne as a whole.The socio-economic divide between thenorth and south of the municipality iswidening.The labour-force of the southern parts ofthe municipality (the Northcote StatisticalLocal Area) have much higher qualificationsand skills than the metropolitan average:• House prices in this area are up to 50%more than the metropolitan average andprices have increased at a more rapidrate than both Melbourne as a whole andthe northern part of the municipality.• People in this area are much more likelyto work in Inner Melbourne than inDarebin, and in skilled serviceindustries.The labour-force of the northern parts ofthe municipality (the Preston SLA) has lowerqualifications and skills than themetropolitan average:• House prices in this area have risenfaster than the metropolitan averageover the past nine years, but actualprices have only recently achievedparity with the metropolitan average.• People in this area are slightly morelikely to work in Darebin than in InnerMelbourne, and in blue collar androutine service industries.Both parts of the municipality have highunemployment (over 10%), and this is a realconcern given the sustained period ofeconomic growth the Australian economyhas enjoyed.In the second half of the 1990s, following anextended period of relative decline, InnerMelbourne experienced a period of renewedinvestment in economic activity. Thisresurgence has been driven by broadeconomic changes and a concern on the partof city decision-makers to ensure thatMelbourne can compete on an internationalscale for economic activity. Privateinvestment in telecommunications, businessservices and entertainment has been intense.There has also been major public investmentin cultural activities and improvements inlifestyle attributes. As a result there aremore jobs and a higher demand for livingspace.This development in Inner Melbournehas rippled outwards, with increasingdemand for housing in middle suburbanareas such as Darebin.The southern parts of the municipalityespecially have experienced an influx offamilies with workers in the booming InnerMelbourne service economy. Existingworkers in the area have also benefited fromthese jobs.A wave of housing renovations andredevelopments has been the mostvisible sign of a new affluence in manyparts of the area. Unfortunately, this hasnot led to major investment in neweconomic activities in the municipalityeither to take advantage of the change inlocal skills or to provide services to newor newly affluent residents.City of Darebin Industrial Land Use Strategy 6

3.3 ConclusionWhilst change is happening, thetransition to a service-oriented economyis not being effectively managed;Darebin is not “surfing the wave” ofeconomic and social change. The newsocial dynamic is not leading in anymajor way to investment in enterprisesthat could take advantage of thosechanges.Darebin’s industrial areas cannotcompete with greenfield sites on thefreeway network for land-extensivemanufacturing firms. If the industrialareas are to retain a successful roleproviding skilled employment, they needto compete for smaller advancedmanufacturing firms. These must besupported by a strong local businessservices sector, including research anddevelopment.A strong local business services sector,including research and development isattracted by an excellent environmentincluding elements such as:• attractive buildings• a vibrant local culture• diverse high quality livingenvironments for workers• a first-rate reputationThe success of the industrial areastherefore depends to some extent on thesuccess of local living environments; onproviding a range of high qualityhousing choices and residential areas, aswell as exciting activity centers.These conclusions, along with the principles identified in the previous section,inform the zoning guide outlined in the following section.City of Darebin Industrial Land Use Strategy 6

4 INDUSTRIAL DEVELOPMENT GUIDEThere is a need to retain industrial land and zoning to accommodate many hundreds ofindustrial enterprises and to protect their ability to function effectively into the future.However, some small industrial areas are no longer performing well, either becausethey are substantially vacant or because their continued industrial use restricts thedevelopment of a high quality urban environment. In a limited number of areas, theremay be the opportunity to encourage the development of an innovative mix ofindustrial, commercial and housing uses.Other areas are comprised of isolated industrial fragments, no longer suited toindustrial use due to their location or the layout and condition of the building stock.Where suitable, employment generating uses should be encouraged with some areasadaptable to a mixture of commercial and residential use.The future zoning should also recognise the need for smaller service industrial areas toprovide convenient local business and resident services.4.1 Industrial Land HierarchyA hierarchy of industrial areas existswithin the City of Darebin. These rangefrom the Core Industrial Areas which areidentified as Darebin’s longer termindustrial centres providing a range ofemployment opportunities and services tothe isolated Single User industrial areaswhich cater to one or two major industriesbut do not form part of an industrialprecinct. Between these extremes are theSecondary Industrial or EmploymentNodes, and the Local Service Businessareas, both important as providers of localjobs and services for the surroundingresidents.The hierarchy can be used to indicate therole and function of each individuallocality. By differentiating core industrialareas and secondary industrial areasCouncil can provide developers andresidents alike with a degree of certaintyfor the future and provide a rationale forthe issue of permits encouraging newindustry to locate in the most appropriateareas for their long term ongoing securityof tenure and operation.By modern standards of industrialdevelopment some of Darebin’s industrialareas may appear small and isolated.However, where they are identified asindustry/employment nodes they should beretained and protected from attrition andcompromise. Because of the small size ofthese areas, an incompatible usepotentially undermines the functioning andefficiency of the entire precinct thuscompromising the viability of the area andputting at risk the existing surroundingindustries.Other areas are identified as “EmploymentCentres” in this Strategy and rezoning isrecommended in specified instances toaccommodate a broader range of uses.Limited areas of Darebin’s industrial stockhave been acknowledged as no longersuited to industrial use and it isrecommended that they be rezoned to avariety of zones including both residentialand business zones.City of Darebin Industrial Land Use Strategy 7

4.1.1 Core Industrial AreasThe Core Industrial Area designationdelineates the long term industrial oremployment precincts within Darebin.Three Core Industrial (and Employment)Areas have been identified in the City ofDarebin at:1. Reservoir2. East Preston3. Fairfield/AlphingtonThese areas are Darebin's majoremployment areas providing both skilledand unskilled job opportunities, generatingexport revenue and providing services tothe local population and to the widercommunity both in Victoria and interstate.In Core Industrial Areas industrial usesand associated compatible land uses wouldbe encouraged as the primary activitieswith Council ensuring any new usessupport the function and role of theseareas.Industrial uses will be required to maintaina high level of design and amenity andshould particularly address any adjacentmore sensitive land uses. Where theinterface is with a more sensitive use,particularly residential use, care must betaken to ensure the minimisation of off-siteimpacts.4.1.2 Secondary Industrial/Employment NodesFour Secondary Industrial/EmploymentNodes have been identified. These nodesare:1. Normanby Avenue2. Northcote West (Arthurton Rd)3. Northcote Central (Arthurton Rd)4. High Street (North Preston –Regent)These areas are smaller than the CoreIndustrial Areas and tend to reflectDarebin’s industrial past of clusteringindustry on the creek and close to the railline. Whilst the first two of these areas areisolated creek-side developments abuttingestablished residential areas and are notideally located by modern standards, theyare never-the-less successful centres ofindustry and provide a valuable source ofemployment opportunities for the city.Council recognises the historicaldevelopment of some of its industrialstock, particularly in the southern portionof the municipality, and seeks to minimiseconflict between industry and adjoining,often sensitive, land uses. Applications forindustrial development must be cognisantof and sensitive to surrounding land uses.Particular attention to the amenity of thesurrounding residents must be consideredwhen Council is considering anyapplication for industrial development inthese areas. Similarly, Council shouldconsider the impact that intensification ofresidential uses on adjacent residentialsites would have on the ongoing operationof the industrial area.4.1.3 Single Users SitesAmongst the suburbs of Darebin are a fewisolated, generally single user, industrialsites. These tend to be older industriesestablished a number of years ago butzoned “Industrial” to reflect their use.They tend to be large sites and oftenemploy a significant number of workers.These industries are an importantcomponent of Darebin’s economy andshould be protected to ensure they remainviable.Most have substantial investment ininfrastructure on-site and supply a marketbeyond the City of Darebin, generallyservicing Victoria, Australia and, in someinstances, overseas. This means anyrelocation of plant can be an expensiveoption. If relocation was required,Darebin would generally have to competeagainst greenfield sites in industrial estatesCity of Darebin Industrial Land Use Strategy 9

in Melbourne’s outer suburbs, inter-statesites or even off-shore locations.Retention of employment opportunitiesis an important component ofDarebin’s Industrial Strategy. As such,these industries should be encouragedto remain, where feasible, with Councilworking with the industry to achieve ahigh level of amenity in the locality.Where these industries are stillsuccessfully operating, it is proposed toretain the existing industrial zoning with aview to reviewing it if the tenant were tovacate and the buildings were determinedto be no longer economically viable.Other isolated sites, which can no longerfunction viably, are proposed to berezoned, generally to reflect thesurrounding zone.4.1.4 Service Business AreasTraditionally a small business servicecentre would occur in neighbourhoodsproviding a location for the mechanic,builders yard or plumber etc to service thesurrounding neighbourhood. Changingbusiness practices have seen a decline inthe owner-operator service business andtradesman with a move to agglomeratedoperations catering to a much widercatchment. These larger businesses are notwell suited to neighbourhood locations andshould be encouraged into designatedindustrial areas.Nevertheless, local areas continue to caterto a neighbourhood need and should to bemaintained throughout the municipality.However, as many of these areas havelimitations such as poor access orinadequate parking, they should beencouraged to cater to locally focusedbusinesses.4.2 Planning SchemeControlsLand uses and the form of developmentare controlled through the DarebinPlanning Scheme which sets out the usespermitted, and those prohibited, in variouszones. The scheme also sets out the maincriteria for assessing any developmentapplications. This section gives anoverview of the existing planning schemecontrols and establishes a rationale for theproposed future zoning of the industrialareas.4.2.1 Existing Zones & PlanningScheme ProvisionsCurrently the City of Darebin uses bothIndustrial 1 and Industrial 3 zones for itsindustrial areas. The purpose of theIndustrial 1 zone is:“To provide for manufacturing industry,the storage and distribution of goods andassociated uses in a manner which doesnot affect the safety and amenity of localcommunities.”Industrial 3 is the former “light industrial”area and its purposes under the DarebinPlanning Scheme are:“To provide for industries and associateduses in specific areas where specialconsideration of the nature and impacts ofindustrial uses is required or to avoid interindustryconflict.To provide a buffer between the Industrial1 Zone … and local communities, whichallows for industries and associated usescompatible with the nearby community.To ensure that uses do not affect the safetyand amenity of adjacent, more sensitiveland uses.”In the Industrial 3 zone both “Industry”and “Warehouse” require a permit to usethe land while in the Industrial 1 zone nopermit is required if it complies with theprovisions of clause 52.10 of the PlanningCity of Darebin Industrial Land Use Strategy 10

Scheme, and does not adversely affect theamenity of the neighbourhood.Clause 52.10 of the Planning Scheme is to“define those types of industries andwarehouses which if not appropriatelydesigned and located may cause offence orunacceptable risk to the neighbourhood”.Threshold distances are set out for eachtype of industry or warehouse withexemptions from these minimum distancesnoted as well as which industry typesrequire an assessment of off-site risk topeople's safety to be undertaken.Accommodation and shops are prohibitedin both zones, and stand-alone office is2restricted to 500 mPPand is subject to apermit.Darebin’s Core Industrial areas are zonedIndustrial 1 and buffered by Industrial 3zoned land separating it from moresensitive land uses. Darebin has noIndustrial 2 zoned land as this zoneprovides for potentially hazardous oroffensive industries.4.2.2 Proposed ZonesCore and Secondary IndustrialAreasAs an inner-ring, developed suburb,Darebin does not have largeunencumbered and undevelopedindustrial sites, particularly areas suitedto industries that impact off-site.The future zoning of Darebin’s Industrial 1zoned land must be considered given theconstraints on industrial development andthe desirability of protecting sensitiveneighbouring uses. Concurrently, Councilaims to protect existing industrial areas,specifically those identified as Core orSecondary industrial areas from intrusionfrom competing non-complementary uses.It is recommended that the Industrial 1zoned land in Darebin’s three CoreIndustrial Areas be rezoned toIndustrial 3 zone thus indicatingCouncil’s preferred form ofdevelopment; specifically developmentwhich does not adversely impact on theamenity of surrounding areas.In terms of planning scheme requirements,the recommended change of zone wouldrequire “industry” and “warehouse” toseek a permit from Council for the use ofland for this purpose. All buildings andworks currently require a permit andwould continue to do so under theproposed change to zoning. The only landuses prohibited under the provisions of thescheme by the change in zone fromIndustrial 1 to 3 zone would be extractiveindustry, major sports and recreationfacilities and a motor racing track.This proposed change to the Industrial 3zone would be expected to have minimalimpact on employment opportunities orinvestment in the municipality. Darebinhas limited vacant industrial land and thechange in zoning precludes few usespermitted under the current zoning.However, it does reinforce to prospectiveindustrialists and developers that the Cityof Darebin is not a suitable location forland uses that would cause a nuisance orimpact detrimentally on more sensitiveland uses. The planning schemeprovisions state that industry must notadversely impact on the amenity of theneighbourhood through the transportationof goods nor the appearance of materialsstored on site nor through the emission ofnoise, artificial light, vibration, odour,fumes, smoke, vapour, steam, soot, ash,dust, waste water, waste products, grit oroil.The Industrial 3 zone underlines theimportance of the amenity of the localcommunity and the need for industry toaddress local amenity issues. Industrial 3zoning requires industry to seek a permitfrom Council for the use of the land, thusCity of Darebin Industrial Land Use Strategy 11

allowing Council the opportunity to assessthe potential impact of a proposed use,determine whether that new industry anddevelopment is of a type, scale and formsuited to its proposed location within adeveloped municipality and to impose anyconditions necessary to protectneighbouring amenity. For example,Council may determine that an industry isnot detrimental if certain conditions suchas the hours of operation or route of heavyvehicles are restricted via a condition of aplanning permit.It is also recommended to apply Business3 zone to some currently industrial zonedland, particularly the Northcote CentralIndustrial/Employment node andpotentially in the East Preston CoreIndustrial area (subject to a further study).The Business 3 zone allows industrial usesto continue to develop without a permit ifthey meet stringent conditions andsetbacks designed to prevent them fromimpacting on residential or sensitive landuses. But the fundamental difference ofthe Industrial 3 and the Business 3 zones isthat Office uses (over 500 square meters)are permitted in the Business 3 zone. Thiswould allow the development of standaloneoffice complexes to establishindependently of any industrial usage.Accommodation and Shop are stillprohibited uses in this zone.The application of the Business 3 zonefundamentally allows the development of agreater office component within theprecinct, which would diversify the uses ofthe area while retaining substantialemployment opportunities.Service Business AreasThe City of Darebin recognises the need tomaintain some opportunities for smalllocalised service business areas throughoutthe city. Small pockets of Industrial 3zoning currently provide a location forthese activities. However, it is consideredthat industrial zoning should be used toindicate Council’s preferred locations forindustrial uses.Therefore it is recommended that aBusiness 3 zone be used to provide forlocal service business opportunities.The Business 3 zone allows land to beused for industry without a permit subjectto various conditions including minimumsetbacks. Because of the small size ofthese pockets it is unlikely that they wouldbe able to comply with the conditions ofthe planning scheme and so developmentwould require a permit. This allowsCouncil the opportunity to assess theapplication to ensure the proposed use issuited to the location.It is recommended that the existingisolated pockets of Industrial 3 zone beassessed on individual merit and, whereappropriate, be retained for local servicebusiness use under a Business 3 zone.Where these areas are no longerfunctioning or particularly inappropriatelylocated, they should be rezoned, generallyto reflect surrounding zones and land uses.Single Users SitesThese sites have been identified as beinginappropriate for industrial use because ofa variety of factors including isolation,inadequate access etc. However, Councilrecognises that the continued successfuloperation of the industry is important toDarebin’s economy.Therefore, it is recommended that thecurrent zoning remain in place on thesesites. It is also recommended that Councilwork with these industries to ensure thatany off-site impact of their operations isminimised.The zoning of these areas could bereconsidered if these industries were torelocate and the premises could not beutilised for less detrimental economic use.Council should consider the Decision-Making Framework established inSection 6 of this report when assessingplanning applications.City of Darebin Industrial Land Use Strategy 12

4.3 Zoning StrategyThe following table provides the zoning strategy for industrial land in the City of Darebin. Note that this table does not address individual lotsand there may be minor variations and exceptions to the zoning indicated on the accompanying table. Individual and isolated industrial pocketswill be assessed on a case by case basis using the assessment criteria contained in this report. All properties being rezoned from industrial zoneswill attract an Environment Audit Overlay in accordance with Ministerial Direction 1.Industrial Zoning GuideMap Description Current Zone/Use Future Zoning Land Use and Policy Direction1 Reservoir Industrial 1 & 3Core Industrial Area2 East Preston Industrial 1 & 3Business 4Core Industrial Area3 Fairfield/Alphington Industrial 1 & 3Core Industrial Area4 Normanby Ave Industrial 3(Anderson St) Secondary Industrial5 Northcote West(Arthurton-Rd)AreaIndustrial 3Secondary IndustrialAreaIndustrial 3 ZonePotentially mixture ofBusiness 3 and 4zones retaining someIndustrial 3 – subjectto detailed study.Industrial 3 ZoneIndustrial 3 ZoneIndustrial 3 ZoneGenerally maintain the current land uses.Industrial policy required to address residential interface issues and to improve industrial urbandesign.Prepare Local Area Plan to guide development in this area.Rezone IN1 to IN3.Rezone Industrial 1 zone to Industrial 3 in short term.Rezone to B4 west of Albert St and Stafford site on Chifley & Gower by homemaker center.Appropriate zone (to enable big-box retailing) around Bell St/Chifley Drive will leverage investmentand allow industry to remain. Maintain buffers to residential uses ensure appropriate interface.Integrated Development Plan to guide development in this area and required to address appropriatezones. Investigate:• extent of B4 zoning to allow for sale of bulky goods;• extent of B3 zoning to encourage mix of industrial and office uses;• marketing plan (if required) and staging plan for rezonings;• local traffic issues,• built form, urban design, height guidelines;• residential (particularly noise) and creek interface issues.• Integration/linkage of Northland and Homemakers Centre with future peripheral sales areas.Policy required to address residential interface issues, noise and traffic access issues.Rezone IN1 to IN3This area has reasonable separation from housing, good exposure to main road; other employmentuses could be considered. Small precinct vulnerable to erosion of integrity. Maintain existing zoningand existing boundaries to the Industrial precinct.This area has good exposure to main road and should be retained. Good residential interfaceshould be maintained. Small precinct vulnerable to erosion of integrity.Maintain existing zoning and existing boundaries to the Industrial precinct.Industrial Land Use Strategy 13

Map Description Current Zone/Use Future Zoning Land Use and Policy Direction6 Gadd Street,Northcote7 Northcote Central(Arthurton Road)Industrial 3Single User siteIndustrial 3Secondary Industrial/Employment Area8 Tram Depot, PlentyRoadIndustrial 3Service Business9 Preston North Industrial 3Peripheral sales andlocal industriesSecondary Industrial/Employment Area10 The Junction Industrial 3, Business(High St – Plenty 1 and Business 2Rd)zones Mixed UseArea11 Oakover Road Industrial 3Mixed industrial area12 Windsor Smith, StGeorges Road13 High Street -Northcote andThornbury14 Westgarth IndustrialAreaIndustrial 3Single User SiteWindsor SmithfactoryPockets of Industrial3, Business 1 andResidential 1 zones.Mixed commercialand residential usesIndustrial 3Mixed Use zone(Kennedy-Taylor)Active industrialpocket but with largevacanciesIndustrial 3 ZoneBusiness 3 ZoneBusiness 3 ZoneResidential 1 zoneBusiness 3 ZoneSubject to JunctionIntegratedDevelopment PlanResidential 1Mixed Use ZoneAssess zoning ondeparture of currentuse. Possiblyresidential/office mix.Subject to High StreetDevelopment PlanBusiness 2Residential 1 (2 HighSt)Two major land uses (Ensign and Joshua Pitt) currently operating with reasonable separation fromhousing and minimal traffic impacts. But old building stock, some purpose built would be difficult toreuse and not desirable to maintain industry in this location in the longer term therefore could berezoned if major activity moves out.Mix of activities. Any loss of major activities could trigger the need for a review: a Business 3 Zonecould capitalise on the nearby activity centre allowing the development of office uses to complementthe retail node and reinforce the role of Northcote and allow it to develop a “centre” rather thancontinuing “strip” style development. Retain as key area of business and employment opportunity.Isolated pocket in Irene Street has poor access and no street profile to be returned to residentialzoning. Plenty Street frontage mixed uses to continue under Business 3 zoning.Rezoning to Business 3 would allow the development of office uses in this area and also would allowcontinued use for peripheral sales. Business 3 would complement the zone to the south, recogniseexisting activity and allow for more diverse development.Integrated Development Plan prepared to develop a vibrant mixed-use area. Policy to provideguidelines for future redevelopment. Encourage amalgamation of holdings to promote larger scaledevelopments.Refer Junction Integrated Development Plan (see Appendix 4)Some buildings nearing end of economic life. Good location adjacent to park and public transport.Transitional area with some industry still viable.Potential for innovative housing and small office development but need to consider impact onremaining industry when considering applications.Design guidelines to ensure good quality redevelopment.Single site would be poor location for new industrial activity. Ensure residential amenity standardsare met.New zoning would better reflect the existing uses and preferred future development. Mixed areawith Business 1 on west and Industrial, business and residential uses on east side of High Street.Prepare a High Street Integrated Development Plan to guide redevelopment of this area. Need toaddress issues of land use, built form, traffic, retail hierarchy, height controls and urban design.Integrate with the review of the Retail Strategy and the Integrated Travel Plan. Study to extend fromMerri Creek to Regent.Significant pressure for residential redevelopment could be accommodated through Business 2Zone to capitalise on nearby activity centre and allow mixture of office and residential uses. Goodlocation for higher density residential with proximity to city, employment opportunities, publictransport and local retail and community facilities.Gateway location with high profile sites. Prepare Local Policy to guide development of significantsites to ensure future development addresses urban design issues associated with high profile sites.Industrial Land Use Strategy 14

Map Description Current Zone/Use Future Zoning Land Use and Policy Direction15 St Georges Road-&Merri Parade16 Heidelberg Road &Westfield St17a & bHeidelberg Roadpockets18 High St, Northcote,Town Hall Area19 Separation Street,NorthcoteIndustrial 3 Mixeduses, commercial,industrial, residentialIndustrial 3Mixed uses frontingHeidelberg Rd.Residential behind.Industrial 3Mixed & unsuitableusesIndustrial 3Variety of smallcommercial usesIndustrial 3Mixed manufacturingand wholesaling20 Central Preston Industrial 3Industrial and carparkingNomapIsolated pockets,High Street, PlentyRoad, etcResidential 1Business 2Business 3 ZoneResidential 1 ZoneResidential 1 &Business 3 andBusiness 4Business 2Residential 1Industrial 3,Residential 1Business 1Good redevelopment opportunities. Gateway site needs to be addressed accordingly whenredeveloped. Significant residential use currently.Prepare Gateway Policy to guide development of significant sites to ensure future developmentaddresses urban design issues associated with high profile sites.Need to revise zoning as does not correspond with built form.Good road access and exposure although access/safety issues with Heidelberg Road. Need toensure residential amenity is retained for surrounding residents.Business 3 zone on Heidelberg Rd, Residential 1 north of Albert St.Each pocket assessed individually and a zoning strategy applied to reflect longer term preferredzoning rather than existing uses. Zoning to consider land uses to the south in the City of Yarra.Urban design guidelines to improve Darebin’s image on this main route.Landmark site on top of Ruckers Hill with extensive Melbourne views. Consider office or residentialuses in context of Retail Strategy. These uses would support Northcote Town Hall precinct bringingmore people to the area.Guidelines for the development of these sites to be addressed in the High Street IntegratedDevelopment Plan where height and bulk issues will be considered.Industrial pocket in residential area. Narrow street, poor access. Opportunity for rezoning landsouth of Separation Street for medium density development. Ensure residential amenity maintained.Single User site to the north of Separation Street with NCI Group. Considerable infrastructure &employment should be protected from residential encroachment.Isolated industrial pockets adjacent to Preston train station and supermarket. Facilitates increaseddepth to Preston centre rather than spread along High St. Creates opportunity for larger business toestablish.Mixed Varied Isolated pockets of industrial land and service business areas need to be considered in context oftheir current use and appropriateness for the future. Zoning should reflect preferred developmentoptions. Also includes the rationalization of “remnants” adjacent to industrial areas (eg north-eastcorner Darebin Rd & Station St)Mixture of residential and commercial uses. Where local industrial function to remain use B3 zone.Industrial Land Use Strategy 15

4.4 Local Area PlansFurther detail on more complex areas will be required to guide not only land-usechange but also:• land-use conflict (and how new activities can be designed tominimise such conflict);• how to maximise job creation and economic activity (whether thatcan be achieved through designing residential units for homeoccupation,or through the provision of business units);• traffic circulation, loading and parking;• what activities would be desirable as part of a vibrant mix of uses;• what streetscape works or other capital improvements are requiredto make the precinct work effectively.Such a Local Area Plan need not be highly detailed, and should not involve alengthy process. Rather, the plan should be worked through in conjunction withexisting land-holders and occupiers to arrive at some clear and general principles toguide development, as well as a preferred traffic and circulation plan.Industrial Land Use Strategy 16

4.5 Contributions toDevelopmentCouncil recognised the need to seekcontributions toward the cost of theprovision of social and physicalinfrastructure incorporating the followingstrategy into the Municipal StrategicStatement in 1999:“Measure the impact of newdevelopment and, whereappropriate, require developers tocontribute to additional oraugmented social/physicalinfrastructure.”Council now needs to consider the rangeof mechanisms available to attractcontributions for the renovation ofstreetscapes, provision and upgrading ofsocial and cultural infrastructure and thedevelopment of an attractive andsustainable environment.Traditional industrial areas have poor orno green space and a very low level ofamenity with streetscapes dominated bythe provision of overhead services,parking, storage of materials and wastestorage and no setbacks.Redevelopment of identified redundantindustrial buildings and areas is expectedto yield considerable dwellingopportunities and increase residentialdensities. Redevelopment of industrialsites/areas for office purposes can alsohave a similar impact on local servicesintroducing potentially substantialworkforces who require access to localfacilities and a higher level of amenity.Some of these sites present substantialdevelopment opportunities and this willlead to an increase in demand for existingfacilities and perhaps, where ademographic is substantially impacted,may result in a demand for new facilities.If more sensitive uses are to bepermitted in some of the industrialareas, then Council will have toimprove the level of amenity inthese areas.Works necessary may includeimprovements such as:• Provision of parkland/green spacesor upgrading of nearby parks• Planting of street trees• Undergrounding (or overheadbundling of cable) of powersupplies• Rationalization of street poles• Roadworks – eg trafficmanagement works• Community and multi-culturalfacilities• Expansion/construction of socialinfrastructure such as maternalhealth, aged care, child-carefacilities etc.• Improvements to sewerage anddrainage systems.Improvements such as the upgrading ofa child care facility would have abenefit to a segment of the widercommunity whereas the benefit ofplanting of street trees would beconfined to a more immediate locale.Substantial upgrading of the existinginfrastructure will be required ifCouncil allows the conversion of someindustrial areas for non-industrial uses.Ultimately the responsibility andthus the cost for upgrading thisinfrastructure rests with Council.Council can seek contributions fromdevelopers and the community to fundthese improvements via a number oftechniques as discussed below.Industrial Land Use Strategy 17

4.5.1 Development Contributions PolicyIn March 1999 Council adopted aDevelopment Contributions Policy togive effect to an element of the CouncilPlan 1998 which was to ensure:“The planning and implementationof timely and relevant social,cultural and recreational policiesand funding programs to meet theneeds of the diverse Darebincommunity”.Council’s Development ContributionsPolicy has two specific objectives:1. To address all relevant developmentcontribution levy requirements aspart of the development approvalsprocess.2. To apply an appropriatedevelopment contribution levywhich, when tested, is found to beviable and feasible in accordancewith legislative requirements andwhich satisfies the criteria of Need,Nexus, Equity and Accountability.This policy recognised that infrastructureand services within the municipality cateredto a level of demand determined by pastdevelopment and that changes resultingfrom urban consolidation and the conversionof industrial buildings is impacting on thepopulation patterns and the demand forfacilities.The policy identifies Development Contribution Plans and Section 173 Agreements asvehicles for requiring contributions and it points out that these contributions could beby direct provision (ie providing the land or constructing the facility) or by cashcontribution.4.5.2 Negotiated Section 173 AgreementsUnder Section 173 of the Planning andEnvironment Act Council may negotiatewith developers for the provision ofinfrastructure or a contribution towardthe provision of infrastructure. This isdone as part of the permit process andthe Section 173 is included as a permitcondition.Section 173 agreements are the mostcommon mechanism to obtaindevelopment contributions in Victoria.Council planners assess a developmentapplication, determining the likelyimpact on community infrastructure andfacilities and negotiate an appropriatecontribution.The benefit of Section 173agreements is that it gives Counciland the developers the scope andflexibility, by agreement, to movebeyond the stringent rules and testsof the Development ContributionsAct 1995.Industrial Land Use Strategy 18

4.5.3 Development Contributions PlansThe Planning and Environment(Development Contributions) Act 1995provides for Councils to collectcontributions or levies through anapproved Development Contribution Plan(DCP) which would be incorporated intothe Darebin Planning Scheme via anamendment.Two components to DevelopmentContribution Plans were identified:1. Physical Infrastructure, payable upfront for items such as roads, drains,open space or land for communityinfrastructure.2. Social/Community Infrastructure,which included community meetinghalls, pre-schools, maternal and childhealth, care centres.An upper limit of $450 per lot forresidential development was applied tothe Community Infrastructure levy. Thismeans an apartment complex of 40homes would only be required tocontribute $18,000 to infrastructure yet,in a small or isolated locality 40additional homes may have asubstantial impact on local services.Non-residential development couldattract a development contribution ofup to 0.25% of construction costs forcommunity infrastructure.The Department of Infrastructure iscurrently reviewing the use of DCPsand Darebin is part of a pilot project.Development Contribution Planshave not been utilized by mostCouncils, probably due to theircumbersome nature and the onerouswork required by Councils tointroduce them.A comprehensive impact analysis isrequired to inform the level ofcontributions that must address thetests of need, nexus, equity andaccountability.4.5.4 Special Rate LevySection 163 of the Local Government Act 1989 provides for Councils to levy special rates andcharges. These Special rates and charges may be levied on any specified area for the purposeof “defraying any expenses”. Special Rate Levies are currently used in some retail centres inthe City of Darebin to help Council market and promote the local centre.The use of a special levy would enable Council to direct the cost of improvements to thecommunity that is considered to benefit. Costs for tasks such as the bundling of overheadcabling could then be defrayed amongst the wider community that would benefit from theimproved streetscape and thus minimise the cost to any individual or company.Special rate levies are advantageous in that they can be applied to a larger communitybenefiting from the improvements and are not restricted to individual developments asare DCP’s and Section 173 Agreements.Industrial Land Use Strategy 19

5 INDUSTRIAL DEVELOPMENT & DESIGN OBJECTIVESA fundamental aspect to future industrialdevelopment in the City of Darebin is toensure not only the location is suitable,but also to make certain the scale, formand type of development areappropriate.In addition to the requirements ofClauses 33.03 and 34.03 of the DarebinPlanning Scheme it is proposed that apolicy to guide the physical form of anydevelopment, the landscaping, amenity(on-site and off-site) issues, access, andstreetscape issues be introduced into theplanning scheme.It is recommended that the Industrialand Commercial Land Policy beapplied to all industrial zoned landand land zoned Business 3 in theCity of Darebin.The Industrial and Commercial LandPolicy would then be introduced intoClause 22 of the Planning Scheme, theLocal Planning Policies section of theDarebin Planning Scheme.An Industrial Policy will provide guidelines for the assessment of permitapplications to ensure a high standard of development is achieved that iscognisant of the opportunities and the constraints of an inner ring suburb.Policy objectives should include the following elements: The protection of the integrity of viable and sustainableindustrial areas (core and secondary) from ad hocintrusion or compromise from competing noncompatibleland uses; Ensuring a high standard of urban design is achieved toimprove the visual character, functioning and layout ofindustrial areas; The encouragement of existing industries to improveperformance including adopting best practicetechniques, improving the appearance of existingbuildings and reducing off-site impacts;Industrial Land Use Strategy 20

Minimisation of the impact on the amenity ofsurrounding residential areas from traffic, noise andemissions resulting from industrial land uses; To require the provision of suitable landscaping toimprove the appearance of industrial and commercialareas; The reduction and minimisation of conflict betweenindustrial and non-industrial land uses; The creation of and provision for a mix of localemployment opportunities; The creation of a sustainable vibrant local economyproviding a variety of both jobs and services; The facilitation of the transition of under-utilized sitesand inappropriate industries to more suitable economicuses that provide choices in local employment; The encouragement of environmentally sustainabledevelopment that utilizes, where practical, best practice,energy efficiency, water reuse and recycling; Ensuring caretakers’ dwellings do not adversely impactupon the primary use of the zone and to preventcaretakers’ residences being developed for generalresidential purposes.Industrial Land Use Strategy 21

6 A DECISION-MAKING FRAMEWORKThis section presents a framework to assist Council in decision making forrezoning applications and permit applications.6.1 Principle QuestionsWhen faced with a permit application or request for the rezoning of land, Council‘sshould carefully consider the following questions:That is, how will the proposal:What form of developmentwill create the bestoutcome for economicdevelopment?• safeguard existing activities• make the most of economic assets• upgrade the assets of themunicipality• create space for dynamic economicactivities• support Council’s policy directionANDWhat form of developmentwill be most beneficial forresidents?That is, how will the proposal:• improve residential amenity• provide better levels of service• improve local job opportunitiesThe strategic intent of any decision shouldbe, firstly, to retain appropriate land foreconomic activities, and secondly, toimprove residential amenity and make bestuse of residential infrastructure. Thisimplies that, even where continuedindustrial use may no longer be appropriate,that the use of the land for other economicactivities should be tested.In many cases, the decision will berelatively straightforward. However, inother instances, the issues will be less clearcut.A framework is provided to explore someof the issues in order to reach a decision.The example of a request for a change ofuse from industrial to residential is used.However, the framework can be adapted toother potential changes and for theassessment of permit applications.The framework provides a starting point forthe assessment of change. It is not intendedto be definitive with each applicationpresenting unique issues that can be addedto this decision-making framework asrequired.Industrial Land Use Strategy 22

PPYes6.2 Rezoning RequestsThe Industrial Land Use Strategy providesthe framework for industrial developmentin Darebin over the medium term (the next3 to 5 years). The implementation of theIndustrial Land Use Strategy includesCouncil initiated rezonings in accordancewith the preceding Industrial Zoning Guide(Section 4). Further rezonings will benecessary following completion of thesubsequent studies identified in thisstrategy. Rezonings will also beconsidered on the identified Single Usersites if those users were to relocate.Other than the relocation of Single Usersites it is envisaged that there will be verylimited rationale or strategic justificationfor the alienation of further industrial land.Rigorous assessment of any request forrezoning should be undertaken by theCouncil in accordance with the principlesestablished in this section.6.2.1 Request for Rezoning – Industrial to ResidentialExisting site characteristicsIs the site vacant? Yes NoIs the building vacant? Yes NoAge and condition of building Good Moderate PoorAccess to the site (loading, road widths etc) Good Moderate PoorIs the site coextensive with the zone? P1No1Are there adverse impacts on surrounding uses? Yes NoPDoes the subject site cover the total zone area in that locality (both areas the same).If the building is not vacant, can the applicant demonstrate why the rezoning isrequired? (eg. occupier soon to move).Development interestHow long has the site/building been vacant?Has the owner actively promoted the site to newowners or industrial tenants?Is the site likely to be of interest to new industrialoccupiers?Is the site suitable for other economic activities?(Refer to MSS)What is the attitude of the owner to use of the site forother economic activities(months)YesYesYesPositiveNoNoNoNegativeThe site could be suitable for continued industrial or other economic activity if:• It has good exposure to passing traffic• It has good accessibility for commercial vehicles• Any existing buildings are modern, with a high standard of construction• The site is part of a larger industrial or commercial precinct• There are likely to be minimal amenity conflicts with sensitive uses such ashousingIndustrial Land Use Strategy 23

6.2.2 Impact on Surrounding UsesIf the site is part of a larger industrial precinct, how will the rezoning proposal affect thefuture viability of that precinct?Viability of the Industrial PrecinctWill the proposed new residential development hide theother economic activities from main roads?Will the entry to the industrial precinct be masked orimpeded?Will there be conflicts between residential/non-industrialand industrial traffic?Will the new residents be affected by noise or other off-siteeffects from existing industrial occupiers?YesYesYesYesNoNoNoNoIf it seems likely that the proposal will seriously affect the viability of other significanteconomic activities, it should be refused. If a substantial part of the precinct is old andunder-performing, a further option for the prospective developer could be to purchasesufficient land in the precinct to create a self-contained residential development thatwould not adversely affect the remaining economic activities. Piecemeal residentialdevelopment should not be allowed to fragment coherent economic activity areas.Council should have a consistent policy of protecting large industrial and employmentprecincts from residential encroachment. Industrial areas will only continue to functioneffectively if they are unconstrained by housing. The larger industrial precincts to beretained as economic activity areas are the Core Industrial and Employment Areasof:• Reservoir• East Preston• Fairfield/AlphingtonOn the other hand, some smaller industrial precincts are well placed to evolve into anew style of business area, which can include housing as part of a dynamic mix of usesthat will add to the vibrancy of the economic activity. These include areas such as:• The Junction• WestgarthIn these areas, residential and economic activities could be included within the samebuildings, creating space for studios, workshops and home-based economic activity, aswell as smaller self-contained business units.Improving residential amenityWill change to residential development add significantly to theamenity of surrounding residents?Will the proposed development support existing shops andcommunity services?Will the form of the development add to the attractiveness of themunicipality for residents?YesYesYesNoNoNoIn some cases the replacement of an old industrial pocket, which may be vacant, byhousing development will significantly improve the amenity of surrounding residentsIndustrial Land Use Strategy 24

and provide an increased residential population to support the surrounding retail andservice businesses.6.2.3 Planning Balance SheetThis process can be used to develop a Planning Balance Sheet that sets out the costs andbenefits of each proposal. The following examples are the partial application of theprocess to several rezoning proposals recently before Council.Example 1:Rezoning of factory to residential purposesLarge vacant industrial building in the centre of a larger industrialzone.CostsLikely to result in loss of amenity for other industrialusersLikely to reduce the potential for further industrialinvestmentLoss of main road exposure as an economic assetfor the whole precinctPossible conflicts between residents and industrialusersFragments industrial precinctFew nearby residential services with residentsneeding to drive to nearest servicesBenefitsMore residents for themunicipality, supportingshopping and communityservicesIn this case the costs outweigh the benefits and the rezoning proposal should be refused.Example 2:Rezoning of isolated industrial siteIsolated industrial site with largely vacant premises, surroundedby residential development and parklandCostsLoss of industrial land andpotential economic activityBenefitsLand unlikely to be occupied by new industrialactivity because of poor access and conflict withhousingImproved security and amenity for surroundingresidentsImproved use of local shopping facilities andcommunity infrastructure (parkland)Potential for a high degree of amenity for newresidents because of excellent outlookIn this case the benefits outweigh the costs and the rezoning proposal should be granted.Industrial Land Use Strategy 25

Example 3:Proposal to rezone an industrial site to a Mixed Use ZoneIndustrial building of 4,000+sq m within an industrial zone withmain road frontage, to be developed for mix of business andresidential purposes; other adjacent landowners have alsoexpressed interest in rezoning from Industrial to Mixed Use.CostsLoss of space for industrial activities (inan area with recent development of lightindustrial activity)Potential loss of amenity for existingindustrial occupiersLikelihood of loss of industrial activity inthe surrounding precinctBenefitsBusiness units proposed for main roadfrontagePotential to begin transformation of thisprecinct into a vibrant economicactivity and living areaAdditional support for local shops andcommunity servicesIn this case, the costs and benefits of the rezoning proposal are finely balanced. On theone hand, there will be a loss of potential for new industrial activity and existingactivities may be challenged by the development.On the other hand, there is unlikely to be demand from a significant industrial activityto locate in this old building; and there is potential to transform the precinct into amixed use activity area which could generate space for new businesses in growingeconomic sectors (and for which residential units may provide necessary support).Because of the fine balance of costs and benefits, it would be beneficial to prepare alocal area plan to address the issues and the longer term future of this area in moredetail (refer Section 4).Where an area or site is to be rezoned from an industrial zone to anynon-industrial zone (Business 1, 2 or 3, Residential or a Mixed Usezone or any zone which allows more sensitive land uses) therezoning must be accompanied by an Environment Audit Overlay inaccordance with Ministerial Direction 1.Industrial Land Use Strategy 26

6.3 Permit ApplicationsWhen permit applications for use of theland are lodged for discretionary uses,Council must consider the proposal in termsof its impact on the wider community, bothindustrial and residential.The Principle Questions (Section 6.1)should be considered when determining apermit application to ensure the industrialarea is not detrimentally impacted by theproposal and to determine how the proposalcould be beneficial to nearby residents.These questions are set out in Section 6.2.2“Impact on Surrounding Uses” whichconsiders the impact of the proposal on theviability of the industrial precinct and howthe proposal would improve residentialamenity.For example, a Child Care Centre is adiscretionary use in the Industry 3 zone. Ifthat facility were to be located in the centreof a vigorous industrial area it couldcompromise the continued operations of thesurrounding industries and have only alimited benefit to nearby residents throughthe provision of a service. However, if thechild care facility were to establish on theedge of the industrial area there would bean improvement in amenity for surroundingresidents by providing a buffer fromindustrial uses, there would be less trafficconflict and the centre could still service theneeds of the industrial workers whilehaving a lesser impact on the continuedoperation of the industries.The concept of the PlanningBalance Sheet can be applied to anyapplication (rezoning and permit)and should be a fundamental tool indecision making as each proposal forthe use or development of a site isweighed in terms of costs andbenefits, both on-site and off-site.Industrial Land Use Strategy 27

7 CONCLUSIONSChanges in the metropolitan economy,especially the growth of the knowledgesectors in inner Melbourne, have improvedthe level of economic developmentthroughout Darebin, but especially in thesouthern half of the municipality, closest tothe action. The wave of growth has createdpressures for change in the economicgeography within the municipality,especially in the replacement of oldindustrial premises with housing andsmaller scale service industries. Thisreflects the increased demand for housingclose to the rapidly growing economy of theinner city and the relatively poor demandfor industrial development on constrainedsites surrounded by residential areas.This wave of change represents economicdevelopment in itself, as new and existingresidents take advantage of skilled work indynamic sectors of the economy, therebyincreasing average household incomes.Council is faced with managing changefor the benefit of the whole community.In particular, Council must respond torequests for changes to land-use zoning.Currently, the most requested change is forthe turnover of industrial land to residentialpurposes. However, industrial land is animportant source of jobs; and it may havethe potential to become the location forother economic activities in the future(offices, shops, show-rooms etc).Furthermore, economic activities within themunicipality are important because theyprovide work for people who mayotherwise be disadvantaged in the labourmarket(such as people who find it difficultto travel, part-time workers etc). Localactivity can also improve the level ofservice to residents, making themunicipality more attractive as a place tolive.The current conjunction of economicgrowth and high demand is anopportunity to remodel themunicipality for the future:• to encourage the upgrading of thebuilding stock• to provide sustainable jobopportunities• to strengthen the attractions ofmajor industrial areas• to ensure that space is provided forthe most dynamic economicactivities that will provide jobs inthe longer term, including thedevelopment of new urban spacesthat will encourage creativity(through a judicious mix of housingand business uses)• to improve the residential amenityof the municipality, through betterdesign and redevelopment ofisolated and under-performingindustrial sites.If the Council can “surf the wave”, themunicipality will be well-positioned to takeadvantage of future economic trends,providing a better standard of living for itsresidents.Land-use planning is Council’s mostimportant instrument (though not its onlyone) for encouraging a preferred futuredevelopment pattern. As with any policyinstrument in a mixed market economyland-use planning must work with marketdemands as far as possible, but showprogressive leadership in areas where themarket signals are mixed or where themarket is not providing the required socialoutcomes.Industrial Land Use Strategy 28

8 RECOMMENDATIONS1. That the key principles for the interaction of land-use policy and economicdevelopment be included in the Municipal Strategic Statement during its review.2. That Council exhibit the necessary amendments to the Darebin Planning Schemeto give effect to the rezonings identified as necessary to implement the IndustrialLand Use Strategy.3. That Council exhibit an amendment to the Darebin Planning Scheme tointroduce an Industrial Land Policy in accordance with this Strategy.4. That Council prepare Integrated Development Plans to guide development of thefollowing areas and to ensure a high quality urban environment is achieved:The Junction (High Street and Plenty Road), PrestonEast Preston Industrial Area (including Bell Street)High Street Internodal/Regeneration Study (Merri Creek to Regent)5. That Council work with any industry or business adversely affected by theimplementation of the Industrial Land Use Strategy to assist them to improve theenvironmental efficiency of the business and reduce off-site impacts or torelocate to a more suitable location to ensure long-term viability.6. That Council prepare a “gateway” policy to direct and control the urban designand built form at key entrances to the City of Darebin and high profile siteswithin the City.7. That Council encourage landscaping and improvements to industrial andformerly industrial streetscapes in accordance with Darebin’s Green Streetsstrategy.8. That Council investigate mechanisms for requiring development contributions toensure the provision of adequate social and physical infrastructure is providedand to offset costs of transforming industrial streetscapes to business andresidential quality streetscapes.9. That Council produce an Industrial Design Guidelines brochure to assist Counciland planners in achieving a high standard of industrial development.10. That Council adopt a regular monitoring and review practice in conjunction withthe triennial review of the Municipal Strategic Statement.11. That Council investigate the establishment of a register of non-conforming userights within the city.Industrial Land Use Strategy 29

UNotesIndustrial Land Use Strategy 30

APPENDIX 1DESCRIPTION OF ZONESTo aid interpretation of the table illustrating the zoning strategy, the following briefdescriptions of the relevant zones are provided. For more comprehensive descriptionsplease refer to the Darebin Planning Scheme.The main purpose of the zones, as defined in the Planning Scheme, is:Industrial 1 Zone“To provide for manufacturing industry, the storage and distribution of goods and associateduses in a manner which does not affect the safety and amenity of local communities”.Industrial 3 Zone“To provide for industries and associated uses in specific areas where special consideration ofthe nature and impacts of industrial uses is required or to avoid inter-industry conflict.To provide a buffer between the Industrial 1 Zone or Industrial 2 Zone and local communities,which allows for industries and associated uses compatible with the nearby community.To ensure that uses do not affect the safety and amenity of adjacent, more sensitive land uses”.Mixed Use Zone“To provide for a range of residential, commercial, industrial and other uses which complementthe mixed-use function of the locality”.Business 1 Zone“To encourage the intensive development of business centres for retailing and othercomplementary commercial, entertainment and community uses”.Business 2 Zone“To encourage the development of offices and associated commercial uses”.Business 3 Zone“To encourage the integrated development of offices and manufacturing industries andassociated commercial and industrial uses”.Business 4 Zone“To encourage the development of a mix of bulky goods retailing and manufacturing industryand their associated business services”.Residential 1 Zone“To provide for residential development at a range of densities with a variety of dwellings tomeet the housing needs of all households.In appropriate locations, to allow educational, recreational, religious, community and a limitedrange of other non-residential uses to serve local community needs”.Industrial Land Use Strategy 31

TPTPTPTPTPPT TherePT DwellingPT ExcludesPT DefinedPT GenerallyFPTProhibitedPPPPPPThe Table of Uses, following, is compiled from the Table of uses provisions of each of the zones in the Planning Scheme. It illustrates which landuses are as-of-right, which require a permit and those that are prohibited.TABLE OF1USESTPF FPTUse Industrial 1 Industrial 3 Mixed Use Business 2 Business 3 Business 4Dwelling TPF2Prohibited No permit required Permit Required Prohibited ProhibitedMulti-unitProhibited Prohibited Permit required Permit Required Prohibited ProhibiteddwellingsRetail premises Permit required Permit required Permit required Permit Required Permit required Permit required3Prohibited ShopTPF FPTProhibited Permit required Permit Required Prohibited Prohibited4Bulk goods retailTPF FPTPermit required- must be at leastPermit required- must be at leastPermit required Permit Required Permit required2- must be at least 1000mPPermit required- must be at least21000 mP21000 mP21000mPOfficePermit required Permit required Permit required No permit Permit not required Permit required2- limited to 500 mP2- limited to 500 mP2- limited to 500 mPWarehouse No permit Permit required Permit required Permit Required Permit not required Permit not required- subject to conditions5IndustryTPF FPTNopermit Permit required Permit required Permit Required Permit not required- subject to conditionsPermit not required- subject to conditions12345are a number of exceptions to the above table (for example Adult Sex Bookshop is generally dealt with separately although it does fall into the category of Shop and RetailPremises) and thus it is intended as a guide to the intent of the Industrial Zoning Guide.excludes Caretakers dwellingConvenience shopas Restricted Retail and includes uses such as automotive parts and accessories, camping equipment, lights, floor coverings. furniture, household goods, pools, office supplies,equestrian supplies, videos, etcexcludes extractive industry.Industrial Land Use Strategy 33

APPENDIX 2MAPS TO THE INDUSTRIAL ZONING GUIDE1 Reservoir2 East Preston3 Fairfield/Alphington4 Normanby Avenue5 Northcote West (Arthurton Road)6 Gadd Street, Northcote7 Northcote Central (Arthurton Road)8 Tram depot, Plenty Road9 Preston North10 The Junction (High Street & Plenty Rd, Preston)11 Oakover Road12 Windsor Smith, St Georges Road13 High Street Northcote & Thornbury14 Westgarth15 St Georges Rd & Merri Parade16 Heidelberg Road & Westfield Street17a & b Heidelberg Road18 High Street, Northcote19 Separation Street, Northcote20 Preston CentralIndustrial Land Use Strategy 34

APPENDIX 3REFERENCESMunicipal Strategic Statement, City of Darebin, 1999Council Plan(s), City of Darebin, 1998 – 2004Economic Development Strategy, City of Darebin, 1998/2002Linking Economic Development to Land-Use Planning – An Issues Paper, Essential Economics,1999Going Places – The Darebin Integrated Travel Plan, City of Darebin, 2001Green Streets, City of Darebin, 1995Darebin Creek Design and Development Guidelines, David Lock & Assoc, 2000Industrial Land Use Strategy 35

PDecemberAPPENDIX 4 EXECUTIVE SUMMARY - THE JUNCTIONINTEGRATED DEVELOPMENT PLANThe JUNCTIONINTEGRATED DEVELOPMENTPLANAdopted by the City of Darebinth19P2001Prepared by Pinnacle Property Group Pty Ltd. in conjunctionwith KLM Gerner Consulting Group and the City of DarebinDecember 2001.Industrial Land Use Strategy 36

EXECUTIVE SUMMARYINTRODUCTIONThe Junction Integrated DevelopmentPlan is to provide a framework for thereview of the existing planning zonesapplying to the land under the DarebinPlanning Scheme, with particularemphasis on the land zoned forindustrial use and having regard toseveral large redundant sites centralto the precinct.The focus of the study area is theindustrial zoned land in the areaknown as the Preston Junction, beingthe convergence of High Street andPlenty Road, Preston. Morespecifically, the area is defined asfollows:To the north: Bell Street(consideration has been given to theBusiness 2 and Residential 1 Zoneland which front the south side of BellStreet).To the west: The Epping RailwayLine.To the south: Dundas Street.To the east: Industrial zonedproperties between Plenty Road andHotham Street, otherwise propertiesfronting the east side of Plenty Road.9 Current Land UseTraditionally, the study area hascomprised a predominantly industrialprecinct, centred around the historicland use industries of leathertanneries, piggeries and associatedindustries including footwear, clothingand bacon curing.Many of these uses are nowredundant or obsolete in the areagiven the availability of moreappropriately located and servicedindustrial land, in particular, furthernorth in the suburbs of Reservoir andThomastown.The study area lies at a transitionpoint part way along one ofMelbourne’s longest, traditional stripcentres.URBAN DESIGNThe cohesion of High Street thatexists to the south of Dundas Street islacking in the study area along bothHigh Street and Plenty Road. Manyproperties along these frontages areof a tired appearance or poorpresentation from an urban designperspective. Many of the buildingsare heading or have reached the endof their economic and / or useful life.The mixed use and industrial parts ofthe study area lack a distinctiveidentity and character in both thepublic and private realm. While theresidential parts of the study area arequite discrete there is poor visualcontrast between them and nonresidentialparts, with which theycompete in terms of amenity andvisual quality.The Junction Integrated Development Plan - Executive Summary

STRENGTHS AND WEAKNESSESThe study precinct has a number of identified strengths and weaknesses:STRENGTHSStable commercial base.Re-development opportunitiesIdentifiable precinct..Excellent road, rail and tram accessExisting residential base.Local shopping facilities.Demand for residential re-development.WEAKNESSESPoor presentation of many properties.Existence of vacant and under-utilisedsites.Pedestrian safety concerns.Poor land use interface betweenindustrial and residential uses.Limited public car parking.Lack of connection to High Street shopssouth of Dundas Street.Isolated industrial activity within theprecinct.Fragmented ownership.Poor streetscape amenity andaesthetics.MARKET ASSESSMENTDemand for large-scale industrialuses is directed towards newerindustrial precincts, which providebetter linkages to customers andsuppliers, modern industrial servicesand infrastructure, the opportunity toup-date premises and technology andallow scope for expansion.Small-scale industrial properties withinthe area continue to operatesuccessfully. This is supported byrelatively low rents and occupancycosts in comparison to the newerindustrial precincts in nearbyThomastown.It is not presently viable to refurbish orconstruct larger scale new commercialspace in the precinct. Residential redevelopmentprovides the majordevelopment opportunity for theprecinct.There is little demand pressure forlarger scale office space that wouldnecessitate the expansion of theBusiness 2 zone to provide for newoffice development within the studyarea, outside of the existing Business2 zones.The Junction Integrated Development Plan - Executive Summary

THE VISIONCORE RESIDENTIAL & COMMERCIAL RE-DEVELOPMENT AREAThe large redundant industrial sites on High Street and Plenty Road in the south ofthe study area have the potential to provide comprehensive redevelopmentopportunities for commercial and residential purposes.The progressive replacement of the existing uses and vacant sites with new well-designeddevelopment should help to bring about a new perception of the intrinsic values of the area,such as its location advantages and provide the catalyst for a re-generation of the study area.RESIDENTIAL PRECINCTExtend the existing residential areas, to include the addition of some of the fringe railland and the conversion of the land on each side of Milton Crescent.INDUSTRIAL PRECINCTAustralia Post’s site, and the industrial area at the north east portion of the studyarea, to be retained. Development controls that will protect the operations ofAustralia Post from encroachment of potentially sensitive aspects of residentialdevelopment are proposed.MULTI-USE PRECINCTRemaining areas of land zoned Industrial 3 and the Business 3 Zone portion of theHowe Leather site be established as multi-purpose precinct which will facilitate:• Smaller properties along High Street and Plenty Road to continue to function asmix of small businesses and some residential.• Possible conversion into showrooms on the main roads.• Potential for limited residential premises, for example, shop top living.10 Retail PrecinctA strengthened retail precinct has been defined at the southern part of the study area,including the Otto Wurth and Safeway land, the Junction Hotel and the existing commercialproperties on the west side of High Street.The Junction Integrated Development Plan - Executive Summary

SPECIFIC SITESDesign guidelines are recommended for key sites and precincts including:Properties between AustraliaPost and High Street &between Raglan St, High Stand Plenty Rd• Opportunity for larger scaledevelopment comprisingcommercial, industrial andresidential.• Landscaped setbacks to frontagesand setbacks at corners to enablefeature specimen trees to beincluded.Inclusion of buildings of up to sixstories based on careful design andsiting.Otto Wurth site• Improve image of propertiesaround the intersection.• Opportunities to link surroundingretail components.• Conversion of the car sales yardto a retail use that includes a smallcivic space.• Better integration of the stratatitled shops near Safeway andimproving access into Safeway carpark.Land between Oakover Roadand Warrs Avenue• Opportunity for medium-densityresidential dwellings orientednorthwards, with the rearsproviding car access to screenhabitable areas from AustraliaPost operations.New on-street car parking forindustrial uses• Develop car parking areas at theentrances to residential streetssuch as Showers, Adeline andGertrude Streets to protectresidential streets from nonresidentialtraffic and increase carparking capacity.Railway Place East• Improve access to residentialblocks by extending and wideningRailway Place East.• Residential development on landsurplus to rail needs.Howe Leather• Opportunity to use upper levels forresidential.URBAN DESIGNA range of urban design improvements have been identified. These extendacross the public and private realm and could be introduced progressively,some as discreet projects and some in associate with property redevelopments.The Junction Integrated Development Plan - Executive Summary

IMPLEMENTATION STRATEGYPLANNING SCHEME CONTROLSThe Industrial 3 zone is no longer the appropriate zone for most of theland within the study area. It is recommended that most of the land inthe Industrial 3 zone be re-zoned to Business 2 zone.This zone allows a wide range of uses to be approved, including offices, industry,residential and retail. Of all the zones that could be applied to facilitate a mix of uses,this zone would give Council the widest possible degree of discretion. In this regard itdoes not have the shortcomings of the Mixed Use Zone, in which a dwelling is aSection 1 (permitted) use.It will be important to apply development criteria via a design development overlay.This will provide a flexible mechanism for introducing development guidelines within aschedule to the overlay for the critical sites. These guidelines should address detailssuch as heights, setbacks and landscape treatments as detailed within Section 5.3.3of the report.RECOMMENDATIONSA major conclusion of this study is that there is a need to amend DarebinPlanning Scheme to facilitate land use changes to better meet the changed role ofthe area.RECOMMENDATION 1The recommendations of the Junction Integrated Development Plan beincorporated into and inform the review of the Darebin Municipal StrategicStatement (MSS).RECOMMENDATION 2A Junction Area Local Policy be included in Clause 22 of the Darebin PlanningScheme to provide a comprehensive overview of the recommendations of thestudy and to provide clear direction for land owners, tenants and anyprospective purchasers.RECOMMENDATION 3The objectives of the Junction Area Local Policy are to:• Enhance the existing commercial spine along High Street and PlentyRoad by encouraging a mix of uses.• Improve the amenity of High Street and Plenty Road.

• Improve linkages between Preston South Shopping Centre and theHigh Street shops south of Dundas Street.• Encourage re-development of redundant industrial sites central to thepolicy area for commercial, and medium to higher density residentialpurposes.• Consolidate and improve the amenity of existing residential areas.• Improve safety, amenity and surveillance of the Bell Railway Station.The Local Policy should include a map of the proposed precincts and furtherdetail of the recommendations as listed within this report.RECOMMENDATION 4That Council initiate rezonings to rezone the land around the Junction inaccordance with the Proposed Zoning Changes referred to in Figure 9, toimplement this study. This generally includes:• Core Residential and Commercial Redevelopment Area to Business 1 andBusiness 2 zones;• Multi-Purpose Area along High Street and Plenty Road to Business 2 zone;• Consolidation of existing residential areas through extending theResidential 1 zone around Milton Crescent and north of Oakover Road.RECOMMENDATION 5That Council initiate rezonings to rezone the industrial area on the east side ofPlenty Road north of Osborne Street to Business 3 Zone in accordance withthe recommendations of Council’s Industrial Land Use Strategy.RECOMMENDATION 6That Council initiate rezonings to rezone the existing residential areas toResidential 1 Zone in accordance with the Proposed Precincts (refer Figure 7).This includes land north of Railway Place East, industrial land betweenOakover Road and Esther Streets and land around Milton Crescent.RECOMMENDATION 7That Council consider permit applications in the context of this JunctionIntegrated Development Strategy and give particular attention to managing thetransition of this area from industrial uses to more residential development tominimise potential conflicts.RECOMMENDATION 8That Council apply development criteria via a Design and DevelopmentOverlay to specified key development sites to require an appropriate form ofdevelopment to be achieved across the area, as this is the most appropriateand flexible mechanism for introducing development guidelines for the criticalsites.

RECOMMENDATION 9The overall design objectives for the Design and Development Overlay(s)should generally seek:• To achieve high quality design outcomes for commercial and residentialpremises and to improve the visual amenity and image of High Street andPlenty Roads.• To promote design excellence on landmark sites and for multi-storeybuildings.• To ensure the design of developments protects the residential amenity ofexisting dwellings and the operational requirements of existing businesses.• To encourage the retention of the fabric of industrial buildings (orsignificant parts thereof) of heritage value within new developments.The Schedule to the Design and Development Overlay should address detailssuch as heights, setbacks, and landscape treatments, as outlined in Section5.3.3 Urban Design, of this report.RECOMMENDATION 10All new developments should provide a self-sufficient level of car parking andlimit reliance on on-street car parking. The level of car parking providedhowever, may be tempered by proximity to local services and public transport.RECOMMENDATION 11That Council undertake a feasibility study to investigate the potential to realignRailway Place East and improve the amenity and security of the area aroundBell Train Station.RECOMMENDATION 12An Environmental Audit Overlay be applied to all land proposed to be rezoned.RECOMMENDATION 13That Council adopt the following implementation schedule:• Darebin City Council to endorse report.• Preparation of a planning scheme amendment including Design and DevelopmentOverlay and Junction Policy.• Exhibition of the planning scheme amendment.• Panel hearing (if required).• Planning scheme amendment adoption (subject to any modifications resultantfrom the public consultation phase [exhibition] and Panel hearing).• Development of a detailed urban design, plan, costings and budget.• Implementation of works program by Council and provision of landscape features(for example, corner feature tree sites as part of private development projects).

For further information please contact:Strategic Planning Unit, Darebin City CouncilPhone: 9230 4465 Fax: 9478 1866 TTY: 92304696Multilingual Telephone Line: 9230 4353Email: HTplanning@darebin.vic.gov.auTH Website: HTwww.darebin.vic.gov.auTHDarebin Municipal Offices: 274 Gower Street, PrestonCity of Darebin, PO Box 91, Preston VIC 3072