GIPPSLAND MOTORSPORT AND EVENT CENTRE FEASIBILITY STUDY
BACKGROUND AND PURPOSE The development of a motorsport and event complex in Latrobe City has been considered for many years. Initially the opportunity was identified through several motoring organisations in Latrobe City contacting Council seeking facility improvements. Given that several organisations are considering investment in improved facilities, a feasibility study on how best to plan and consolidate future facilities was deemed appropriate. Further to this, Council identified that timing could be good in the market following a range of motor racing circuits in Victoria scheduled for closure soon due to residential encroachment. Anecdotal advice indicates that there is sufficient demand to warrant the development of a new complex. Latrobe City Council is exploring the viability of developing a new motorsport complex in Latrobe City to service Gippsland and wider Victorian community. Latrobe City Council believes that a motorsport and event centre could diversify Latrobe Cityâ€™s and broader Gippslandâ€™s economy, attracting tourism dollars and increasing the profile of the region as an events destination. A recent study of the Winton Motorsport Complex in Benalla Shire found that the Motorsport Complex contributed $30 million to the visitor economy and Latrobe City Council believes there could be similar benefits for our region. Latrobe City Council partnered with the Latrobe Valley Authority to conduct the study to determine the requirements and opportunities that may exist for the development of a motorsport and event centre in Latrobe City. The purpose of the Study was to identify the issues and opportunities associated with motoring and motor sports including events in Latrobe City, and provide a clear strategic direction for future development opportunities.
PROJECT METHODOLOGY AND RESEARCH PROJECT AREA REVIEW Latrobe City is Victoria's only eastern regional city, home to over 73,000 residents and 5000 businesses and is the residential and commercial hub of a larger catchment of 262,000 people stretching across the Latrobe Valley and Gippsland Region. The city is located approximately 150kms east of Melbourne and is one of Victoria's major regional centres. Latrobe City is made up of four central towns: Moe / Newborough, Churchill, Morwell and Traralgon. There are also a number of smaller rural townships including Boolarra, Glengarry, Toongabbie, Tyers, Traralgon South, Yallourn North and Yinnar. Latrobe City is located less than two hours' drive from Melbourne Airport along the Princes Freeway (M1) and around an hour and a half from Central Melbourne. V/Line run hourly rail services between Melbourne and Latrobe City with main stations at Moe, Morwell and Traralgon.
PROJECT METHODOLOGY Otium Planning Group Pty Ltd was appointed to complete the study and used the following project methodology: Stage 1 Situational Analysis Stage 2 Motor Sport and Event Centre Trend Analysis Stage 3 Future Requirements and Opportunities Stage 4 Facility Requirements Stage 5 Final Report
ENGAGEMENT AND CONSULTATION Interviews were conducted with a range of nominated groups to identify key issues and future plans, including: Ten regional motorsport stakeholders Three other area organisations Five national and state motorsport organisations Three State and Local Government interviews
REVIEW OF MOTORSPORT AND EVENT COMPLEXES A review of other Victorian and New Zealand motorsport complexes was undertaken to identify existing facilities, events and commercial activities. Australian facilities reviewed: Calder Park Motorsport Complex Phillip Island Circuit Sandown Park Raceway State Motorcycle Centre Broadford Winton Raceway The Bend Motorsport Park Mildura Motorsports Precinct (planned) New Zealand facilities reviewed: Bruce Maclaren Motorsport Park Cromwell Motorsport Central Manfield Park Mike Pero Motorsport Park Teretonga Park Motorsports Timaru Raceway
SITE IDENTIFICATION Having large land holdings with major residential and farming buffer zones mean that the impact of development of a motorsport and event centre in the Latrobe City area will be minimal. A site is not yet finalised, however a number of potential sites were identified using the following criteria: Size, access and distance to transport hubs Existing infrastructure, utilities availability Site design/topography Land ownership/tenure Noise – impact on neighbouring uses Timing – when land will be available Funding costs and opportunities Stakeholder and regulatory implications Water management and environmental impact Heritage – Aboriginal and other cultural heritage implications Alignment with existing complementary users Distance to major population densities
REGIONAL MOTORSPORT AND EVENT FACILITIES & ASSOCIATED SUPPORT COMPONENTS LIST TOTAL PROJECTED LAND AREA REQUIREMENT - UP TO 220 HECTARES
AUTOMOTIVE RACING CIRCUIT FACILITY UP TO 100 HECTARES
Approximately 4 to 4.5km in length to run all forms of motorsport, except F1 and MotoGP Two permutations that can be run concurrently each with independent pit lanes Space allocation for secondary pit building Drift and rallycross options incorporated into the design Consideration for track lighting for evening events Oversized paddock areas suitable for motokhana events
CIK INTERNATIONAL KARTING CIRCUIT UP TO 10 HECTARES
Two permutations that can be run concurrently Approximately 800 to 1200m in length Inclusion of bambino loop for young drivers Consideration for track lighting for evening events Available to be used as a commercial activity space outside of events
FIM INTERNATIONAL MOTOCROSS
UP TO 10 HECTARES
1.5km FIM International Motocross Circuit
FIM SPEEDWAY STADIUM UP TO 5 HECTARES
400m speedway oval Allows for ability to host arena cross and stadium motocross Including temporary or permanent grandstand seating according to available capital budget
FIA GRADE A | NHRA | ANDRA DRAG STRIP UP TO 30 HECTARES
1/8 mile competition zone Two Lanes Integrated drag strip independent of the main race circuit
DRIVER TRAINING AND EXPERIENCE CENTRE UP TO 30 HECTARES
Dynamic driving activities including: Handling track Dynamic area | asphalt lake Skid pan Kick plate Straight and level Natural off-road area Artificial off-road area Car storage area Wash down
DIRT SPEEDWAY OVAL (4 WHEELED VEHICLES) UP TO 5 HECTARES
500m to 600m dirt oval track Track bermed for natural viewing
OTHER MOTOR SPORT AREAS Motokhana, drifting, arena cross, stadium motocross, and rallycross can be incorporated into the above facilities without the need for separate standalone facilities.
COMPLIMENTARY ACTIVITY DEVELOPMENT Main stage and support facilities located to link to any main circuit grandstand seating Caravan park and camping ground adjacent to main carpark – Up to 500 site capacity with 250 sites with power and water and 2 amenities blocks Hotel – up to 100 rooms – 3 to 4 star self-contained apartments and parking Residential villas (2/3 bedroom) and garages (20 to 30 villas with 2 to 4 car garages) Motor museum and visitor information centre Motor gasoline alley light industrial sheds (allow for up to 20 light industrial sheds) for local automotive repair, parts, tyres and specialist motor sport services Motor parts warehouse
SCHEMATIC DEVELOPMENT CONCEPTS LAYOUT PLANS AND INDICATIVE COSTS Apex Circuit Design Limited – International motorsport facility designers were retained to develop schematic development concepts for the two priority sites. Turner and Townsend Quantity Surveyors were appointed to complete the indicative capital cost plan. Please note that the schematic development concepts are at very early planning and drawing stage and this has required the quantity surveyors to use a lot of assumed area allowances and high contingencies. The project would likely be developed in the following stages: Stage One - $78M to $79M Main race circuit, support facilities, access roads: • Bulk site works - $6.995M • Roads/other access works - $9.600M • Main race circuit track - $14.828M • Main buildings - $17.994M • Services infrastructure - $8.475M • Retention ponds/landscape - $1.700M • Contingencies/fees/margins - $19.241M Stage Two - $23M to $24M Driver experience and training centres: • Site works - $0.826M • Driver experience centre - $13.100M • Driver training centre - $1.750M • Site services - $2.187M • Retention ponds/landscaping $0.900M • Contingencies/fees/margins - $4.945M
Stage Three - $21M to $22M Drag strip and support facilities: • Site works and roads/access - $6.972M • FIA drag strip - $5.657M • Buildings and grandstand - $1.560M • Site services - $1.463M • Contingencies/fees/margins - $5.694M
Stage Four - $25M to $26M International karting centre and off road facilities: • Site works and roads/access - $5.651M • CIA category A karting circuit - $2.167M • Off road areas - $2.049M • Buildings/grandstand - $6.282M • Site services - $2.328M • Contingencies/fees/margins - $7.241M
ECONOMIC IMPACTS, FINDINGS AND RECOMMENDATIONS BUSINESS AND ECONOMIC IMPACTS
The project will provide direct economic benefits from employment and material purchases during
The study findings need to be further detailed to inform future planning and decision making
the four construction stages This will be further increased if capital investment is attracted to fund the commercial accommodation and automotive support retail/industry projects
regarding whether investment in such a facility should be further pursued.
Ongoing economic benefits will occur (once operational) by wages/salaries, goods/services/material purchases and through increased visitation to the region (hospitality/tourism)
HIGH LEVEL FINANCIAL AND USAGE IMPACTS There are a large number of investment, land acquisition costs, management models, capital funding support and operational decisions to be made before detailed financial modelling can be completed. It was noted when completing the facility review that all of the current Victorian motorsport complexes (Phillip Island, Sandown and Winton) are operationally sustainable and profitable. This was also noted at a number of New Zealand motorsport tracks that had multiple discipline and event areas. The key feature to financial sustainability was the multiple use areas and high occupancy of these areas. It was also noted that they do not rely on attracting major events as their main source of income. The indicative income that could be generated from Stage One infrastructure is estimated to be: Motorsport + community events $577,000 + other income $1.25M = total indicative income $1.83M. If Sandown were to close the estimated indicative income would rise to $3.12M.
The study has identified the issues and opportunities associated with motoring and motorsports including events in Latrobe City. It now needs the next level of concept design and business case development completed to inform more detailed project costings. Once these are known then future management and funding strategies can be further developed in association with negotiation on priority site selection and acquisition. This detailed work will also help with funding and investment strategies, management and operational models and provide a much clearer strategic direction for future development opportunities. To enable outstanding design, site assessment, financial modelling, management, funding and development strategies to be completed, the working group recommend Council in association with other Government partners (LVA and Victorian State Government) provide funds of up to $150,000 to complete the next detailed phase of the project to confirm the final development scope,development costs, site, financial modelling, economic impacts and management and funding strategy.
The development of a motorsport and event complex in Latrobe City has been considered for many years.
Published on Feb 11, 2019
The development of a motorsport and event complex in Latrobe City has been considered for many years.