Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)

Transcription

1 Australia Pacific Airports (Melbourne) Pty Ltd Bid No Melbourne Airport Business Park Warehouse Site 2 (Airport Drive) MELBOURNE AIRPORT BUSINESS PARK WAREHOUSE SITE 2 (AIRPORT DRIVE) MAJOR DEVELOPMENT PLAN - FINAL February 2017 Prepared for ABN:

2 Client: ABN: Prepared by AECOM Australia Pty Ltd Level 10, Tower Two, 727 Collins Street, Melbourne VIC 3008, Australia T F ABN AECOM in Australia and New Zealand is certified to ISO9001, ISO14001, AS/NZS4801 and OHSAS AECOM Australia Pty Ltd (AECOM). All rights reserved. AECOM has prepared this document for the sole use of the Client and for a specific purpose, each as expressly stated in the document. No other party should rely on this document without the prior written consent of AECOM. AECOM undertakes no duty, nor accepts any responsibility, to any third party who may rely upon or use this document. This document has been prepared based on the Client s description of its requirements and AECOM s experience, having regard to assumptions that AECOM can reasonably be expected to make in accordance with sound professional principles. AECOM may also have relied upon information provided by the Client and other third parties to prepare this document, some of which may not have been verified. Subject to the above conditions, this document may be transmitted, reproduced or disseminated only in its entirety. Prepared for ABN:

3 Quality Information Document Date Revision History Rev Revision Date Details Name/Position Authorised Signature A 10-Oct-2014 Exposure Draft Greg Harrison B 11-Dec-2014 Preliminary Draft Final MDP Kristina Butler Principal Planner C 04-Sep-2015 Draft Major Development Plan Greg Harrison Technical Director D 17-Feb-2016 Draft Major Development Plan Greg Harrison Technical Director E Final MDP Kristina Butler Principal Planner Prepared for ABN:

4 Table of Contents Executive Summary i 01 Introduction Overview of the Proposal Background Need and Justification Project Objectives Future Needs of Civil Aviation and Other Users of the Airport Proponent Details Statutory Context Major Development Plan Other Project Approvals Structure of this MDP 6 02 Site and Surrounds Proposed Site Existing Environment Topography, Land and Vegetation Ground Transportation Road Network Bus Network Rail Walking and Cycling Zoning 5 03 Proposed Development Introduction Project Vision and Objectives Description of the Proposal Site Preparation Building Envelope and Materials Fencing and Security Gates Car Parking and Access Landscaping External Lighting Drainage Signage Anticipated Staff 9 04 Statutory and Policy Compliance Commonwealth Legislation Airports Act Environment Protection and Biodiversity Conservation Act Melbourne Airport Lease Melbourne Airport Master Plan (2013) Melbourne Airport Environment Strategy (2013) State and Local Government Planning State Planning Provisions Local Planning Provisions (Hume Planning Scheme) Australian Noise Exposure Forecast Prescribed Airspace National Airports Safeguarding Framework Pre-Existing Interests and Obligations Assessment of Impacts Overview Social and Economic Impacts Employment Broader Social Benefits Environmental Impacts 20 Prepared for ABN:

5 5.3.1 Phase 1 Environmental Site Assessment Flora and Fauna Traffic Impact Assessment Cultural Heritage Stormwater Impact Noise Air Quality Waste Management Construction Impacts Air Quality Sediment, Erosion, Control and Contamination Vehicle Movement Noise and Vibration Waste Management during Construction Flight Paths Airport Navigation and Radar Systems Runways and Approach / Departure Paths Windshear Summary of Impacts Environment Management Environment Policy Environment Strategy (2013) Environmental Management Measures Construction Environmental Management Plan Operational Environmental Management Plan Consultation and Approval Process Consultation Objectives Consultation Strategy Consultation of the Preliminary Draft MDP Statutory Exhibition of Preliminary Draft MDP Submission to Minister Conclusion 1 A B C D E F G H I J K L Development Plans Ultimate Airport Development Concept Plan Consistency of the MDP with Section 91 Requirements Flora and Fauna Assessment Melbourne Airport Environment Policy Phase 1 Environmental Site Assessment Cultural Heritage Management Plan Traffic Impact Assessment Social and Economic Impact Assessment Noise impact Study Construction Environmental Management Plan Requirements MDP Approval Letter - Minister for Infrastructure and Transport Prepared for ABN:

6 EXECUTIVE SUMMARY Prepared for ABN:

7 i Executive Summary Proposed Development (Melbourne Airport) proposes the construction of a new warehouse development within the Melbourne Airport Business Park identified as Site 2 (Airport Drive), Tullamarine. Melbourne Airport functions as one of Victoria s key freight and logistics gateways, facilitating passenger and freight movements. Melbourne Airport handles more than 30 per cent of Australia s total air freight market and 36 per cent of the export market this market share made Melbourne Australia s largest export airport in It is estimated that 250,000 tonnes of air freight were moved through Melbourne Airport during 2013 which could increase to 393,000 tonnes by With the increase in air-freight exports and improved transport network such as Airport Drive, there has been a growing demand for freight logistics facilities at the Airport. Across metropolitan Melbourne this increased demand for logistics and distribution centre space and development is driven by build-to-suits, particularly in industrial and logistics precincts such as the Melbourne Airport Business Park that have a close connection to major transport infrastructure. The proposed warehouses at Site 2 (Airport Drive) will be developed by Melbourne Airport to respond to current and forecast demand in the warehousing and distribution centre market. Several other warehouse developments are also proposed within the Melbourne Airport Business Park and MDPs for these warehouses have been concurrently lodged with the Department of Infrastructure and Regional Development. There is already commercial interest in the warehouses. The proposal will enhance Victoria s position as the Freight State and support growth of the economy. In seeking MDP approval from the Department of Infrastructure and Regional Development for the proposed warehouses, Melbourne Airport want to be market ready for new tenant opportunities as they emerge. Tender periods are generally short and competitive, and accordingly the warehouses need to be shovel ready. The proposed warehouse development is to be sited on a development site of approximately 16.3 hectares, and will comprise: Two warehouses of up to 40,000 square metres each, totalling a maximum developable floor area of 80,000 square metres to tenant specifications. The internal layout will be flexible to allow for the space to be split between two tenants or undertaken in stages, if required. Two separate office / administration areas up to 1,800 square metres each to tenant specifications. A back of house area containing supporting physical infrastructure. A re-fuelling station, truck wash bay and maintenance building expected to be sited along the southern boundary. Car parking to be provided in accordance with the specific needs of the future tenants. Car parking treatments are to be provided in accordance with the Melbourne Airport Planning and Design Guidelines. Landscaping treatments are to be undertaken in accordance with the Melbourne Airport Planting Guidelines and the Planning and Design Guidelines. Access to the site will be via four crossovers onto Sky Road East, with separate truck and car accesses. New roads are planned to service the Melbourne Airport Business Park (including the recently completed Airport Drive and the realigned Link Road) and they will cater for larger vehicles such as B-Doubles and where appropriate B-Triples or high productivity freight vehicles. Statutory and Policy Compliance Based on the estimated construction cost, the proposed development is considered a major airport development under the Airports Act It is therefore a requirement of the Airports Act 1996 that a MDP be prepared and submitted to the Minister for Infrastructure and Regional Development for approval. This MDP has been prepared in accordance with the requirements set out at Section 91 of the Airports Act The Melbourne Airport Master Plan (2013) was approved by the Minister for Infrastructure and Regional Development on 18 December Development within Melbourne Airport Business Park must be consistent with the envisaged land uses identified within the approved Melbourne Airport Master Plan (2013) which is Prepared for ABN:

8 ii structured to guide land use and development at Melbourne Airport over the next 20 years. It identifies that the Melbourne Airport Business Park is within the Landside Business Precinct of the airport. The Landside Business Precinct is envisaged to provide for a range of non-aviation uses, including industrial, commercial, retail, office, recreational, manufacturing, warehousing and associated activities. The proposed warehouses are therefore entirely consistent with the approved Melbourne Airport Master Plan (2013). In 2013 the Victorian Freight and Logistics Plan Victoria the Freight State was introduced by the State Government. It defines Melbourne Airport as a Freight Airport, with a key strategy being to work with the Airport and Commonwealth Government to ensure that Victoria maintains its competitive advantage in air freight, by contributing to the 2013 Melbourne Airport Master Plan, including development of a new, integrated freight and logistics precinct on airport land. The Government recognises the potential of Victoria s aviation infrastructure to grow the State s role as a gateway for international trade and cargo and, in particular, for new markets in Asia. The proposed warehouses will support this growth, by providing space for a distribution centre or similar industrial warehouse use for freight storage and distribution. Plan Melbourne (2014) identifies Melbourne Airport as a Transport Gateway and major economic gateway, acting as an employment anchor within the northern region of the city. The further development of the Melbourne Airport Business Park has also been envisaged within Plan Melbourne (2014). This MDP will be assessed at the Commonwealth-level, however the proposal has also considered the Victoria Planning Provisions contained within the Hume Planning Scheme and relevant State policy within Victoria. The development of two warehouses on Site 2 (Airport Drive) within the Melbourne Airport Business Park will be entirely consistent with relevant State and local planning policy. Assessment of Impacts Potential impacts associated with the proposed warehouse development have been assessed in terms of the construction phase impacts and the long term operational impact. This assessment included specific consideration of aviation, traffic, flora and fauna, cultural heritage, noise, air quality and stormwater impacts. A summary of key finding is set out in Table 1 below: Table 1 Summary of Impacts Impact Consideration Assessment and Mitigation Aviation - Airspace Assessment confirms warehouse is below prescribed surface levels - Impact on Airservices radio link to be agreed / implemented with Airservices - No impact on existing and future runway approach and departure paths Traffic - Majority of areas of the road network able to accommodate the increased traffic associated with the proposed development. Largest impact at am peak period - Lower & upper parking rates applied based on expected warehouse occupier/ operations Flora and Fauna - Ecological Assessment undertaken (Biosis 2014) - 2 EPBC Act listed native grassland patches (5.12 ha) recorded, but no listed fauna species observed during field survey - EPBC Act referral to occur under MDP approvals process - Environmental management requirements to be addressed via CEMP/OEMP Cultural Heritage - Requirements of Heritage Act 1995 & Aboriginal Heritage Act 2006 considered - Cultural Heritage Management Plan (CHMP) prepared - No Aboriginal artefacts, historical sites or places located on the site Noise and Air Quality - No significant impact on noise exposure levels (primarily vehicle noise) - Separation distance from residential development is approximately 290m, reducing potential impacts - Air emissions limited to rooftop ventilation and AC units - Airport air quality monitoring program is already in place for Airport - Management processes to be included in the CEMP/OEMP Stormwater - Stormwater will be appropriately managed with respect to the increase in impervious areas as a result of the proposed development. - Warehouse to incorporate flood design controls and water-sensitive urban design (WSUD) treatments Prepared for ABN:

9 iii Key identified issues relate to: The management of traffic in consideration of potential congestion along the southern portion of South Centre Road. The stormwater system (to be developed at detailed design phase) must be compatible with the approved Airport Drive and Steele Creek North Stormwater Enhancement Project MDP. As outlined in the approved Melbourne Airport Master Plan (2013), trunk infrastructure will continue to be added to support the Business Park s growth. The Master Plan (2013) outlines a Ground Transport Plan which sets out the Airport s areas of transport focus, including significant improvements to the internal road network such as the opening of Airport Drive, a secondary access to the airport. In addition Melbourne Airport is working closely with the State Government to ensure the wider road works can manage the Airport s growth. Initiatives, including the widening of the Tullamarine Freeway, are again outlined within the Master Plan (2013). The proposal incorporates mitigation measures to address the above issues. The investigations have not identified any significant issues that warrant changes to the concept design or that would impede construction of the proposed development. Due to the intervening distance, existing development and the trees buffering the site, the proposal is not expected to have any impact on the amenity of residential areas to the east. The proposal will result in positive social benefits through increased local employment and additional freight services for businesses and improved productivity and efficiency. Environmental Management Environmental management of construction and operational impacts will be undertaken in accordance with the Melbourne Airport Environment Strategy 2013 (contained within the approved Melbourne Airport Master Plan (2013)) and the Environmental Management System. Construction phase impacts will be managed through the preparation and implementation of a Construction Environmental Management Plan. Consultation and Approval Process The Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine is entirely consistent with the approved Melbourne Airport Master Plan (2013). The proposal is for a use strategically planned and envisaged within the Landside Business Park Precinct and this MDP has not identified any technical issues which will result in a significant impact on the local or regional community. The proposal fully accords with the strategic intent of the Melbourne Airport Business Park. The need for the proposed Business Park Warehouses Site 2 (Airport Drive), Tullamarine to undergo the MDP approval process has been triggered solely due to the capital cost of the works being in excess of $20 million. The project is not expected to have any negative economic, environmental or social impacts. This MDP has been subject to the consultation and approval process outlined within the Airports Act Melbourne Airport will undertake consultation for a period of 60-days in accordance with Section 92 (2A)(a) of the Airports Act The MDP was subsequently approved by the Minister for Infrastructure and Transport on 31 December Refer to Appendix L for a copy of the Minister s approval letter. Prepared for ABN:

10 INTRODUCTION 01

11 1 01 Introduction 1.1 Overview of the Proposal (Melbourne Airport) has prepared this Major Development Plan ( MDP ) for the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine at Melbourne Airport. This MDP is required by the Airports Act 1996 as the construction cost of the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine project exceeds the Airports Act 1996 trigger of $20 million as the total anticipated project cost will be in excess of $60 million. Under the approved Melbourne Airport Master Plan (2013) (Master Plan (2013)), Melbourne Airport has the opportunity to continue to develop the remaining 146 hectares of vacant land within the Melbourne Airport Business Park. The focus of the Master Plan (2013) and its predecessor is the ongoing development of large industrial warehouses and distribution centres within the Melbourne Airport Business Park ranging in size between 10,000 to 100,000 square metres. A number of new warehouse facilities are to be established within the Business Park in the short-term, with Melbourne Airport having recently prepared a MDP for a warehouse and facilities for Toll Holdings Limited, which is now approved and under construction. Additionally, there is increased activity within the Business Park, with several other strategically planned warehouse developments also proposed which have been concurrently lodged with the Department of Infrastructure and Regional Development. These will enable potential businesses to takeup new sites at Melbourne Airport with approvals already in place. These proposals will enhance Victoria s position as the Freight State in which Melbourne Airport is recognised as a key freight and logistic gateway with a role as a nationally significant freight distributor. In seeking MDP approval for the proposed warehouses from the Department of Infrastructure and Regional Development, Melbourne Airport want to be market ready for new tenant opportunities as they emerge. This is due to the generally competitive and relatively short tender periods, and accordingly the warehouse needs to be shovel ready in consideration of this. This site within the Business Park has been identified for development by Melbourne Airport to accommodate a large-scale industrial warehouse development. The site, which is the subject of this MDP, is located at the junction of Sky Road East to the north and the recently opened Airport Drive to the east, and is approximately 2.0 kilometres to the south-east of Runway 34R (refer to Development Plans, Appendix A). The final design of the site will be based on the specific requirements of a future tenant, and this MDP seeks approval for a generic warehouse design for two structures to allow for warehousing or distribution operations, which may be altered to suit the needs of a specific tenant. This requirement for flexibility is necessary to avoid future amendments and variations if the MDP is approved and tenant requirements change. This form of approval will allow Melbourne Airport to meet the current market demand, particularly with the recently completed construction of the Airport Drive extension. A specific tenant has not been identified yet, the MDP is based on a conceptual design and the final design may require alteration to suit the functional needs of the specific tenant. Should the final proposed design vary significantly from the details in the draft MDP submitted to the Minister for Infrastructure and Regional Development for consideration, it may be necessary for APAM to seek further approval from the Department of Infrastructure and Regional Development. If the variation is of a minor nature, the Airports Act 1996 provides a process for the approval of a minor variation to the MDP in accordance with Section 95. The proposed Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will indicatively comprise the following: Two warehouses of up to 40,000 square metres each, up to a maximum developable floor area of 80,000 square metres to tenant specifications. The layout will be flexible to allow the spaces to meet tenant requirements. Two office / administration areas up to 1,800 square metres to tenant specifications, associated with each of the proposed warehouse structures. Prepared for ABN:

12 2 A back of house area containing supporting physical infrastructure. A re-fuelling station, truck wash bay and maintenance building expected to be sited along the southern boundary. Car parking to be provided in accordance with tenant specifications. As the tenant is yet to be determined, car parking ratios have been estimated in line with the anticipated upper and lower employment forecasts, expected floorspace requirements, the shift profile (not all staff will be on site simultaneously ) and the likely use of alternative transport modes or trip sharing amongst staff. It is expected that peak parking requirements for the site will be approximately 314 spaces for the lowest employment estimate and up to 1,095 spaces for the highest estimate. Landscaping treatments associated with the proposed development are to be undertaken in accordance with the Melbourne Airport Planting Guidelines and the Planning and Design Guidelines. Access to the site will be via four crossovers onto Sky Road East, with separate truck and car access and egress locations. New roads are planned to service the Melbourne Airport Business Park (including the recently completed Airport Drive and Link Road) and they will cater for larger vehicles such as B-Doubles and where appropriate, B-Triples or high productivity freight vehicles. The project is outlined in plans contained in Appendix A. It is important to note that the final design and configuration of the warehouses will be subject to detailed space planning investigations and construction feasibility by Melbourne Airport. The control measures provided through this planning and design process are described at Section The timeframe for the proposed construction will be subject to market demand but indicatively is scheduled to commence in late Background Need and Justification Melbourne Airport functions as one of Victoria s key freight and logistics gateways and is the second busiest passenger airport in Australia, with over 30 million passengers passing through it in 2013, which is anticipated to increase to 64 million passengers by The Airport handles more than 30 per cent of Australia s total air freight market and 36 per cent of the export market this market share made Melbourne Australia s largest export airport in It is estimated that 250,000 tonnes of air freight were moved through Melbourne Airport during 2013 which could increase to 393,000 tonnes by With the increase in air-freight exports and improved transport network such as Airport Drive, there has been a growing demand for freight logistics facilities at the Airport. Through the operations at Melbourne Airport, over 14,000 jobs are directly supported and a further 43,000 jobs indirectly supported; with airport activities directly supporting over 1 in 6 jobs within Hume alone. The operations of Melbourne Airport contribute over $1.47 billion (or 6%) to Victoria s Gross State Product on an annual basis, with indirect activity adding over $5.2 billion to the Victorian economy annually. The range of business activities on the airport site contribute to creating a diverse range of employment opportunities both within the local area, and the broader Metropolitan region. Furthermore, there is an increased demand for logistics and distribution centre space and development across metropolitan Melbourne; particularly in industrial precincts that are well connected to major transport infrastructure such as the Melbourne Airport Business Park which has led to the desire to construct additional warehousing facilities. Additionally, the subject land is flat, unencumbered, and of a size and configuration that makes it ideal for large-scale industrial development. Melbourne Airport now exports more air freight than any other airport in Australia and recognises that facilitating ground transportation of freight in and out of the airport is vital. As such, the airport is making major improvements to the internal ground transport network through projects such as Airport Drive and the elevated loop road. The Victorian Government also acknowledges the importance of the transport infrastructure to Melbourne Airport in policy documents including Victoria: The Freight State (2013) and Plan Melbourne (2014). The industrial market in Melbourne continues to offer good yields and prospects for steady and stable rental growth. In seeking MDP approval from the Commonwealth Minister for Infrastructure and Regional Development for the proposed warehouse development, Melbourne Airport want to be market ready for new opportunities as Prepared for ABN:

13 3 they emerge. The proposed warehouses will be developed by Melbourne Airport to respond to current and forecast demand in the warehousing and distribution centre market, which is predicted to be further stimulated with the completion of Airport Drive and the significant access benefit this will bring to the Melbourne Airport Business Park Project Objectives Melbourne Airport s Master Plan (2013) and its predecessor outlines a number of aviation and non-aviation development objectives which will be achieved by the proposed warehouse development. These objectives include: Protect the airport s long-term viability. Support a range of uses, including complementary business and shopping activities, employment, travellers accommodation, leisure, transport and community facilities. Support sustainable urban outcomes that optimise the use of infrastructure. Encourage developments that achieve the highest standards in sustainable environmental development, safety and security. Support safe, secure and sustainable transport solutions. Work with the neighbouring municipalities with respect to optimising development, both on the airport and in the surrounding region. Provide a business environment which allows our business partners to develop and grow their businesses in accordance with their shareholder s objectives. Pursue flexibility in facilities to cope with changing circumstances. Enhance the flow of passengers and freight through the airport and strive towards achieving a reputation as an efficient, delay-free airport. The Master Plan (2013) outlines the vision and strategic intent for Melbourne Airport s future development over the next 20 years. The Master Plan (2013) acknowledges the important role that non-aviation industries play in protecting the long-term viability of the airport by supporting the airport s growth and diversifying the business risk. This proposal is entirely consistent with the Master Plan (2013) as it will: Reinforce Melbourne Airport s gateway role in the domestic and international freight and logistics. Contribute to the economic viability of and infrastructure investment in Melbourne Airport and the broader north-western region. Support and drive positive economic, environmental and social outcomes both on-airport and in the surrounding region. Support and upgrade local and regional infrastructure. Create a sustainable, high quality built form and landscaped environment. Ensure consistency with the Airports Act 1996 and other Commonwealth legislation, and State and local planning schemes. The proposed warehouse development will implement the objectives of the Master Plan (2013) Future Needs of Civil Aviation and Other Users of the Airport Clause 91(1)(b) of the Airports Act 1996 requires a MDP to include the Airport-lessee company s assessment of the extent to which the future needs of civil aviation users and other users of the airport will be met by the development. The Master Plan (2013) identifies that non-aviation development plays a vital role in Melbourne Airport s economic vitality and complements its key functions. It supports the airport s growth and diversifies business risk, enhancing the contribution it makes to the broader community and underlining its importance as an activity centre. The proposed Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will have particular benefits for freight businesses operating through Melbourne Airport. Melbourne Airport handles 250,000 Prepared for ABN:

14 4 tonnes of air freight per annum, giving it more than 30 per cent of Australia s freight market. The efficient ground transportation of this freight is critical for the airport and related businesses to function effectively. Located within the Melbourne Airport Business Park, the proposal will assist in the consolidation of airport-based freight storage and distribution. The proposed development is to be located within the comprehensively planned Melbourne Airport Business Park, an area of land of 230 hectares that has been strategically identified as not being required for future aviation development. Accordingly, it is not considered that the proposed development will have any negative impacts on the existing and planned future operating capacity of the airport. The Master Plan (2013) provides the medium and long-term planning concepts for the airport site and identifies areas for development of aviation support and commercial activities for the 20-year Master Plan (2013) horizon. Importantly, the Master Plan (2013) incorporates the Ground Transport Plan for Melbourne Airport, which has overarching objectives to improve ground transport access for all modes of transport and provide a transport network that is integrated into the wider local and State-wide network. The location of the proposed development within the Melbourne Airport Business Park will take advantage of the key siting requirements for a warehouse and distribution centre development including a flat topographical form, excellent airside access to international markets as well as major road transport infrastructure such as the M80 Ring Road and the Hume, Calder, Western and Princes Freeways. This road network provides efficient linkages to the major regional areas of Victoria as well as the Ports of Melbourne and Geelong. The proposed development will boost employment in the region, resulting in the ongoing employment of approximately staff at the warehouses and office, depending on the type of tenant and business occupying the warehouses. It is considered that the proposal is consistent with and will implement the strategic intent of the Master Plan (2013). Importantly, the proposed development will not conflict with the future aviation needs of civil aviation and other users of Melbourne Airport. 1.3 Proponent Details The proposed development will be located entirely within Melbourne Airport land and therefore located on Commonwealth land. Melbourne Airport is an Airport Lessee Company pursuant to the Airports Act Below are the details of the proponent for this MDP: Contact: Mr Linc Horton Executive- Property and Construction Melbourne Airport Locked Bag 16 Tullamarine VIC 3043 Pursuant to the Airports Act 1996, the Commonwealth Minister for Infrastructure and Regional Development, is responsible for all decisions in relation to a MDP for a major airport development. 1.4 Statutory Context Major Development Plan In accordance with the Airports Act 1996, a MDP must be prepared where a major airport development is proposed and the various triggers are defined under Section 89 of the Airports Act The proposal is a major development as the construction cost of the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine project exceeds $20 million. The purpose of a MDP in relation to an airport is to establish the details of major development that relates to the airport and is to ensure the proposal is consistent with the airport lease and the Master Plan (2013) for the airport. There are a number of steps in the preparation of a MDP, which are outlined in Figure 1 and as follows: Prepare a Draft MDP, which is a comprehensive report about the project including, amongst other criteria: - A detailed outline of the proposed development. - An assessment of its consistency with the Master Plan (2013), including the Environment Strategy. - An assessment of its consistency with State and local planning legislation within the relevant locality and justification for inconsistencies. Prepared for ABN:

15 5 - Where appropriate, an assessment of the effect that the proposed development is likely to have on noise levels/flight paths. - An assessment of the effect that the proposed development would be likely to have on Melbourne Airport. - An assessment of the environmental impacts that might be associated with the proposed development. Publicly exhibit the Preliminary Draft MDP and revise the document in line with comments received. Submit the Draft MDP to the Commonwealth Minister for Infrastructure and Regional Development. The Minister will then refer the Draft MDP to relevant agencies and departments to receive advice prior to making a decision to approve or refuse the application. The proponent is required to comply with the provisions of the Environment Protection and Biodiversity Conservation Act 1999 in relation to environmental impact and the assessment of projects on Commonwealth land and/or projects which may have a significant impact on a matter of national environmental significance. Subsequent to the finalisation of the MDP for the Melbourne Airport Business Park Warehouses, further approvals are required under the Airports Act These include a Building Permit from the Airport Building Controller in consultation with the Airport Environment Officer, as detailed below Other Project Approvals New developments and building works at Melbourne Airport are subject to an internal approval process whereby proposals are assessed by building and environmental officers to ensure consistency with the Master Plan (2013) and other relevant Melbourne Airport policies and plans. Independent approvals for construction of the proposed facilities will be sought through: The Airport Building Controller (ABC). The ABC exercises the power and functions prescribed by the Airport (Building Control) Regulations 1997, made under Division 5 of the Airports Act The Airport Environment Officer (AEO). The AEO assesses the proposal against the environmental requirements of the Airports Act 1996 and the Airports (Environment Protection) Regulations and the environmental commitments in the Master Plan (2013), and the Environment Strategy. The AEO will also examine Construction and Operational Environmental Management Plans. This approval process comprises of the following components: Airport Operator s consent granted by Melbourne Airport. Building permit issued by the ABC. Permit to commence work issued by Melbourne Airport. Assessment of the proposal by the AEO and review of the Construction Environmental Management Plan (CEMP) to be prepared by the Construction Contractor. Certificate of Compliance issued by the ABC upon completion of the works. Approvals will be consistent with the Master Plan (2013), incorporating the Environment Strategy (2013). In addition, the new Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will be designed in accordance with all relevant building codes and Victorian standards. No additional approvals are required for this proposal under Division 5 or Part 12 of the Airports Act 1996 with respect to capacity declarations or the protection of airspace. Prepared for ABN:

16 6 1.5 Structure of this MDP This MDP is structured as follows: Section 2: provides a description of the site and surrounding environment. Section 3: describes the proposed development in detail. Section 4: identifies the statutory context for the development, outlines the MDP process, and provides assessment of the proposal against relevant airport planning documents, state and local policy. Section 5: provides an assessment of the environmental, social and economic impacts of the proposal. Section 6: outlines the environmental management measures to manage the effects of the proposal. Section 7: describes consultation undertaken to date and the approval process required for the MDP. Section 8: outlines the conclusions of the report, including key issues, impacts and matters to address. Detailed Specialist Reports were prepared to inform the preparation of the Draft MDP and are contained within the Appendices. The Specialist Reports and their authors are detailed below: Offset Assessment, Offset Management Plan and Flora and Fauna Assessment, Biosis, Appendix D Phase 1 Environmental Site Assessment and Site Inspection Checklist, APAM Environment Coordinator and DoIRD, Appendix F Cultural Heritage Management Plan, Dr Vincent Clark & Associates, Appendix G Supplementary Traffic Report and Traffic Impact Assessment, Jacobs Appendix H Social and Economic Impact Assessment, Jacobs, Appendix I Noise Impact Study, SKM, Appendix J A Supplementary Report (May 2015) was prepared for the Draft MDP which summarised and provided responses to submissions received following consultation of the Preliminary Draft MDP. The Supplementary Repot was submitted to the Minister for Infrastructure and Regional Development along with the Draft MDP. Prepared for ABN:

17 7 Figure 1 Major Development Plan Process Prepared for ABN:

18 SITE AND SURROUNDS 02

19 1 02 Site and Surrounds 2.1 Proposed Site The proposed warehouses will be located within the Melbourne Airport Business Park, which is located to the south of the airline maintenance bases and approximately 22 kilometres north-west of the Melbourne CBD. The site falls within an area of approximately 230 hectares that has been identified as not being required for future aviation development. The development site is bounded by Sky Road East to the north and the extended Airport Drive to the east which was recently opened. The proposed development site will be bounded by existing warehouse operations to the west and south. The site is generally a rectangular configuration with a slightly longer eastern boundary. The site has a total area of approximately 16.3 hectares with the locality and context shown in Figures 2, 3 and 4. The site is well situated in respect of manufacturing and major commercial developments and has excellent transport linkages via the M80 Ring Road to the Hume, Calder, Western and Princes Freeways, which link major regional areas of Victoria, and the Ports and Melbourne and Geelong. The site is located approximately 2.5 kilometres south of the airport terminal buildings. Existing warehousing extends to the west and south of the subject site, abutting Sky Road East to the north, South Centre Road to the west and Sharps Road to the south. The proposed development is located within the Melbourne Airport Business Park in the Activity Centre Zone (Landside Business Precinct). The Business Park and subject site is situated approximately 290 metres from the nearest residential development (Tullamarine) to the east, with trees and an industrial park acting as a physical buffer between the uses. In addition, vehicles will access the site by three access points on Link Road, via South Centre Road and Airport Drive, avoiding impact on residential streets. Figure 2 Subject Site Prepared for ABN:

20 2 Figure 3 Broader Locality Plan (Google Earth 2014) Subject Site Figure 4 Locality Plan (Google Earth 2014) Prepared for ABN:

21 3 2.2 Existing Environment Topography, Land and Vegetation Topographically, the site is generally flat with a surface of silty clays and a grassy ground cover, as shown in Figure 5 below. The site is characterised by low grasses and weed species with no notable larger vegetation species and is currently vacant land with no built form in the vicinity of the proposed development. The use of the site prior to establishment of the Melbourne Airport was for agricultural purposes as faming land. On this basis, there is a low risk of site contamination from previous uses. Figure 5 View of Subject Site from Sky Road East looking south (2014) 2.3 Ground Transportation Road Network Melbourne Airport comprises a network of internal roads including major access roads, collector roads and local service roads. These provide connections between freight facilities, passenger terminals and other services within the airport precinct. Melbourne Airport is positioned in proximity to a number of major freeways which provide access to the precinct. The Tullamarine Freeway runs to the east of the airport and provides a direct link to Melbourne s CBD. Roads at the southern end of Melbourne Airport connect into the M80 Ring Road which provides access to the Hume, Western and Princes Freeways. The local freeway network is shown in Figure 6. The benefits of this effective arterial road access are recognised within Victoria s freight and logistics plan, Victoria: The Freight State (2013), which identifies Melbourne Airport as a critical key freight gateway to Victoria. The plan outlines further future improvements to the road network surrounding the airport including a widening of the Tullamarine Freeway between Melbourne Airport and Calder Freeway. The internal road network links back into the broader public road network through key access roads including Terminal Road (from the Tullamarine Freeway) which becomes Departure Drive and Arrival Drive adjacent the key passenger terminals, prior to leading onto Melbourne Drive which provides access back to the Tullamarine Freeway. The extension to Airport Drive completes the approach to the airport from the M80 Ring Road. This extension provides a secondary entry point into the airport precinct and relieves some of the congestion on Tullamarine Freeway. Prepared for ABN:

22 4 Figure 6 Local Freeway and Active Transport Access to Melbourne Airport (Extract from Master Plan 2013) Subject Site Bus Network Melbourne Airport has the benefit of a bus network for the movement of passengers and staff both within the terminal precinct, and to the Melbourne CBD and broader metropolitan region. There are several types of bus networks running within the Melbourne Airport precinct including: Privately Operated Metropolitan Services, including Skybus (Melbourne CBD); Dandenong-Airport shuttle; Frankston and Peninsula Airport Shuttle; Eastside Airport Bus and Star Bus. Privately Operated Regional Services, including buses from Ballarat, Bendigo, Geelong, Shepparton, and V/Line services between Southern Cross Station and Barham and Deniliquin. Public Bus Local Services: SmartBus Route 901 Melbourne Airport to Frankston; Route 470 Sunbury to Moonee Ponds; and Route 500 Broadmeadows to Sunbury. Other bus services including tour buses, hotel buses, charter buses and off-airport buses. There are also a number of bus services, which run internally within the Melbourne Airport Business Park precinct. These include shuttle buses for the public to the long term parking areas (including off-airport long term car parks) and staff shuttle buses operated by airlines and the airport. Melbourne Airport also has indicated that a new internal bus route is likely to be established along the upgraded Airport Drive Rail Public Transport Victoria has recently undertaken the Melbourne Airport Rail Link Study assessing the feasibility of a rail link between Melbourne Airport and the Melbourne CBD. The study investigated how a rail link would operate and identified appropriate routes for a rail link. A preferred route (Albion East) has been nominated, however funding for the project has not been confirmed and investigations by Public Transport Victoria remain ongoing. The recently released metropolitan planning strategy for Melbourne titled Plan Melbourne (2014) envisages an airport rail link between the CBD and Tullamarine, identifying the potential rail link as an important future initiative for the northern subregion of Melbourne. Melbourne Airport has incorporated this initiative into their planning for Prepared for ABN:

23 5 Airport Drive, allowing for the possibility of the rail corridor to locate within the median of Airport Drive. A key direction of Plan Melbourne (2014) is to improve the landside transport access to primary gateways, including Melbourne Airport. This is a longer term goal of the Plan, and is anticipated to occur post Walking and Cycling Melbourne Airport, through its active transport network, will aim to improve bicycle links to the airport and the pedestrian environment within the airport boundary. Proposed improvements include enhancing the bicycle path network and quality of infrastructure including end of trip facilities. A shared pedestrian and bike path has been constructed adjacent to the Airport Drive extension which will benefit future warehouse occupiers. 2.4 Zoning The Master Plan (2013) identifies the proposed site as falling within the Landside Business Precinct. This precinct is situated to the south of the Airside and Landside Main Precincts. It extends from the Tullamarine Freeway and Mercer Drive in the north to Annandale Road and Sharps Road in the south. The Master Plan (2013) designates Melbourne Airport Business Park as part of an Activity Centre Zone. The Activity Centre Zone implements the strategic directions of a structure plan, in this case the Master Plan (2013) and dispenses with the need to apply multiple zones. Using the Activity Centre Zoning terminology, the strategic context of the subject site is referred back to the Master Plan (2013) and in particular, to the purpose of the Landside Business Precinct. The role of the Landside Business Precinct is to: Provide land for a range of aviation and non-aviation uses. Provide a range of aviation-related services, including aircraft maintenance and servicing and freight and cargo terminals. Provide for a range of non-aviation uses, including industrial, commercial, retail, office, recreational, manufacturing, warehousing and associated activities. The Master Plan (2013) identifies that future use and development within the Landside Business Precinct will remain focused on mixed-use purposes that provides for safe and efficient ground transport access and a high level of visual amenity. Prepared for ABN:

24 Subject Site AECOM 6 Figure 7 Melbourne Airport Master Plan (2013) Zoning and Overlay Plan Prepared for ABN:

25 PROPOSED DEVELOPMENT 03

26 7 03 Proposed Development 3.1 Introduction The proposed development comprises the construction of two new warehouses within the Melbourne Airport Business Park more specifically known as Site 2 (Airport Drive), Tullamarine. The details of the project are provided in the sections below. 3.2 Project Vision and Objectives The project involves the provision of a new warehouse facility within the Melbourne Airport Business Park which will support the freight and logistics businesses utilising Melbourne Airport. This MDP represents a proposal aimed at increasing the opportunities for industrial development within the Melbourne Airport Business Park. In seeking MDP approval for the warehouses, Melbourne Airport want to be market ready for new opportunities as and when they emerge. The warehouse facility will therefore be developed by Melbourne Airport to respond to current and forecast demand in the warehousing or distribution market, further stimulated by the construction of Airport Drive. 3.3 Description of the Proposal The proposal comprises two warehouse buildings, however the final space planning of the proposed development will be undertaken in conjunction with the future tenants. An indicative plan of a potential future development is shown in plans at Appendix A. Generally, the development will comprise: Two warehouses of 40,000 square metres each (totalling 80,000 square metres); Two office spaces of 1,800 square metres each (totalling 3,600 square metres); Heavy duty concrete access roadways, loading and unloading area; Light duty asphalt car parking areas for associated staff; Amenity landscaping along the northern, eastern and western boundaries of the site. The balance of the site is to be fenced, landscaped and paved in accordance with Melbourne Airport Planning and Design Guidelines and Melbourne Airport Planting Guidelines. The proposal is described in more detail below Site Preparation Site preparation will include all excavation, supply and compaction of filling materials and the preparation necessary to ensure the site is cut and filled to the correct gradient. All excess spoil including imported and site derived materials shall be removed from the site on completion of the specified works. Any required retaining walls and battered slopes will be located within the development site Building Envelope and Materials The proposal comprises two warehouse facilities with a maximum developable floor area of 80,000 square metres between the two structures. Back of house (containing supporting physical infrastructure) and front of house (administration) will accompany the proposed warehouses. The warehouses will extend to a total height of 13.7 metres sloping upwards from 11.5 metres from the east and west of the structure. The warehouse design will incorporate total office space of approximately 3,600 square metres over two storeys, with a total height of 8.1 metres. The warehouse design for each structure will incorporate an office space of approximately 1,800 square metres. The warehouses and offices will be oriented to the north incorporating the entrance to the office component and a large parking area along the northern elevation of the warehouse fronting Sky Road East. External materials proposed on the two warehouses will be non-reflective and will include a combination of precast concrete and Colorbond metal sheeting. Materials and finishes will be of high quality, durable products appropriate for airport operations. External cladding will be non-reflective and will be selected so as not to Prepared for ABN:

27 8 interfere with aviation function. All materials shall be in accordance with Australian Standards. The materials and finishes will complement the built form within the Melbourne Airport Business Park. The plans for the two warehouses are currently at a conceptual stage. The final design and shape of the buildings will be subject to detailed space planning investigations and construction feasibility, along with tenant requirements. The Department of Infrastructure and Regional Development will be notified of final design details including the building envelope Fencing and Security Gates The site will be contained by perimeter fencing expected to consist of black PVC coated chain wire mesh or palisade fencing to an overall height of three metres to all site boundaries, consistent with the Melbourne Airport Planning and Design Guidelines. The entry / exit points will be secured by lockable swing open gates Car Parking and Access The site will be accessible via four crossovers onto Sky Road East, which is currently accessible via South Centre Road to the west and Airport Drive to the east. It is anticipated that the proposed warehouses will be utilised for a transport and freight-forwarding business/ distribution or a storage and logistics business which receives, stores and delivers goods and packages to end customers. These operations may involve heavy interstate vehicles operating on long haul pickups and deliveries, as well as large fleets of smaller commercial vehicles for domestic goods transport to Greater Melbourne and regional centres. Under the Activity Centre Zone, which applies to the sites within the Business Park, the Master Plan (2013) states that parking studies can be used to justify alternative rates of parking for the activity centre, although Clause (Car Parking) of the Planning Scheme should continue to be used to address parking. The Victoria Planning Provisions and Hume Planning Scheme require 2 parking spaces per premises plus 1.5 spaces/100sqm of net floor area, though for industrial uses, the requirement increases to 2.9 spaces/ 100sqm of net floor area. Alternatively, a recent Committee Paper from the Property Council of Australia (PCA) recommended 0.5 spaces/ 100sqm for facilities over 250sqm, based on the results of an informal survey of industrial developers and logistics users. The PCA provisions would represent the most efficient use of the land. As the tenant is yet to be determined, car parking ratios have been estimated in line with the anticipated upper and lower employment forecasts, expected floorspace requirements, the shift profile (not all staff will be on site simultaneously ) and the likely use of alternative transport modes or trip sharing amongst staff. On this basis it is expected that peak parking requirements for the site will be approximately 314 spaces for the lowest employment estimate and up to 1,095 spaces for the highest estimate. For the highest employment estimates parking areas can be more effectively utilised through car park management correlating to the shift profile, and the utilisation of hardstand areas for delivery vehicles that will be off site for the majority of the peak parking period. The car parking will be provided on the site in a safe and convenient manner that is appropriate for staff associated with shift work at the proposed warehouse facility and in accordance with the relevant Australian Standards. Car parking areas will be of light duty paving, which will be laid to correct gradients and shall include perimeter kerb and channelling connected to the stormwater drainage system. Facilities of the size and nature of the proposed Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine tend not to have the level of pedestrian and cycling options which are offered at other development types due to tenant occupational requirements based around safety and security. The current design for the facility and the improvements/additions being made to the surrounding road network, including new footpaths to be constructed on South Centre Road, and a shared bike and pedestrian walkway adjacent to Airport Drive allow for cycling access and facilities to be added at a later date if required Landscaping Landscaping is proposed around the parking areas on the northern, eastern and western portions of the site, with species selection to be finalised. Landscaping treatments associated with the proposed development are to be undertaken in accordance with the Melbourne Airport Planting Guidelines and the Planning and Design Guidelines developed for Melbourne Airport including the Business Park Precinct. In addition to the MDP approval, the proposed development must obtain Planning and Design Approval from Melbourne Airport. The Planning and Design Approval process will assess the consistency of the proposal against the Melbourne Airport Planting Guidelines and the Planning and Design Guidelines. Prepared for ABN:

28 External Lighting The National Airports Safeguarding Framework (NASF) Guideline E provides guidance to address the risk of distraction to pilots from lighting and light fixtures near airports. The two proposed warehouses will be suitable for a 24 hour per day, seven day per week operation. External lighting will therefore be important to ensure the continuous and safe operation of the facility. External lighting will be designed to not emit upward waste light (0cd above the horizontal) in accordance with the Manual of Standards Part 139 Section and NASF Guideline E to ensure that glare issues for pilots do not eventuate. The likelihood of external lighting on the site impacting on aircraft operations is considered negligible in consideration of the intervening distance between the site of the proposed development, and the existing and future runways at Melbourne Airport. Given the significant distance between the subject site and the nearest residential properties, it is not anticipated that there will be significant light spill affecting sensitive land uses, either during construction or operation of the warehouses. The potential impacts from lighting associated with the proposed development will be further mitigated through the use of baffled lighting, new landscaping and the separation of the site from residential development through the Airport Drive extension which was recently opened Drainage Drainage systems will be designed to be in accordance with the recently approved Airport Drive and Steele Creek North Stormwater Enhancement Project MDP, which is described in more detail at Section of this MDP. The drainage strategy for the project will be prepared at the detailed design stage of the project; however will be subject to approval from both the Airport Building Controller and Airport Environment Officer Signage Signage will include all statutory and regulatory signage (i.e. fire house reels, hydrants). Business identification signage will also be required. Details of the business identification signage will be provided in accordance with relevant signage guidelines during the building approval process. All signage will comply with the Melbourne Airport Planning and Design Guidelines Anticipated Staff This MDP seeks approval for two warehouses suitable for 24 hour per day, seven day per week operation, with most activity likely to occur between 5.00am and 10.00pm. It is likely that the warehouses will be used as a distribution centre, packing facility or similar, and that work will occur in shifts. The new warehouses will require staff for operational and customer services, and this will benefit the surrounding communities. The number of workers will be dependent upon the type of tenant and business occupying the warehouse. A range of employment estimates were assessed. The lower bound on employment assumed a storage and logistics business on the site which would typically have a low employee density. The upper bound on employment assumed a higher-density transport and freight-forwarding business on the site. The lower and upper bound assumptions on employment at the proposed warehouses are 510 (lower) to 1700 (upper). This would include both operational (such as handlers, forklift operators and drivers) and administrative workers and the 24/7 nature of the facility will boost the employment capabilities of the site. The employment associated with construction of the project also represents an employment opportunity for local residents. The Master Plan (2013) indicates that approximately 2/3 of Melbourne Airport based staff reside within the seven municipalities surrounding the airport. The growth in employment opportunities offered by the proposed warehouses is therefore likely to support the local economy. In addition to operational employment, there will be significant employment opportunities during the construction phase of the development. Prepared for ABN:

29 STATUTORY AND POLICY COMPLIANCE 04

30 10 04 Statutory and Policy Compliance This section of the MDP provides an assessment of the proposed development against applicable Commonwealth and Victorian government legislative, regulatory and policy requirements. 4.1 Commonwealth Legislation Airports Act 1996 In accordance with the Airports Act 1996, a MDP must be prepared where a major airport development is proposed. Section 89 of the Airports Act 1996 defines a major development to include: (e) constructing a new building, where: (i) the building is not wholly or principally for use as a passenger terminal; and (ii) the cost of construction exceeds $20 million or such higher amount as is prescribed. As the anticipated project cost for the proposed Business Park Warehouse will be in excess of $60 million, Melbourne Airport is required to prepare a MDP to provide details of the development for approval by the Commonwealth Minister for Infrastructure and Regional Development. The proposed development is not a sensitive development as defined in section 71A of the Airports Act Section 91 of the Airports Act 1996 defines the contents of a MDP to include: a. the airport-lessee company s objectives for the development; and b. the airport-lessee company s assessment of the extent to which the future needs of civil aviation users of the airport, and other users of the airport, will be met by the development; and c. a detailed outline of the development; and (ca) whether or not the development is consistent with the airport lease for the airport; and d. if a final master plan for the airport is in force whether or not the development is consistent with the final master plan; and e. if the development could affect noise exposure levels at the airport the effect that the development would be likely to have on those levels; and (ea) if the development could affect flight paths at the airport the effect that the development would be likely to have on those flight paths; and f. the airport-lessee company s plans, developed following consultations with the airlines that use the airport, local government bodies in the vicinity of the airport and if the airport is a joint user airport the Department of Defence, for managing aircraft noise intrusion in areas forecast to be subject to exposure above the significant ANEF levels; and g. an outline of the approvals that the airport-lessee company, or any other person, has sought, is seeking or proposes to seek under Division 5 or Part 12 in respect of elements of the development; and (ga) the likely effect of the proposed developments that are set out in the major development plan, or the draft of the major development plan, on: (i) (ii) traffic flows at the airport and surrounding the airport; and employment levels at the airport; and (iii) the local and regional economy and community, including an analysis of how the proposed developments fit within the local planning schemes for commercial and retail development in the adjacent area; and h. the airport-lessee company s assessment of the environmental impacts that might reasonably be expected to be associated with the development; and Prepared for ABN:

31 11 i. the airport-lessee company s plans for dealing with the environmental impacts mentioned in paragraph (h) (including plans for ameliorating or preventing environmental impacts); and j. if the plan relates to a sensitive development the exceptional circumstances that the airport-lessee company claims will justify the development of the sensitive development at the airport; and k. such other matters (if any) as are specified in the regulations. This report addresses all of the above requirements. The table at Appendix C lists each requirement of Section 91 of the Airports Act 1996 and outlines the section of this MDP in which each requirement has been addressed Environment Protection and Biodiversity Conservation Act 1999 As Melbourne Airport is situated on Commonwealth land, it is subject to the provisions of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Compliance with the provisions of the EPBC Act is required in relation to environmental impact assessment of proposed projects on Commonwealth land and/or which may have a significant impact on a matter of national environmental significance. A Flora and Fauna Impact Assessment was undertaken by Biosis dated 7 July 2014, and is included at Appendix D of this MDP. The Flora and Fauna Assessment was prepared for the subject site on Sky Road East. The assessment is appropriate to cover potential flora and fauna impacts of the proposed development. The Flora and Fauna Assessment confirmed that no EPBC Act listed fauna were recorded or expected to occur regularly in the study area. However, it was noted that patches of Plains Grassland were present on the site, and met the criteria definition of critically endangered EPBC Act listed community Natural Temperate Grassland of the Victorian Volcanic Plain (NTGVVP). In consideration of this endangered community, the Biosis report noted that the EPBC Act would likely to be triggered, requiring a referral of the proposed action to the Australian Government Minister for the Environment. It was noted in the report that the majority of the study area has been modified in the past by previous land uses, but that the proposed clearing of native patches of grassland vegetation may require offset measures as recommended by the Minister for Environment. The proposal was referred to the Department of Environment (DoE) under Section 160 of the EPBC Act. The DoE decided that the Minister for Environment s advice under section 162 of the EPBC Act was required prior to the Minister for Infrastructure and Regional Development giving authorisation to the proposed action. On 10 April, 2015, the DoE confirmed that the proposed action was to be assessed by an accredited assessment through a Major Development Plan under the Airports Act Through use of the EPBC Act Environmental Offsets Policy Offsets Assessment Guide and through consultation with the DoE, it was identified that 11ha of NTGVVP would need to be protected to offset the loss of the community from Airport Site 2. On 30 July 2015, the DoE confirmed that they were satisfied with the suitability of an offset of approximately 11 hectares or more of the critically endangered ecological community, Natural Temperate Grasslands of the Victorian Volcanic Plains at the property 1316 Darlington - Nerrin Road, Dundonnell in western Victoria (or a similar site). An Offset Management Plan was also required and is included at Appendix D. The offset area will be protected in perpetuity by an agreement under Section 173 of the Planning and Environment Act 1988 with the Moyne Shire Council. As the proposed warehouse is currently untenanted and commercial negotiations are ongoing with a prospective occupier, APAM intend to implement the offset within 3-6 months of a commercial agreement with a tenant being obtained. Full details of Melbourne Airport s response to DoE are provided at section of this report. 4.2 Melbourne Airport Lease The proposed development is consistent with the airport head lease for Melbourne Airport held by Australia Pacific Airports (Melbourne) under the Commonwealth Airports Act The major development:- Is for a lawful purpose and does not breach legislation in accordance with Section 3.1 (a) (iv). Maintains the environment of the airport in accordance with Section 6.2. Complies with all legislation relating to the airport site and its structures or use or occupation in accordance with Section 7.1. Prepared for ABN:

32 12 Does not grant any sublease or Licence prohibited under the legislation in accordance with Section 10. Has regard to actual and anticipated future growth in, and pattern of, traffic demand for the Airport site. Will be to quality and standards reasonably expected of an airport in Australia and to good business practice in accordance with Section 12(b) and (c). In developing this MDP, all interests existing at the time the airport lease was created were identified and considered including easements, licences, leases and sub leases. There are no conflicts or inconsistencies existing between these interests and any proposals in the MDP and Melbourne Airport will ensure that any development works allowed under this MDP will not interfere with the rights granted under any pre-existing interest. There are no known impacts to any pre-existing interests of adjacent property owners. 4.3 Melbourne Airport Master Plan (2013) The Master Plan (2013) was approved by the Minister for Infrastructure and Regional Development on 18 December The Master Plan (2013) outlines the vision and strategic intent for Melbourne Airport s future development over the next 20 years. Melbourne Airport is required to develop a Master Plan every five years in accordance with the Airports Act The intention for the Melbourne Airport Business Park is to continue development, focussing on large warehouses (ranging from 10,000 to 100,000 square metres); ultimately providing some 1,000,000 square metres of facilities. The proposed warehouses will directly contribute to the achievement of this vision. The Master Plan s Land Zoning and Overlay Plan, as shown at Figure 7, depicts the subject land zoned as Activity Centre Zone. Under the Victoria Planning Provisions the proposed use falls under the definition of Warehouse. The Activity Centre Zone is a specialised zone which relies on the preparation of a Structure Plan to direct future development within the zone. The Master Plan (2013) for Melbourne Airport will fulfil this function. As discussed, the two proposed warehouses are consistent with the Master Plan (2013), and are also consistent with the Activity Centre Zone. A Warehouse is a permitted use in the Activity Centre Zone. The Master Plan (2013) incorporates the Ground Transport Plan for Melbourne Airport. The Ground Transport Plan has a vision for an interconnected ground transport system that supports safe, efficient and reliable journeys for all modes of transport. The Ground Transport Plan has a number of objectives, including integrating Melbourne Airport s ground transport network into the wider local and state-wide networks, and recognises that reducing congestion in and around the airport will be critical to the success of the plan. Jacobs prepared a Traffic Impact Assessment in August 2014 for the two warehouses on Sky Road East / Airport Drive. This assessment has found that the proposed development can be incorporated into the Melbourne Airport Business Park without major changes to the surrounding road network. Full details are provided at Section of this report. Additional information in relation to traffic impacts is also provided within Jacobs Supplementary Traffic Report dated August 2015 provided at Appendix H. It is considered that the proposal will be consistent with the Ground Transport Plan and the Master Plan (2013) more broadly. 4.4 Melbourne Airport Environment Strategy (2013) Environmental management at Melbourne Airport is carried out in accordance with Melbourne Airport s approved Environment Strategy. The current Environment Strategy was approved by the Commonwealth Minister for Infrastructure and Regional Development on 18 December 2013 and is the first Environment Strategy to be incorporated into the Master Plan (2013). Melbourne Airport's Environment Policy provides the guidelines for the environmental management of the airport. The policy forms the basis for the principles that promote environmental sustainability at the airport and maximises efficiency of the environmental systems. The policy provided the basis for which objectives, targets and environmental action plans were developed in the Environment Strategy (refer to Appendix E). Melbourne Airport also has in place an Environmental Management System, which is certified to the international standard ISO The Environment Strategy highlights areas within the Melbourne Airport precinct which are considered to have environmental significance status and have been designated as conservation and recreation areas. The proposed development will occur within an area designated for Business and Industry within the Ultimate Airport Environmental Plan contained within the Environment Strategy. Prepared for ABN:

33 13 A Phase 1 Environmental Site Assessment was undertaken for the subject site in accordance with Melbourne Airport s Environmental Management System (included at Appendix F). This assessment was undertaken by Melbourne Airport s Environment Manager and the Commonwealth s Airport Environment Officer and did not identify any significant environmental issues on the site. As discussed in Sections and of this report, a Flora and Fauna Impact Assessment was undertaken by Biosis, dated 7 July 2014 (refer Appendix D), which concluded that the site contains no threatened flora or fauna, though it does contain patches of Plains Grassland which meet the criteria definition of critically endangered EPBC Act listed community Natural Temperate Grassland of the Victorian Volcanic Plain (NTGVVP). This will be considered by the Minister for Environment in the submission of this MDP for review. As detailed in Section of this report, a Cultural Heritage Management Plan (CHMP) has been prepared by Dr Vincent Clark and Associates (refer Appendix G). The CHMP was prepared for Australia Pacific Airports Melbourne (Melbourne Airport), pursuant to Section 46 of the Aboriginal Heritage Act The area for the CHMP includes all of the land encompassed by the development site and the activities allowed by the plan include the development of a business park and associated buildings and roadways. The CHMP includes a detailed assessment of cultural heritage places within the area of the proposed development, and has identified a number of artefacts that need to be appropriately documented and stored. The CHMP notes that whilst construction activity will be undertaken in a manner that seeks to avoid or minimise harm to Aboriginal cultural heritage on the site, this is not always possible and thus mitigation measures have been prepared to manage those places. Additionally, 26 recommendations are made to appropriately manage the cultural heritage artefacts and places within the overall area of development at the airport, including the need for the CHMP to be held on site during works, the need for cultural heritage awareness training to be undertaken prior to ground works and the need to report any previously unidentified artefacts which may be uncovered during works. It is contended that the proposal will not result in significant impacts on the environment. The Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine is therefore consistent with the Environment Strategy (2013). 4.5 State and Local Government Planning State Planning Provisions Planning requirements for the Melbourne Airport site (Commonwealth land) are administered under the Airports Act 1996, and as such State and local planning provisions under the Victorian Planning and Environment Act 1987 are not directly applicable. Regardless, the Airports Act 1996 requires Master Plans to, wherever possible, be consistent with the State and local planning policies within the State or Territory in which the airport is located. Similarly, the preparation of a MDP is required to give consideration to the level of consistency or otherwise with prevailing State and local planning policies and controls. This MDP has had due regard to the Victoria State Planning Policy Framework and the zones, overlays and other planning provisions derived from the Victoria Planning Provisions (VPP). The relevant State and local planning provisions are discussed below State Planning Policy Framework The State Planning Policy Framework (SPPF) contains a number of provisions which are relevant to airport planning and this MDP. In particular, Clause of the SPPF relates to Activity Centres and identifies activity centres as areas which will accommodate substantial change and economic activity. The proposed business park warehouses are consistent with and will complement Melbourne Airport s role as a Specialised Activity Centre. Clause of the SPPF seeks to strengthen the role of Victoria s airports within the State s economic and transport infrastructure and protect their ongoing operation. Of relevance to this MDP are the following strategies under Clause : Ensuring that in the planning of airports, land-use decisions are integrated, appropriate land-use buffers are in place and provision is made for associated businesses that service airports. Ensuring the planning of airports identifies and encourages activities that complement the role of the airport and enables the operator to effectively develop the airport to be efficient and functional and contributes to the aviation needs of the State. Prepared for ABN:

34 14 Clause sets out the following objective for Melbourne Airport: To strengthen the role of Melbourne Airport within the State s economic and transport infrastructure and protect its ongoing operation. Strategies set out at Clause specifically for Melbourne Airport include: Ensure the effective and competitive operation of Melbourne Airport at both national and international levels. Ensure any new use or development does not prejudice the optimum usage of Melbourne Airport. Ensure any new use or development does not prejudice the curfew-free operation of Melbourne Airport. Protect the curfew-free status of Melbourne Airport. The proposal is consistent with Clause of the SPPF. Specifically, the new warehouses will offer a synergy between the operations of the Business Park and Melbourne Airport more broadly by allowing the potential for additional freight distribution capabilities or industrial activities to support the State s economic infrastructure. Melbourne Airport currently handles a 30 per cent share of Australia s air freight and the proposal will result in Melbourne Airport being better able to effectively and efficiently move freight throughout the State. The proposal will not interfere with existing or future airport operations or its curfew-free status Victoria: The Freight State (2013) The proposed warehouses are likely to accommodate a distribution centre, which will enhance Victoria s position as the Freight State in which Melbourne Airport is recognised as a key freight and logistic gateway and its role as a nationally significant freight distributor. Business parks located on airport land can effectively harness greater gains from economic agglomeration. That is, they can become strategic hubs themselves with a critical mass of diversified retail, freight and logistics and aviation activities, many of which leverage the airport s business base and passenger traffic. The Victoria Freight and Logistics Plan, Victoria: The Freight State (2013) highlights that the freight and logistics sector contributed between $19 billion and $23 billion to Victoria s Gross State Product in 2011; representing up to eight per cent of the Victorian economy. Victoria: The Freight State highlights the necessity of effectively planning for and delivering adequate gateway capacity at airports, and recognises that failure to provide capacity when it is needed will mean congestion, disruption and a cost to business and the economy. Victoria: The Freight State identifies Melbourne Airport as a freight airport, and places significant value on the curfew-free status of the airport. The plan identifies the need for a new freight road link from the Airport to a new freight link road to the north, and a widening of the Tullamarine Freeway between the Calder Freeway and the airport. The Government recognises the potential of Victoria s aviation infrastructure to grow the State s role as a gateway for international trade and cargo and, in particular, for new markets in Asia. The proposed warehouses will support this growth, by providing space for a distribution centre or similar industrial warehouse use for freight storage and distribution Metropolitan Planning The Victorian Government s metropolitan planning strategy, Plan Melbourne (2014), is currently being reviewed with an update likely to be issued in late As currently structured, Plan Melbourne (2014) places the Melbourne Airport within the Northern Subregion of Melbourne. A key focus for the Northern Subregion will be to continue to develop a diverse industry base linked to its key transport infrastructure and educational, technology and research capabilities. Melbourne Airport is classified as a State-Significant Element Transport Gateway within the Northern Subregion. Plan Melbourne (2014) identifies Melbourne Airport as a Transport Gateway and major economic gateway, acting as an employment anchor within the northern region of the city. The purpose of a Transport Gateway is: To secure adequate gateway capacity for moving passengers and freight in and out of Victoria by designating ports, airports and interstate terminals. They will be protected from incompatible land uses but adjacent complementary uses will be encouraged. The specific operations of the proposed warehouse facilities are not yet known, as this will be dependent on the needs of the tenants. However, it is anticipated that the buildings will allow for freight distribution, packaging facilities or similar operations, which is an intrinsic part of the operation of the airport. Prepared for ABN:

35 15 The further development of the Melbourne Airport Business Park is envisaged within Plan Melbourne (2014), which identifies that: Airport- and non-airport-related businesses are also expected to grow significantly on land within the airport boundary and in surrounding areas such as Essendon Airport and Tullamarine. This may create opportunities to develop tailored business and housing developments that benefit from proximity to airport facilities. The Melbourne Airport Business Park is identified as falling within an Investment and Employment Opportunity area, an acknowledgement of the significant number of jobs which can be created through investment at the Melbourne Airport. This is considered to be a very important local economic benefit. The types of businesses which are envisaged include freight and logistics businesses, in line with the likely tenants of the proposed warehouses. Plan Melbourne (2014) seeks to incorporate Victoria s transport plan, Victoria: The Freight State (2013), which outlines the following priority: Ensuring the ability of businesses to access and service markets interstate and overseas through efficient freight gateways is vital to the economy of the city and the state. Overall, the proposed development is considered to be consistent with the intent of future business growth at the Melbourne Airport as envisaged within Plan Melbourne (2014). The two proposed warehouses will provide additional industrial facilities, and will also assist in fulfilling the airport s role as an employment cluster within the Northern Subregion of Melbourne Local Planning Provisions (Hume Planning Scheme) Section 91(ga)(iii) of the Airports Act 1996 requires a MDP to provide an assessment of the local and regional economy and community, including analysis of how the proposed development fits within the planning schemes for commercial and retail development in the adjacent area. The City of Hume s Local Planning Policy Framework (LPPF) contained within the Hume Planning Scheme (the Planning Scheme) notes the direct economic benefits the airport has for the municipality. The Municipal Strategic Statement (MSS), part of the LPPF, recognises the important role that Melbourne Airport plays in providing a source of employment for Hume residents and attracting associated economic activity, being a key economic driver for the municipality. The LPPF acknowledges that Melbourne Airport is an Activity Centre with important implications for the municipality, and anticipates that future business and industry growth will continue at Melbourne Airport, to the benefit of local residents. As a result, the Hume Council LPPF, seeks to ensure that the relationship between Melbourne Airport and the city remains positive and that Melbourne Airport s curfew-free operations are protected (Clause ). The MSS includes an Industrial Land Policy at Clause which applies to industrial areas and business parks. The policy recognises that industry and large scale business are key contributors to the City s strong employment base and that these areas should achieve a high architectural and landscape standard, with due consideration given to stormwater management, car parking provision and vehicular access. Relevant Local Objectives include: Provide a range of lot sizes to meet current and anticipated employment needs; Protect significant natural and cultural heritage sites wherever possible; Provide for effective stormwater management as part of new development proposals; Establish and maintain a high quality industry and business environment that protects and enhances the investment of those who choose to locate and work within, and the amenity of those residents who reside near, the City s business parks. In addition, the policy requires that all development should have regard for the operational requirements of Melbourne Airport in terms of aircraft noise, building height and form, bird hazards, lighting and radio transmission. Overall, it is considered that the proposal appropriately implements the aforementioned local objectives of the Hume City Council and will result in positive impacts on both Melbourne Airport and the local community. It is recognised that the economic benefits of the Airport extend to the adjoining municipalities of Brimbank, Melton and Moonee Valley. Prepared for ABN:

36 Australian Noise Exposure Forecast The Master Plan (2013) contains the Airport s Ultimate Capacity Australian Noise Exposure Forecast (ANEF), which was approved by Airservices Australia on 3 May Associated land use compatibility advice for areas in the vicinity of Airports is contained in Australian Standard AS Acoustics Aircraft Noise Intrusion Building Siting and Construction (AS ). The ANEF 20 contours have been altered by the recently approved Master Plan (2013). These ANEF contours supersede the 2008 contours. Under the new ANEF contours, the site for the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine is partly located within the 20 ANEF noise contour, as shown in Figure 8. The activities to be conducted within the warehouse structures could be considered to be either light industrial or commercial under the AS Standard. The Standard specifies that in areas of less than 25 ANEF that these building types are acceptable. The proposed development site is located within the 20 ANEF contour but below the 25 ANEF contour. Therefore, no noise attenuation measures will be required. Figure 8 Melbourne Airport Master Plan (2013) ANEF Contours Subject Site 4.7 Prescribed Airspace Under the provisions of the Airports Act 1996 and the Airports (Protection of Airspace) Regulations 1996 (Airport Regulations), the airspace around airports may be declared Prescribed Airspace to protect the airspace for safe arrival and departure of aircraft using the airport. Melbourne Airport s airspace has been declared as Prescribed Airspace by the Commonwealth Government under these Regulations. Prescribed Airspace is the airspace above any part of either an Obstacle Limitation Surface or Procedures for Air Navigational Services surface, which are defined as: Obstacle Limitation Surface (OLS): This surface is usually the lower of the two surfaces that make up Prescribed Airspace, and is designed to provide protection for visual flying, or VFR (i.e. when the pilot is flying by sight). Prepared for ABN:

37 17 Procedures for Air Navigational Services Aircraft Operations (PANS OPS): This is the surface usually higher than the OLS and is designed to provide protection for instrument flying, or IFR (i.e. when the pilot is flying by instruments). The PANS-OPS may also protect airspace around the network of navigational aids that are critical for instrument flying. The proposed development is located under the existing and future OLS Inner Horizontal Surface (OLS 2), which has an upper height limit of AHD at the site. The envelope enclosing the proposed warehouses extends to a total height of AHD (13.7 metres AGL). When the maximum height of the proposed warehouse is subtracted from the OLS, there will be a minimum clearance of metres. The overall height of the buildings assessed is to include any vents, chimneys, aerials, flues or other protrusions, however none are envisaged at this stage. APAM may need to obtain controlled activity approvals if cranes required for construction will intrude into controlled airspace. This requirement will be addressed in accordance with Airservices and CASA requirements. The proposed development will therefore not have a structural impact on Melbourne Airport s OLS. At the location of the site the existing PANS-OPS surface for the two runway configuration (PANS OPS 2) is higher than the OLS at 180 metres AHD. In the future, with a four runway configuration (PANS OPS 4), the PANS-OPS surface will be 210 metres AHD. Therefore, the proposal will not penetrate either existing or future PANS-OPS surfaces. Prior to the construction phase for the warehouse commencing, a Notice to Airmen will be issued by Melbourne Airport advising the temporary erection of obstacle(s) near airfields (e.g. cranes). Airservices were consulted with regard to any impact on the performance of Precision/Non-Precision Nav Aids, HF/VHF Comms, A-SMGCS, Radar, PRM, ADS-B, WAM or Satellite/Links. In response to consultation, Airservices Australia has confirmed that at m AHD, the warehouse will not affect any sector or circling altitude, nor any instrument approach or departure procedure at Melbourne Airport. The development could potentially have an impact on the existing Airservices radio data link communication with Essendon Airport as the site is located within the radio data link path. Further details are provided at Section of this report. 4.8 National Airports Safeguarding Framework It is considered that the proposed development satisfies the NASF guidelines as outlined in Table 2 below. Table 2 NASF Guideline Response to NASF Guidelines Guideline A: Measures for Managing Impacts of Aircraft Noise Guideline B: Managing the Risk of Building Generated Windshear and Turbulence at Airports Guideline C: Managing the Risk of Wildlife Strikes in the Vicinity of Airports Guideline D: Managing the Risk of Wind Turbine Farms as Physical Obstacles to Air Navigation Comment/Response See Section 4.6 of this MDP. Under the new ANEF contours, the site is partially located within the 20 ANEF noise contour but below the 25 ANEF contour. The proposed development complies with AS2021: See Section 5.5.3of this MDP. The proposed development complies with the requirements of the Guideline B. See Section of this MDP. Non-bird attracting plant species are to be used in accordance with Melbourne Airport s Planting Guidelines. Not applicable to the proposed development. Guideline E: Managing the Risk of Distractions to Pilots from Lighting in the Vicinity of Airports Guideline F: Managing the Risk of Intrusions into the Protected Airspace of Airports See Section of this MDP. All external lighting will be designed and baffled to comply with the relevant standards. See Section 4.7 of this MDP. The proposed development will not impact on Melbourne Airport s existing and future OLS or PANS-OPS surfaces. Prepared for ABN:

38 Pre-Existing Interests and Obligations In undertaking an assessment of a major development in accordance with the requirements of the Airports Act 1996, the Airports Regulations 1997 require that consideration be given to, amongst other matters, any preexisting interests and obligations in relation to the Airport lessee company. In this regard, in developing the MDP for the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine all interests existing at the time the airport lease was created were identified and considered including easements, licences, leases and sub leases. There are no known conflicts or inconsistencies existing between these interests and any proposals in the MDP and Melbourne Airport will ensure that any development works allowed under this MDP will not interfere with the specific rights granted under any pre-existing interest. There are no known impacts to any pre-existing interests of adjacent property owners. Prepared for ABN:

39 ASSESSMENT OF IMPACTS 05

40 19 05 Assessment of Impacts 5.1 Overview This section provides an assessment of the potential impacts of the project that might reasonably be expected to be associated with the development and which may arise during the construction and operation phases. The following specialist investigations have informed this assessment, as discussed throughout this section: Phase 1 Environmental Site Assessment Flora and Fauna Assessment Traffic Impact Assessment Cultural Heritage Assessment. 5.2 Social and Economic Impacts The Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine is anticipated to have a project cost well in excess of $20 million. This investment will provide positive social and economic benefits within the State and local economies. An Economic and Social Impact Study was undertaken by Jacobs in 2014 and is included at Appendix I of this MDP Employment Melbourne Airport s operations support over 14,300 direct jobs, providing almost 10,000 jobs to residents of the seven municipalities within 15 kilometres of Melbourne Airport. In Hume alone, the airport directly supports more than one in six jobs, making it a major source of local employment. The proposed development will deliver a number of economic benefits including investment and local and wider employment generation. The Master Plan (2013) indicates that approximately two thirds of Melbourne Airport based staff live within the seven municipalities surrounding the airport. The two new warehouses will require staff for operational and customer services, and this will benefit the surrounding communities. The number of workers will be dependent upon the type of tenant and business occupying the warehouses. A range of employment estimates were assessed. The lower bound on employment assumed a storage and logistics business on the site which typically have a low employee density. The upper bound on employment assumed a higher-density transport and freight-forwarding business on the site. The lower and upper bound assumptions on employment at the proposed warehouses are 510 (lower) to 1700 (upper). This would include both operational and administration workers and reflects the 24/7 nature of the facilities. The employment opportunities associated with construction of the project also represents an employment opportunity for local residents. The further development of warehousing at the Melbourne Airport Business Park will create additional capacity for commercial and industrial businesses to establish at the airport, and contribute to the employment and economic base for the Hume Council area which is considered to be one of the fastestgrowing communities in Australia. Additionally, it has been estimated that the operation of the proposed warehouses will result in a direct output of $82 million (lower estimate) to $273.4 million (upper estimate) per annum when operating at maximum capacity. Full details in relation to the assessment of economic impacts are provided at Appendix I Section Broader Social Benefits Melbourne Airport is an important facilitator of imports and exports for local businesses. The addition of two new warehouses within the Melbourne Airport Business Park will be positive for local businesses, and in turn, local communities by providing the opportunity for a new business to set-up or an existing business to expand. Additionally, the two proposed Business Park warehouses will contribute to achieving the aims of the Hume Council local strategies through creating new jobs for residents and supporting business growth in the community. It has also been identified that the residents of Tullamarine are socio-economically disadvantaged, and the creation of new unskilled, semi-skilled and skilled employment types through the Melbourne Airport Business Park Prepared for ABN:

41 20 Warehouses project could provide critical employment opportunities; both through the construction period and operation. The airport plays a vital role in connecting communities, people and markets. The proposal will help to achieve sustainable and inclusive economic growth through the development of commercial facilities in a defined business park, providing employment opportunities for local communities. Local residents recognise the positive benefits the airport provides, including connecting Melbourne to other cities, employment opportunities and the role of the airport as a nationally recognised freight and logistics gateway. 5.3 Environmental Impacts Phase 1 Environmental Site Assessment A Phase 1 Environmental Site Assessment was undertaken in accordance with Melbourne Airport s Environmental Management System (refer Appendix F). This assessment was undertaken by Melbourne Airport s Environment Coordinator and the Commonwealth s Airport Environment Officer by way of a site inspection and completion of a checklist to identify any obvious environmental issues. The Phase 1 Environmental Site Assessment did not identify any significant contamination from previous uses and activities Flora and Fauna A Flora and Fauna Impact Assessment was undertaken by Biosis in 2014 and is included at Appendix D of this MDP. The Flora and Fauna Assessment was prepared for the subject site at Airport Drive / Sky Road East, Tullamarine within the Business Park. The primary purpose of the investigation was to provide an overview assessment of the extent and quality of native vegetation and fauna habitats in the study area, and to advise if any matters of national significance protected through the EPBC Act or rare or threatened species listed under the Victorian Flora and Fauna Guarantee Act 1988 (FFG Act) or on the Department of Sustainability and the Environment s (now Department of Environment and Primary Industry) advisory list have the potential to occur in the study area. The assessment method comprised a desktop review of existing available information combined with field survey. Detailed flora surveying was carried out in April The fauna assessment was undertaken during warm and sunny conditions which were considered suitable for detecting all species groups likely to occur in the study area during summer in The Flora and Fauna Assessment concluded that no EPBC Act listed fauna were recorded or expected to occur regularly in the study area. However, it was noted that patches of Plains Grassland were present on the site, which met the criteria definition of critically endangered EPBC Act listed community Natural Temperate Grassland of the Victorian Volcanic Plain (NTGVVP). In consideration of this endangered community, the Biosis report notes that the EPBC Act would require a referral of the proposed action to the Australian Government Minister for the Environment. The proposal was referred to the Department of Environment (DoE) under Section 160 of the EPBC Act. The Department of Environment confirmed that the Minister for Environment s advice under section 162 of the EPBC Act was required prior to the Minister for Infrastructure and Regional Development giving authorisation to the proposed action. The proposed development was determined to have, or be likely to have, a significant impact on the environment and matters of national environmental significance (MNES), particularly on threatened species and communities listed under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), including Natural Temperate Grassland of the Victorian Volcanic Plain community (NTGVVP). On 10 April, 2015, the DoE confirmed that the proposed action was to be assessed by an accredited assessment through a Major Development Plan under the Airports Act In order to assess the impacts and compensation measures of the action, the DoE required further information to be provided. Biosis prepared a Major Development Plan Documentation Offset Site Assessment dated 3 June, 2015 in response to the DoE Request for Further Information (referral reference EPBC 2014/7363). A copy of this assessment report is provided at Appendix D, as a supplementary report to the Flora and Fauna Assessment dated 7 August 2014, also provided at Appendix D. Key conclusions of the Major Development Plan Documentation Offset Site Assessment include: Prepared for ABN:

42 21 The development of the site will result in the loss of 4.6 ha of vegetation which satisfies the definition of NTGVVP. No additional impacts to NTGVVP or any other MNES are anticipated, either directly or indirectly.; The habitat score for the NTGVVP was calculated to be 23/100. A condition score of 2/10 was therefore used to quantify the impact to this MNES to quantify the offset prescription under the EPBC Act Offset Policy. Output from the EPBC Act offset calculator identifies an offset prescription of 9.3 ha of NTGVVP; A proposed offset for impacts to NTGVVP associated with the development of the Melbourne Airport Business Park Warehouse at Site 2 has been located at Tiverton, a pastoral property in Dundonnell in western Victoria; The nominated offset site would be subject to legal protection in perpetuity by way of a Trust for Nature (TfN) covenant under the Victorian Conservation Trust Act The Management of the offset site will be supervised by TfN and will be consistent with the requirements of an approved ten year offset management plan (OMP), which will be initiated prior to the loss of NTGVVP at Site 2. Through use of the EPBC Act Environmental Offsets Policy Offsets Assessment Guide and through ongoing consultation with the DoE, it was identified that 11ha of NTGVVP would need to be protected to offset the loss of the community from Airport Site 2. On 30 July 2015, the DoE confirmed that they were satisfied with the suitability of an offset of approximately 11 hectares or more of the critically endangered ecological community, Natural Temperate Grasslands of the Victorian Volcanic Plains at the property 1316 Darlington - Nerrin Road, Dundonnell in western Victoria (or a similar site). An Offset Management Plan for Melbourne Airport Business Park, Site 2 (Airport Drive) Tullamarine has been prepared (dated 27 August, 2015) and is included at Appendix D. The offset area will be protected in perpetuity by an agreement under Section 173 of the Planning and Environment Act 1988 with the Moyne Shire Council. The time frame of the OMP is 10 years from commencement of management works. The formal commencement of the 10 year management period must start when the offset area has been legally protected. As the proposed warehouse is currently untenanted, APAM intend to implement the offset within 3-6 months of a commercial agreement with a tenant being obtained Traffic Impact Assessment A Traffic Impact Assessment has been prepared by Jacobs (refer Appendix H) to understand the likely impact that the proposed warehouses, and specifically the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine could have on Melbourne Airport and the broader Business Park precinct. The report has been based on the impacts of a development comprising large warehouses for a logistics tenant or similar operations which will offer commercial and industrial businesses a large and flexible space, excellent access to roads, air and sea ports and growth opportunities. There have been discussions between VicRoads about the modelling undertaken. APAM is currently working with VicRoads to identify the anticipated impacts of warehouse traffic outside the Business Park. Particular attention is being given to intersections on Sharps Road, Keilor Park Drive and Airport Drive. The Traffic Impact Assessment recommended that traffic volumes be monitored following the opening of Airport Drive and a further assessment of intersection requirements and traffic signal phasing be completed at that time. Airport Drive has recently opened which will enable this assessment to occur. The majority of areas of the road network will be able to accommodate the increased traffic associated with the proposed development. Some areas (such as the Keilor Park Drive and Sharps Road intersections) may experience capacity issues in the future; however these areas are expected to have capacity issues even without the introduction of traffic associated with the proposed development. The report assumes that the proposed warehouse will have similar characteristics and generation rates to freight forwarders and transport businesses. As the type of tenant and business are still to be determined, a range of traffic generation rates were used for the Traffic Impact Assessment with a low end estimate referring to the lower end of the range and the high end estimate which refers to the upper end of the range. The high end traffic generation estimate represents a worst-case scenario. The low end estimate assumed that the proposed warehouses will have similar traffic generation rates to the storage and logistics type businesses in the MABP. This was calculated as 1.6 vehicle movements per weekday per 100m2 of gross floor area (total for both directions). Prepared for ABN:

43 22 The high end estimate assumed that the proposed warehouses will have similar traffic generation rates to the transport and logistics or freight forwarder businesses in the MABP. This was calculated as 6.1 vehicle movements per weekday per 100m2 of gross floor area (total for both directions). The site is expected to generate about 1,345 5,030 vehicles per day to the Melbourne Airport Business Park and local road networks. Most of these trips use Airport Drive, Sky Road and the southern part of South Centre Road. Consistent with the nature of these facilities, the site will operate 24 hours per day, seven days per week. Accordingly, the report notes that the most critical traffic period is anticipated to be the morning peak, with traffic demand in South Centre Road possibly exceeding the capacity of the southern section (which only has a single lane in each direction) due to the cumulative effect of new warehouse development within the Business Park. The highest volume to capacity ratio for the AM peak hour is estimated to be between 0.82 and 1.13, which occurs northbound on the single lane segment of South Centre Road, just south of Sky Road. As additional lanes for South Centre Road are not currently required, their introduction will be subject to future demand and traffic warrants. The recently completed Airport Drive extension project involved the construction of a four lane road, with provision to expand to six lanes, with an incorporated median and a shared pedestrian and cycling path. The project provides a new major road access to the airport, connecting the M80 Ring Road to the airport and from the south, the Western Ring Arterial Road, linking the current intersections of Sharps Road/Airport Drive and Melrose Drive/Mercer Drive on the airport site. The network with the Airport Drive addition provides additional capacity to accommodate future increases in traffic as a result of this and other developments within the Melbourne Airport Business Park. Traffic generated from the proposed development will not be required to travel on local residential streets and is therefore unlikely to impact upon residential areas. No impacts are expected on public transport, pedestrians and cyclists. In response to ground transport matters raised by VicRoads and the Department of Economic Development, Jobs, Transport & Resources (DEDJTR) in March 2015, a Supplementary Traffic Report has been prepared by Jacobs (August 2015) which outlines details of the ongoing consultation and transport modelling that has occurred since the submission of the Preliminary Draft MDP. The Supplementary Traffic Report is provided at Appendix H Cultural Heritage Notwithstanding that the proposed development is located entirely within Commonwealth land, the requirements of the Heritage Act 1995 were considered. As outlined previously, a Cultural Heritage Management Plan (CHMP) was recently prepared by Dr Vincent Clark & Associates dated 4 September The Executive Summary of the CHMP is provided in Appendix G. Full copies of the CHMP and Salvage Report may be obtained from APAM on request. CHMP was prepared for Melbourne Airport pursuant to Section 46 of the Aboriginal Heritage Act 2006 and divided the airport site into two sections, with the subject site located within Section 2. During the assessment for the CHMP, 18 artefacts associated with Victorian Aboriginal Heritage Register (VAHR) were recorded within the Melbourne Airport site. The area of the proposed development does not include any sites recorded on the VAHR and has no specific recommendations relating to the site. The recommendations 8.20 to 8.26 from the CHMP must be implemented during the construction phase of the proposed warehouses and are summarised as follows: Copy of the CHMP is to be held on site during works Contingencies must be implemented in the event of previously unidentified Aboriginal cultural heritage material is identified or suspected to be present Cultural heritage awareness training must be implemented prior to any ground disturbing works All costs associated with implementing recommendations and/or contingency requirements must be met by the sponsor of the CHMP (Melbourne Airport). With regards to non-aboriginal heritage, a review of the Victorian Heritage Register and the Hume Planning Scheme Heritage Overlay has revealed that there are no historical sites or places located on the subject site. Accordingly, there is no requirement for any compliance measures to be implemented at this time. However, should any historical (non-aboriginal) cultural heritage deposits or features be uncovered during works, work must cease in the vicinity of the deposits or feature and Heritage Victoria must be notified. Prepared for ABN:

44 Stormwater Impact The Airport Drive and Steele Creek North Stormwater Enhancement Project MDP was approved by the Minister for Infrastructure and Transport on 25 July The Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will be constructed in accordance with the Steele Creek North Catchment Stormwater Strategy and associated MDP approved by the Minister on 25 July Steele Creek North is the largest drainage catchment on the airport site, and runs through the Business Park Precinct. The Steele Creek North Stormwater Enhancement Project will realign the drainage reserve, directing stormwater into four new retardation basins, and enabling the capture and storage of stormwater flows during 1-in-100-year storm events. Steele Creek North currently crosses the subject site, however will effectively be removed from the site through the site the Steele Creek North Stormwater Enhancement Project. This project will realign the creek and drainage reserves, directing stormwater into four new retardation basins, and incorporate vegetated swales along Sky Road East which will also assist in improving water quality. The overall upgrade to stormwater management within the Business Park precinct will assist in appropriately managing stormwater with respect to the increase in impervious areas as a result of the proposed development. The approved Master Plan (2013) demonstrates Melbourne Airport's aim to utilise water-sensitive urban design (WSUD) across all development at the airport. This includes requirements for stormwater harvesting for new projects and project upgrades, and that the resultant water supply should be used for activities such as landscape management and to support bushfires and wildfire control. The Steele Creek North project developed a holistic stormwater infrastructure strategy, consistent with the Master Plan (2013). The strategy included flood mitigation, minor and major stormwater conveyance, and reduction of potable water use via stormwater harvesting and stormwater quality improvement. The Steele Creek drainage system will reduce high volumes and through the use of WSUD will treat flows to a much greater standard than currently being experienced. In addition, it is expected that there will be significant improvements in water quality due to the implementation of WSUD. The strategy adopted natural conveyance systems along the majority of roads to mimic more natural flow regimes. Airport Drive and the realigned Link Road will include vegetated swales which will also aid the improvement of water quality within the catchment. The detailed design of the proposed warehouses will respond to, and make allowance for, these new stormwater systems. The proposed warehouses will seek to incorporate WSUD treatments which will complement surrounding initiatives, including the use of WSUD treatments to remove sediment, nutrients and pollutants, the details of which will be determined during the detailed design phase of the project. Opportunities for stormwater harvesting and re-use will also be considered during detailed design, in accordance with the approved Master Plan (2013). The proposed warehouses will be designed to Australian Standards incorporating flood design controls, including that the finished floor level of the proposed warehouses will be set at a minimum of 300 millimetres above the applicable 100-year flood level. Risk of stormwater contamination from incidents, such as fuel and oil spills, that may occur from workshop activities and refuelling will be assessed in the Operational Environmental Management Plan (OEMP). Controls will be devised and form part of the OEMP. The proposal will be consistent with the comprehensive strategy contained within the approved Airport Drive and Steele Creek North Stormwater Enhancement Project MDP. The final drainage strategy (to be prepared at the detailed design stage of the project, as per the approved Environment Strategy) will incorporate appropriate measures to ensure that there is no contaminated run off leaving the site. It is therefore considered that there is unlikely to be any impacts to stormwater as a result of the proposed Melbourne Airport Business Park Warehouses Noise The Airports Act 1996 requires that a MDP identify whether the proposed development will affect noise exposure levels at the Airport. The proposed development is not expected to have an impact on the noise exposure levels at the airport. With all operations being undertaken inside the new purpose built facilities, there will be no significant noise generated from the premises other than the noise associated with vehicles accessing the warehouses. Additionally, the proposed development is to be sited approximately 290 metres from the nearest residential development. This separation distance will further reduce any potential for noise impacts. Prepared for ABN:

45 24 Appendix J provides a Noise Impact Assessment for the Airport Drive and Steele Creek MDP. Whilst this MDP involved land outside of the proposed warehouse development area, Airport Drive is sited within the intervening area between the proposed warehouse and the nearest sensitive receptors (i.e. residential properties) and is therefore a useful reference document when considering noise impacts Air Quality Air emissions within the Melbourne Airport boundary are regulated by the Airports Act 1996 and the Airports (Environmental Protection) Regulations Results from air monitoring undertaken by the Airport from demonstrated compliance with ambient air quality limits for all pollutants monitored. Following on from this, Melbourne Airport is currently undertaking a five-year ambient air quality monitoring program. Criteria pollutants are being measured, including Carbon Monoxide, Nitrogen Dioxide, Ozone, Particles and Sulphur Dioxide. This provides Melbourne Airport with a good understanding of ambient air quality at the Airport and helps to further understand the impact of operations on air quality. It will enable Melbourne Airport to monitor compliance with Commonwealth legislation and establish background air quality levels at the airport. The monitoring program commenced in December Air quality (dust and criteria pollutants) management procedures will be included in the CEMP and the OEMP. This will include, but not be limited to, the consideration of dust and vehicle emissions, such as truck exhaust emissions. Risk controls will be devised as part of the CEMP and OEMP. Criteria pollutants will be measured as part of the air monitoring program. The proposed development will not emit any smoke, dust or other particulate matter, steam or gas into the prescribed airspace or constitute controlled activities in accordance with Section 182 of the Airports Act If manufacturing is to occur on the site, relevant management procedures will be implemented and licences obtained to ensure air quality standards are met Waste Management The operations at Melbourne Airport currently produce a wide assortment of waste. The management of these materials on site has regard for the following waste management hierarchy: Waste avoidance Waste re-use Waste recycling Energy recovery from waste Waste disposal. The commercial activities pertaining to the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will result in increases in the volume of waste generated at Melbourne Airport. To reduce the amount of waste going to landfill Melbourne Airport has implemented a public place recycling programme into its terminals and has introduced the reuse and recycling of construction waste materials. These measures, such as recycling bins, will be incorporated into the two proposed Business Park warehouses wherever possible. 5.4 Construction Impacts Air Quality Construction will involve excavation, placing and compacting of material and resurfacing. Potential impacts to air quality during the construction process are primarily related to dust emissions and vehicle emissions generated during construction works, such as truck exhaust emissions. As there are no sensitive receptors such as residential properties within the close vicinity of the proposed development, the impacts are likely to be minor but still need to be managed to avoid disruption or nuisance to surrounding activities. Measures to avoid and mitigate dust and air pollution during the construction phase will include: The dampening down of dusty surfaces with recycled water to the extent possible. Covering of stockpiles. Covering of loads. Directing vehicles away from sensitive receivers en route to the disposal area. Prepared for ABN:

46 25 Turning off construction vehicles when not in use. Revegetation of disturbed areas as soon as practical after the complete of earthworks. These measures will also be detailed in the contractors CEMP to be prepared by the contractor prior to construction, as further discussed in Section of this report. Overall the effects from dust are considered to be minor and can be appropriately managed. Additionally, the proposed development is to be sited approximately 290 metres from the nearest residential area which will further reduce the potential for impacts from construction activities Sediment, Erosion, Control and Contamination Construction works will unavoidably generate sediment which has the potential to enter local waterways and stormwater systems during rainfall and storm events. There is also the potential for contaminant runoff during the construction phase which could lead to the contamination of water systems and local habitat. Therefore, measures to avoid and minimise the discharge of sediment and contaminants from the subject site will be employed during the construction phase and will be detailed in the CEMP to be prepared by the contractor prior to construction. Such measures may include: The use of silt fences at low points when required. Runoff diversion swales. Stabilised construction entrances with appropriate rumble pad with all vehicles to pass over this area when entering and leaving the site. Temporary sediment control ponds. Bunded storage and refuelling areas. Spill kit available on site to enable the rapid mitigation of spills and prevent soil or water contamination. Refuelling of vehicles and the washing down of equipment to be undertaken away from drainage lines and natural overland flow paths. These measures will be installed prior to earthworks activities to manage sediment and contaminated runoff before it is discharged into the receiving environment. Topsoiling and revegetation of areas not built on or sealed will be undertaken as soon as practicable during or on completion of earthworks. The processes and procedures for monitoring the erosion and sediment control measures will be outlined in the CEMP to be prepared by the contractor prior to construction Vehicle Movement Potential pollution of the stormwater system from vehicle movement to and from the site during construction phase will be managed via the proponent s contractor through measures which will be outlined within the CEMP. Measures may include: Utilisation of truck wheel-wash facilities to minimise mud being deposited on roadways. Regular sweeping of road crossings when construction vehicles are travelling off-site. All waste transported off-site for disposal will be adequately covered. Installation of shaker grid at entry/exit points, if required Noise and Vibration Noise emissions and vibration during construction will predominately be from demolition, earthworks and from building equipment such as compressed air-driven tools, heavy vehicles working on site and the delivery of materials. There is unlikely to be any impact on local residents during construction due to the location of the works being a significant distance from the nearest sensitive receiver. Under the Airports (Environment Protection) Regulations 1997 noise generated from construction activities should not exceed 75dBa at the site of a sensitive receptor. This limit applies to works conducted both day and night. There are no noise sensitive or vibration sensitive receptors located within close proximity of the subject site. Therefore, the noise and vibration impacts generated from construction activities in this environment would be minor. Prepared for ABN:

47 26 However, in any event the contractor will be required to assess potential noise and vibration emissions and identify mitigation measures if required within the CEMP. Such measures may include the preparation of a noise and vibration construction plan (if appropriate), limiting of construction times, the use of screening or noise barriers and the regular maintenance/ servicing of equipment Waste Management during Construction Measures to reduce the volume of waste generated during the construction phase of the project will be outlined in the CEMP. All Prescribed Waste will be removed in accordance with the Environment Protection (Prescribed Waste) Regulations Flight Paths Section 91(1)(ea) of the Airports Act 1996 requires a MDP to address the potential effects that the development may have on the airport flight paths. In this instance the proposed development will have no impact on the operation of the established flight paths at Melbourne Airport given that the envelope enclosing the proposed warehouse extends to a total height of metres AHD (13.7 metres AGL) which is below the lowest airspace surface (157.5 metres AHD) as discussed in Section 4.7. The proposed development will incorporate building materials, which will minimise glare. Any external lighting will be appropriately baffled in accordance with the National Airports Safeguarding Framework Airport Navigation and Radar Systems Airservices Australia has a radio/data link between their facilities at Melbourne Airport and the control tower located at Essendon Airport. Based on the existing ground levels shown on the preliminary plans, construction heights above 105 metres AHD may impact the Airservices radio link. The total proposed height of the development is metres AHD. Airservices were consulted with regard to any impact on the radio/data link and advised that whilst the link path crosses the proposed development diagonally, it is expected to clear the highest part of the roof (at AHD). However, for the ongoing reliable operation of the link, Airservices require that the following conditions must be complied with: During construction, there will be a need for consideration and management of all activities at heights greater than the proposed finished height of the building of 13.7 metres AGL. The following initial guidelines will need to be followed during construction noting that as planning progresses, these guidelines will need to be reviewed and may require adjustment. As indicated in the previous Melbourne Airport Business Park Warehouse draft MDP, in section Airport Navigation and Radar Systems, Airservices would support APAM undertaking a survey of the link path prior to construction activities commencing to accurately identify what section of the building (if any) is under the link path. This survey would also determine where the cranes and other elevated plant can be located and operated thus avoiding crane operations, including loads, being within the restricted 20metre wide corridor centred on the link path. As stated in Airport Navigation and Radar Systems, Melbourne Airport should provide no less than seven working days notice of any work activities involving cranes, personnel, or materials, which will be detailed within the CEMP. Melbourne Airport will liaise with Airservices Australia throughout the detailed design and construction phases of the project. This will allow Airservices to raise Works Plans to alert users of possible interruption to services, as well as confirming that the alternative path via Gellibrand Hill is operating satisfactorily. Satisfactory operation of the path via Gellibrand Hill will need to be confirmed by Airservices for each work activity prior to the works commencing. Airservices were consulted with regard to any impact on the performance of Precision/Non-Precision Nav Aids, HF/VHF Comms, A-SMGCS, Radar, PRM, ADS-B, WAM or Satellite/Links. In response, Airservices has confirmed that the development of the warehouse to a maximum height of metres AHD will not adversely impact the performance of Airservices Precision / Non-Precision Nav Aids, HF/VHF Communications, A-SMGCS, Radar, PRM, ADS-B, WAM or Satellite Links. In relation to general construction impacts, Airservices has advised that associated plant and crane operations planned for the construction of the development will need to be assessed prior to construction commencement and may present a constraint to the developments. Airservices will require construction advice prior to commencement which should address factors such as: Prepared for ABN:

48 27 The potential for distraction, glare and/or reflection during the delivery, lifting and handling of building materials for the Airport air traffic controllers; The potential for impacting underground services and the need to develop contingencies to ensure that any potential communications/navigation/surveillance links and utilities supplies are not disrupted; and Lighting on the construction site that may cause distraction, glare and/or reflection to the Airport air traffic controllers monitoring the manoeuvring area. Melbourne Airport will provide no less than seven working days notice of any work activities involving cranes, personnel, or materials, which will be detailed within the CEMP. Melbourne Airport will liaise with Airservices Australia throughout the detailed design and construction phases of the project Runways and Approach / Departure Paths A key consideration in the planning of the proposed warehouse development is the potential impact on aircraft operations at Melbourne Airport. In particular, the location of the proposed development versus the orientation of Melbourne Airport s runways and the associated aircraft approach/departure paths (and extended runway centrelines) should be considered. It is noted that the Master Plan (2013) protects a possible ultimate extension of Runway 16L/34R at the northern end of the airfield. At its closest point, the site is situated approximately 2.0 kilometres from the extended centre line of Runway 34R. Within the intervening area, land is used for the Airline Maintenance Base and non-aviation development comprising warehouse style development similar to the proposed development. A proposed third runway identified within the Master Plan (2013) will be approximately 3,000 metres long and 60 metres wide. Designated as 09R/27L, the third runway will lie approximately 2,035 metres south of the existing east-west runway. The site is located approximately 1.85 kilometres (in a diagonal direction) from the future threshold of Runway 27L and over 2.0 kilometres from the future extended centre line of Runway 27L. Runway 09L/27R and a possible fourth runway are located beyond Runway 16L/34R and the proposed Runway 09R/27L. The proposed development will not impact on existing and future approach and departure paths at Melbourne Airport Windshear There are currently no regulations relating to building induced windshear at airports. Nevertheless, Guideline B of the National Airports Safeguarding Framework (NASF) provides a framework for assessing windshear impacts. NASF Guideline B states that if the distance of the building from the runway centreline, or the edge of the runway (threshold) is less than 35 times the proposed building height, then the building requires further assessment to determine whether there will be potential windshear impacts. The proposal should not result in building-generated windshear impacts given the substantial intervening distance between the development and the runway threshold. 5.6 Summary of Impacts An environmental assessment of this project has been undertaken to satisfy the requirements under Section 91(a)(h) of the Airports Act A summary of the potential impacts of the development and any required mitigation measures are included in Table 3. Table 3 Summary of Impacts and Required Mitigation Impact Social and Economic Impacts Level of Impact Mitigation Employment Positive impact on employment in the local region and broader State N/A The proposal is expected to result in the creation of approximately 510 (lower) to 1700 (upper estimate) operational jobs in addition to jobs during construction. Broader Social Benefits Positive impacts - facilitate the movement of goods throughout the city, interstate and globally and N/A The proposal is expected to result in a range of broader social benefits. These include connecting Melbourne to other cities and enhancing employment opportunities. Prepared for ABN:

49 28 Operation Impacts Impact connecting communities, people and markets Level of Impact Mitigation The proposal will also enhance Victoria s position as the Freight State in which Melbourne Airport is recognised as a key freight and logistic gateway with a role as a nationally significant freight distributor. Traffic Potential for minor congestion on the southern portion of South Centre Road. Low- Medium The Traffic Impact Assessment recommended that traffic volumes be monitored following the opening of Airport Drive in 2015 (recently completed) and a further assessment of intersection requirements and traffic signal phasing can now occur. As additional lanes for South Centre Road are not currently required, their introduction will be subject to future demand and traffic warrants. The majority of areas of the road network will be able to accommodate the increased traffic associated with the proposed development. Some areas (such as the Keilor Park Drive and Sharps Road intersections) may experience capacity issues in the future; however these areas are expected to have capacity issues even without the introduction of traffic associated with the proposed development. Stormwater Pollution of stormwater system Negligible Stormwater system to incorporate appropriate devices to capture pollutants. There will be regular monitoring of stormwater devices. Noise emissions Impact on sensitive land uses Negligible The site is situated some distance from sensitive land uses with vegetation and noise walls acting as a buffer between the uses. No further mitigation required. Air Quality Discharges to air from vehicles, including trucks. Low Existing air quality modelling and monitoring undertaken by Melbourne Airport as per the Environment Strategy (2013). Melbourne Airport is undertaking a five-year ambient air quality monitoring program. Criteria pollutants will be measured. The monitoring program commenced in December Waste Management Increases in the volume of waste generated at Melbourne Airport Low Melbourne Airport has implemented a public place recycling programme into its terminals and has introduced the reuse and recycling of construction waste materials. These measures, such as recycling bins, will be incorporated into the two proposed Business Park Warehouses wherever possible. Construction Impacts Air Quality Air pollution due to dust and machinery emissions during Low - The dampening down of dusty surfaces. - Covering of stockpiles and loads - Directing vehicles away from sensitive Prepared for ABN:

50 29 Impact construction. Level of Impact Mitigation receivers en route to the disposal area. - Turning off construction vehicles when not in use. - Revegetation of disturbed areas as soon as practical after the complete of earthworks. Sediment and Erosion Vehicle Movement Pollution of stormwater from sediment in runoff; spillages Potential pollution of the stormwater system from vehicle movement Low - Silt fences at low points. - Runoff diversion swales. - Stabilised construction entrances with appropriate rumble pad with all vehicles to pass over this area when entering and leaving the site. - Temporary sediment control ponds. - Bunded storage and refuelling areas. - Spill kit available on site. - Refuelling of vehicles and the washing down of equipment to be undertaken away from drainage lines and natural overland flow paths. Low Utilisation of truck wheel-wash facilities to minimise mud being deposited on roadways. Regular sweeping of road crossings when construction vehicles are travelling off-site. All waste transported off-site for disposal will be adequately covered. Installation of shaker grid at entry/exit points, if required. Noise and Vibration Increased local noise and vibration from equipment and works Low Compliance with the Airports (Environment Protection) Regulations criteria that noise generated from construction activities should not exceed 75dBa. Additional measures will be identified within the CEMP if considered necessary. Waste Management Pollution of local environment, including waterways Low Measures to reduce the volume of waste generated during the construction phase of the project will be outlined in the CEMP. All Prescribed Waste will be removed in accordance with the Environment Protection (Prescribed Waste) Regulations Flora and Fauna Impacts on flora and fauna of the area Significant The proposal was referred to the DoE who confirmed that the proposed development would have, or be likely to have, a significant impact on the environment and matters of national environmental significance (MNES), particularly on threatened species and communities listed under the EPBC Act, including Natural Temperate Grassland of the Victorian Volcanic Plain community (NTGVVP), which are to be cleared prior to commencing the proposed development. Prepared for ABN:

51 30 Impact Level of Impact Mitigation Offset measures to mitigate removal of this vegetation are proposed and an Offset Management Plan has been prepared. Cultural Heritage Impacts on items of aboriginal or nonaboriginal cultural heritage Low CEMP to outline procedure to be followed in the event that an item of heritage significance is uncovered during construction. Flight Paths Airport Navigation and Radar System Interference with Airport Navigation and Radar System Low The development will have no impact on the existing Airservices radio data link communication with Essendon Airport as the site is to be a maximum height of metres AHD. Runways and Approach / Departure Paths Interference with aircraft operations Low An assessment against the current and future planned aviation development at the airport has demonstrated that the proposed warehouses will not interfere with runways and approach / departure paths. Prepared for ABN:

52 ENVIRONMENTAL MANAGEMENT 06

53 31 06 Environment Management 6.1 Environment Policy Melbourne Airport has an Environment Policy which requires proactive communication and interaction with business partners and other stakeholders to implement defined environmental management principles. The Environment Policy for Melbourne Airport is provided at Appendix E. This includes working with business partners and other stakeholders to comply with all applicable environmental laws, policies and procedures, and where possible exceed these requirements. 6.2 Environment Strategy (2013) The Melbourne Airport Environment Strategy (2013) sets out the processes and procedures for the management, monitoring and auditing of environmental impacts. All developments and activities within the Melbourne Airport precinct must comply with and meet the requirements under the Environment Strategy (2013). The key objectives of the Environment Strategy (2013) relevant to the proposal are identified in Table 4 below. The environmental assessment in this MDP addresses these objectives. Table 4 Melbourne Airport Environment Strategy (2013) Key objectives relevant to the MDP Strategy Environmental Management Ecologically Sustainable Design Energy and Climate Change Waste and Resource Management Water Consumption Surface and Groundwater Quality Biodiversity and Conservation Management Cultural Heritage Land Management Key Objective To maintain and continue to improve environmental management, monitoring, reporting and certifications Increase the adoption of ecologically sustainable development principles in developments To make a material reduction in energy consumption and operational greenhouse gas emissions to enable Melbourne Airport to progressively move towards carbon neutrality Reduce waste disposed to landfill by Melbourne Airport managed facilities To reduce potable water consumption across Melbourne Airport managed areas Improve stormwater quality to achieve leading-edge standards Conserve and actively manage biodiversity values at Melbourne Airport to improve the quality and condition of native vegetation and fauna habitats To ensure indigenous and non-indigenous sites (historical) cultural heritage sites are protected at Melbourne Airport, in accordance with Commonwealth and State legislative requirements. To undertake all reasonable and practical measures to ensure land is managed appropriately and contamination is avoided at Melbourne Airport Prepared for ABN:

54 Environmental Management Measures The process and procedures for managing operational and construction related impacts at the airport are set out under the Airport s Environment Strategy (2013) Construction Environmental Management Plan The purpose of a Construction Environmental Management Plan (CEMP) is to either eliminate or significantly reduce the impacts of construction on the environment to the satisfaction of Melbourne Airport and the Airport Environment Officer. Before construction commences, the development contractor(s) will be required to prepare and submit for endorsement by the Melbourne Airport Environment staff, a CEMP covering all aspects of the construction of the new Business Park Warehouse and associated road works. This plan must include a monitoring, auditing and reporting system to be used throughout the duration of the project. Melbourne Airport s CEMP requirements are set out under Appendix K of this MDP. The CEMP will be submitted to Melbourne Airport Environment staff and potential impacts will be addressed in the form of conditions placed on the project through the CEMP, which may, for example include monitoring of noise, sediment and erosion control, restrictions on times/days of operation and the types of plant and equipment to be used for the project. Regular site audits will be carried out by Melbourne Airport Environment staff to ensure compliance with the approved CEMP. The Airport Environment Officer will also be involved in the site audits Operational Environmental Management Plan Operational Environmental Management Plans (OEMPs) are required to be prepared by all operators of significant facilities (such as airlines), at Melbourne Airport. It is therefore likely that an OEMP will be required to be prepared by the operators of the new warehouse. If required, an OEMP must be produced/ updated each year. Melbourne Airport Environment staff will provide assistance in preparing the OEMP and will also ensure that the OEMP is approved and in place prior to the commencement of operations at the site. Once in place, an annual audit of the OEMP processes and the effectiveness of the management techniques will be conducted by Melbourne Airport Environment staff and the Airport Environment Officer. The audit will evaluate items proposed in the OEMP and the compliance with the specified standards and procedures. OEMP s are required to be reviewed and updated annually. Prepared for ABN:

55 CONSULTATION AND APPROVAL PROCESS 07

56 33 07 Consultation and Approval Process 7.1 Consultation Objectives Melbourne Airport is committed to maintaining an open and transparent relationship with local communities and stakeholders. This commitment is underpinned by a genuine desire for Melbourne Airport to be positioned within the community as a responsible corporate citizen and meeting the requirements under the Airports Act 1996 for community consultation. General objectives for consultation on the MDPs have been to: Engage and inform key stakeholders about the project. Achieve early identification of issues, develop appropriate management strategies and reduce the risk of project delay or project refusal. Differentiate the proposed development from other infrastructure and planning projects being developed or proposed within the region. Achieve high stakeholder satisfaction levels with the consultation process (e.g. providing timely and accurate information and ensuring the feedback process is accessible and inclusive). Maintain and enhance community and industry perceptions. 7.2 Consultation Strategy The consultation actions outlined below were undertaken during the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine MDP process Consultation of the Preliminary Draft MDP During the preparation and consultation period of the Preliminary Draft MDP, the following stakeholders were notified of the project, in accordance with Section 92(1A) of the Airports Act 1996: Commonwealth Government - Department of Infrastructure and Regional Development (DoIRD) - Department of Environment (DoE) State Government - Department of Environment, Land, Water and Planning (DELWP) - Department of Economic Development, Jobs, Transport and Resources (DEDJTR) - VicRoads - Tourism Victoria Local Government - City of Hume - City of Whittlesea - Moreland City Council - Maribyrnong City Council - Melton City Council - Brimbank City Council - Moonee Valley City Council Other Consultees - Melbourne Airport Community Aviation Consultation Group (CACG) Prepared for ABN:

57 34 - Planning Coordination Forum (PCF) - Melbourne Airport Transport Committee - Airservices Australia - Civil Aviation Safety Authority (CASA) Consultation with VicRoads is ongoing. Melbourne Airport will continue to liaise with VicRoads through the Planning Coordination Forum (PCF). Representatives of Melbourne Airport have made several presentations to both the CACG and PCF on the two proposed warehouses and future development within the Business Park. Other agencies have had the opportunity to comment on the MDP during the public exhibition period consistent with other Business Park MDPs. The proposal is entirely consistent with the Master Plan (2013) and is unlikely to result in any amenity impacts in residential areas due to the significant separation distances and buffers between land uses. The Traffic Impact Assessment that has been prepared for the proposed development indicates that the majority of areas of the road network will be able to accommodate the increased traffic associated with the proposed development. It was therefore considered that community consultation would be effectively achieved through the public exhibition of the Preliminary Draft MDP as well as via ongoing consultation by Melbourne Airport with the CACG Statutory Exhibition of Preliminary Draft MDP As part of the statutory requirements prescribed by the Airports Act 1996, a Notice was placed in a Victorian newspaper (The Herald Sun) on 15 December, 2014, which included the following information: A Preliminary Draft MDP had been prepared and the public exhibition period; Copies of the Preliminary Draft version of the MDP were available for inspection and purchase by members of the public during normal office hours throughout the consultation period specified in the notice; The place or places where the copies were available for inspection and purchase; The Preliminary Draft version of the MDP was available free of charge to members of the public on the airport s website throughout the consultation period specified in the notice and the details of the airport s website; and Inviting members of the public to give written comments about the draft version to the company within the consultation period specified in the notice. Section 92(2A) of the Airports Act 1996 specifies: (2A) The consultation period is: (a) a period of 60 business days after the publication of the notice; or (b) a shorter period (of not less than 15 business days after the publication of the notice) that is approved by the Minister. (2B) The Minister may, by written notice, approve the shortening of the consultation period if the Minister: (a) is requested in writing to do so by: (i) the airport-lessee company; or (ii) another person with the written consent of the airport-lessee company; and (b) is satisfied that: (i) the draft major development plan aligns with the details of the proposed development set out in the final master plan; and (ii) the proposed development does not raise any issues that have a significant impact on the local or regional community. A consultation period of 60 business days was undertaken from 16 December 2014 to 18 March Prepared for ABN:

58 Submission to Minister The Draft MDP was submitted to the Commonwealth Minister for Infrastructure and Regional Development. The submission ensured appropriate consideration was given to all responses received as a result of the consultation on the Preliminary Draft MDP. Submissions received and consultation outcomes were summarised into a report (Melbourne Airport Business Park Warehouse MDPs Supplementary Report, February 2016) which was submitted with the Draft MDP. The MDP was subsequently approved by the Minister for Infrastructure and Regional Development on 31 December A copy of the Minister s approval letter is attached at Appendix L. Prepared for ABN:

59 CONCLUSION 08

60 08 Conclusion The Master Plan (2013) strategically identifies the further development of the remaining 146 hectares of vacant land within the Melbourne Airport Business Park for large industrial warehouses and distribution centres ranging in size between 10,000 to 100,000 square metres. Melbourne Airport has recognised an opportunity to further this vision through the development of large warehouses of up to100,000 square metres, enabling them to be market ready for industries seeking to develop within the Melbourne Airport Business Park. This MDP has outlined that the proposal is consistent with: The provisions of the Airports Act 1996 (including Regulations) The Melbourne Airport Lease The Melbourne Airport Master Plan (2013) The provisions of the EPBC Act 1999 (including Regulations) State and local planning policy and provisions Melbourne Airport Ultimate Capacity Australian Noise Exposure Forecast Prescribed Airspace. The MDP has also assessed the potential environmental impacts of the proposal, including flora and fauna, heritage and traffic impacts. As outlined in the report, the impacts, if any, will be marginal and can be appropriately managed through the CEMP and the OEMP. The environmental assessments have concluded that: The development will not affect any known sites of Aboriginal or non-aboriginal heritage. The development will not have any implications under the EPBC Act relating to listed threatened flora, fauna and ecological communities. The proposed warehouses can be incorporated into the business park without changes to the surrounding road network. The surrounding infrastructure, including the road network, has been designed to support the full development of the Melbourne Airport Business Park, including the proposed warehousing facilities. The existing road network and infrastructure has been further enhanced by the opening of Airport Drive and the realignment of Link Road. The majority of areas of the road network will be able to accommodate the increased traffic associated with the proposed development. Some areas (such as the Sharps Road intersections) may experience capacity issues in the future; however these areas are expected to have capacity issues even without the introduction of traffic associated with the proposed development. The proposal will not result in adverse amenity impacts on any residential properties or other sensitive land uses. It is considered that with the implementation of the mitigation measures proposed within this MDP and the development and implementation of a CEMP, the proposal will not result in any adverse environmental and social impacts. The proposed development is entirely consistent with the Master Plan (2013) for Melbourne Airport and will be a positive and compatible development within the Melbourne Airport Business Park.

61 AECOM AECOM Australia Pty Ltd Level 10, Tower Two 727 Collins Street Melbourne VIC 3008 Australia T F ABN Melbourne Airport Business Park Warehouse Site 1 (Link Road) Sep-2016 Prepared for ABN: