SOPBiz #2 April 07

McDonalds on Olympic Boulevard

McDonalds at Sydney Olympic Park could well be one of the most unique McDonalds outlets in Australia.

It is not on a main road, is not in a residential hub (yet) and is subject to the often unpredictable nature that an events-driven precinct provides.

Having said that, McDonalds on Olympic Boulevard is showing its faith in the future of the site and its own operation by undergoing an expansion. The refurbishment will make it a state-of-the-art outlet with an improvement in service times and an increased range of products on offer to customers.

It is hoped to have the refurbished outlet open in the third quarter of this year in time for the NRL Finals Series and the opening of the first CBA building with 700 more office workers on site.

The three most popular products sold at the restaurant are the traditional Big Macs and Double Cheese and Cheese Burgers. This may change however when the product range is expanded with the new Made for You kitchen design which can produce a burger in 40-60 seconds, compared to up to five minutes currently.

McDonalds Olympic Boulevard has been managed by Bobby Handa for five months. He was previously at Stanmore McDonalds where the business was very different.

' We knew what we would turnover every hour at Stanmore. Sydney Olympic Park is very different, but very exciting at the same time with the growth in the area that I have seen in a short space of time.' said Handa.

The Operations Consultant for McDonalds Olympic Boulevard, Phillip Raish, has also seen the precinct grow since the outlet first opened in 2000.

' We have increased our trading hours from closing at 5pm to staying open to 9pm or even later depending upon events in the precinct,' said Raish.

' To accommodate the bigger crowds on major event days we now utilize hand held order takers and work the queues to have their orders ready by the time our customers get to the counter.'

McDonalds Olympic Boulevard employs up to 25 people on major event days and is open from 6.30am to accommodate the on-site constructions workers and the early-starters.

A small EspressoPronto is FREE with any Burger or McMuffin on presentation of your SOPBA Rewards Card. Check the Rewards section of the website for details of the offer .

CAPTION: Phillip Raish (left) and Bobby Handa (Right)

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March Board Meeting Update

New Vice-President for SOPBA

At the SOPBA Board meeting on 19 March, Alby Taylor was confirmed as the new Vice-President of SOPBA. Alby, the Chief Executive of Gift & Homewares Australia , replaces Paul Richardson from the Accor Group.

New Corporate Member

At the same meeting the Board also approved the application of Colonial First State Properties to become a Corporate member of SOPBA.

Snippets from SOPA

A proposal for the construction of a private, primary/secondary school specialising in sport and the environment has been received. Plans for a public school also are featured in the master plan. To date the Department of Education has not expressed interest in the construction of schools at the Park.

A concept paper for a College of Sport and Health has also been developed which would compliment the existing education proposals.

Commercial negotiations for Site 8 (Cnr Australia Ave & Murray Rose Ave) are on target to conclude by the end of March, beginning April.

Site 13 (Cnr Olympic Boulevard & Sarah Durack next to SOPSC) is experiencing design issues due to the high profile location of this building. A high quality design outcome is still around two months away for this commercial operation.

An outcome of the ongoing negotiations with Hockey Australia to relocate to SOP should be known within four weeks. It is between Perth and Sydney. The former is the current home of Hockey Australia with some political pressure to keep it in Perth.

More from SOPA follows.

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Your specific traffic and transport queries answered

Q. How can you possibly have a meeting in Parkview Drive when street parking is limited to only 15 minutes?

A. All buildings have visitor parking to facilitate people attending meetings, however many of these are used by staff.

The 15 minute time limit was designed to accomodate people popping in and out the Quad Cafe for a coffee, not for people using the Cafe as a meeting location. However consideration will be given to extending some of the spaces to 30 minutes, with the ones immediately in front of the cafe remaining at 15minutes.

Further consideration is being given to an additional five, street parking spaces near Parkview Drive.

Q. What impact is the CBA going to have on site and what measures are being put in place to assist with the increased number of employees on site.

A. To accomodate the additional staff on site from August, SOPA and the CBA have been working together to ensure that impacts on the site are minimised, that the influx of new staff are encouraged to utilise public transport and that the new Park employees enjoy the experience of working at Sydney Olympic Park compared to the CBD.

To that end the following measures have been put in place.

- Commencing on 27 August, 700 CBA employees will move on site over a four week period. Three new bus services will be operational by then. They are detailed below . It is anticipated that 20% of CBA staff will use public transport.

- The CBA itself is funding additional bus services, including buses from Bondi Junction and Manly Wharf to Sydney Olympic Park.

- The CBA is also funding shuttle services for CBA staff to go to the Newington Market Place, Rhodes and North Strathfield at lunchtime to attend to bill paying etc. Again this is to discourage the use of private vehicles.

- The structure of working hours in the CBA operations will be staggered, with one of the three operations moving out in August being a Call Centre. Split shifts will also ensure a spread of arrivals and departures into and out of the Park.

- SOPA are working with CBA on educating those driving as to the variety of entry points into the Park, including Holker and Hill Roads and Birnie Avenue. This is lessen the traffic using Australia Avenue.

-To also help with traffic management, lights on the corner of Herb Elliott Driver and Australia Avenues become operational.

New Bus Services

-6 minute frequency bus services from/to Strathfield Station
-15 minute frequency bus connections from/to Chatswood(and Northern Suburbs)
-15 minute frequency bus connections from/to Hurstville ( via Berverly Hills and Wiley Park)
-10 minute frequency public transport service from Lidcombe Station.

The enhanced Sydney Bus services will include:

-an extended service between Hurstville and Sydney Olympic Park and Burwood and Sydney Olympic Park
-an extended service between Chatswood and Sydney Olympic Park ( providing a link to the Northern Beaches)
-an increased frequency of transport between Lidcombe Station and Sydney Olympic Park.

Q. The technology in the car parks is 10 years old next year. What is happening to make the car parks work more efficiently.

A. SOPA is currently exploring the use of bar code technology to make it more in line with venue ticketing technology. The aim is to be able to print off your own pre-paid car parking ticket from home to avoid having to line up at a Ticketek outlet to collect a pre-paid parking ticket.

In the next edition of SOPBiz a more detailed look into improved car park technology will be included.

If you have a specific question you would like raised please email your query by 20 April for inclusion on the next Traffic and Transport meeting agenda between SOPBA and SOPA.

SOPA update on major projects

The following is a comprehensive update on major projects in and around Sydney Olympic Park provided by the CEO of SOPA, Brian Newman, for the SOPBA Board.

Should you have any questions on any of the following items that you would like SOPBA to follow up with SOPA on your behalf, please email them to karen@sopba.com.au.

MASTER PLAN / VISION 2025

In summary:
* Master Plan 2025 is 95% complete.

* Completion of the Financial Model and Infrastructure Funding Plan is imminent.

* The drafting of a new State Environmental Planning Policy by Parliamentary Council will commence once the Minister for Planning gives approval-expected to be after the State Election.

* It is now expected that the Plan will go before Cabinet when it resits after the State Election, following which it will be formally submitted to the Department of Planning who will place the Plan on public exhibition. The timing of this will depend on Cabinets agenda post Election and when SOPA can brief and obtain endorsement from its new Minister.

Comment:
Developing the Plan has been a complex and challenging task, seeking to balance the needs of an internationally significant major events destination with those of a new residential, commercial and educational community. Extensive consultation with key stakeholders (including SOPBA) has taken place, resulting in significant modifications to earlier versions of the Plan.

The Plan breaks new ground in many areas-as a new urban model; the management framework for protecting the place of events at the Park; the introduction of Planning Agreements; the funding model; and the statutory planning framework. The scale and complexity of this Plan cannot be underestimated - it is one of the most significant urban planning proposals initiated in Sydney.

Master Plan 2025 has evolved out of Vision 2025 which has been accepted in-principle by the Department of Planning and is being used as the urban design framework for the Departments consideration of new development proposals such as the Soffitel Hotel. Hence, whilst the finalisation of Master Plan 2025 is behind the originally estimated dates, it has not delayed development progress at the Park as new DAs have been dealt with under the planning and urban design framework of Vision 2025.

SPORTS PLAN

SOPAs Sports Plan outlines the Authoritys vision to build sport at a participatory, developmental and elite level at Sydney Olympic Park and build its position as Australias premier sports precinct. It includes some big ideas(such as The Pantheon of Sport), the implementation of which relied on attracting significant levels of Federal and State funding, the latter proving particularly difficult. It should be noted that these ideas are valid for the lifetime of Sydney Olympic Parks development, not for realisation in year 1 or year 2 of as 20 year project.

Plans to establish a Sports House at Sydney Olympic Park were taken to a penultimate point of government endorsement in 2004, however, funding was not forthcoming, a situation over which SOPA had no control.

Negotiations to secure the Bulldogs administrative and training headquarters at Sydney Olympic Park remain ongoing with a revised proposal imminent.

The Sports Plan also includes a range of programmatic proposals that offered more achievable opportunities to improve and broaden the place of sport at Sydney Olympic Park. Some of these initiatives are outlined below:

COMMUNITY SPORT

* Created the precincts first annual community sports festival event -Festival of Cycling in October each year attracting over 25,000 people to a community cycle ride event trade show, cycle criterium racing and a range of cycle relate programs.

* Supported the development of the Fathers Day Fun Run 2006, 2007 and 2008.

* Sydney Spring Cycle 2005, 2006 and 2007

* Weetbix Try Athalon 2005, 2006, 2007

* AROC Adventure Race 2005 and 2006

* Kids in the Park holiday program, introduced and continue to coordinate a number of new clinics in a variety of sports, including the Parks home teams.

* Assisted the rugby league home teams in the delivery of fan days and the promotion of their home games.

ELITE SPORT

Entered into partnership contracts with national and State sporting organisations. Worked with the DSR [International Grants Program], the AOC and the NSW Major Events Board to support the delivery of a range of events including:
* Australian Youth Olympics Festival 2001,2003,2005 and 2007. 2009.
* National Mountain X Series 2005, 2006 and 2007
* Sydney Olympic Park Netball Cup 2004 & 2005
* Australian Athletics Championships 2004, 2005, 2006
* Athletics Australia All Schools Championships 2004, 2005,2006
* 2005 Telstra FINA World Cup
* 2006 Swimming Australian Age Championships
* 2007 Duel in the Pool -USA vs Australia
* 2008 Australian Swimming Championships & Olympic Trials
* Monster BMX Games
* Davis Cup ties
* Maccabi Games Australia International Games 2006 & 2010
* 2003 Rugby World Cup
* World Masters Games 2009
* Home Team support includes SOPA sponsorship for the Sydney Swifts and West Sydney Razorbacks

SOPA has also worked with other stakeholders to secure the commitment of sporting organisations and businesses interested in relocating to Sydney Olympic Park, including:
* Australia Sports Commission-Active After Schools Unit 2005 (accommodated within Telstra Stadium).
* Australian Paralympic Committee headquarters
* Golf Driving Range-placement of operator
* Archery Park-placement of operator
* Bid submission for the ARU/ Camp Wallaby (subsequently unsuccessful)
* Bulldogs Rugby League Club headquarters and training (remains under negotiation)
* Hockey High Performance Program, acquisition in collaboration with the State Sports Centre Trust and Hockey NSW-bid under consideration by Hockey Australia.
* NSW Weightlifting relocation to the Sydney Olympic Park Sports Centre.

CENTRE OF EXCELLENCE

In 2006 SOPA initiated a critical study into the Parks sports field requirements for elite and community use. The Study identified the concept of a Centre of Excellence- a one stop shop elite training facility incorporating playing fields for AFL, cricket, soccer, rugby and rugby league incorporating elite gymnasium, hydrotherapy, rehab and sports testing facilities. The concept has gained support from SOP venues and a variety of sports that support venue product for both Telstra Stadium and Sydney Showground.

Expected MOU support includes: Cricket Australia, AFL, NSW/ACT AFL, Tennis NSW, FFA, Soccer NSW, SFC, Athletics Australia, Bulldogs, ARU and NSW Rugby Union.

NEW SPORTS RELATED FACILITIES

*Monster Skate Park - developed and launched Nov 2005.
*Monster Mountain X - developed and launched Nov 2005.
*Planned BMX facility planned for opening in 2007 (secured $200K Federal govt support; $100K from local government and $100K by SOPA.)
*Working with State Sports Centre Trust to develop Beach Volleyball facility in 2007.

PROPERTY DEVELOPMENT

* SOPA has now secured private sector commitment to new property development projects having a market value of just over $1 billion.

These projects include:
*The Commonwealth Bank of Australia’s office campus-this project will see more than 5,000 employees relocate to the Park from mid-2007. It constitutes one of the largest property leasing transactions recorded in Sydney in the last 20 years.

*Two (2) new Accor Group hotels including a 5 star Sofitel and a 2 star Formulae 1. These projects will take the total number of beds at the Park to around 700.

*The Sydney Olympic Park Private Hospital-a 12,000m2 hospital specialising in orthopaedic surgery, plastic surgery, hand surgery and sport rehabilitation.

*The WaterView convention, restaurant and café facility within BiCentennial Park.

*A $300M+ residential project involving the development of four towers on Site 3 by the Multiplex:Babcock & Brown consortium. [It should be noted that SOPA has no control over the activation of these buildings. Once a site such as Site 3 is sold under contract by SOPA, it is the Lessee’s responsibility to secure investment commitments and progress the project, not SOPA.

In addition to the above projects, the Authority is at various stages of commercial negotiations for the following projects:
- Eat Street
- A primary/secondary school for up to 1,000 students
- A 8,500m2 commercial office development on ‘Site 8’ (Murray Rose Ave)
- A 13,000m2 commercial office and retail development on Site 13 -Sarah Durach Ave.

Comment:
Conditions in the residential property market have resulted in a delay in the commencement of construction of planned residential apartments on Site 3 by the Lessee. Development consent for the first of the towers is expected in the first half of 2007 with a pre-marketing campaign about to commence.
SOPA is fast approaching the point where it has a limited number of new commercial development opportunities available in its land bank.
By late 2007/early 2008, Sydney Olympic Park is expected to be one of the busiest construction precincts in Sydney.

BLAXLAND COMMON / ARMORY / WHARF

* Blaxland Riverside Park designed, constructed and opened. The development includes an extension of Jamison Road to the riverfront and provides picnicking facilities and amenities. A kiosk food and beverage offer will be operating from the Wharf on weekends.

* Parklands Foundation established; Board and management team appointed; business office opened. $1 million in funding secured.

* New accommodation facility in the Armory (the Sydney Olympic Park Lodge) - established and operating successfully under YMCA management

* New cultural programs established. Numerous buildings within the Armory have been renovated and are now being well used by the Sydney artistic community through exhibitions, the Authoritys artists-in-residence program, artists studios and the like.

* A variety of community programs, education programs, tours and events have also been implemented to activate the Blaxland Common/Armory precinct including events such as the Great Escape, ArtExpress, environmental seminars etc.

EDUCATION

* ICESSM (now called Sports Knowledge Australia) - established and operating from Sydney Olympic Park.

* Sydney Olympic Park Education brand established and successfully marketed into the schools sector (private/public).

* Suite of educational products developed-Sydney Olympic Park offers the largest range of excursion orientated curriculum based educational products in Australia. SOPA is looking to grow its education presence through partnerships with private education providers and through the in-house development of commercially viable product in the science, design and technology, sports/lifestyle, environment, urban studies, health sectors.

* Proposal to establish a College of Sport & Health awaiting Cabinet consideration

* Education Campus defined within Master Plan 2025.

* SOPA is pursuing opportunities with both government and non-government providers to nine (9) sites in the sports and education precinct. Proposals relate to higher education, vocational education, school education and adult community education.

* Following a recent review of its educational activities, a specific Education Unit has been created to align development, marketing and delivery of SOPA educational programs. In 2005 approximately 421,000 school students visited Sydney Olympic Park. SOPA initiatives will further improve school market penetration and extend into new markets (eg Adult Education).

EAT STREET

* Efforts to secure a developer for the Eat Street concept have to date proven unsuccessful due to the high level of risk perceived by developers/investors at this early stage of Sydney Olympic Parks development. Notwithstanding, there is sufficient evidence that this project will secure a commitment when market conditions are perceived to be suitable.

* SOPA believes that the concept of an Eat Street is sound, it is a question of market readiness that stands in the way of an investment commitment coupled with the limited number of operators and investors capable of delivering such a project.

* Negotiations continue with potential investors/operators and SOPA is confident that it will package this important place-making element that remains a high priority.

* SOPA is currently seeking to obtain a DA for the Yulang Pub component with a view to increasing the prospect of successfully progressing the development opportunity once there is a greater critical mass of people on site.

RAS REDEVLOPMENT AND EXPANSION

* SOPA and the RAS are working closely together to ensure that Sydney Olympic Park is part of a Government solution to how Sydney addresses an expected increase in demand for exhibition and conference events in the years ahead.

* A recent Property Council:TTF Report recognised the benefits of the Showground exhibition centre forming part of the solution to this issues.

* SOPA will be working with the RAS, the Department of State & Regional Development and Mr John ONeill to position Sydney Olympic Park and its Showground facilities as the Government looks to make a decision on this matter-expected 2007/08.

SPORTS CENTRE FIVE YEAR REDEVELOPMENT

* Provision has been made in Master Plan 2025 for the Sports Centres expansion.

* Following completion of Master Plan 2025, SOPA is expecting to initiate the preparation of a Concept Plan for the amalgamation of Sports Centre facilities at Sydney Olympic Park.

SOPAC

* SOPA is currently seeking government approval to initiate an Expressions of Interest process for the expansion and enhancement of the Sydney Olympic Park Aquatic Centre (SOPAC) under a PPP arrangement.

* A decision from Government is expected post the 2007 State Election.

SOCIAL INFRASTRUCTURE

* Approximately 20 retail outlets will be incorporated into the CBA buildings on Sites 5, 6 , 7 & 8.

* Details of proposed social infrastructure are outlined in Master Plan 2025 and the associated Infrastructure-Funding Plan.

CAPITAL WORKS PROGRAM

* SOPA has successfully implemented a $20 million capital works program within the Parklands of Sydney Olympic Park over the years 2004-2007.

* Treasury funding for Stage 2 of the Parklands development has been delayed due to wider budgetary considerations.

LEISURE/TOURISM PRODUCTS

* A number of new products have been introduced including the audio tour, bicycle hire and the Bicycle Safari circuits. Cycling has shown phenomenal growth, with the rolling 12-month average increasing from 27,000 cyclists per month in January 2005 to more than 57,000 per month by December.

* The Brickpit Ringwalk was opened in late December 2005 and has proven to be an exciting new addition to the Park.

* Extensive work has been conducted with Telstra Stadium to improve the performance of the Telstra Explore product. This work appears to be reaping dividends with the product beginning to show growth following a pattern of declining sales.

* The Bel Parco restaurant, Lilies Café, and Waterview Convention Centre, opened in September 2005, have been a valuable addition to Bicentennial Park. Parklands products have been reviewed and products such as Meet the Ranger walks, Clue trail and twilight frog tours introduced. Total Parkland visitations increased from 1.2m to 1.5m in 2005.

* The Kids in the Park school holiday program has been enhanced and is now widely recognised as the best program of its kind in Sydney, with over 40 activities to choose from each school holiday period.

TREASURY

* The ratio of revenue to expenditure in cash terms continues to improve and exceeded 40% in the 2005/06 calendar year. SOPA plans to increase the ratio on an annual basis.
* SOPA continues to gain new revenue from property and lease ground rents, and volume (visitation) based increases in parking revenue.

PROTECT LONG TERM VIABILITY OF VENUES

* Due to SOPAs limited funding capacity, it is not placed to provide the level of funding required to materially support the winning of major sporting and entertainment events to the Park in conjunction with venues such as Acer Arena and Telstra Stadium-this is the role of the Major Events Board (soon Major Events Corporation).

* SOPA does however, provide financial support to secure second tier events such as national swimming and athletics titles as detailed in Sports Planabove.

* SOPA invests considerable time and resources in activities designed to protect the long-term viability of venues. By way of example, since 2002 SOPA has invested over $2.4 million supporting business events at the Park. (by comparison, SOPBA contributed $411K to this program). While SOPA receives some benefit from these events by way of car park revenue, the bulk of the benefit flows to the venues.

* Other ongoing activity that supports the venues includes event extensions and consumer advertising and promotional activity. This activity includes the regular What’s On and Kids in the Park promotions, which highlight events taking place at the venues.

* Other examples of commercial support provided by SOPA to venues are prudently not issued for general information.

BUSINESS EVENTS

* The ongoing support of business events by SOPA has been an outstanding success, generating incremental annual revenue totalling more than $11.4m since 2002. When repeat business and related accommodation and food and beverage is factored in, SOPAs investment would have generated many times this amount in economic benefit for the precinct.

BRAND MANAGEMENT AND AWARENESS

* The Sydney Olympic Park and venue brands have grown significantly since 2002. This has been reflected in annual consumer surveys showing unprompted awareness of the Sydney Olympic Park and venue brands among Sydneysiders has grown from 10% in 2003 to 51% in 2006.

* The strength of the brands is also reflected in increased visitation to the Park (see below) and the Sydney Olympic Park web site (averaging over 75,000 visitors per month), and growth in the consumer database (from 17,000 at the start of the year to more than 25,000 active members at the end of November 2006).

* Research demonstrated that the short television campaign in 2004 was successful in raising awareness of the depth of offers at the Park. Budget cuts have meant this campaign could not be continued on an annual basis, but an effective integrated consumer communications campaign, including a 14-week sponsorship of Channel 7s Sydney Weekend, achieved excellent awareness and a stated intention by viewers to visit the Park.

SPONSORSHIP

Following the appointment of a sponsorship manager in early 2005, the total sponsorship contribution for the 05/06 financial year stood at $192K cash and $282K of in-kind support. Increased targets have been set for 2006/07. With ongoing annual reductions to SOPAs budget likely, sponsorship revenue will become an increasingly important source of funding for the Authority.

VISITATION

Visitation to the precinct has almost doubled since the 2000 Olympics reaching just over 8 million in 2006. The increase in visitation is being driven by growth in a number of areas including spectators at Acer Arena and Telstra Stadium, recreational users and cyclists in the Parklands, Business Events activity, and participative sports activities.

SOLAR CITIES

The SOPA / Auburn Council Brighter Futures consortium was unsuccessful in its bid to secure Federal funding under the Solar Cities project.

TRANSPORT

* The arrival of the CBA in mid 2007 will see improved transport to the Park, including enhanced bus services from Hurstville and Chatswood and an increased frequency of bus services from the key rail stations of Strathfield and Lidcombe.

During peak periods there will be:
* 6 minute (max) buses from / to Strathfield station
* 15 minute (max) buses from / to Chatswood
* 15 minute buses from / to Hurstville
* 10 minute frequency public transport from Lidcombe station (bus/train)

* The new Master Plan and associated Infrastructure Funding Plan will document specific local and regional road improvements to the precinct as required to meet the needs of the new town population.

* Improvements to weekday rail services, other than on the Sprint line, are not expected for some time due to the high cost of establishing a grade separation required to program direct peak hour services from the E-W line into Sydney Olympic Park.

ENVIRONMENTAL

SOPA continues to operate at best practice levels in environmental standards in urban development, water recycling and parklands management. Full details of 05/06 performance are set out in SOPAs State of the Environment Report, which is incorporated in the 2005/06 Annual Report which is available at:
www.sydneyolympicpark.com.au/corporate/document_library

WRAMS

* The expansion of WRAMS within Sydney Olympic Park for existing premises, and ensuring that all new developments are connected to and capable of being supplied by WRAMS is a SOPA priority.

* In 2006 several more premises were connected to WRAMS including the Hockey Centre and Aquatic Centre. Infrastructure was also introduced to supply the new CBA buildings in Herb Elliott Avenue.

* Expansion beyond Sydney Olympic Park is being contemplated as part of a whole-of-Government process being led by Sydney Water. The NSW Government has announced that $8 million has been allocated to fund the supply of treated sewerage from the Liverpool to Ashfield line to Sydney Olympic Park.

* Within the next 12-18 months it is expected that the future direction, nature and extent of any expansion beyond Sydney Olympic Park should be known.

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EMPLOYMENT OPPORTUNITIES IN THE PARK