Market-led proposals

Tabled: 27 November 2019

Appendix C. Victoria Police Centre context and chronology

DTF and Victoria Police assessed the Cbus/Australia Post VPC proposal through the five stages of the MLP process between May 2015 and December 2016 with input from the SSP, the Valuer-General and external commercial and legal advisers. The:

  • Stage 1 and Stage 2 assessments applied the February 2015 Market-led proposals Interim Guideline and were led by DTF with significant input from Victoria Police and its advisers
  • Stage 3, Stage 4 and Stage 5 assessments applied the November 2015 MLP guideline with Victoria Police leading negotiations with Cbus/Australia Post in Stages 3 and 4 and leading the Stage 3 and Stage 4 assessments in consultation with DTF.

The IDC oversaw the assessment by:

  • monitoring DTF and Victoria Police progress in assessing the VPC proposal
  • monitoring the progress of Victoria Police's negotiations with the VPC proponents
  • reviewing the draft Stage 2, Stage 3 and Stage 4 assessment reports and the draft advice to government on the results and recommendations arising from these assessments
  • endorsing the assessment reports.

Figure C1 provides a timeline for the assessment of the three MLPs received for a new secure headquarters and information on how the key features of the VPC proposal moved over time.

Figure C1
Timeline for assessment of MLPs for a new police headquarters

Date

Events and assessments

Decisions and Approvals

VPC size and lease term

VPC Rental costs: per sqm and Annual

2015

Mar

Lease for City West Police Complex at 313 Spencer Street commences.

Victoria Police commission security report on security weaknesses at WTC site.

     

May

Cbus Property and Australia Post submit MLP to develop 311 Spencer Street and lease it to the state for a new VPC (the VPC proposal).

DTF undertakes Stage 1 assessment on VPC proposal

DTF approves Stage 1 assessment: VPC to progress to Stage 2.

41 392 sqm office space

20 years

Net rent $455 per sqm

$27.4 million (total including outgoings & cleaning)

Sept to Oct

DTF undertakes Stage 2 assessment of VPC proposal in consultation with Victoria Police and SSP and recommends proposal move to Stage 3.

Government approves Stage 2 assessment and VPC proposal progressing to Stage 3 in October.

41 392 sqm office space

20 years

Net rent $455 per sqm

$27.4 million (total including outgoings & cleaning)

2016

Feb

Victoria Police finalises Stage 3 assessment of VPC proposal in consultation with DTF and recommends proceeding to Stage 4

WTC owners submit MLP to keep the police headquarters at the WTC (WTC proposal)

Government approves Stage 3 assessment to progress to Stage 4

41 392 sqm office space

30 years

Net rent $424 per sqm

$26.9 million (total including outgoings & cleaning)

Jul

DTF drafts Stage 1 assessment of WTC proposal

IDC recommends WTC proposal progress to Stage 2

   

Aug

Chief Commissioner of Police and DTF Secretary meet and agree that WTC proposal will have an extended Stage 1 assessment rather than progress to Stage 2

     

Figure C1 Timeline for assessment of MLPs for new police headquarters—continued

Date

Events and assessments

Decisions and Approvals

VPC size and lease term

VPC Rental costs: per sqm and Annual

 

Nov

Victoria Police finalises Stage 4 assessment of VPC proposal in consultation with DTF

DTF finalises Stage 1 assessment of WTC proposal and recommends it not progress to Stage 2.

Government approves Stage 4 assessment of VPC proposal and authorises Treasurer and Minister for Police to approve agreement for lease subject to resolution of outstanding VFM issues.

Government approves WTC proposal not progressing to Stage 2.

Victoria Police:

41 423 sqm office space

30 years

Total VPC including proposed subtenants:

60 784 sqm

Victoria Police:

Net rent $418 per sqm

$29.0 million (total including outgoings & cleaning)

Total VPC including proposed subtenants:

Net rent $445 per sqm

$44.6 million (total including outgoings & cleaning)

Dec

DTF briefs Treasurer on satisfactory resolution of outstanding VFM issues on VPC proposal

Property developer submits MLP for a police headquarters at NewQuay site (NewQuay proposal).

Treasurer approves VPC proposal moving to Stage 5 and Minister for Police agrees

   

2017

Jan

Victoria Police undertakes Stage 5 contract award

DTF complete Stage 1 assessment of NewQuay proposal against 1 MLP guideline requirements. This MLP did not progress to Stage 2.

State signs agreement for lease for VPC proposal

DTF approves NewQuay proposal not proceeding to Stage 2.

   

Apr

DTF releases Project Summary for VPC proposal.

     

2018

June

AFP withdraws commitment to take up space in the VPC

     

2019

Dec

Expected construction completion for VPC

     

Source: VAGO based in information from DTF and Victoria Police.

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