Presentation and Vibrancy - Reports

3.2

Ordinary Meeting - 02 March 2016

PROPOSED CHANGES IN THE OUTDOOR DINING SYSTEM

Document Information
Author/Responsible
Director

Prue Mansfield, Director Planning and Development

Summary/Purpose
Several hospitality businesses have contacted the City to enquire if revised
arrangements for the establishment of outdoor dining areas could be considered to make
the process more affordable and allow the businesses to better contribute to the vibrancy
of the City.
This report recommends introducing temporary permits for a short period of expected
high visitor numbers and changes to the infrastructure payment process for the future.
Policy Context
City of Greater Bendigo Council Plan 2013 2017 (2015-2016 Update)
Theme 1 - Leadership & Good Governance
1.6 Programs, projects and services are guided by best practice principles and
delivered to respond to community needs.
Theme 3 - Presentation & Vibrancy
3.1 Greater Bendigo has attractive and accessible parks, public places and
streetscapes that are widely used and enable people to be healthy and active.
Bendigo CBD Plan 2005
The Bendigo CBD Plan 2005 is the guiding strategy for all projects in the Bendigo City
Centre. The key aim of the Plan is to attract more people to the city centre for longer.
Economic Development Strategy 2014-2020
Encourage and support the development and promotion of lifestyle-enhancing
restaurants, cafes and bars across central Bendigo and proactively work with this sector
to encourage networking, marketing and product development.
Background Information
As a growing City that has seen substantial and continued growth in its population and
major events, there has been an increase in street activity and vibrancy, a positive boost
to the City's economy and new opportunities for hospitality and other retail businesses.

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The Outdoor Dining and Street Trading Code of Practice (the Code) clearly articulates
the application, design and decision making process, as well as ongoing management
and maintenance expectations that aim to create vibrant, accessible and active street
frontages.
Report
Over recent years the City has seen a significant increase in the amount of outdoor
dining permits in the Bendigo CBD alone. It is important that the City responds
appropriately to emerging trends and issues. Concern has been expressed that requiring
businesses to pay the total cost of the required infrastructure works upfront is not
affordable and is making the desired outcome of street vibrancy less achievable.
The objectives of the proposed changes to outdoor dining are to:
1. Build the vibrancy of the City.
2. Make it easier and more affordable for hospitality businesses to have outdoor dining
on footpaths, in the long term.
3. Enable businesses to capture the opportunity of upcoming events and festivals and
provide a better experience for people in the short term.
Infrastructure Process and Payment
Current Arrangements:
Businesses currently pay the total cost of required infrastructure, upfront. This includes:
Sockets for barriers and umbrellas.
Paving.
Any incidentals if required - signage, relocation of services.
Supply of the barriers, to the standards in the Code.
Project management and liaison with contractors (who are engaged by the City).
Although the cost to create an on-footpath outdoor dining area is site specific, the
average cost is approximately $8,000 - $10,000, although some sites can be as high as
$18,000.
Proposed Arrangements:
It is proposed to introduce a staging of the payment of infrastructure costs to make it
more affordable for new and smaller businesses:
The business will pay the first instalment of 25% of the cost once the outdoor dining
application has been assessed as appropriate and design and a cost estimate has
been prepared.
The business will pay the second instalment of 25% before paving works commence.
The 50% balance will be paid in quarterly instalments (separate from the outdoor
dining permit fee) over a 3 year period. In effect, it is a short term, interest free loan.
The business will continue to provide the barriers, in a colour and style approved by
the Code.
The City will engage and supervise contractors undertaking the paving works.

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The City will allocate an annual amount for its 50% upfront contribution and when it is
spent, other applicants will have to wait until the following year. This is the same model
as the Heritage Loan Fund.
The following table shows the approximate repayments over the 3 year period.
Approximate
Total Cost

50% Loan

$6,200

$3,100

$1,033

Medium - 18sqm

$10,800

$5,400

$1,800

Large - 27sqm

$16,000

$8,000

$2,666

Type of Business
Small - 10sqm

Annual Repayment
for 3 Years

The deferred payment option will only be available to businesses that have a record of
prompt payment of all Council fees and charges. A clear policy, application form and
assessment process for the loan has been developed.
If the final cost is slightly more or less than the estimate done at design stage, annual
payments will be adjusted to accommodate the difference. Also, the outstanding debt will
be linked to the outdoor dining permit so if a business is sold, the new owner need to
agree to take on the debt.
Short-term Use of Temporary Permits
As some businesses want to establish an outdoor dining area immediately, to take
advantage of increased visitors generated by upcoming events and festivals, it is
proposed to introduce a temporary permit process for applications in the Bendigo CBD.
Temporary arrangements are necessary as the City does not want footpaths under
construction in a time of high pedestrian traffic. Businesses in other areas can still apply
for the loan, but there should be no need for temporary arrangements as permanent
arrangements can be implemented.
The business will be required to lodge a formal application that meets the general
requirements of the Code of Practice, accessibility and suitability. The site and proposed
design will then be assessed. If approved, sockets, barriers and umbrellas can be
installed. No paving works will commence until mid-July 2016.
Businesses that are given a temporary permit will follow the same infrastructure payment
process as detailed above. An ongoing outdoor dining permit will be issued once the
paving works are completed.
For this group, the 25% deposit that will be paid once the design is approved and will be
non-refundable to provide assurance that businesses will proceed to complete the
permanent works later in the year.

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Consultation/Communication
The payment scheme and temporary permit process have been developed internally by
a working party comprising of the Director Planning & Development, Manager
Environmental Health & Local Laws, Acting Manager Engineering & Public Space and
Place Manager.
A sample of 3 businesses; small, medium and large; well established and new were
consulted on this proposal.
They were very appreciative of the options being considered and so promptly. It was at
their suggestion that the proposal include:
The 25% up-front, 25% immediately before paving construction (rather than 50% upfront) and 50% over 3 years payment structure.
Quarterly payment of the amount owing.
Resource Implications
For 2015/2016 there will only be a small amount of funding required as the majority of
the works will not commence until the 2016/2017 year. It is proposed to reallocate
unspent funds from the Heritage Loan Scheme for any works required this financial year.
There will be a maximum of $50,000 funding available for the 2016/2017 year. The
$80,000 Heritage Loan Fund will be divided into $30,000 for Heritage and $50,000 for
outdoor dining. This can be reviewed if the proportion of requests does not match this.
This would allow about 10 businesses at the average cost to construct outdoor dining.
Conclusion
The vision of "Greater Bendigo - working together to be Australia's most liveable regional
city" will be achieved by small steps as well as large. This proposed change to the way
we establish new outdoor dining areas on footpaths is one of the smaller steps and will
contribute to the economy and vibrancy of our City. It is also a pro-active response to a
clearly stated need by local hospitality businesses.
RECOMMENDATION
That Greater Bendigo City Council resolve to approve:
1. The introduction of a staged payment structure for the required infrastructure works
associated with outdoor dining.
2. The reallocation of funds from the Heritage Loan Scheme for any works required in
the 2015/2016 financial year.
3. The use of temporary outdoor dining permits where necessary.
4. The reallocation of $50,000 from the Heritage Loan Scheme for 2016/2017 to
establish the Outdoor Dining Loan Fund.

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Productivity - Reports

4.

Ordinary Meeting - 02 March 2016

PRODUCTIVITY

Nil.

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