Getting governance right for the Central to Eveleigh innovation precinct

The NSW Government’s vision to create a globally competitive innovation precinct in the Central to Eveleigh corridor provides much needed strategic direction that the Central Station and precinct renewal project has been lacking. But delivery of this vision will require a change to the governance and decision making arrangements for the project.

The NSW Government owns approximately 22 hectares of land that adjoins Central Station and the rail lines between Central and Eveleigh.  For several years it has been actively considering how it could better use this land to achieve a variety of objectives including:

• transport - ensuring Central Station continues to function as an efficient high-volume transport interchange into the future;

• economic - allowing Sydney’s geographically constrained CBD to expand in the only direction possible - south;

• social - enhancing the social outcomes for those that live, work and play in the precinct, particularly the disadvantaged; and

• funding - achieving a meaningful financial contribution towards Sydney’s transport infrastructure needs.

The NSW Government spoke of turning Central Station and the surrounding precinct into a ‘destination’, rather than a place to pass through, but didn’t really articulate what would draw people to it. It also sounded developers over the project, but was unable to get the necessary stakeholder alignment to proceed with a procurement process.

But in August last year, the NSW Government announced its intention to create a globally competitive innovation and technology precinct within the Central to Eveleigh corridor, and appointed a panel to lead the creation of this new precinct. The panel is chaired by David Thodey AO and includes representatives from the City of Sydney, Sydney Business Chamber, Sydney University, UTS, Atlassian, Fishburners, Tech Sydney, Stone & Chalk, the Greater Sydney Commission, TfNSW, the Department of Industry and Health Infrastructure NSW. 

The Central to Eveleigh corridor was chosen because of its combination of existing economic assets - including two world class universities, Royal Prince Alfred Hospital, over 100 research institutes and centres of excellence, the Australian Technology Park with its tenants including CSIRO’s Data61 - supported by excellent transport links and a vibrant ecosystem of technology, innovation and creative businesses.

In December, the panel recommended, as fundamental to the success of the precinct, the development of 250,000 square metres of dedicated floorspace for technology companies, including 50,000 square metres of net lettable affordable space for startups and early stage companies. The panel also recommended the precinct be developed with policies that will ensure it becomes a vibrant and connected place that includes new public spaces, safe and efficient walking and cycling connections, station upgrades, amenity and urban renewal. 

Atlassian has since been signed up as an anchor tenant for the precinct, and the NSW Government is separately assessing an unsolicited proposal from Dexus and Frasers for a large scale mixed-use redevelopment of the Henry Deane Plaza at Lee Street,  that could be integrated with the renewal of the surrounding precinct.

An immediate challenge for the NSW Government is to work out how it will achieve the panel’s recommendation for a governance and funding model that will provide the leadership, political commitment and financial capacity needed to drive the success of the precinct.  

Prior to the establishment of the panel, it looked like Transport for NSW would lead the redevelopment of the precinct. But the emphasis of the project has changed. The creation of a successful innovation and technology precinct now appears to be the primary objective, rather than means of funding the delivery of the transport infrastructure improvements, or of gaining broader community support.  While Transport for NSW has many of the skill sets needed to lead a development of this nature, the Government will want to ensure that the agency’s historical focus on transport outcomes does not overshadow the broader objectives that the Government wants to achieve with the precinct. 

The panel’s vision for the innovation precinct has been informed by the research and thinking of Brookings.  Based on this research and thinking, the development of the precinct should proceed in a manner that enhances the precincts’ economic, physical and networking assets, ie:

• economic assets - major anchor institutions, such as research universities, medical centres, or national labs, that can attract large scale research funding, provide a platform for commercialisation, and attract skilled workers and students. These need to be paired with: innovation cultivators or intermediaries – organisations that support the growth of ideas and enterprises, such as incubators, accelerators, technology transfer offices, and shared working spaces; and neighbourhood building amenities, such as medical centres, grocery stores, restaurants, coffee shops, small bars, small hotels, retail outlets etc;

• physical assets - the physical assets that are designed and organised to stimulate connectivity and collaboration – open spaces, buildings, transport links and IT infrastructure; micro housing (smaller apartments with access to larger shared spaces); streets, paths and activated public spaces, to tie it all together; and

• networking assets - the relationships between individuals, firms and institutions that generate, sharpen and accelerate the advancement of ideas – eg a hub that hosts network building events like workshops, training sessions and hack-a-thons.

According to Brookings, the NSW Government will also need to:

• build a collaborative leadership network;

• set a vision for growth, by providing actionable guidance for how the innovation precinct should grow;

• pursue talent and technology;

• promote inclusive growth, by using the precinct as a platform the regenerate adjoining distressed neighbourhoods as well as creating education and employment opportunities for low-income residents of the Eastern Harbour City; and

• enhance access to capital.

This will require a broader focus and skill set than Transport for NSW has traditionally provided to its transport and placemaking projects.  It will be critical that the NSW Government develops a governance and decision making structure for the development of the precinct that provides the broader perspectives needed to realise the Government’s vision.