Babbage Island EOI - Tourism Western Australia

Department for Planning and Infrastructure
Government of Western Australia
Babbage Island
Tourism Development
Expressions of Interest
December 2006

Babbage Island
Carnarvon
Tourism Development
Front cover - The Fascine, Carnarvon
This page - Pilyarli Yardi Aboriginal Heritage
and Cultural Centre, Carnarvon
Carnarvon

Contents
Minister’s message
Introduction
Carnarvon: the hub of the Gascoyne
Tourism in the region
The proposal
The site
Development expectation
The lease
Conditions of lease
Terms of Option to Lease
The proponent
Submission terms and conditions
Submission deadline
Selection
Additional information
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Located on the edge of one of only a handful
of special regions in the world to meet all four
criteria for World Heritage listing
Babbage Island
Tourism Development 1

Minister’s message
Carnarvon is a town with enormous potential as a tourism destination. However, until now its potential
has remained largely untapped. The State Government is keen to provide opportunities to investors to
change that.
Not only is Carnarvon the gateway to the world-class Ningaloo Reef, it is a town that has a rich history,
a fascinating culture and boasts a diverse economic base. It services the pastoral industry, is home
to magnificent plantations producing a staggering array of tropical and temperate crops and it has a
prosperous fishing and seafood processing industry.
With a climate that is enjoyable all year round and spectacular waterways teeming with fish, Carnarvon
is crying out for creative tourism operators to unlock its potential.
Hon. Alannah MacTiernan MLA
Minister for Planning and Infrastructure
Carnarvon has been established as
the gateway to the Ningaloo Coast
2
Carnarvon

Introduction
The Department for Planning and Infrastructure on behalf of the Government of Western Australia is inviting
Expressions of Interest for an Option to Lease for Tourist Development on Lots 834, 914 and former Lot 1163, Babbage
Island, Carnarvon in the Gascoyne region of WA.
The land is within one kilometre of Carnarvon’s famous One-Mile Jetty and the proposed Heritage Precinct and offers a
rare opportunity to develop a quality tourism facility with a focus on chalet style accommodation.
The following information has been prepared to assist those wishing to express an interest in this opportunity.
Carnarvon: the hub of the Gascoyne
As the hub of the Gascoyne, Carnarvon has grown
in stature over the years as a popular base to shop,
sample locally grown produce, to fish and explore the
outlying areas which provide a diverse range of natural
attractions.
With an outstanding diversity of landscapes, seascapes,
natural and man made attractions, Carnarvon offers a
variety of activities. The marine and bird life is second to
none and the seafood and fresh fruit and vegetables are
well renown.
As the major town in the region, Carnarvon has daily
flights from Perth, multiple banks and supermarkets as
well as a variety of other service providers for both the
visitor and locals.
The warm Carnarvon winters provide a haven to those
wishing to escape from the chilly southern climate from
May to September. During the warmer summer months
a cooling sea breeze blows in from the south keeping
temperatures down, particularly in the coastal areas.
Most of the annual average rainfall of 233mm falls in the
period between May and July. The second half of the year
is normally very dry.
Mean maximum and minimum temperatures at
Carnarvon range from 33 o C and 23 o C respectively in
February to 22 o C and 11 o C in July.
Babbage Island
Tourism Development 3

Tourism in the region
Shark Bay
Carnarvon sits on the eastern shore of Shark Bay, one
of only a handful of special regions in the world to meet
all four criteria for World Heritage listing. Visitors have
close encounters with dolphins at Monkey Mia, view the
shy dugong and marvel at a beach made entirely of shells.
Ningaloo Reef
Carnarvon is perfectly located as the gateway to Coral
Bay and the Ningaloo Reef.
Dazzling water, amazing marine life and untouched nature
- Ningaloo Marine Park is a true natural wonder. For
divers and snorkellers, there are few experiences that
can compare to Ningaloo Reef. And the best thing is, it’s
just a short swim from the beach. It’s also one of the few
places in the world where you can swim with the world’s
biggest fish - the whale shark.
Coral Bay is located a two hours drive north of
Carnarvon, near the heart of the 260 kilometre-long
Ningaloo Reef. Well known for its marine life, Coral Bay
is a great place to see whale sharks, humpback whales,
dugongs, manta rays, turtles and an abundance of fish
species. Great swimming, snorkelling and scuba diving
are available all year round. Children are able to swim
safely and experience the wonder of swimming amongst
tropical fish and over coral gardens.
Kennedy Ranges
East of Carnarvon journey into the hinterland to see
rugged sites and a way of life that makes this part of the
region memorable. The Kennedy Ranges are a huge mesa
75 kilometres long and up to 25 kilometres wide. The
eastern side has eroded to form spectacular cliffs that
rise 100 metres above the valley plains. Journey further
into this dry and unforgiving land to see the splendour
of the world’s largest monocline, Mt Augustus. Colour
changes are by the minute, from deep indigo to bright
pink, orange, red and occasionally green, reflecting the
mood of the rock and the spirits living there.
One of the few places in the
world where you can swim
with the world’s biggest fish -
the whale shark
Visitors to Carnarvon, Annual Average 2004 / 2005
Visitors Visitor Nights
Interstate 23,000 103,500
Intrastate 99,000 487,000
International 28,800 99,200
Total 150,800 689,700
Source: Tourism Research Australia
Existing Accommodation in Carnarvon
Motel - 133 rooms
Hotel - 60 rooms
Caravan Parks - 51 cabins, 101 camping sites, 592
caravan bays
Self Contained Apartments - 32 rooms
Bed and Breakfast - 2 rooms
Backpacker - 87 beds
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Carnarvon

The proposal
The Department for Planning and Infrastructure
in conjunction with Tourism Western Australia is
seeking proposals that would provide Carnarvon
with an accommodation development which captures
Carnarvon’s unique sense of place within the region.
The site is located overlooking the Gascoyne River
and the ocean. It is ideally situated to establish a fully
serviced, quality eco-tourism chalet style development,
catering for a variety of visitors.
Expressions of Interest are sought from experienced
developers and tourism accommodation operators
with the necessary skills, design experience, imagination
and financial resources to deliver a sustainable tourism
facility in this major regional centre.
Ningaloo
Marine Park
The site
Lots 834, 914 and former Lot1163, Silver City Road are
located on the north-western portion of Babbage Island
and total 3.5386ha in area.
Lots 834, 914 and former Lot 1163 can be accessed via
Babbage Island Road, which is a sealed road, or via Silver
City Road which is unsealed.
Lot 914 is currently under a lease which is being
surrendered to offer the Option to Lease.
Both Lots 834 and 914 have been the sites of fuel
storage depots and the former lessees will have
continuing obligations in relation to monitoring and
remediation if required. Preliminary advice from the
Department of Environment and Conservation has
advised that the site is suitable for residential/commercial
use, with a condition that no ground water is to be
extracted from Lot 914.
Development expectation
Carnarvon
Shark Bay
PERTH
Western
Australia
Development requires consideration for
potential cyclonic storm surge and erosion.
Demonstration that any storm surge and flooding
risks are managed within acceptable bounds,
including construction techniques.
Alteration to topography is to be minimised.
Gascoyne River
Location of structures and design that responds
to the site and the setting in a dispersed and open
layout (an analysis of the site should be provided to
inform a site responsive design).
Lots 834, 914 and
former Lot 1163
,
Babbage Island
Carnarvon
Townsite
Climate sensitive, energy and water efficient passive
design.
Development concept in the context not just of the
site, but of Babbage Island and Carnarvon as well
as the region.
Shark
Bay
A caravan park or residential use of this site will not
be supported.
Developer to be responsible for services to the site.
Babbage Island
Tourism Development 5

The lease
The land identified as Lots 834, 914 and former Lot 1163,
Silver City Road is available by way of grant of an Option
to Lease under section 88 of the Land Administration Act
1997, subject to the conditions and terms as detailed
in the option and lease documents. Copies of these
documents are available on request and should be
considered fully by prospective option holders before an
Expression of Interest is lodged.
The successful proponent will be granted an Option
to Lease for a period of 24 months. The option is
exercisable during the period of the Option to Lease
upon the option holder obtaining necessary planning,
environmental and heritage pre-approvals and the
agreement of relevant native title claimants.
Following the grant of the Option to Lease and the
satisfaction of the option preconditions the option
holder will be entitled to the grant of a lease. The length
and conditions of this leasehold will be negotiated with
the preferred proponent based on a range of criteria.
The proposed lease term is 25 years to 50 years
depending on the nature of development.
Conditions of lease
The following is a general summary of some of the
terms and conditions contained in the lease which will
be available on meeting the option preconditions and on
exercise of the Option to Lease. The summary is not
intended to be exhaustive of all terms and conditions in
the lease.
The lessee must substantially commence the
development within 12 months from obtaining
the lease.
The lessee must erect and maintain a fence around
the boundaries within 12 months from obtaining the
lease and prior to any construction phase.
All buildings and facilities must be to an agreed
standard.
The lessee must take out and maintain appropriate
insurance over the lease.
Terms of Option to Lease
Within ten business days of determining the
successful proponent, the Department will forward
an Option to Lease contract to the successful
proponent for execution.
The Contract must be fully completed by the
applicant and executed in the presence of a witness.
Within 30 business days of its receipt, it must be
returned to the Pilbara Team, State Land Services,
Department for Planning and Infrastructure,
PO Box 1575, Midland WA 6936 together with
the balance of the option consideration.
The Contract will only be binding when the Minister
or the Minister’s delegate has executed the Contract.
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Carnarvon

The proponents
Intending proponents shall submit as part of their
Expression of Interest the following information:
a concept plan of the proposed development;
details of the key target markets and information
on proposed market differentiation for the
development within the existing Carnarvon market
and any potential future development on nearby
Whitlock Island and Carnarvon Fishing Boat
Harbour:
details of the timing of the proposed development
on Lots 834, 914 and former Lot 1163, including
details of staging where proposed, as from date of
commencement;
details of cost estimates;
details and evidence of source/s of funds;
details of previous experience in the development
and/or management of similar facilities;
details of competency in sensitive and integrated
design and placement of tourist facilities; and
details of the amount of the option consideration
and the amount of annual lease rental payment
offered.
Submission terms and conditions
The Government gives no promise, undertaking,
guarantee or warranty that any submission will be
accepted whether in whole or part. The Government
reserves the right to refuse to enter into any
negotiations with persons lodging Expressions of
Interest.
All responses and proposals are made and submitted
entirely at the proponent’s own risk and expense and
without recourse to the Government of Western
Australia for any loss, costs, expenses or compensation
whatsoever.
The information on the document is supplied in good
faith and no warranty is given as to the accuracy and
reliability of the data provided. Proponents should make
their own enquiries regarding any matter relied upon.
Prospective proponents should submit:
completed tender form. Incomplete or
erroneous submissions will not be accepted;
tendered option consideration as well as a tendered
annual rental for Lots 834, 914 and former Lot 1163
to apply annually for the first three years. As GST
is payable, the amounts tendered should clearly state
whether they are inclusive or exclusive of GST; and
a cheque for 10 per cent of the option consideration
plus an $89.00 Document Preparation Fee.
Submissions will only be accepted if accompanied
by a completed tender form provided by the
Department for Planning and Infrastructure;
Proponents must certify that they have read the
option document and the associated lease.
Babbage Island
Tourism Development 7

Submission deadline
Submissions marked ‘Expression of Interest, Babbage
Island Tourism Development’, must either be:
lodged by hand at the Tender Box on Ground Floor,
Department of Land Information, 1 Midland Square,
Midland, by no later than 5.00pm Friday 30th March
2007.
mailed to the Department for Planning and
Infrastructure, PO Box 1575, Midland WA 6936
so that it is received by no later than close of
business (5.00pm) Friday 30th March 2007.
Selection
The selection of the preferred proponent will be
undertaken as soon as possible following the close of
submissions and will be based on information provided.
Upon determination of the successful proponent, those
who were unsuccessful will be advised by mail and
their deposit returned within seven working days.
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Carnarvon

Additional information
The successful proponent will be required to
prepare an Outline Development Plan (ODP)
in consultation with the Shire of Carnarvon and
the Western Australian Planning Commission.
The ODP should incorporate and/or integrate
relevant elements of the Carnarvon Heritage
Precinct Masterplan and building design and
landscaping guidelines.
Although the township of Carnarvon falls outside
of the guidelines for development which have been
created through the Ningaloo Regional Strategy,
it will be necessary for the successful proponent
to demonstrate that the design guidelines developed
for the Strategy area have, where possible, been
incorporated into the design for the project.
It is the responsibility of the proponent or their
conveyancer to arrange assessment and
payment of stamp duty on the Option to Lease
contract.
If the option is to be acquired in the name of
a company, the company must be registered at
the Australian Securities Commission. The Contract
must be executed under the company seal together
with the sealing clause or generally in accordance
with corporation law.
Image on the cover page, back page, inside cover,
pages 6 and 9 supplied by Karl Monagham.
All other images supplied by
W E S T E R N A U S T R A L I A
Babbage Island
Tourism Development 9

Department for Planning and Infrastructure
Government of Western Australia
For further information please contact:
Manager State Land Services - Pilbara
Department for Planning and Infrastructure
State Land Services
Pilbara Regional Team
Telephone (08) 9347 5038
Facsimile (08) 9347 5001
Email dave.foster@dpi.wa.gov.au
Our Reference 1565/1986v2 (Job No. 043331)
W E S T E R N A U S T R A L I A
Babbage Island
Tourism Development
Carnarvon