ESSENTIAL ECONOMICS
PTY LTD
ABN 38 894 627 397
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Re-Use Assessment for the Hoffman Brickworks Essential Economics, in conjunction with AT Cocks Consulting, has recently completed a study for the Moreland City Council and Sungrove Corporation assessing the re-use of the former Hoffman Brickworks site at Dawson Street, Brunswick. The Hoffman Brickworks site is of international significance, and provides a lasting testament to the Hoffman technique, which was one of the earliest forms of mechanised brick-making. The Hoffman process involved a circular arrangement of numerous chambers in which the process of continuous firing enabled significant fuel-savings. The Hoffman's site, 3 hectares in area, contains three Hoffman kilns and chimneys, a brick processing plant and pottery sheds. Part of the site is included in the Victoria Heritage Register, and two of the kilns are to be conserved, plus a number of associated buildings. The balance of the site will be developed with approximately 200 dwellings comprising apartments and townhouses. The Brickworks has played a central role in the community life of Brunswick, generating employment opportunities in a previously labour-poor area. In the 1890s Hoffman's was one of the primary employers in Brunswick and the site continued as an operational brickworks up until the early 1990s. Community interest in the site is still very strong, and an active group is seeking a use for the site which will ensure that the living history of this heritage area is maintained. Resulting from an extensive consultation process, a previous study identified a long list of potential uses for the site, which included commercial office, arts related uses and retail activity. The purpose of this study was determine the uses which will ensure the long term future of the site, including the generation of a revenue stream to enable building maintenance and on-going restoration costs. Also guiding the selection of the 'best uses' for the Hoffman's site was provision for public access and the site's significance to the Brunswick community. Essential Economics undertook a market assessment of 15 potential uses for the site in order to identify the uses which clearly meet a market need and which will potentially generate a commercial return. This assessment resulted in the development of six use scenarios, with each scenario including a maximum of five uses. To illustrate, a leisure precinct scenario included uses such as arts retail, food retail, a convention centre, art studios and an interpretation centre. A full commercial scenario included commercial office and food retail, with some provision for a public open display area. This 'mix and match' model provides a flexible approach in determining the final uses for the site. AT Cocks developed a detailed financial model to assess the viability of each of the six use scenarios. The financial model assessed the likely financial return to both the developer and Council based on the cost of the adaptation of the buildings to cater for the identified uses. The financial analysis indicated that for each of the use scenarios the cost of the building's adaptation exceeded the value of the end product. A stratum titled commercial office development provided the most viable outcome for the site's use and was recommended as the preferred scenario (even though this also resulted in a negative land value). However, while the preferred scenario would generate a negative land value, the project would be expected to generate economic benefits for the Moreland community in terms of:
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