A SUMMARY OF RACING QUEENSLAND S INFRASTRUCTURE PLAN

A SUMMARY OF RACING QUEENSLAND S INFRASTRUCTURE PLAN SEPTEMBER 2017

THE VISION CONNECTING PEOPLE THROUGH THE THRILL OF RACING THE OPPORTUNITY A TOTAL OF $120M FOR QUEENSLAND RACING INFRASTRUCTURE FOR THE NEXT 30 YEARS THE CHALLENGE MORE THAN 130 RACING CLUBS HOSTING MORE THAN 12,000 RACES A YEAR THE MISSION TO BE QUEENSLAND S FAVOURITE SPORT AND AUSTRALIA S BEST RACING JURISDICTION

THE PLAN 1. CONSULT INDUSTRY 2. RESULTS EXTENSIVE 3. FUNDING TO 4. VISION 5. ACTION SUBMISSIONS PROVIDED A VIEW OF FUTURE REQUIREMENTS AND IDEAS FOR GROWTH AT A LOCAL LEVEL RESEARCH OF PARTICIPANTS AND THE WIDER COMMUNITY HAS PROVIDED A BALANCED VIEW HOW TO BEST SUPPORT SHORT, MEDIUM AND LONG TERM GROWTH DELIVER ON A WIDE RANGE OF INFRASTRUCTURE NEEDS, IT WILL BE CRITICAL TO MAXIMISE ASSETS THROUGH BOTH NON-RACING AND RACING REVENUE OUR AIM IS TO BEST SERVE THE CUSTOMERS AND PARTICIPANTS OF THE FUTURE TARGETING HIGH YIELDING GROWTH CORRIDORS WHERE OUR STATE OF THE ART FACILITIES ARE SEEN AS ASPIRATIONAL COMMUNITY SPACES PROJECTS ARE ALREADY UNDERWAY, BUT THE PLAN WILL EVOLVE. THERE ARE ONGOING OPPORTUNITIES FOR INDUSTRY AND COMMUNITY INPUT

1. CONSULT STEP 1 CONSULTATION: CALL FOR SUBMISSIONS In November 2016 Racing Queensland launched a call for submissions for infrastructure funding with the following assessment criteria: a) Racing Improves racing and industry outcomes STEP 3 SITE ANALYSIS Site analysis was conducted based on Racing Queensland venue inspections and reports over 18 months. Animal and participant welfare were key issues examined at each location. b) Safety and Animal Welfare enhances the safety and welfare of all participants c) Assets optimisation Recycling capital and maximising return on investment (ROI) on existing assets d) Commercial return delivering new income, contributing to club sustainability and / or reducing club reliance on Racing Queensland e) Community creating an enduring community benefit STEP 2 INDEPENDENT STUDY, MARKET RESEARCH & STAKEHOLDER ENGAGEMENT In February 2017 Racing Queensland engaged Deloitte one of the world s leading professional services firms to review the infrastructure needs of both the greyhound and harness racing codes in south-east Queensland. Roy Morgan customer research, which surveys over 50,000 Australians yearly, was also engaged to help best understand the behaviours and attitudes within the locations of interest. As part of that review a survey was launched that resulted in more than 400 detailed responses, adding further information to base future decisions. A 3 STEP PROCESS TO ENSURE INFRASTRUCTURE MEETS THE FUTURE NEEDS OF ALL STAKEHOLDERS AND CUSTOMERS

2. RESULTS 1. SUBMISSIONS - ALL CODES More than 170 projects 55 submissions benefiting 68 clubs $19 million of identified projects for immediate delivery $116 million of further projects identified for delivery within two years $63 million in additional funding required for potential racing projects within 10 years 2. INDEPENDENT STUDY, MARKET RESEARCH & STAKEHOLDER ENGAGEMENT The participants of greyhound and harness codes are predominantly located to the south and west of Brisbane The south and west corridors have been identified as having above-average growth rates and demographics suited to patronage of harness and greyhound racing facilities Industry consultation identified current infrastructure for both codes is not meeting the needs of customers or stakeholders If investing in infrastructure for these codes, then this is best directed to the southern and western corridors to best position these codes for growth There would be higher potential uptake and engagement with both greyhound and harness in locations other than Albion Park This research ultimately highlighted the need for up to two new or replacement greyhound and up to two new or replacement harness facilities to the south and west of Brisbane. An expression of interest (EOI) process is underway to identify possible locations. 3. SITE ANALYSIS $1.6 million in essential funding identified and supplied for clubs by Racing Queensland based on animal welfare and racing continuity needs. This has been included in the $19m for immediate delivery as outlined above.

HARNESS & GREYHOUND: POSITIONING FOR GROWTH The southern and western corridors show the highest potential for active engagement on both harness and greyhound racing as highlighted on the map. New or replacement facilities in this region would be more convenient for participants and customers alike. ALBION PARK ALBION PARK UNDER UTILISED Less than 2 percent of the Albion Park community within a 10km radius are actively engaging with harness / greyhound racing either at the track or on television. The Albion Park community has a low percentage of people that show potential to actively engage with harness (14%) / greyhound (23%) racing. Source: 3 Month average - Roy Morgan Helix Personas March 2017 EXAMPLE AREAS OF INTEREST FOR HARNESS & GREYHOUND The 10km radius surrounding the Ipswich community is an example within the western corridor of Brisbane showing strong potential to engage with harness (64%) / greyhound (50%) racing. Source: 3 Month average - Roy Morgan Helix Personas March 2017 The 10km radius surrounding the Stapylton community is an example within the southern corridor of Brisbane showing strong potential to engage with harness (43%) / greyhound (50%) racing. Source: 3 Month average - Roy Morgan Helix Personas March 2017

3. FUNDING CURRENT FUNDING: Funds are retained by the QLD Treasury and are released when projects are approved by the Racing Queensland board and ratified by the Minister for Racing and the Department of Treasury $63 million is available now through the Racing Infrastructure Fund $57 million available between 2020 and 2023 (including loan repayments up to 2027) $120 million in total THE NEED: $198 million, a shortfall of at least $78m based on identified needs FUNDING OPTIONS: Projects may be funded though a grant, a loan, a hybrid of these forms or another commercial arrangement: Grant Where the dominant purpose of the project is non-revenue generating racing infrastructure (such as track remediation or upgrade, barrier stalls, safety equipment and general amenities) the project may be provided by way of grant from the racing infrastructure fund. Loan In the case of infrastructure which provides a commercial benefit to the club, the preferred funding distribution may be a loan to the club. A loan may also be appropriate in the case of non-revenue generating racing infrastructure projects that facilitate a commercial development or benefit to the club. Commercial Arrangement As an alternative to either a Grant or a Loan, projects may be funded in return for an equity position or some other form of commercial arrangement.

THE SOLUTION: Maximise racing revenue through increased wagering and commercial agreements Create recurring non-racing revenue Capitalise on development opportunities to generate additional revenue for and by clubs Redevelop (ourselves or with partners) existing assets for the benefit of the entire industry in Queensland $198 MILLION REQUIRED TO MEET NEEDS NOW AND IN THE FUTURE

4. VISION RACING QUEENSLAND S VISION IS TO CONNECT PEOPLE THROUGH THE THRILL OF RACING. To create a vibrant, sustainable racing industry, the opportunity exists for Racing Queensland to optimise its existing assets, and develop new assets that will provide outstanding benefits for industry participants, racing fans and the broader community. New or selected existing assets will benefit from targeted investment, in order to grow racing for future generations. Racing Queensland s thoroughbred vision is reflected in marquee projects highlighted on subsequent pages. A key focus for this plan will be green field opportunities for the harness & greyhound codes. GREYHOUNDS Construction of new, state-of-the-art greyhound racing facilities that facilitate fair, competitive racing and which optimise greyhound welfare. A one-turn track and straight track facilities (for training and racing) that cater to all classes and ages of greyhounds. Venues will provide new homes for the Brisbane Greyhound Racing Club and the Ipswich Greyhound Racing Club. Locations are currently being investigated as part of the Expression of Interest process. A racing surface with appropriate cambers and loam surface for optimal greyhound performance and safety. Best in class racing infrastructure, that includes air-conditioned kennels, veterinary services and training facilities. A facility where the public can be up-close to the racing action and that also allows for additional entertainment in between races. Locations will be easily accessible to participants and provide value add opportunities for members and owners. The venue will offer access to fast Wi-Fi, additional camera angles, racing data and replays. It will utilise innovative digital streaming services of live and feature programs. Sponsors value maximised through improved digital signage. Wide range of food and beverage facilities, plus family friendly options entertaining all ages. A meeting place for a variety of local community groups, with flexible facilities that can grow to meet the needs of local communities. HARNESS A new metropolitan class home Racing Queensland s vision is to build a state-of-the art harness racing facility that will serve as the code s peak metropolitan venue. The new track will deliver both premium and standard racing and provide an exciting customer experience both on and off track. The venue will feature a spacious track design (1000m 1200m circumference) and will accommodate up to 10 horses off the front of the mobile. The track design will ensure fast, fair and safe racing and will enable Queensland to attract the best horse and participants from throughout Australia and NZ.

Utilising cutting-edge broadcast technology will be a key strategy to engage viewers and racegoers. Consideration will be afforded to an oncourse studio, use of drones, go-pro cameras on each horse/driver and access to stewards footage. Patron facilities will offer quality, contemporary dining and bar facilities, with unencumbered track views and closer integration with the racing and horse experience. The facilities will be designed to allow for an immersive and aspirational owner experience. The location of a new facility will align with the demographic and growth opportunities of southeast Queensland (envisaged to be in the southern or western growth corridors). Possible sites are being investigated through the current Expression of Interest process. A landmark secondary racing (TAB) and training venue Dependent upon the success of the primary venue, industry needs and available funding, Racing Queensland aims to create a landmark, secondary racing and training venue. The facilities will incorporate modern pubic and community facilities and a quality harness racing and training facility. Modern multi-purpose patron facilities will be offered to cater for racing patrons and community activities/events. THE DECISIONS MADE TODAY AND IN THE NEAR FUTURE ARE AIMED AT SECURING THE FUTURE OF ALL THREE CODES TO ENSURE THE BEST OUTCOMES AND AN INDUSTRY THAT IS SELF-SUSTAINING WITH CAPACITY TO FUND ITS OWN CAPITAL COSTS INTO THE FUTURE Location will be dependent upon siting of the primary venue and will be built with consideration afforded to offering low-cost entry level opportunities to the harness code.

NOW Artist impression only - Ipswich Turf Club

5. ACTION IMMEDIATE PRIORITY PROJECTS Racing Queensland and the relevant clubs identified the following major priority projects, endorsed by Government for immediate action: IPSWICH $13 million infrastructure project for the Ipswich Turf Club including $10 million for: Remedial turf works including the partial resurfacing of the course proper, improved drainage and irrigation; A new building for jockeys, stewards, food and beverage facilities and a new function centre with facilities for on-course patrons; and Roof weatherproofing The project also includes provision for up to an additional $3 million for the construction of a sealed car park for 125 cars, new race day stalls, float set-down area and other considerations, should the commercial development proceed. The subdivision project on Brisbane Road will generate non-racing revenue for the Ipswich Club as a master-planned commercial and retail precinct. It could include a supermarket, fuel, fast-food, automotive sales or a motel, pending state government and council approval for a change in land-use. Planning is underway regarding the phases and timelines of the project. COUNTRY AND REGIONAL $6 million for Country and Regional racing across all codes with 112 clubs benefiting with examples including: Recycled and water harvesting projects in Mackay and Rockhampton; Transportable starting barriers to be shared between a number of thoroughbred clubs in the Central West and Downs country regions; Upgrades and replacement of racing infrastructure including stewards towers, running rails, barrier stalls and starting boxes; Animal welfare equipment and amenities upgrades across all regions; and Track surface upgrades across all codes at selected venues. TIMING Each project will be managed to minimise or avoid impacts on clubs major racing calendar events. RACING QUEENSLAND IS PROGRESSING WHAT NEEDS TO BE DONE AND KEY PROJECTS ARE ALREADY UNDERWAY

Artist impression only - More engaging greyhound on track experience 2 YEAR PLAN

5. ACTION PRIORITY PROJECTS NOMINATED FOR DELIVERY WITHIN TWO YEARS. Ipswich Greyhound Facility Relocation to new purpose built facility which features a single turn track Brisbane Racing Club Eagle Farm track remediation and other necessary capital works Gold Coast Turf Club remediate course proper, lights for night racing, and potentially a tunnel to allow car parking on the infield with land to be released for possible commercial development and training tracks PROJECT PROGRESS TO DATE: Gold Coast Turf Club Scoping and site analysis work underway. Eagle Farm Target return to racing April 2018 Expression of Interest (EOI) process completed for possible sites for greyhound and harness facilities in the south and west corridors of SE Queensland. Negotiations underway at the time of this publication. Southern Corridor Greyhound Facility New or replacement purpose built facility which features the option for one turn track racing, straight track racing and the latest advancements in animal welfare. General Minor Capital Works Package Various infrastructure upgrade works for clubs in all regions across three codes Southern and/or Western Corridor Harness Track New or replacement track(s) Townsville Greyhound Club Refurbishment and upgrade of facilities All Projects Subject to Government Approval

5. ACTION FUTURE CONSIDERATIONS THE FOLLOWING LIST OF PROJECTS UNDER CONSIDERATION IS NOT EXHAUSTIVE OR FINALISED Townsville Turf Club - On-course stabling Brisbane Race Club - Doomben upgrade course proper Sunshine Coast Turf Club synthetic track renovation Toowoomba Turf Club contribution towards sports club Cairns - Expansion of on-course stabling Various clubs minor capital and major repair works on clubs in all three codes up to $3m per annum RACING QUEENSLAND WILL CONTINUE TO ACCEPT PROJECT SUBMISSIONS ON AN ONGOING BASIS All Projects Subject to Government Approval

All information is correct as of September 2017. Stay up to date with our ongoing infrastructure news at racingqueensland.com.au