2018-08-31 Special Meeting Minutes

SPECIAL MEETING AGENDA                                                                 31 AUGUST 2018


 Use                       Comment
                              Should Council purchase the site for this use, competitive neutrality
                               obligations would need to be met with respect to floor space market pricing
                              Based on current market square metre lease rates it is unlikely that
                               revenue generated would cover the costs of the site (in its current form)
                              Any commercial use not for educational purposes would likely result in a
                               change of use and be either code or impact assessable under the Noosa
                               plan
 Mix of commercial            Some interest from external groups / individuals has already been
 tenants                       expressed to Council (which Council appreciates and acknowledges)
                               regarding the potential to tenant some of the existing building space for
                               commercial use (should Council purchase the site)
                              In terms of available capacity in the lease market, experienced commercial
                               real estate agents have indicated that the Tewantin leasing market outlook
                               is soft due to the retreat of banks with vacant business space now available
                               in the CBD. The Noosaville industrial estate market is currently firm,
                               however it is expected that additional floor space is about to be released
                               onto the market, and this is likely to attract successful businesses willing
                               to upscale to new larger premises leaving vacancies at the lower end of
                               the market. Noosa Civic turnover opportunities still exist at competitive
                               rates
                              Should Council purchase the site with a view to use for mixed commercial
                               use, competitive neutrality obligations would need to be met with respect
                               to floor space market pricing
                              Based on current market square metre lease rates it is unlikely that
                               revenue generated would cover the costs of the site (in its current form)
                               including ongoing maintenance and depreciation expenses
                              Any commercial use not for educational purposes would likely result in a
                               change of use and be either code or impact assessable under the Noosa
                               plan

Summary

The following points are relevant based on the findings from the investigation into the likely need
for the future site use.
      Commercial appetite for future site use is expected to be driven by an ageing population in
       the Tewantin Noosaville catchment;
      Identification of existing current need for site use by Council has been limited to the south
       eastern portion of the site to accommodate a potential expansion of the Tewantin cemetery
       (and noting that, whilst the site contains endangered vegetation, it is not currently identified
       for potential purchase from Environment Levy funds);
      There may be private investment potential in the site with respect to uses for public worship,
       aged care or retirement village (subject to meeting planning requirements);
      It is unlikely that the site would attract any large education provider given that factors still
       remain relating to the TAFE failure;
      Based on the assessment of current available capacity for community space there appears
       no immediate need or pressing demand to activate the site for community group use;
      Securing a sole tenant or a mix of commercial tenants at the site would likely be challenging
       given currently available commercial floor space at Tewantin, and developing opportunities
       in the Noosaville industrial estate and Noosa Civic; and
      Any potential use sought by Council for commercial purposes will require competition policy
       compliance to ensure a level playing field is maintained with potential competitors.




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