LATE RFI Attachment 2 - Additional Economic Advice

                 220079 Additional advice in relation to proposed car wash at 34 Elm Street, Cooroy

Relevantly the trade area identified is generally consistent with what would be the practical trade
area of the Cooroy District Centre. This is an unsurprising outcome given the subject site’s location.
Residents of Pomona use Cooroy as their main service centre, as do residents of other Noosa
Hinterland communities. This is reflected in Strategic Outcome 3.3.5(s)(ii)(F) of Noosa Plan, which
states:
       “Cooroy District Centre serves as the main activity centre for the communities of Cooroy and
       other outlying hinterland villages. Cooroy has a strong historic country town identity with a
       number of local and state listed heritage buildings. The centre provides services to rural
       enterprises in the surrounding hinterland area….”
While Noosa Plan makes reference to the eastern side of Cooroy Township as a support to the District
Centre, it remains part of the District Centre and functions as such.

The Cooroy District Centre host approximately 10,000 sqm of retail floor space, which is anchored by
two IGA limited line supermarkets. The Cooroy District Centre hosts over 70 retail shops and
approximately 30 commercial tenancies. The Noosa Shire Retail Plan prepared by Location IQ on
behalf of Noosa Council in February 2018 identified the main growth objective for the Cooroy Town
Centre was the inclusion of a full line supermarket, potentially in the form of an expansion of one of
the existing limited line supermarkets (which the subject site could not address). In this regard the
provision of additional specialty tenancies would do little to contribute to Cooroy’s role and function
as a District Centre.

The subject site has an existing approval for approximately 620 sqm of floor space spread over seven
tenancies ranging in size from ~39 sqm to ~128 sqm, which has not been acted upon despite the
approval. In addition to there being limited tenant demand for more specialty tenancies within
Cooroy District Centre, the approved development does not materially contribute to Cooroy fulfilling
its role and function as a District Centre. The proposed development on the other hand would serve
a catchment consistent with that of the District Centre and give residents of the Cooroy District
Centre an additional reason to patronize the centre without compromising the role and function of
higher order centres, which is desirable.

How do Car Washes Serve the Community
The proposed development is for a commercial car wash, which Noosa Plan identifies as an industrial
use. There might be reasons why Council has adopted this definition, however modern car washes
(particularly post the SEQ water crisis of the 2000s) cater primarily to households. The economic need
assessment submitted with the development application indicates that private passenger vehicles
will represent the bulk of the demand for the proposed car wash. This means that everyday
householders will use the facility to sustainably wash their car instead of hand washing at home.

Today, commercial car washes are primarily characterized by business-to-household transactions.
These types of transactions are most commonly found in centre locations and other highly accessible
locations. Purchasing goods for your family from a supermarket is a business-to-household
transaction, so too is buying a morning coffee before work.

Industrial areas are primarily characterized by business-to-business transactions. While commercial
vehicles owners will use the car wash, they will be in the minority, as they are in the minority of
supermarket or coffee shop purchases. Compelling a primarily business-to-household business to
locate in an industrial area risks compromising the functioning of the industrial area by bringing
householders into the industrial area, which is not desirable. People who work in an industrial area


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220079 LTR BBE Cooroy Car Wash Response to IR REVA 280223