Noosa VMU RFI Response Lodged 23.11.23 · MCU23/0078

    benchmark rate of 0.394 sqm/cap has been adopted. This is more appropriate to use as the figure
    for Sunshine Coast is influenced by incoming spending from visitors (which is separately
    addressed in the analysis in Table 9, p43). Moreover, application of the average for non-
    metropolitan Queensland would lead to even higher supermarket floorspace demand.

(f) Known approved expansions, including at Peregian Springs and the opening of the IGA at Sunrise
    Shopping Centre, have been included in the analysis at Table 7 of the Economic Impact
    Assessment. Minor approved additions to retail floorspace have not been included but would not
    alter the results of the analysis.

(g) The analysis demonstrates that the Noosa region is significantly undersupplied with retail
    floorspace, reflected in high levels of escape spending. As noted in the report, NBC’s designation
    as a Major Regional Activity Centre means that it has a primary role in capturing spending that
    would otherwise escape from the region. Notwithstanding this, the analysis concludes that
    additional retail development would also be supported at other locations within the region.
    However, these minor additions to floorspace would be unable to alleviate the high escape
    spending as they do not represent major shopping destinations.

(h) Although parts of the catchment to the south-west are more distant from NBC, this still
    represents the closest higher-order centre, and it is appropriate to consider ways to retain retail
    demand from this part of the catchment. Notwithstanding, the need analysis presented in the
    Economic Impact Assessment recognises that 30% of retail demand generated by catchment
    residents will continue to escape from the catchment. The approach adopted for the report does
    not discount the potential for higher levels of escape ‘leakage’ from parts of the catchment more
    distant from NBC.

(i) Detailed sales performance data for the NBC by store has not been presented in the report, and
    the performance of the Bi W in particular is irrelevant to the analysis for the proposed Noosa
    Village Mixed Use development. However, the economic analysis has been expanded to consider
    overall supermarket sales performance across the catchment, with this exercise presented in
    Table 10 at p44 of the Economic Impact Assessment.
(j) A sales forecast for the proposed supermarket within the VMU proposal has been prepared using
    a market share approach, and is presented in Table 11 (p52) o the Economic Impact Assessment.
    A similar detailed market share based analysis for the retail specialties has not been conducted as
    the final tenant mix is unknown at this stage.

(k) As you are aware, in direct response to Council’s Information Request, the VMU proposal has
    been amended to remove 6,500m2 of retail and a code assessable application has now been
    lodged with Council to locate a 6,500m2 retail expansion on the existing Noosa Civic site (Noosa
    Civic Stage 2) consistent with the provisions of the Noosa Plan. Accordingly, the Economic
    Impact Assessment incorporates an examination of the potential cumulative effects associated
    with the concurrent development of Noosa Civic Stage 2 (6,500 sqm code assessable) within the
    Retail precinct.

(l) The potential loss of employment at other centres (or redistribution of employment has been
    considered in the Economic Impact Assessment at section 8.3, where it is concluded that as the
    impacts on existing centres are minor, the likelihood of staffing reductions at competing centres is
    low.



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