2021-01-18 GC - Item 3 - Attachment 3 - Cost Benefit Analysis for Coastal Erosion Options

planning regulations are updated. This option also includes limited dune management and
revegetation to help delay damage to properties and assets.

The planning rules under option 7 are modelled as having two effects:

•    limit the development of some properties which can be a net cost or benefit depending on
     whether the use value of the developed property is sufficient to pay back the costs of
     development before the coastal erosion occurs

•    prevent development occurring seaward of some properties, which has the benefit of delaying
     damage to those buildings; allowing building use to continue until damage is incurred.

The NPV of option 7 is $73m and therefore the overall effect is positive, with the cost savings from
preventing development outweighing the loss of residential use. This analysis relied on data on the
current value of properties, and the expected rate and value of redevelopments over time, however it
does not account for potential future financial implications for Council. That is, if development is
allowed, despite the known risks, Council might be faced with some future liability in the event of
damage to the property from coastal hazards. From an economic perspective this liability is a cost to
Council and a benefit to landholders and therefore has a net zero effect. However, it does have
distributional and financial implications that should be considered.

Detailed breakdowns of the costs and benefits under each option are provided in the following tables.
Colour coding has been used to highlight the direction of results with darker orange indicating greater
costs to the community and darker blue greater benefits.




AITHER | Final Report                                                                                20
Noosa Shire Council – Coastal Hazard Adaptation Plan