MCU10/2083 Development Application part 2 - Attachment 4 - Economic Impact and Need Assessment

                 •    physical attributes of competitive centres and retail areas, such as age,
                      design, situation (free-standing centre or part of a central business area),
                      etc.
           No universally accepted standards of impact exist (or are possible) as each
           retail market and retail development is different. A frequently used ‘rule of
           thumb’ is that an impact of 15% or more of turnover should be cause for
           concern. This concern is not about the impacts upon the profitability of
           affected centres and retailers, or about affording existing centres and retailers’
           protection from healthy competition or from changing market conditions.
           The primary concern is to ensure that the premature or inappropriate
           introduction of a new centre or centre extension does not jeopardise the current
           or future delivery of a range of retail goods and services available in a variety
           of centre types and formats to the community.
           This rule of thumb must be applied with considerable caution as each centre
           and trade area is different. For example, in stable or declining markets in many
           rural communities, impacts of 15% or more upon an existing centre or retail
           area would be cause for concern. There may be insufficient prospects for
           growth to ameliorate these impacts within a reasonable time period (usually
           about three years). Even then, the potential loss (or change of use) of existing
           retail facilities, which might consist of old or outdated floor space, must be
           weighed against the replacement and improvement of retail facilities that a new
           development might bring.
           Areas with high growth potential can absorb impacts on centre turnovers well
           above the 15% rule of thumb, usually with little difficulty. Growth in the pool
           of retail expenditure available to support all retail centres usually will quickly
           restore turnover initially lost to new competitive centres in such areas.

4.3.2      Amount and distribution of impacts

           The proposed convenience retail centre will serve a complementary role to the
           Noosaville Business Centre and meet the lower-order retail needs of the
           resident and visitor population. In contrast, the traditional supermarket at
           Noosa Village provides for the major chore food shopping needs of the
           population. Therefore, they will not compete directly with one another.
           In terms of fast food, a reconnaissance of the area has identified a relative
           shortfall. The Noosaville Visitor Mixed Use Zone (i.e. Gympie Terrace) has a
           diverse mix of restaurants and cafes, generally aimed at the higher socio-
           economic market and this is discernible through the menus’ price points. There
           is a small clustering of fast food outlets on Thomas Street but apart from the
           Red Rooster, the price points are also higher than those proposed as part of the
           subject proposal. Furthermore, their operating hours are generally restricted to
           dinner only.
           In effect, there are only three moderately priced local fast food outlets that are
           comparable to those proposed within the subject development – McDonalds,



Noosaville Convenience Centre EIA
10034 Rev 1
19 October 2010                                    31