2015-09-15 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                            15 SEPTEMBER 2015


Location IQ supports Urbis’ suggestion that there is an undersupply of discount department stores
and supermarket floor space within the catchment, advising:
Generally, we would agree that there is a low provision of both discount department store and
supermarket floor space within the Noosa catchment. A second discount department store, being
relatively small in size at 5,400m2 would generally be supportable within the catchment.
Similarly in relation to supermarkets, there is a lower than average provision of supermarkets,
mainly reflecting the small size of supermarkets throughout Tewantin, Cooroy, Peregian Beach,
Coolum and the like. Relevantly, most of the population growth is projected within these areas
rather than in and around the defined Noosa Civic primary sector. The potential for expansion of
existing and new supermarkets within areas with low supply but high population growth in the
secondary sectors should be undertaken to understand the potential alternate sites to
accommodate the demand for supermarket floor space.
From a land use planning perspective, Location IQ raise important considerations regarding the
provision of new supermarket floor space. Catering for the food retail needs of population growth
to the south, beyond the development’s primary catchment, is likely to be better addressed closer
to those populations and no assessment of the ability for those areas to cater for such need has
been made. For instance, the dedicated full service local centre at Peregian Springs has capacity
for additional retail facilities. New supermarket floor space has also been approved by Council at
Peregian Beach and Noosa Fair but these have been ignored by the applicant. Council has also
been formally advised that a new supermarket proposal is imminent for Cooroy. The degree to
which the development would appropriately meet need for further supermarket development is
considered overstated and based on deficient methodology.
Location IQ’s peer review concludes there are significant concerns with the Urbis Retail Needs
Assessment approach, stemming from the following key factors:
   The sales and impacts from approved developments not being taken into account when
     assessing the likely level of retained spending. The supportability of retail centres throughout
     the trade area taking into account these impacts from these centres as well as the proposed
     expansion of Noosa Civic is required.
   The sales impact analysis indicating that more than 50% of sales will result from retention of
     escape expenditure which effectively means all non-food sales for the centre will be from
     retained expenditure. This is not likely or possible.
   An assessment of alternate sites particularly for supermarket floorspace more relevantly to
     be positioned closer to future growth areas.
Given the first two concerns, it is likely the development’s retail impacts have been understated.
It is acknowledged escape spending raises important planning considerations, as it reflects
residents’ propensity to travel for goods and services and can point to deficiencies in their
provision. The applicant suggests spending escape from the Noosa Civic catchment presents
compelling need for the development but key assumptions and oversights overly simplify the
applicant’s view. Escape spending from the Noosa area is influenced by many factors, which
include:
   The primacy of the Principal Activity Centre at Maroochydore reflects its provision of higher
     order services and greater retail provision. The Centre has, and will continue to have, a
     significant “gravitational pull”.
   Maroochydore has been designated a Priority Development Area by the State and is about
     to undergo a major period of growth that will see the construction of a new CBD and further
     retail expansion that will increase its “gravitational pull”.
   The relative convenience of a passenger vehicle trip down the Sunshine Motorway to
     Maroochydore will remain a factor, with a one-way drive time of around only 20 or 30 minutes
     required for many within the catchment.



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