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Economic Impact Assessment (EIA)

Urban Economics has critically reviewed the Economic impact Assessment and subsequent Information
Response (Economic: Item 3) material accompanying the Noosa Civic Stage 3 application. With a couple of

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exceptions, the analysis is considered robust. In particular:

The EIA has correctly identified the relevant competitive network of retail centres situated within the
region that satisfies the needs of the local Noosa and Maroochy north populations. Furthermore, this
analysis also provided a thorough review of each centres functional role within the centres hierarchy
prescribed through the relevant planning schemes and other regional planning documents (i.e. The
Noosa Pian, Maroochy Plan 2000 and the South East Queensland Regional Plan).

The defined main trade area for the proposed Noosa Civic Stage 3 development is considered to be
reasonable and appropriate for this assessment. However, it is my opinion that the inclusions of the
tertiary trade areas slightly overstate the drawing capacity for the proposed development.

it is considered that the EIA Report has appropriately adopted reasonably modest population growth
rates for the defined Main Trade Area, generally consistent with our projections that were adopted as
part of the Strategic Review Report.

As stated within our Strategic Review Report, Urban Economics has critically reviewed the economic
impact analysis undertaken by the EIA, in which we consider that the impacts upon Noosa Junction,
Noosaville and Tewantin would be in the order of 13% rather than the 10-11% calculated by the EIA
due to EIA measuring the impact in 2013 rather than 2012 (when it is proposed to open) and the
assumed turnover growth of existing centres from 2007 to 2012 has been slightly overstated.

| am in agreement with a number of community need and demand benefits argued in support of the
proposed development including growth in retail market demand, capacity at the Shire Business Centre
to accommodate new retailers, increased level of retail choice of goods and services, price point
competition, travel time and costs savings, employment opportunities, etc.

We have reviewed the subsequent information in relation to the escape expenditure and note that the
Information Response provides a thorough account of retail escape expenditure and the re-capturing
of expenditure as a result of the proposed Noosa Civic Stage 3. However, the quantum and
proportional escape expenditure estimates appear to be on the conservative side in which it is
considered that the current level of escape expenditure would be higher than that suggested within the
response. Furthermore, the reduction amount in escape expenditure as a result of Noosa Civic Stage 3
opening is considered to be slightly larger than that suggested within the response.