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> there is an increasing demand for tertiary education facilities, which should be provided for within the Shire
Business Centre.

> there is an increasing demand for heaith services, some of which should be Provided for within the Shire
Business Centre.

It is noted that should the 40,000m? of retail floorspace projected as part of the demand analysis be spread
over the next 20 years, it is expected that the economic impact of these adaltions upon other centres within the
defined network would not be significant.

However, it should also be noted that development of the retail sector is inherently humpy. This is due to the
large sizes of major tenants, the need for significant specialty retail support, the high infrastructure and
headworks costs. As a result, the lumpy’ nature of retail development leads to the real potential of significant
adverse economic impacts,

Many anchor tenants are willing to open ahead of time to secure market position and locationat advantages.
This can accentuate potential adverse economic impacts. However, it is noted that such a process provides
some significant benefits to the public by offering increased variety, choice, range, lower prices, convenience
and accessibility.

Mt is noted that the current Noosa Civic Stage ? Development Application ts proposing to develop some
30,000n? of retail Roorspace for pening in late 2012, which is almost some 5 ‘years away. It ls also noted that
S&L Developments have proposed 7,600n¥ of retail showrooms as part of a mixed use development within
Precinct E5.

Urban Economics has critically reviewed the impact analysis undertaken by the Economic impact Assessment
(EIA) accompanying the Noosa Givic Stage 3 application. With a couple of exceptions, the analysis is considered
robust. Urban Economics considers that the impacts upon Noosa Junction, Noosaville and Tewantin would be jn
the order of 13% rather than the 10-11% calculated by the EIA due to the ElA 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.

(mpacts of this magnitude would result in these three existing centres trading at or slightly below 2007 levels
akter the Noosa Civic Stage 3 opening in 2012, This would be likely to cause distress to some retailers and lead
to an increased level of re-tenanting during 2012 and 2013. However, these impacts would not be sufficient
enough as fo undermine the role and function of each of these centres.

Amelioration measures that could assist in reducing the effects of these impacts include: