Attachment H - Economic report · MCU13/0092

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1.0 INTRODUCTION

This Town Planning Report has been prepared for the applicant, the Multi
Span Australia Group. The report is submitted to the Sunshine Coast Council
as part of the common material for an application that seeks a
Development Permit for a Material Change of Use for an integrated
development comprising a ‘Commercial business Type 1 Office’ and
‘Entertainment and dining business Type 1 Food & beverages’ and ‘Retail
Business Type 2 Shop & Salon’. Specifically, the applicant seeks to construct
an integrated IGA Supermarket and Speciality Shops complex on Lot 94 SP
137431 Rufous Street Peregian Beach. The application is impact assessable.

The land is located within the 2009-2031SEQ Regional Plan's Urban Foot-print.
Furthermore, the land is located within the Eastern Beaches Locality of The
Noosa Plan and the site is included in the Open Space Recreation zone with
Lot 95 located in the Community Services zone.

Under the SPA regime, the proposal requires impact assessment.

This town planning report comprises the following Sections:

Section E.S Executive Summary

Section 1.0 Introduction

Section 2.0 Proposed Supermarket and Shops Development

Section 3.0 Site Description Details

Section 4.0 The IGA Supermarket Story

Section 5.0 Peregian Beach - Past, Present and Potential Future

Section 6.0 Peregian Beach's Neighbourhood Village Centre (Square) -
Role and Function

Section 7.0 Relevant Town Planning Legistation

Section 8.0 Community Survey

Section 9.0 Summary

Section 10.0 Conclusion

Whilst the proposal is in conflict with the intent for the Open Space
Recreation zone and parts of the Eastern Beaches Locality Plan, this Town
Planning assessment concludes that, by and large, the anticipated impacts
of the proposal are, on balance, positive and beneficial to the wider
community given that the level of conflict is considered to be of a relatively
low order. Further, the proposal is not considered to undermine the intent of
the Desired Environmental Outcomes (DEO’s).

It is considered that there are sufficient grounds to enable the proposed
development to be supported given:

e the life of the Noosa Plan since the last full review resulting in sections
of the Eastern Beaches Locality Plan no longer applying,

 

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In a similar way it is envisaged that the proposed IGA supermarket and
contemporary convenience speciality shops will satisfy a community need
not otherwise generally able to be readily accommodated in the traditional
village centre.

The role of the proposed convenience IGA shopping complex is not
expected to compete with the traditional centre, nor detract from its existing
highly successful social/entertainment role, rather it will provide the potential
to strengthen the traditional centre by reducing leakage (in $'s and resident
numbers), to Coolum Beach, Peregian Springs or elsewhere, and attracting
additional patronage to the Village Square by those locals currently
shopping at Coles and Woolworths etc outside of Peregian Beach

The ‘Needs Assessment’ by Foresight Partners Pty Ltd (February 2013 — refer to
Attachment H) a highly experienced and regarded Brisbane based
economics consultancy concluded (Source: SUMMARY]:

e The proposed closure of the Friendly Grocer supermarket store “will likely
leave only one small food/grocery store {approximately 150m?) in Peregian
Beach which is expected fo be part of the Essence development. A food
store of fhis size offers only a small product range generally limited to
confectionary, drinks and a small variety of convenience food. Without a
local supermarket residents of Peregian Beach must travel outside th3eir
community for basic food and grocery needs ";

e "The lack of supermarkets indicates a clear void in the existing retail provision.
However, there are no suifably zoned sites of sufficient size in Peregian Beach
to accommodate a supermarket”;

e The proposed centre will have a convenience shopping and services focus
and will complement the established retail network in the Village Centre “

e "Of the centre's forecast $12.6million in year one turnover more than $10.5m
(85%) is expected to be recapture of spending currently escaping form
Peregian Beach";

e “The proposed centre has particular benefits including greater local retail
choice, enhanced local accessibility to commonly used retail facilities,
reduction in escape spending, a boost to locally based employment and
greater job containment. Moreover, a community the size of Peregian Beach
would reasonably expect fo be serviced by a local supermarket.";

e "It is therefore concluded that there is a clear and significant economic and
community need for the proposed neighbourhood cenire>"

It may be the case that part of the reason for the proposed closure of the
Friendly Grocer and its replacement by a Restaurant and small market stalls
is reflective of the fact that the neighbourhood village centre functions as an
entertainment/dining/social centre and not as a true convenience shopping
centre.

 

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8.0 COMMUNITY SURVEY

8.1 A Community Survey undertaken in March 2013 found a level of
opposition to the proposed development of Lot 94 for the proposal,
however, due to the inconsistency of participant responses to various
questions it is difficult to establish if the level of opposition was to the
commercial development of lot 94 per se, or to the establishment of a
convenience Supermarket complex outside the Neighbourhood Centre or
anywhere in Peregian Beach, or both.

A copy of the Community Survey Results is at Attachment G.

8.2 In addition to the inconsistencies which arose (refer to the
CONCLUSION and EXECUTIVE SUMMARY @ Attachment G) a number of
other factors may be of relevance to the community and Council in
evaluating this application, namely:

1. The findings of the independent Needs Assessment by Foresight
Partners Pty Ltd (Attachment H) which found, inter alia, that there
would be a $10.5m re-capture of escape spending from Peregian
Beach residents in year 1 of trading, back in to the local community;

2. The same report found that there is a "significant economic and
community need for the proposed neighbourhood centre";

3. Future generations have been under-represented in the Survey with
only 11% of the participants being younger than 35 years of age;

4, How many of the local residents are aware that the existing Friendly
Grocer premises has been approved for re-development with a
restaurant and market stalls/SOm2 retail food area, thereby leaving
Peregian Beach with no supermarket?;

5. Has the local community placed considerable weight on the
“Scanlon” approval as either providing convenience goods if and
when development occurs, or is the community still incensed that the
proposed development was ever approved?

6. Is the community aware that there is no suitably zoned land for a
similar development elsewhere at Peregian Beach?

7. Does the community understand the implications of the site being
privately owned and yet seemingly sterilised against development
other than that for the community at no recompense to the owner?

8. Does 88% of the community want or need to do their larger
weekly/monthly shops outside of Peregian Beach to the detriment to
the Peregian Beach economy, particularly taking into account rising
fuel costs, an ageing population and the convenience of shopping
locally;

 

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