MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                                        Noosa Civic Expansion
                          28 Eenie Creek Road, Noosaville and parts of the road reserves of Hofmann Drive and Walter Hay Drive



            an adverse impact in the order of $4.5M - $5M on Noosa Junction. The capacity for a centre to
            relet or reconfigure a large tenancy may be limited.

            Information Required:
            27    Provide comment on the potential impact of the closure of the Target Country on
                  Noosa Junction (in favour of Target relocating to an expanded Noosa Civic).
            28    Provide comment on the extent to which the Target Country tenancy at Noosa
                  Junction could be relet or reconfigured.
            29    Demonstrate whether a net community benefit would result from the closure of the
                  Target Country at Noosa Junction closed as a result of a new DDS at Noosa Civic.”
            RESPONSE
            Please refer to Appendix B – Retail Needs Response for a response to Items 27 – 29.
            In summary:
            (a) Target Country Noosa Junction performs well, despite its limitations, but is clearly under-
                sized for the market;
            (b) Target has identified the need for a full line store in the area;
            (c) if Target Country did not renew its lease, the tenancy would be available for another
                retailer(s) or use;
            (d) the location of the tenancy has good attributes, including being part of Noosa Junction Plaza,
                with direct access to/from Lanyana Way, proximate to Noosa Fair Shopping Centre, with
                frontage to Sunshine Beach Road;
            (e) the nature of the centre and its location, together with the configuration of space, should not
                present any re-leasing issues;
            (f)   if Target relocated from Noosa Junction to Noosa Civic, consumers would be provided with
                  a modern, full line Target store offering a far greater range than is currently available in
                  Noosa. Consequently, the broader community would be better off due to the greater range
                  that would be available in the Noosa area.

3.16        Employment Effects
            “The Retail Needs Assessment estimates direct and indirect employment effects associated with
            construction and indirect effects associated with operation utilising input-output multipliers from
            1996-97. Input-output tables represent inter-industry transactions. Changes to structural
            relationships will change these transactions. There has been significant change in industry
            structures over the past 15-20 years (e.g. widespread adoption of internet and email). As such,
            the estimates based on 1996-97 input-output data are not applicable. More recent input-output
            multipliers can be calculated from input-output tables supporting the National Accounts.

            Information Required:
            30    Amended estimates of direct and indirect employment effects associated with
                  construction and operation employment generated from input-output multipliers
                  based on more recent National Accounts data.”
            RESPONSE
            Please refer to Appendix B – Retail Needs Response for a response to Item 30.
            Urbis recognises that structural changes have occurred in the retail market since 1996/1997 and
            that more up-to-date data is available. However it considers that the multiplier effects outlined in
            the Retail Needs Assessment provided as part of the application material at lodgement continue
            to be reasonable and are a useful guide, for the reasons described in the Retail Needs Response
            (Appendix B).

June 2015                                             Cardno HRP                                                           19