2016-08-09 S&O Agenda Item 8, Attachment 1 - CCIQ Noosa Convention and Cultural Centre Initiative Pre-feasibility Study

    CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
    Pre-feasibility Study                                                                                                           April 2016


   Funding /                  a.    Using a recently constructed convention centre, as a comparative cost model,
                                    the construction and fit-out of an entry level convention and exhibition
  Investment                        centre component as specified here, could be in the $15 to $20 million range.
       Model                  b.    Upgrading the J to the specification given here, a modern performing arts
                                    complex is estimated to add at least a further AU$7 to $10 million.
                              c.    The Premier of Queensland encouraged Noosa to submit a proposal43 to
                                    government for funding support in the 2016/17 State Budget.
                              d.    A State Budget submission for 2017/18 is feasible and should be pitched at
                                    AU$30m for all components of the development.
                              e.    Regional Development Australia, Sunshine Coast should also be approached
                                    for funding.
                              f.    Should Council prefer not to allocate budget to this project, it might choose
                                    to tender the construction and operation of the building on a “Build Own
                                    Operate Transfer” basis, with the building being returned to Council
                                    ownership in 20+ years.
                              g.    The current Sunshine Coast Strategic Destination Tourism Plan, in the
                                    Infrastructure section, states that the building of new Convention Centres has
                                    been identified as a need for the Region. This statement will be powerful in
                                    terms of seeking funding from Government.
                              h.    The options suggested in d, e and f could be considered as at opposite ends
                                    of a funding continuum, between which lie many different combinations of
                                    funding44 45
                              i.    Consider the potential sale of Naming Rights, as one of a number of sources
                                    of annual operating fund mechanisms
                              j.    Council’s recent strong surplus of AU$7.8m for the year-ending June 2015
                                    may make Council a more attractive recipient for State/Federal funding,
                                    given its responsible financial management.




                              a.                Local Economic Plan (LEP) 2015
Noosa Council                          i.                Section 4: Essential Infrastructure
    History &                 b.                Carbon Reduction & Energy Efficiency Plan- Discussion Paper 2015
                                       i.                Re “Council’s Role”, which includes “Leading by example and
        Policy                                           inspiring change”, an appropriately designed & operated
   Alignment                                             building could become an exemplar for local behavioural
                                                         change
                              c.                Social Plan 2015
                              d.                The Council under the File name ‘Grant St Development’ which is

    43
        Letter dated 1 February 2016
    44
       “...a new regionally important facility that provides opportunities to host major entertainment events and corporate business tourism
    programs has a significantly higher prospect of securing Federal and State funding than a facility that is perceived as primarily serving the
    local arts community (and not adding to the size and diversity of the regional economy).” October 2011 Feasibility Study: Sunshine Coast
    Entertainment, Convention & Exhibition Centre, p21.
    “All the major capital city convention and exhibition facilities in Australia are government owned; reflecting the strategic social and
    economic importance of these facilities to the broader economy.” October 2011 Feasibility Study: Sunshine Coast Entertainment,
    Convention & Exhibition Centre, p53.
    45
       Summary of capital costs and funding mechanisms for the major Convention Centres in Australia: pp57- 61, Sunshine Coast
    Entertainment, Convention & Exhibition Centre.




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