2016 08 09 - S&O Agenda - Item 8, Att 2 - AEC Noosa Convention & Performing Arts Centre Pre-feasibility Review

PRE-FEASIBILITY OF CONVENTION AND PERFORMING ARTS CENTRES


 Space            Description
 Meeting           The J Boardroom:
 Spaces             o 26sqm floor area.
                    o Central meeting desk and seating for 12 people.
                   The Deck Room:
                    o 33sqm floor area.
                    o Accommodates 16 when seated at central table/s.
                    o Adjacent timber courtyard.
 Commercial        Available for hire to caterers with a food licence.
 Kitchen           Equipped with commercial oven, stove, deep fryer, cold room space, refrigeration, dough mixer, dish
                    washer and ample bench space with fan extraction systems.
Source: www.thej.com.au.

The J offers free on-site parking for up to 220 cars. The Junction shopping precinct also contains 3 free public
parking areas behind the shops, accommodating 700 cars.


3.2         FINANCIAL PERFORMANCE
The overall operating deficit of The J is budgeted at $0.734 million in 2015/16, including $0.275 million in
depreciation charges and $0.173 million in corporate overheads.

The following table shows the operating revenues and expenses at a summary level. Presently, the J only covers
50% of its labour, goods and services costs excluding depreciation.

Table 3.2: The J 2015/16Operating Budget ($M)
 Item                                                 Value
 Revenues
 Sale of Goods and Major Services                    $0.269
 Rental and Levies                                   $0.079
 Other Recurrent Income                              $0.116
 Internal Recoveries                                 $0.001
 Total Operating Revenue                             $0.467
 Expenses
 Employee Costs                                      $0.363
 Materials & Services                                $0.366
 Internal Charges (waste/plant hire)                 $0.022
 Corporate Overheads                                 $0.173
 Other Expenses                                      $0.001
 Subtotal – Labour, Goods and Services               $0.926
 Depreciation                                        $0.275
 Finance Costs                                       $0.000
 Total Operating Expenses                            $1.200
 Profitability
 Net Operating Position                             $(0.734)
Notes: The values have been rounded to thousands.
Source: NSC (2016a).


3.3         ASSETS
The Written Down Value (WDV) of The J’s assets totals $14.5 million, as shown in the following table. Land
accounts for $5.6 million of the total (total site space including carparking), with depreciable assets totalling $8.9
million. The asset consumption ratio for the depreciable assets is at 87.9%, suggesting that just over one-tenth of
the asset value has been consumed to date. This aligns with the assumed useful life of the primary building
structures of 50 years and The J being operational since 2006.




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