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


capacity to 430-450, improving the acoustics system to allow diversity of performances and enhancing the stage
and other areas at an indicative cost of $5-6 million (albeit noting that full costing would need to be undertaken
prior progressing this option).

3.6.2     The J Business Plan 2015-2018
The Business Plan 2015-2018 for The J was completed in November 2015 by 99 Consulting, and builds upon The
J Service Review. The Business Plan’s aim is:

         To identify actions and opportunities to increase Council’s return on investment by increasing community benefit and
         value, and reducing net cost to Council.

Revenue opportunities include restructure of fees, increase venue utilisation and increase proportion of
commercial-rate hirers. It was noted that there is significant competition from commercial venues for the more
profitable events. Cost reduction opportunities are limited and may result in increasing costs to gain a higher
revenue. However, it was noted that growth of revenue and associated expenses should be reviewed in a profitable
way.

In response to requests for increased capacity at The J and an assessment of the potential development of a
conference facility on the site, the Business Plan indicates that Council will need to consider any potential future
development/expansion in the context of venue provision on the entire Sunshine Coast region.


3.7       OBLIGATIONS
The J was constructed with funding assistance from the State Government ($1.587 million), the Federal
Government ($1.2 million) and community donations towards fit out ($56,272). As with all funding programs, grants
and subsidies are provided on the basis that a range of conditions are met.

The Regional Partnerships funding program from which the $1.2 million (exclusive of GST) in Federal Government
funds were accessed (April 2005) includes a requirement that should Council dispose of The J prior to it being fully
depreciated, then it would require a payment from Council equal to the undepreciated value of the portion of the
asset funded by the program at that point. Relevant extracts from the agreement are provided below for reference
purposes:




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