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


Table E.2. Summary Economic Impacts
    Impact                 Output ($M)        GVA ($M)        Income ($M)     Employment
                                                                                    (FTE)
    Construction Phase
    Direct Impact                $15.0              $4.6             $2.4               28
    Indirect Impact              $10.0              $4.6             $2.7               32
    Total Impact                 $25.0              $9.2             $5.1               60
    Operations (Convention Centre + Performing Arts Centre)
    Direct Impact                 $6.7              $2.9             $2.1               41
    Indirect Impact               $3.2              $1.6             $0.9               12
    Total Impact                  $9.9              $4.5             $3.0               53
Source: AEC


OUTCOMES
In making a decision regarding the appropriateness of commissioning a full feasibility study for the proposed
Convention Centre and Performing Arts Centre, Council must consider the following key outcomes from this pre-
feasibility assessment:

      Potential direct and indirect economic benefits from ongoing operations include an additional $4.5 million in
       Gross Value Add within the economy and up to 53 new jobs.

      The likely financial implications for Council from the proposal, estimated at an additional $2 million per annum
       operating deficit including depreciation but excluding finance costs –equating to $65 per rateable assessment.
       Including finance costs, this could increase to $3.2 million per annum, or in excess of $100 per rateable
       assessment.

      Commercial risk associated with the operation of the proposed Convention Centre, including the potential for
       higher losses should actual utilisation be lower than assumed.

      Limited and highly competitive funding availability from the State and Federal Governments.

      Ability of the proposed Convention Centre to effectively compete with regional, intrastate and interstate venues,
       many of which offer a holistic service offering including accommodation onsite.

      Implications of the proposed major conferencing and event space additions in the region by 2020, including
       the Westin Coolum Resort and Spa (20 minutes from Noosa) and Sunshine Coast Entertainment, Convention
       and Exhibition Centre (40 minutes from Noosa).

      The potential impact on pre-existing facilities in Noosa catering to the 150-300 capacity given that the proposed
       Convention Centre would still offer different combinations of rooms to be hired within the larger floorprint.

      Ancillary costs likely to be incurred in facilitating increased vehicle and foot traffic to and from the proposed
       venues.

      Potential conditions associated with the historic grants received for the construction of The J.

Council should critically assess the potential merits of capital investment in the proposed venues relative to other
renewal and upgrade projects, noting the risk profile of the proposal. This is particularly the case for capital projects
that have the capability to access State and/or Federal Government funding contributions.




                                                                                                                       v