Appendix G. Economic Report

                                                                Service Station and Convenience Retail Assessment
                                                                               175 Eumundi Noosa Road, Noosaville




Summary
 The proposed development is located at 175 Eumundi Noosa Road, Noosaville. It will include fuel
  bowsers for fuel sales for motor vehicles as well as 123sqm of convenience retail trading area as part of
  the service station building.
 The Subject Site is located on the southern side of Eumundi Noosa Road and is located as part of the
  industrial and employment area that extends south form the road. It is also located opposite Bunnings
  Warehouse.
Fuel Need
 Noosaville plays a regional role in meeting the service station needs of the Noosa area. The
  concentration of service station capacity in Noosaville offsets limited supply in Noosa Heads, Sunshine
  Beach and Sunrise Beach. This reflects the employment, industrial and business nature of much of
  Noosaville’s urban form, particularly in proximity to the Subject Site.
 The residential population of the defined Study Area in 2016 was 20,646. This is projected to grow to
  21,975 in 2018 and 23,628 in 2036.
 Based on industry standard data for Noosa on household expenditure on fuel retailing, RPS estimates
  that residents in the Study Area require 14.7 million litres of fuel in 2016. This is projected to grow to 15.2
  million litres in 2018 and 20.2 million in 2036.
 The location of the Subject Site means the Proposed Development will provide convenient access for
  local businesses to fuel retailing. Discounting demand from articulated trucks which would be unable to
  utilise the Proposed Development (and would be serviced primarily by the Caltex Diesel Stop), RPS
  estimates that local non-residential fuel demand will increase from 3.7m litres in 2016 to 3.8m in 2018 and
  5.2m in 2036.
 RPS estimated that servicing capacity of existing service station by adjusting national average
  performance for station location, operating hours and bowser numbers. Based on these assumptions, it is
  estimated that existing service station have a total fuel capacity of 16.2 million litres of fuel per years.
 Adjusting for leakage of expenditure from the Study Area and expenditure coming into the Study Area
  (based on Noosaville’s established role and tourist and visitor movements), in 2018 there will be a
  shortfall of 4.2 million litres of fuel capacity per year. This is 356,000 litres per month which is above the
  sustainable level required to support an additional full-line multi fuel 24 hour Service Station on
  the Subject Site.
Convenience Retail Impacts
 RPS has assessed shop retail demand in the local Noosaville SA2 (which is smaller than the fuel Study
  Area, due to the convenience nature of the proposed retail floor space in the Proposed Development).
 Applying industry standard expenditure and local retention rates, RPS estimates that the Noosaville SA2
  generated approximately $65.9m of local retial expenditure in 2016. This is projected to grow to $67.8m
  in 2018 and $81.8m in 2036.
 Currently, the Subject Site accommodates approximately 350sqm of trading area for retail uses. These
  uses are informal – in that they are not explicitly recognised or approved in the planning scheme – but
  they do currently capture retail expenditure that would otherwise go to formal retailers in the area.
 These uses are lower order and informal in nature and therefore likely support a turnover density of
  $5,250/sqm. This results in a total supportable retail trade of $1.84m or 2.7% of the locally retailed
  expenditure in the local area in 2018.
 By comparison, the Proposed Development will include 123sqm of shop retail floor space, trading at
  closer to $9,500/sqm in line with industry standards. This will result in the Proposed Development




   138303-1 | 5 December 2017                                                                                   1