Objection to Noosa Civic development application - MCU23_0078 CCPL 121223

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of CCPL’s investment in Noosa Junction, we have relied upon Council's consistent application of the centre
hierarchy. Noosa 5 Cinemas forms part of the wider Noosa Junction major activity centre. Many businesses
within the Noosa Junction activity centre, including Noosa 5 Cinemas, are operating in a very challenging
environment. Leasing opportunities remain available within the Noosa Junction activity centre which is an
indicator of demand.

The development application for the Noosa Civic expansion is substantial, with over 17,000m2 of retail,
commercial and entertainment floor space being proposed. The proposal includes 7,500m2 of shops, food
and drink outlets, offices and health care services, 1,100m2 of bar and dining, 2,700m2 of indoor sport and
recreation, 3,070m2 of theatre (6 screen cinema), 3,000m2 of business uses, 445m2 of research and
technology and permanent and short-term accommodation. The Noosa Civic expansion is far larger than
contemplated by the planning scheme’s activity centre hierarchy. The expansion is proposed to be located
on land that is within 7 kilometres of the Noosa Junction major activity centre. This is a 9-minute drive.

Both Noosa Civic and Noosa Junction are major activity centres intended by the planning scheme to have
distinct and complementary roles. While we acknowledge that Noosa Civic is identified in the Noosa Plan
2020 as the predominate centre, the size of the expansion is simply far too large to “complement” the Noosa
Junction activity centre. The proposed expansion of Noosa Civic will also represent a duplication of existing
functions already provided and will have serious adverse trade and employment impacts on existing
businesses in the Noosa Junction activity centre. This in turn will have a material adverse impact on the long
term viability of the Noosa Junction activity centre.

The Noosa Plan 2020 is a recent planning instrument. It is not a document that is out of date or overtaken
by events. The Noosa Plan 2020’s Strategic Framework provides the following intent statement for Noosa
Junction:

Noosa Junction is a vibrant mixed-use centre. It caters for creative industries, retail via local brands, food
and entertainment venues, knowledge based industries, professional services and education. Development
provisions have been significantly increased, compared to previous planning schemes, to allow for greater
redevelopment options. Entertainment and lifestyle pursuits enhance the centre’s role as a vibrant place
for hospitality in conjunction with retail and services.

The planning scheme’s outcomes for the Major Centre Zone also state that…Uses within a Major Centre do
not detract from the role or function of another Major Centre.

Allowing such a large expansion of Noosa Civic will detract from the existing and envisaged role and
function of the Noosa Junction activity centre. The proposed development cannot achieve the planning
scheme’s outcomes for the Major Centre Zone and will result in Noosa Junction activity centre not being
able to achieve the intent described in the Strategic Framework. Council must ensure that Noosa Junction
remains a vibrant and viable activity centre as described in the Strategic Framework. This must be a relevant
consideration in the assessment of the application.

The proposed cinema is 20m high. The planning scheme sets clear expectations for building heights of 10-
12m on the Noosa Civic site. The proposed cinema therefore represents a +60% increase in building height
above that envisaged for the site. There is no justification in the applicant’s material for such a substantial

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exceedance of the preferred building height for the site. This is also a major conflict with the planning
scheme and directly relates to the significant scale of the proposed cinemas.

CCPL has reviewed the submitted economic assessment, particuarly section 6.2. The following concerns are
noted with the assessment:

    •      The economic assessment significantly overestimates historical and current cinema occupancy
           rates for the existing Noosa 5 Cinemas. The table below includes 10 years of occupancy rates for
           the Noosa 5 Cinemas and demonstrates that the existing cinemas have significant spare capacity;




    •      The economic assessment overstates future cinema attendances. Screen Australia data identifies
           that the pre-pandemic average cinema visitation was 3.55 visits per year over the six (6) years to
           2019 1. This reduced to 3.3 visits per year in 2019 and then plummeted to 1.1-2.2 visits per year in
           2020-2022. According to the Motion Picture Distributors Association of Australia (MPDAA),
           visitations were still only 2.2 visits per year in the 2022 calander year, or 32% below pre-Covid
           years. The cinema industry expects visitations for the 2023 calendar year to remain 30%
           below 2019 levels. These figures indicate that there will be a slow recovery due to many factors
           including film industry disruptions, delays in movie production and the increasing impact of online
           streaming services.

    •      The economic assessment applies a 25% tourism “loading” in addition to inflated assumed local
           average visitation levels. The 25% tourism loading is not a reasonable assumption and is far too
           high to be representative of the Noosa market. Any loading applied should be in the range of 2-
           13% for the Noosa region based on comparable markets with high inbound tourism rates.

    •      The economic assessment utilises the retail catchment trade area to define the trade area for the
           proposed cinemas. This catchment area is extremely large, extending approximately 30-40
           kilometres from the site, well beyond Cooroy, Pomona and Cooran. CCPL consider this defined



    1
        https://www.screenaustralia.gov.au/fact-finders/cinema/industry-trends/historical-admissions

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        catchment to be far too large and not representative of the actual Noosa cinema market. The
        artificially large catchment area is exaggerating population numbers, visitation rates and demand.

    •   The economic assessment applies a typical threshold rate of 40,000 attendances per year per
        cinema screen. SSC has a thorough understanding of the cinema market and considers an
        indicative threshold rate of closer to 50,000 attendances per year as realistic, which is 24% larger
        than the threshold rate used by the applicant’s consultant. Applying 40,000 attendances per year
        to a new cinema screen is not viable.

    •   The economic assessment includes the following statement with respect to cinema need:

                It is emphasised that the proposed use is entirely consistent with the provisions of the
                planning scheme and therefore not subject to need assessment.

        CCPL strongly objects to this statement. The proposed cinema use (defined as a theatre) is subject
        to impact assessment and is not “entirely consistent” with the planning scheme. Schedule 6 of the
        planning scheme clearly requires a consideration of need in the assessment of this component of
        the application. Need is a relavant factor. The economic assessment significantly overestimates
        cinema demand and fails to estimate the impact of the proposed six (6) screen cinema which, could
        contain approximately to 1,200 seats, is addition to the existing cinema capacity.



In summary, CCPL objects to the development for the following reasons:

    •   The proposed expansion of Noosa Civic is far too large and should be reduced in size to comply
        with the planning scheme’s Strategic Framework, centres hierarchy and Major Zone Code. The size
        of the retail offering and cinemas will jeopardise the centres hiearchy. The expansion must not
        diminish the standing and potential growth of the Noosa Junction activity centre;
    •   The cinema market in the Noosa region is insufficient to support an additional major cinema
        complex that doubles the amount of cinema screens and triples the amount of cinema seats in the
        trade area. There is no latent unsatified demand that warrants such an expansion;
    •   The submitted economic assessment inflates the cinema catchment size and cinema potential
        attendance. The Theatre land use is an impact assessable land use. Need and trading impacts are
        relevant considerations in the assessment of this component of the application. The proposed
        cinemas are not justified on the basis of public need and adverse economic impact;
    •   The cinemas significantly exceed the preferred maximum building height for the precinct. This is a
        further indicator that the cinema proposal is too large. There is no basis for a +60% height increase
        above the preferred maximum building height for this component of the application.



Given the significance of the issues raised, we request a meeting with key Council staff and Councillors.
Please contact me to organise a suitable time.

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Yours faithfully
Carolyna Chase Pty Ltd




John Kirby
Director

15 St Georges Road
Toorak VIC 3142
[email protected]>


Cc:    Mayor Clare Stewart [email protected]
       Deputy Mayor Cr Frank Wilkie [email protected]
       Cr Karen Finzel [email protected]
       Cr Joe Jurisevic [email protected]
       Cr Amelia Lorentson [email protected]
       Cr Brian Stockwell [email protected]
       Cr Tom Wegener [email protected]