2017-12-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                            18 DECEMBER 2017


Previous Council Consideration
Council Workshops:
12 May 2017
26 October 2017
17 November 2017
7 December 2017
Meetings
Ordinary Meeting Minutes, 21 September 2017, Item 7, Page 18
That Council note the report by the Economic Development Manager to the General Committee
Meeting dated 18 September 2017 regarding tender 1617T130 for the provision of Management
Services – Peregian Beach Digital Hub and:
A.   Notify tender submitters that a decision on tender 1617T130 is on hold while Noosa
     Council further considers the business case of the Peregian Digital Hub project; and
B.   Request the CEO to arrange for advice to be provided to Council on strategies to meet
     Council’s broad intentions for the Peregian Digital Hub.
Special Meeting Minutes, 13 October 2017, Item 2, Page 3
That Council note the report by the Director Community Services to the Special Council meeting
dated 13 October, 2017 and;
A.   Not award tender 1617T130 in accordance with Section 228 (8) of the Local Government
     Regulation 2012 and Conditions of Tender clause 14.1; and
B.   Request the Chief Executive Officer to inform all tenderers of Council’s decision.

Finance
The Peregian Beach Digital Hub operational financial model has been further refined based on
the recommended approach to management and tenancy of the facility. The table below outlines
a 5-year financial forecast, high and low scenario based on the management and operational
model outlined in the Peregian Beach Digital Hub Implementation Plan (attached).

High Case                          Year 1        Year 2        Year 3        Year 4        Year 5
Revenue                      $    250,400 $     313,015 $     373,760 $     396,729 $     404,897
Expense                      $    242,600 $     249,544 $     257,168 $     263,371 $     269,723
Surplus / Deficit            $      7,800 $      63,471 $     116,591 $     133,358 $     135,174

Low Case
Revenue                      $    150,000 $     235,250 $     287,150 $     318,454 $     334,915
Expense                      $    220,800 $     228,269 $     234,860 $     240,551 $     246,381
Surplus / Deficit           -$     70,800 $       6,981 $      52,290 $      77,902 $      88,534

Key Assumptions
Exact revenue and expenses will not be known until post the EOI process for tenancy, therefore
a number of assumptions have been made in the development of the financial analysis and
model as outlined here;
Revenue:
   Includes fixed rental space, (exact floor space to be determined through EOI process for
     tenancy) Co-work membership (exact floor space, number of desks and memberships to
     be determined through EOI process)
   Grants and sponsorship (estimates made in both high and low scenario, albeit conservative
     as this type of revenue is not guaranteed)

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