Attachment 7- Economic Impact Statement

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Justification for proposal

8. Support for an expansion in retail provision in Noosa has previously been identified in
   the Noosa Shire Retail Plan (2018) commissioned by Noosa Shire Council, as well as
   in previous Environment Court judgements. For example, the Noosa Shire Retail Plan
   provided support for an increase of up to 17,500 sqm of traditional retail at the NBC
   by 2026 including a DDS, a new full-line supermarket and possibly another smaller
   format supermarket, plus other specialty retail.

9. These conclusions with regard to the need for additional retail provision to serve the
   needs of the local community and visitors are supported by economic analysis
   presented in this report.

10. Retail provision at the NBC serves a wide catchment that extends across the Shire
    and into the regional hinterland, with the extent of this catchment informed by
    analysis of visitation to Noosa Civic using mobile geolocation data.
11. The catchment has continued to experience population growth even during the
    COVID pandemic, and growth is forecast to continue mainly through infill
    development and high-density housing close to activity centres, with the rate of
    growth increasing once overseas immigration recommences.
12. Tourism makes a significant contribution to local activity, in terms of the numbers of
    visitors and spending on retail and other goods and services, and is responsible for an
    estimated 25% of total retail spending undertaken within the catchment.
13. When retail demand from catchment residents and visitors is analysed against the
    current floorspace supply, the conclusion to be made is that only 56% of ‘traditional’
    retail demand (ie excluding large format retailing) is retained within the catchment.
    This is larger than would be expected if a full range and depth of retail services was
    made available to reflect the role of the NBC and other centres within the catchment.

14. When applying a more appropriate retention rate of 70% to reflect the role of NBC as
    a Major Regional Activity Centre (noting that this still allows for a sizeable share of
    traditional retail demand to flow to Maroochydore as a higher-order centre) the
    analysis shows that there is an undersupply of 21,200 sqm of traditional retail
    floorspace available within the catchment. Moreover, the undersupply would widen
    into the future without any increase in retail provision locally within the catchment,
    reaching 33,050 sqm by 2027 when Noosa Civic Village would be operational.

15. The conclusion is that the retail hierarchy does not allow for levels of retail floorspace
    provision that would be consistent with the intended strategic roles of centres within
    Noosa Shire, and in particular the designation of the NBC as a Major Regional
    Activity Centre. There is a need for additional floorspace to resolve the current
    inadequate provision, as well as additional floorspace development into the future to
      support ongoing growth.
16. The inclusion of 7,500 sqm of traditional retail floorspace to be developed at Noosa
    Civic Village, plus the 6,500 sqm expansion as part of the Stage 2 Retail application,
    is therefore supported by forecasts of future retail need prepared in this report, as
    well as being consistent with supportable floorspace growth as identified in work

Noosa Village Mixed Use Development – Economic Impact Statement for Development Application   Deep End Services