Proposed Myall Street Mixed Use Development. Response to Information Request. Prepared for Creekgold Pty Ltd. December

Transcription

1 Proposed Myall Street Mixed Use Development Response to Information Request Prepared for Creekgold Pty Ltd December

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3 CONTENTS 1. INTRODUCTION Information request... 1 ABN Suite 31, Level Sanders Street UPPER MT GRAVATT, QLD, 4122 P: (07) F: (07) Project Changes SERVICE STATION AND CAR WASH Service Station Service Station Need and Demand Service Station and Retail Impact Car Wash Need for a car wash CARAVAN PARK Current Facilities Need and Demand for Tourist Park Potential Impact SELF STORAGE UNITS Current Supply Need and Demand Self Storage Industry Characteristics Need and Demand for Additional Self Storage Units in Cooroy Potential Impacts OTHER INFORMATION REQUEST ITEMS Co-locational Requirements/Benefits Response Zoning Response Flow-on Trade potential Response: Economic Benefits to Local Community... 32

4 Disclaimer The sole purpose of this report is to provide Creekgold Pty Ltd (the Client) with information in accordance with Foresight Partners Pty Ltd s scope of services set out in its proposal to the Client. Foresight Partners has relied upon information relevant to this report provided by government agencies, the Client and others. Except as otherwise stated in the report, Foresight Partners has not attempted to verify the accuracy or completeness of such information. The assumptions underlying the findings, observations, forecasts and conclusions presented in this report are subject to significant uncertainties and contingencies. Therefore, actual results may differ significantly from forecast results. Foresight Partners do not make or imply any warranty or guarantee with respect to the data reported or to the findings, observations, forecasts and conclusions expressed in this report. Foresight Partners cannot confirm or guarantee achievement of any forecast growth or performance, as future events, by nature, are not amenable to independent confirmation or substantiation. LIST OF FIGURES Figure 1.1: Revised Site Layout, Myall Street Development 4 Figure 2.1: Service Stations along the Bruce Highway and the northern Sunshine Coast Region 7 Figure 3.1: Caravan and Tourist Parks Along the Bruce Highway and in the Northern Sunshine Coast Region 15 Figure 4.1: Locations of Self Storage Facilities in the Cooroy- Noosa Area24 Figure 4.2: Key Reasons for Using Self Storage Private Users 26 Figure 4.3: Key Reasons for Using Self Storage Business Users 26 LIST OF TABLES Table 2.1: Locations and Characteristics of Bruce Highway and Township-based Service Stations 5 Table 2.2: Estimated Sales, Service Station, (2013 $ Values)9 Table 3.1: Caravan and Tourists Parks Along the Bruce Highway and in the Northern Sunshine Coast Region 16 Table 4.1: Self-Storage Facilities in Cooroy Noosa Area 23 Table 5.1: GRP and Employment Support (Brisbane-Moreton Region), Myall Street Construction 33

5 1. INTRODUCTION Creekgold Pty Ltd lodged a Material Change of Use application with Noosa Council in July 2014 over a 6.77ha site at Myall Street, Cooroy (Lot 4 RP852045). The proposal was for highway-oriented mixed-use development which included: a service station, small supermarket and fast food restaurant with drive-thru, totaling 1,455m²; a 150m² car wash; 52 self-storage units; and a tourist park comprising ten cabins and 31 caravan park sites. Foresight Partners prepared a Needs Assessment in July 2014 which addressed the service station and retail components of the proposed development. 1.1 Information request Noosa Council issued its Information Request dated 19 August covering a range of planning, engineering, ecology, water quality, acoustics and environmental health. Information requested relevant to the Needs Assessment report included: Issue Need & Economic Impacts The submitted Need Assessment does not address need for, and impacts of, the car wash, tourist park and self-storage components of the development. Information Required: 1. Provide a comprehensive need assessment for the car wash, tourist park and selfstorage components of the development. The submitted Need Assessment provides only a limited assessment of the need for the proposed service station component of the proposed development. Information Required 2. Provide a comprehensive assessment of need for the service station, including detailed assessment of supply of facilities, demand for additional facilities, need for additional facilities and impact of additional facilities on the centres network. The market shares adopted in the Needs Assessment for the supermarket component of the proposed development are considered overly optimistic, particularly given the layout of the road network and connectivity between the subject site and the trade areas. For example, there is limited connectivity between the subject site and the Cooroy West trade area. 1

6 Information Required 3. Provide an amended Needs Assessment for the proposed supermarket, revised to reflect more plausible market shares. 4. Provide amended proposal plans revising the size of the supermarket to reflect the amended need assessment. The application material does not clearly explain the co-locational requirements/benefits of the proposed uses, or the need for the development as a whole. Information Required 5. Describe how each component of the proposed development is expected to integrate with and complement the other components of the development. 6. To the extent that some or all of the components might be integrated or related demonstrate whether there is any additional need for the development as a whole (or a number of components together), over and above the need for separate components of the development. Issue Alternative Sites The application material does not adequately demonstrate why the component uses should not be located on suitably zoned land. Information Required 7. Provide detailed analysis of constraints on, and availability of, suitably zoned land within the area for the component uses. Demonstrate why the uses should be developed out of zone (including within a Water Supply Catchment Overlay Area). Issue Flow on Visitation The development would draw passing trade/travellers from the highway but, due to its outof-zone location, there is concern with the limited potential for flow-on trade elsewhere in the locality. Information Required 8. Provide comment on the development s ability to encourage visitors/travellers to enter Cooroy and its surrounds for other commercial or tourist activity and whether facilities could be provided within the development for this purpose. Issue Economic Benefits 2

7 The economic benefits of the proposal to the local community are not extensively detailed. Information Required 9. Provide further detail of the estimated overall investment to develop the project and the numbers and types of construction and on-going job generation. 1.2 Project Changes Subsequent to Creekgold Pty Ltd discussions with Council Planners and a review of the Information requested by Council, the Myall Street project has been amended and reduced in scale and scope. The main change is the reduction of the retail component by removal of the small supermarket so that the service station/shop is now 250m². The other elements of the proposed development remain essentially the same, although they have been repositioned on the site. The revised Proposed Site Layout DA02* is attached (Figure 1.1). Removal of the small supermarket, in effect, addresses Information Request items 3 and 4. This change more clearly aligns the project as a highway oriented development, though it will still serve residents of the Cooroy region. The following sections address the other Information Request items noted above. 3

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9 2. SERVICE STATION AND CAR WASH This section addresses Information Request items 1 and 2 concerning the carwash and additional justification of the service station. The fast food outlet forming part of the service station building was addressed in our July 2014 report. Although not part of the information request, for completeness the fast food outlet is also revisited, given the changes in project composition. 2.1 Service Station The Cooroy urban area is currently served by two service stations. Table 2.1 (Table 4.1 from our July report) is replicated below which provides details of service station locations north and south of Cooroy along or near the Bruce Highway, based upon our inspections. Table 2.1: Locations and Characteristics of Bruce Highway and Township-based Service Stations Operator /affiliation North of Subject Site Address Suburb Number of pumps BP 28 Elm St Cooroy 10 pumps Wessel Petroleum (was Reliance) 2 Diamond St Cooroy 6 pumps + 2 diesel 24 hours No No Facilities & Services Limited convenience food, ice, gas Driving Distance from Subject Site (kms) Limited convenience food, ice, gas 1 Caltex 19 Factory St Pomona 6 pumps No Ice, gas, no food/retail 11 Majestic Auto Centre Matilda Fuels The Golden Nugget South of Subject Site 1 Factory St Pomona 6 pumps Cnr Bruce H/way & Tandur Rd Cnr Bruce highway & Keefton Rd Kybong Kybong n/a 6 pumps No Yes Yes Ice, gas, no food/retail Food court, ice, gas, convenience store, coffee lounge, laundromat, tourist centre Ice, gas BP 24 Farrell St Yandina 10 pumps No Ice, gas, no food/retail Liberty 1251 Nambour Connection Rd Kulangoor 10 pumps No Ice, gas, no food/retail 22 BP Southbound Forest Crt Forest Glen 8 pumps + 2 diesel Yes Small store, ice gas 31 BP Northbound Forest Crt Forest Glen 12 pumps + 8 diesel yes Driver Reviver, 24 hour Roadhouse, ice, gas 31 Aussie World Garage 73 Frizzo Rd Palmview 12 pumps + diesel & LNG No Co-located with Ettamogah Pub, Bottle shop, convenience store 42 Shell Northbound 4249 Bruce Highway Coochin Creek 14 pumps Yes Hungry Jacks, Shell Express Convenience 60 5

10 Operator /affiliation Shell Southbound Address 4288 Bruce Highway Suburb Coochin Creek Number of pumps 8 pumps 24 hours yes Facilities & Services Hungry Jacks, McDonald s, Beefy s Meat Pies, Subway, Fruit Barn, Glass House Mountain Coffee Co. Driving Distance from Subject Site (kms) 60 Source: Foresight Partners inspections. Two service stations are located within Cooroy: Cooroy Reliance station at 2 Diamond Street has changed its name to Wessel Petroleum since our earlier inspections in February BP is located at 28 Elm Street across the railway from the main central business area. The location is just over a kilometre from the subject site. The station has five pumps and limited amenity, no hot take away food and its convenience retailing is limited, but typical of service stations today. The Wessel Petroleum service station, located at the corner of Elm and Diamond Streets, is within approximately 200 metres of the BP. It provides four pumps and limited convenience retail. It was previously badged as a Reliance service station. However, both are affiliated with BP, with signage indicating that Wessel Petroleum accepts BP and Reliance cards. Neither station is open 24 hours. On our most recent inspection (November 2014) the Wessel Petroleum and BP fuel prices (unleaded and diesel) were identical, which is not surprising given their proximity. Figure 2.1 shows a more extensive network of service stations stretching from near Forest Glen north to Gympie. The nearest service station north of Cooroy along the Bruce Highway is Matilda Fuels at Kybong, about 29 kilometres from the Myall Street site. It offers a cafeteria, fast food and a small convenience store. It is a popular rest stop for travelers and truckers. The nearest south bound service station on the Bruce Highway is the BP at Forest Glen, some 31 kilometers away. It offers only a limited variety of convenience food retailing. The nearest south bound service centre offering fast food retailers is the Shell Service Centre at Coachin Creek, approximately 60 kilometres away. 6

11 Bruce Bruce Bruce Highway Highway Highway Figure 2.1: Service Stations Along the Bruce Highway and the Northern Sunshine Coast Region GYMPIE 0 5 kilometres 10 KYBONG POMONA COOROY Cooroy - Noosa Rd NOOSAVILLE Eumundi Noosa Road Bruce Bruce Bruce Bruce Bruce Bruce Highway Highway Highway Highway Highway Highway Inset: Existing Service Stations and Proposed Development Site Garnet St Maple St Elm St Miva Miva Miva Miva Miva Miva Miva Miva Miva St St St St St St St St St YANDINA COOLUM BEACH Myall Myall Myall Myall Myall Myall Myall Myall Myall St St St St St St St St St NAMBOUR Bruce Bruce Bruce Bruce Bruce Bruce Bruce Bruce Bruce Highway Highway Highway Highway Highway Highway Highway Highway Highway metres 800 MAROOCHYDORE Cooroy Catchment BP Caltex Other Service Station Proposed Site Shell Matilda

12 2.1.1 Service Station Need and Demand The average annual sales per retail fuel outlet in Australia is estimated at about $6.7m in , of which 77% ($5.2m) is generated by the sale of petrol and diesel fuel, with the remainder generated by non-fuel products and services such as convenience retail goods (about 18%) and auto related goods (oils, lubricants, batteries) 1. However, sales can vary considerably depending upon the facility, its location and services offered, and service stations operate profitably at well below the IBISWorld national average. The Australian Taxation Office (ATO) Small Business Benchmarks for Fuel Retailing (2014), for example, provides performance benchmarks by three annual turnover ranges of less than $500,000, $500,000 to $2 million, and more than $2 million. These benchmarks are published as ranges representing small businesses grouped either side of the industry average. The ATO benchmarks are also comparable to other industry performance sources, such as FMRC Benchmarking Small Business Profile data (e.g. average $2.5 million in turnover for service stations overall, $2.0 million for stations in smaller non-metropolitan centres). Additional information on average fuel and retail spend per vehicle is sourced from IBISWorld and the Australian Retailers Association s State of the Independent Retail Sector reports (published ). The proposed development is expected to draw the majority of its trade from Bruce Highway traffic by virtue of the service station s location at the Myall Street interchange. Traffic Census data available from the Department of Transport and Main Roads (DTMR) for this section of the Bruce Highway enables an approach which uses average annual daily traffic counts (AADT) as the source of custom and applies a penetration rate or market share to the traffic volume. That result is then multiplied by average fuel and retail spend per vehicle. DTMR traffic census AADT data at 2012 indicate that: the Bruce Highway, measured at a point about two kilometres south of the Myall Street exit, carries an average of 20,408 vehicles per day, of which about 15.7% or 3,200, are heavy vehicles; just to the north of the Myall Street exit, the Bruce Highway carries 16,035 vehicles per day, of which 19.7% or 3,160, are heavy vehicles; and Myall Street, as measured just to the north of the subject site, carries 8,034 vehicles per day, of which 9.2% or 740 are heavy vehicles. DTMR s forecasts conducted as part of its Strategic Planning Study for the Cooroy to Curra Corridor indicate traffic on the Bruce Highway, north of the new Cooroy interchange, should reach an AADT of about 18,600 by This represents an average growth in traffic volume of about 1.1% per annum. We have applied this growth rate to the AADT 1 IBISWorld Industry Report, September 2014, Fuel Retailing in Australia. 8

13 traffic census count to the south of the Myall Street exit (excluding heavy vehicles) for purposes of this analysis. Table 2.2 below sets out our estimate of the service station s likely performance for the period 2017 to 2026 assuming: The service station achieves 1% penetration of car traffic along the Bruce Highway. As part of the Bruce Highway traffic consists of Cooroy area residents, No allowance has been made for traffic along Myall Street to avoid potential double-counting. Average fuel expenditure per car was $52.5 in 2012 and $51.1 in 2013 based on Australian Retailer Association (ARA) data. The $51.1 has been held constant although it is likely to increase over time, given historic volatility in fuel prices. Increases per litre (in constant dollar values) have averaged about 2.3% per annum over the past ten years. (As at December 2014, fuel prices have declined to 2010 levels). Based upon ARA and IBISWorld industry data, average sales on retail goods and services is about 18% 20% of total service station sales. However, given its colocation with a caravan park and the likely use of the retail component by Cooroy residents as a convenience store (especially outside normal retail trading hours), we would expect this to be higher at 30%. Table 2.2: Estimated Sales, Service Station, (2013 $ Values) Year ending June Units Fuel Sales Bruce Hwy (AADT)* No. Cars 18,145 18,533 18,930 19,961 Penetration % 1.0% 1.0% 1.0% 1.0% Cars Per Day No. Cars Average Fuel Expenditure Per Car $ $51.10 $51.10 $51.10 $51.10 Fuel Sales Per Day $ $9,272 $9,471 $9,673 $10,200 Fuel Sales Per Annum $m $3.38 $3.46 $3.53 $3.72 Retail Sales 30% of Total Sales $m $1.45 $1.48 $1.51 $1.60 Total Sales $m $4.83 $4.94 $5.04 $5.32 *Excludes heavy vehicles. Source: Foresight Partners Calculations. Under these assumptions, the proposed service station would achieve sales from fuel and retail goods of $4.83 million at 2017, increasing in line with traffic growth along the Bruce Highway. An estimated $1.45 million of this would be generated by the convenience retail component of the service station operation. A convenience retail offer is now an essential and virtually inseparable part of a modern service station, with the co-location of fast food outlets also increasingly common in major highway and arterial road locations. The entry of Coles and Woolworths into the retail 9

14 petrol market has cemented and strengthened the convenience retail component of the retail fuel industry. With significantly higher margins on convenience retail goods than is achievable on fuel sales, the sale of retail goods generates a sizable component of a service station s profit and can underpin its viability. Although the service station development is aimed at capturing highway traffic, part of its forecast sales will come from Cooroy area residents, particularly as other components of the development, such as the carwash and fast food operation, are also likely to appeal to local residents and draw them to the site. Consequently, the forecast service station fuel and retail sales in Table 2.2 linked to Bruce Highway traffic would also incorporate sales generated by Cooroy area residents, many of whom would probably also use the Bruce Highway. Based upon ABS Household Expenditure Survey quintile averages for Queensland, Cooroy households would have spent around $6.0 million in the year ending June 2013 on fuel, oils and lubricants. Forecast growth in household numbers should increase this spending to: $6.6 million at 2017; $6.8 million at 2019; and $7.0 million at 2021 (constant 2013 $ values). As noted in Table 3.2 of our July report, nearly 60% of Cooroy s households had two or more cars at the 2011 Census, compared to 56% for the Sunshine Coast and Queensland. Consequently, household spending on fuel, oils and lubricants is likely to be slightly above average. Under IBISWorld national averages, Cooroy household fuel spending would support the equivalent of only one service station at However, under the ATO s small business benchmark turnover averages ($2 million or more), the $6.0 million household spending could theoretically support the equivalent of at least three service stations, if it were possible to retain all fuel spending locally. Although most urban area households purchase their fuel close to home, Cooroy households are more likely to refuel at a range of service stations in Noosaville and elsewhere in the northern Sunshine Coast region as part of work, higher order shopping, education and other regular trips. Similarly, Cooroy s existing service stations would also rely on business originating from outside the defined Cooroy catchment. Fast Food With the scaling back of the supermarket to a more typical service station and convenience store format, the attached drive-thru fast food restaurant is expected to achieve a reduced share of Cooroy s resident market. At June 2017, this component of the development is forecast to achieve about $1.5 million in turonver, with about a third this amount ($0.5 million) derived from Cooroy area residents (which is about a 5% market share of available catchment area household spending on meals out-takeaway) 10

15 and two-thirds from highway traffic, caravan park visitors and other visitors/traffic through the area Service Station and Retail Impact The forecast $4.83 million in sales at 2017 also represents the potential dollar impacts upon other service stations (and convenience stores/supermarkets). The $1.5 million fast food turnover will also have some impact locally. Separating out future locally generated sales from highway generated sales a number of years in advance can only be estimated to an order of magnitude, especially as the development of the service station will be dictated by the completion of the Bruce Highway interchange. It is too early in the planning stage to nominate probable service station and fast food operators, although we understand fuel retailers have already expressed interest in operating the service station. It is likely that the service station operator will be a brand and supplier other than BP, which would introduce some competition to the two BP affiliated stations currently serving the Cooroy market. The proposed service station s Bruce Highway-Myall Street interchange orientation, and its co-location with a short stay caravan park (and fast food outlet), is expected to distribute potential impacts primarily over other service stations along the Bruce Highway. Cooroy s service stations, and those further afield in the northern Sunshine Coast area, such as Pomona and Tewantin Noosaville would also see some sales transferred to the Myall Street service station. Cooroy s two existing service stations are centrally located and occupy an intervening position to much of the township s population relative to the proposed Myall Street development, which is located at the southern edge of the township. The proposed service station, at 250m², will have a larger convenience retail component than the two existing stations and able to carry a wider range of goods beyond the predominately cold drinks, confectionery, cigarettes and snacks currently available at Cooroy s existing service stations. To the extent that it would compete locally for convenience retail sales, the Cooroy Supa IGA would experience the greater impact, but as a proportion of the Supa IGA s sales, this impact would be negligible. As an order of magnitude estimate of impacts upon Cooroy s businesses, we would expect about two-thirds of the service station and fast-food sales would be drawn from the Bruce Highway and represent new sales that would otherwise not be spent in Cooroy. Thus, of the $4.83 million in the service station s fuel and retail sales, about a third ($1.64 million) would come from the existing service stations and food stores (e.g. the Supa IGA). Of the $1.5 million in fast-food sales, about $0.5 million would come from Cooroy area businesses (mainly other take-away and fast-food outlets). In our opinion, the proposed service station and fast food restaurant collectively would have only a very minor impact upon the viability and vibrancy of the Cooroy town centre area, or upon other centres in Noosa s centres network. Even if the impacts prove to be greater than the order of magnitude estimates assumed here, the impacts are of a 11

16 competitive nature only, and would have no adverse implications for the continued robust performance and function of the Cooroy town centre or the retail shops and services clustered along Elm Street. The primary aim of the service station and fast food restaurant is to serve highway traffic. However, Cooroy area residents will also benefit from its addition. As it is unlikely to be affiliated with BP, the proposed service station would introduce a third choice and increase the likelihood of price competition, particularly given its highway focus and geographic separation from the two existing service stations. 2.2 Car Wash Although the proposed 177m² car wash is an ancillary use to the service station, it is a physically and functionally integrated use. Both are expected to be under common management and staffing. It will consist of a four bay manual car wash suitable for cars, caravans, boats and small commercial vehicles, and will include a vacuum station. Caravan parking and public rest areas adjoin the carwash and service station as shown in Figure Need for a car wash There are currently no commerical car wash facilities in Cooroy. The two nearest are in Noosaville: Noosa Car Wash is a 24 hour self-service facility located on Eumundi-Noosa Road, approximately 17 kilometres from the subject site. It contains four car wash bays. Mr Kar Wash is located on Lionel Donovan Drive, approximately 18 kilometres from the subject site. It is open 24 hours and contains two automated washers and three self-service car wash bays. Mr Kar Wash also provides a dog wash. The car wash will cater to traffic drawn from the Bruce Highway, including caravans and others using the short stay tourist park, as well as Cooroy area residents. Modern commercial car wash facilities often co-locate with service stations thereby enabling motorists to combine vehicle-related services in a single location, contributing to consumer convenience and savings in travel times, trips and costs. The proposed car wash will provide visitors and residents with a facility currently missing from Cooroy s range of automotive-related businesses. The introduction of a modern commercial car wash facility, in our opinion, will have no discernible adverse impact implications for Cooroy, and nor would it have any implications for Noosa s centres network. The cumulative attraction of the highway-oriented service station, fast-food restaurant and tourist park should enable the viable operation and support of the car wash and provide Cooroy with a complementary commercial facility that might otherwise not be possible were it reliant solely on local residents for its business. The introduction of a modern car 12

17 wash as part of the Myall Street mixed use development augments Cooroy s range of commercial activities and attractions as an urban centre. 13

18 3. CARAVAN PARK The tourist park will provide 31 powered caravan sites and ten cabins, together with an amenities building and swimming pool. An on-site manager s residence and office will also be provided. 3.1 Current Facilities According to IBISWorld s June 2014 Industry Report on Caravan Parks and Camping Grounds in Australia, there has been a decrease in the total number of caravan parks in Australia of 0.8% per annum over the past five years. This is a continuation of a decadelong trend. IBISWorld estimates that there are 1,590 caravan parks in Australia as at June 2014, down from 1,768 in June Rising property values have resulted in many caravan parks being sold for redevelopment for more intensive uses. The caravan park and camping market is strongly driven by families and the over 55s. Figure 3.1 and Table 3.1 show the location and details of caravan, tourist parks and rest areas along the Bruce Highway and in the northern Sunshine Coast region. The nearest caravan park to Cooroy is Cooroy's No Worries Caravan and Motor Home Parking located about two kilometres south of the Myall Street site on Holts Road west of the Bruce Highway. The facilities are small and basic, but inexpensive. The next nearest is at the Pomona Showgrounds Caravan & Camping, which is very large and basic. Operated by the Noosa Show Society, big rigs, caravans, motor homes and campers are welcome to use the showground for short stays when the Show and other events allow. After Pomona, the next nearest caravan parks are located in Tewantin. The only available facilities directly accessible from the Bruce Highway are at the Matilda Truck & Travel Stop about 29 kilometres to the north. It does not specifically cater to caravans but allows free camping and parking with a limit of 24 hours. The proposed Myall Street tourist park will provide modern facilities and greater amenity than currently available along the Bruce Highway. Its location within 1.5 kilometres of the shops and services available in the town centre further adds to the site s attraction for short stay visitors. 14

19 Figure 3.1: Caravan Parks Along the Bruce Highway and in the Northern Sunshine Coast Region 24 GYMPIE 0 5 kilometres KYBONG POMONA COOROY Cooroy - Noosa Rd 3 8 NOOSAVILLE 1 Eumundi Noosa Road Bruce Bruce Bruce Bruce Bruce Bruce Highway Highway Highway Highway Highway Highway YANDINA 6 Bruce Bruce Bruce Highway Highway Highway 4 17 COOLUM BEACH 9 NAMBOUR Proposed Site 16 MAROOCHYDORE Caravan Park (see Table 3.1 for park details)

20 Table 3.1: Caravan and Tourists Parks Along the Bruce Highway and in the Northern Sunshine Coast Region No. on Map Name Location Number of Sites Facilities 1 Cooroy's No Worries Caravan and Motor Home Parking Driving Distance From Site (km) 154 Holts Rd, Cooroy Unspecified Showers, toilets, BBQ, camp kitchen 2 2 Pomona Showgrounds Caravan & Camping 15 Pavilion St, Pomona 500 unpowered, 20 powered Showers, toilets, BBQ BIG4 Noosa Bougainvillia Holiday Park Browns Creek Rest Area 141 Cooroy-Noosa Rd, Tewantin 135 powered, 29 cabins Showers, toilets, laundromat, BBQ, camp kitchen, swimming pool,, games room, service station, food Ben Williams Rd, Bridges Unspecified Toilets 15 5 Noosa Caravan Park 143 Moorindil St, Tewantin 70 powered, 21 cabins Showers, toilets, laundromat, wifi, internet café, BBQ, camp kitchen, swimming pool, café, TV lounge Yandina Caravan Park 1519 Nambour North Connection Rd, Yandina 10 unpowered, 78 powered, 12 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen, swimming pool 20 7 Noosa North Shore Retreat Tourist Park Beach Rd, Noosa North Shore Unspecified Showers, toilets, laundromat, swimming pool, tennis court, kiosk, food 20 (includes ferry) 8 Noosa River Caravan Park - Munna Point Russell St, Noosaville 37 unpowered, 95 powered Showers, toilets, laundromat, wifi, BBQ, camp kicthen, café, information centre 21 9 Nambour Caravan Park 10 Kin Kin Oval Campground 1251 Nambour Connection Rd, Kulangoor Main St, Kin Kin 10 unpowered, 38 powered, 22 on-site vans/cabins Unpowered and powered sites available Showers, toilets, laundromat, BBQ, camp kitchen, kiosk 21 Showers, toilets 26 16

21 No. on Map Name Location Number of Sites Facilities 11 Boreen Point Caravan and Camping Grounds Driving Distance From Site (km) The Esplanade, Boreen Point 40 unpowered, 8 powered Showers, toilets, BBQ, camp trailers Cobb & Co Nine Mile Camping Grounds 1484 Noosa Rd, Tandur Unpowered sites, 4 luxury tents Showers, toilets, BBQ, camp kitchen, luxury tents, food Noosa Forest Retreat 143 Golden Gully Rd, Kin Kin 10 unpowered, 4 powered, 3 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen, Matilda Truck and Travel Stop - Kybong Bruce Highway, Kybong Unspecified Showers, toilets, service station, food, free camping (24 hr max) Bli Bli Riverside Caravan Village David Low Wy, Bli Bli 20 unpowered, 10 powered, 4 cabins Showers, toilets, laundromat, BBQ, swimming pool BIG4 Forest Glen Holiday Resort 71 Owen Creek Rd, Forest Glen 45 unpowered, 78 powered, 22 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen, camp trailers, swimming pool, tennis court, games room, café Coolum Beach Caravan Park David Low Wy, Coolum Beach 72 unpowered, 163 powered, 6 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen Maroochy Palms Holiday Village 319 Bradman Ave, Maroochydore 24 unpowered, 160 powered, 37 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen, swimming pool, tennis courts, games room, gym, food Maroochy River Cabin Village and Caravan Park cnr Diura St and Bradman Ave, Maroochydore 114 powered, 22 cabins Showers, toilets, laundromat, wifi, BBQ, swimming pool, information centre Mudjimba Caravan Park Cottonwood St, Mudjimba 29 unpowered, 123 powered, 3 cabins Showers, toilets, laundromat, wifi, swimming pool, information centre 36 17

22 No. on Map Name Location Number of Sites Facilities Driving Distance From Site (km) 21 Six Mile Creek Rest Area Bruce Highway, Glanmire Toilets Cotton Tree Caravan Park Cotton Tree Pde, Maroochydore 29 unpowered, 372 powered, 10 cabins Showers, toilets, laundromat, wifi, BBQ, camp kitchen Maroochydore Beach Holiday Park cnr Sixth Ave and Melrose Pde, Maroochydoore 117 powered, 6 cabins Showers, toilets, laundromat, wifi, BBQ Gympie Caravan Park 1 Jane St, Gympie 16 unpowered, 45 powered, 12 cabins Showers, toilets, laundromat, BBQ, camp kitchen, swimming pool, tennis court, TV lounge 45 Sources: 2014 Brisbane UBD; 2014 Queensland Caravan Parks Directory; RACQ Tourist Park Guide ; various websites; Foresight Partners. 18

23 3.2 Need and Demand for Tourist Park Small area data concerning caravan park usage for short stay accommodation is now dated, with the ABS ceasing publication of caravan accommodation statistics after June In , the Sunshine Coast Tourism Region: had a capacity of 3,472 short term caravan park sites comprised of on-site vans, powered and unpowered sites and cabins, flats, units and villas. Powered sites accounted for 70% of this capacity; generated 723,000 site nights, or about 13% of Queensland s 5.6 million short term site nights; and achieved an annual occupancy rate of 57.1%, compared to Queensland s 51.1%. The National Visitor Survey conducted by Tourism Research Australia (TRA) provides more recent national and regional data, albeit more limited in scope that the ABS data. For the year ending June 2014: Domestic visitors in Queensland generated about 76.1 million visitor nights, of which 6.1 million (8%) were accommodated in caravan parks and camp grounds. This form of accommodation accounted for nearly 10% of Queensland s domestic visitor nights. The Sunshine Coast region generated 10.5 million visitor nights or about 14% of all domestic visitor nights in Queensland (all accommodation types), and is the State s third largest market, following Brisbane and the Gold Coast. TRA s Snapshots 2012 Caravan or Camping in Australia reveals that, nationally, domestic and international visitors using this form of accommodation: generated 45.3 million visitor nights in caravan parks or camping; domestic visitors stayed an average of five nights and international visitors stayed an average of 15 nights; and spent about $7 billion, with an average spend per domestic visitor night of $120 ($105 per international visitor night). Industry data compiled by the Campervan Motorhome Club of Australia (2013 Snapshot: The Growth and Value of the RV Market Key Facts) reveal that: 2 Tourist Accommodation, Small Area Data Queensland, June Cat. No

24 an estimated 500,000 RVs are registered in Australia and approximately 120,000 RVs will be manufactured over the next five years; there were 9.2 million caravanning, camping and motor home trips in 2012 and, on current trends, RV travellers will increase by more than 60% over the next ten years 3 ; Grey Nomads (born during or before World War II) currently dominate the RV traveller market (up to 70% of the tourism market in some Queensland local government areas), but will be dominated by Baby Boomers within the next five years; an estimated 70,000 to 80,000 caravanners are travelling on an extended tour around Australia at any one time, travelling an average of 156 days; 34% stay only in caravan parks and 16% stay only in non-commercial accommodation (50% use a mix), with convenient and desirable accommodation a primary motivator for length of stay and level of spend; RV tourists are the biggest spending travellers in the domestic market, spending on average $500 to $900 per week. Their spend patterns are more like residents in that they spend directly into the community, mainly on day-to-day needs, purchasing tourism services and products as it suits them; Preferred activities include visiting markets, heritage sites and museums, going bushwalking, visiting National Parks and undertaking full or half-day tours; 73% of RV travellers consider it important to actively support RV friendly towns. As noted by IBISWorld, the loss of caravan parks and campgrounds has constrained industry growth over the past five years. The caravan park industry is moving to offer more facilities and better accommodation. Unpowered sites are being upgraded to powered sites, and parks are offering more cabin accommodation to improve profitability as well as meet higher market expectations. Using historic caravan and campground listings for the Sunshine Coast region, Foresight Partners found that, since 2001, seven caravan parks appear to have closed (but two have opened). 3 RV travellers are defined as tourists travelling in their own accommodation, being a motorhome, campervan or slide-on (2WD or 4WD), or in a vehicle towing their accommodation being a caravan, 5 th wheeler or camper trailer. 20

25 The proposed Myall Street tourist park, although relatively small, will add to Noosa s, and the Sunshine Coast s, tourism infrastructure, particularly for the growing caravan and selfcontained traveller market. 3.3 Potential Impact The introduction of a tourist park on the Myall Street site is expected to generate a number of positive impacts for the township and the broader Noosa-Sunshine Coast region. Tourist park visitors, whether staying overnight or for a few days, will spend in the Cooroy local community, contributing to the support of the town centre s retail shops and services, as well as generating fuel sales. Provision of a modern, easily accessible tourist park will assist in enticing greater visitation to the Cooroy and Noosa hinterland areas, and serve as a base to explore its attractions. The tourism information kiosk in the service station will help inform and advise visitors of things to see and do, and encourage visitors to stay longer. The tourist park itself will generate economic benefits through its operations. A study undertaken on behalf of the Caravan, RV & Accommodation Industry of Australia Ltd (CRVA) found that for every $1 of caravan park income, $1.38 of local economic activity is generated by the individual park (multiplier effects). 4 The proposed tourist park will also have a broader economic benefit for the region and Queensland. The Queensland Government s Queensland Drive Tourism Strategy aims to make Queensland the nation s number one drive tourism destination by 2020, with additional, well-planned accommodation, roadside infrastructure, rest areas and dump points needed to enhance the drive tourism experience (page iii). The Strategy acknowledges the importance of caravan parks to the drive tourism market, and their decline: There has been limited investment in new accommodation facilities in Queensland over the past decade. Investment has been hampered by a combination of factors including regulatory barriers, a challenging investment environment and planning constraints (page 25). 4 BDO (SA) Pty Ltd, October Economic Benefit Report Commercial Caravan Park to a Local Community. 5 Department of Tourism, Major Events, Small Business and the Commonwealth Games, December

26 The loss of caravan parks has not been offset by investment in new caravan parks in all areas of the state, particularly in the popular coastal areas where the availability of new sites to invest in is limited and town planning and regulatory barriers are more evident (page 28). Despite this, caravan parks are a critical part of the fabric of Queensland s tourism industry and will continue to be. Research on commercial caravan parks has highlighted they contribute on average in excess of $1.26 million to their local economy per year, not including the flow on effects of visitors spending with other businesses (page 26). In our opinion, establishment of the proposed caravan and tourist park will have a positive impact with flow-on effects of both the caravan park operation and the spending of its visitors benefitting the Cooroy township and the businesses in the broader Noosa region. Development of the Myall Street site will also contribute to meeting the aims of the State Government s Queensland Drive Tourism Strategy,

27 4. SELF STORAGE UNITS The proposed Myall Street mixed use development incorporates a 52 unit self storage facility and will occupy a 5,608m² parcel in the rear part of the site next to the car wash. 4.1 Current Supply There are two storage facilities currently operating in Cooroy. Combined Coastal Removals and Mini Storage has 36 units within a secured area and the adjoining Cooroy Handy Sheds has 34 unsecured units. Both are located on Jarrah Street in the Cooroy Industrial Estate. The next nearest facility is located six kilometres south of the Myall Street site, in Mt Eerwah. Table 4.1 and Figure 4.1 show details of the locations of other storage facilities in the Cooroy and Noosa areas, extending south to Nambour. Table 4.1: Self-Storage Facilities in Cooroy Noosa Area No. on Map 1 2 Name Address Driving Distance From Site (km) Sizes Secured Cooroy Handy Sheds 17 Jarrah St, Cooroy m 3 X Combined Coastal Removals & Mini Storage 15 Jarrah St, Cooroy A1 Storage 201 West Eumundi Rd, Eerwah Vale 6 20m 3-67m 3 4 Safeguard Self Storage 176 Eumundi Noosa Rd, Noosaville 16 1m 3-81m 3 5 Bartlett Road Self Storage 9 Bartlett St, Noosaville 17-6 Noosa Storage Centre (Noosa Van Lines) 44 Rene St, Noosaville m 3-45m Storage First 78 Rene St, Noosaville m 3 + Box and Lock 53 Pioneer Rd, Yandina 18 Fort Knox Storage Nambour (Main Site) Fort Knox Storage Nambour (Satellite Site) 56 National Park Rd, Nambour 5.5m 3-75m m 3-90m 3 26 Jose St, Nambour 25 3m 3-90m 3 Source: Various websites, Foresight Partners. 23

28 POMONA COOROY YANDINA NAMBOUR kilometres NOOSAVILLE COOLUM BEACH 3 Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Road Road Road Road Road Road Road Road Road Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Eumundi Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Road Road Road Road Road Road Road Road Road Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Rd Rd Rd Rd Rd Rd Rd Rd Rd Bruce Highway Figure: 4.1: Self-storage Facilties in the Northern Sunshine Coast Region Inset A: Self-storage Facilities in Cooroy Inset B: Self-storage Facilities in Noosaville Eenie Eenie Eenie Eenie Eenie Eenie Eenie Eenie Eenie Creek Creek Creek Creek Creek Creek Creek Creek Creek Road Road Road Road Road Road Road Road Road Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Cooroy Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Noosa Rd Rd Rd Rd Rd Rd Rd Rd Rd Bruce Bruce Bruce Bruce Bruce Bruce Bruce Bruce Bruce Highway Highway Highway Highway Highway Highway Highway Highway Highway Myall Street kilometres metres 500 Inset A Inset B Proposed Site Self-storage Facilities

29 4.2 Need and Demand Self Storage Industry Characteristics The market for secure self storage facilities has traditionally been associated with people who are moving house or city (or overseas) particularly where their new circumstances allow insufficient space for their possessions. The self-storage industry provides an alternative to disposing of possessions or living in cramped environments. Use of self-storage facilities is strongly correlated with household income and wealth, with the industry s largest market consisting of the top 40% of households in terms of income. However, middle-income households (between the bottom 20% and top 40%) are also a growing base for the industry 6. Upper income households have also driven demand for specialised secure services such as temperature controlled storage for wine and art, guns, boats, jet skis, cars and other large and/or valuable items. Businesses also form part of the market for self-storage facilities for the temporary and long term storage of inventory, tools, materials, business records and other items. Consumer research undertaken on behalf of the Self Storage Association of Australasia provides a more robust indication of demand drivers for both private and business users of self storage facilities. 7 Based on capital city interview surveys of an on-line sample of 3,500 general population respondents, and a sample 1,692 current users (using selfcompletion questionnaires), the research highlighted the key reasons for using self storage facilities by private (household) and business users, and other industry characteristics. Figures 4.2 and 4.3 summarise the top nine reasons for their use. As is clear from the Figures below, the key reasons or drivers for self storage are a lack of space at home or place of business, temporary storage between locations or while living away from main residence, need for a secure environment, and economical and cost efficient storage solution. 6 IBISWorld Industry Report, May Self-Storage Services in Australia 7 Self Storage Association of Australasia, Australasian Self Storage Demand Study 2013: A Study of Storage Demand and Consumer Preferences. 25

30 Figure 4.2: Key Reasons for Using Self Storage Private Users Other Items no longer needed or wanted Need for climate controlled environment, e.g. to store wine To store inherited items To store items on behalf of someone, e.g. relative or friend Temporary storage while renovating residence Need secure environment Storage solution while living away from main residence Need for temporary storage while between locations Lack of space at my residence 0% 10% 20% 30% 40% 50% 60% Source: Australasian Self Storage Demand Study 2013, page 58. Figure 4.3: Key Reasons for Using Self Storage Business Users To store seasonal stock Items no longer needed or wanted Need for temporary storage while in between locations More flexible than fixed lease arrangements To store items close to clients' business Holding area for distribution of goods Economical and cost efficient storage solution A lack of space at home Need secure environment A lack of space at my business Source: Australasian Self Storage Demand Study 2013, page 59. 0% 10% 20% 30% 40% 50% 60% 70% Other characteristics of existing private and business customers noted in the 2013 Self Storage Demand Study include: The majority of private users (55% of respondents) live in separate houses and are home owners or buyers (53%). The main industry sectors of business users are Professional Services (22%) and Retail (20%), with Manufacturing, Health Care, Construction and Building, Media and Entertainment, and Not for Profit firms each accounting for about 7% of all business users. 26

31 52% of existing business users had a length of current occupancy of two years or longer compared to 30% of private users. 21% of existing private users had a length of current occupancy of three months or less compared to 10% of business users. About 35% of private storage users visit their storage unit about once a month and 51% visit less often. Only about 14% visit about once a week or more frequently. Business users visit their units more often, with 36% visiting about once a week or more frequently. Only about 23% of business users visit their unit about once a month and 40% visit less frequently than once a month. 86% of private users and 90% of business users travel no more than 30 minutes to reach their self storage unit, with 38% of business users and 36% of private uses travelling ten minutes or less Need and Demand for Additional Self Storage Units in Cooroy Cooroy area average household incomes ($65,829) are below that of the Sunshine Coast ($71,406), with a lower proportion earning in the top annual income bracket of over $130,000 (9.5%) compared to the whole of the Sunshine Coast (12.0%). However, Cooroy has a much higher proportion of households residing in detached dwellings (92.2% compared to 76.6% for the Sunshine Coast) and higher levels of home ownership. (Refer Table 3.2 in July 2014 EIA report). Although higher incomes are a desirable market characteristic for supporting self storage units (and virtually any other business endeavor), there are probably other factors likely to drive demand for additional self storage units in Cooroy. Local businesses, such as professional service providers, retailers and tradespeople would also generate demand. Telephone enquiries with Cooroy s two self storage providers in November 2014 indicated that all 70 units are rented, with one indicating a waiting list for units. This clearly suggests there is a latent demand for additional self storage units, although it is not possible to readily quantify the likely number of additional units needed to meet current and likely future demand, or the likely private household business mix of this demand. The incorporation of 52 secure self storage units as part of the Myall Street mixed use development should cater to current latent and likely future demand in an easily accessible location for Cooroy area residents and businesses. Its position just off the Bruce Highway should also enable it to serve a larger area than the defined Cooroy catchment. 4.3 Potential Impacts Cooroy s current self storage facilities appear to be at capacity and the proposed 52 units will assist in alleviating an undersupply of self storage units. Although it is difficult to 27