SC6.4.1 Purpose

The purpose of this planning scheme policy is to:

1. Provide the guidelines and format for the information required to make community and economic need assessment in support of a Development application.

SC6.4.2 Application

This planning scheme policy applies to Development applications for a Material change of use or Reconfiguration of a lot where a Variation approval is sought under the Planning Act 2016. Community and economic needs assessments are required when the demand for the desired development outcome may not be known or exist at the time of lodgement.  Community and economic needs assessments form part of the basis for determining whether sufficient grounds exist to support a Development application where the proposal is inconsistent with the Strategic Framework of the Planning scheme.

SC6.4.3 What is a Community and economic needs assessment

The Gladstone region has long been characterised by periods of rapid population growth followed by more stable phases - placing fluctuating demands on the regions centres and residential housing supplies. Whilst this growth has occurred in preferred locations, this cycle has led to issues in both undersupply and oversupply of which the former Planning schemes have struggled to address.

In response to this, the Strategic Framework seeks to protect the economic viability and long term function of existing and future centres as well as to ensure that residential development occurs in step with community need. A community and economic needs assessment is the primary supporting document used to justify whether there is need for a particular proposed development and whether such a proposal will have any adverse impacts to the existing social, economic and urban fabric of the immediate and surrounding locality. These impacts include:

1. Whether a proposal may negatively impact on an existing centre to the point where it may become economically unsustainable or whether it will enhance the viability of an existing centre;
2. Whether a proposal may create unnecessary community and economic hardship or alleviate existing or emerging issues; and 
3. Whether a proposal may result in adverse market conditions due to the scale of proposed increased supplies or relieve pressures on existing demands by meeting existing or emerging demands.

SC6.4.4 Guidelines and process for preparing a Community and economic needs assessment

A community and economic needs assessment is to include, but is not limited to, the following:

1. Residential:
   1. An outline of the purpose of the assessment;
   2. A description of the methodology used and why this methodology is appropriate for the type of proposal;
   3. A description of the proposed size (lot/density/unit numbers) together with details of any pre-commitment;
   4. An examination of the population growth prospects and socio-economic characteristics of the area, including socio-economic factors;
   5. The identification of any approved or proposed development that may affect the proposal or be affected by the proposal (Council expects at a minimum, that all existing, under construction and approved Development permits are acknowledged and taken into consideration as part of any assessment. Council will not accept any assessments which do not accurately identify and consider all relevant development activity within the immediate and surrounding areas;
   6. An estimation of the demand, or likely future demand, for future residential lots, units and/or accommodation;
   7. An estimation of the market share of the proposal and commentary on changes to the supply/demand balance upon approval and implementation of the proposal, including whether the proposal would represent an excess of supply for the community;
   8. If the proposal is located outside of the Emerging community zone, evidence that feasible alternatives in appropriately zoned locations have been investigated and assessed so that the reasoning behind the selection of the preferred site is clear. It is noted that Council will not accept justification based upon ownership of land as the primary reason for location choice; and
   9. A summary of the overall need for the proposal including a description of the potential community and economic benefits and potential negative impact. This summary is to consider aspects other than employment through construction related roles. Historically large developments, which have short-term increase in construction roles, generally result in low levels of long-term employment benefits. Applicants are to demonstrate the long term community and economic and outcomes such a proposal is expected to provide.
2. Commercial:
   1. An outline of the purpose of the assessment;
   2. A description of the methodology used and why this methodology is appropriate for the type of proposal;
   3. A description of the proposed size, gross floor area, function and tenancy mix of the proposed development, together with details of any pre-commitment;
   4. An examination of the business growth prospects and economic characteristics of the area, including economic factors such as demand for that type of commercial land;
   5. The identification of any approved or proposed development that may affect the proposal or be affected by the proposal (Council expects at a minimum, that all existing, under construction and approved Development permits are acknowledged and taken into consideration as part of any assessment. Council will not accept any assessments which do accurately reflect and consider all relevant development activity within the immediate and surrounding areas);
   6. The identification of the location, size, nature, function and tenancy mix of competitive business, commercial or centre uses likely to be affected by the proposal and how such a proposal may impact on these existing economic centres;
   7. An estimation of the demand, or likely future demand, for business, commercial or centre floor space in the trade area and commentary on changes to the supply/demand balance upon approval of the proposal, including whether the proposal represents an excess of supply for the community or is meeting an existing or emerging demand;
   8. The identification of the impacts the proposal would have on the successful trading of other centres (including the period of time) and the identification of the impacts on the Gladstone regional centre hierarchy and functionality of existing activity centres;
   9. If the proposal is located outside of the Emerging community zone, evidence as to why the proposal is required, including why the proposal cannot be accommodated within an existing centre. It is noted that Council will not accept justification based upon ownership of land as the primary reason for location; and
   10. A summary of the overall need for the proposed development including a description of the community benefits. Council requests that this summary of benefits consider aspects other than employment through construction related roles. Historically large developments, which have a short-term increase in construction roles, generally result in low levels of long-term employment benefits. Applicants are to provide comparative examples of projected long term employment numbers and indirect 'flow on' employment numbers. Applicants are to also demonstrate the long term community and economic outcomes such a proposal is expected to provide; and
   11. For commercial proposals that are trade area based, the definition of the trade area should have due consideration to the following:
       1. The existing centre hierarchy and their intended strategic purpose as per the Planning scheme and other relevant competition;
       2. The nature, scale and functionality (higher/lower order services) of the proposal including the target market;
       3. The nature of the potential users of the development (e.g. residents, workers, students, other businesses);
       4. Typical travel routes of potential users of the development including whether trips are intended to be local, district, regional or inter-regional;
       5. The attracting capacity of any neighbouring uses; and
       6. A map(s) of the trade area which clearly defines the trade area boundary, identifies relevant existing centres, identifies the site of the proposed development and includes key transport corridors. A justification of the proposed trade area boundary.

These reports are to be prepared by a suitable competent person.