Regional & Economic Benefits of the Flinders Street Redevelopment
Overview
The Flinders Street redevelopment is a catalytic investment that will bring both short and long-term economic and social benefits for the region.
Immediately, the city will enjoy an injection of funding into local industry during the construction phase. Additional development spending will be stimulated from private developers, with major projects in Townsville now awaiting the approval of the Flinders Street redevelopment.
Townsville’s CBD will enjoy an influx of new businesses, as well as significant reinvestment in facades and fit-outs by existing businesses. This business activity will boost the city’s labour market in uncertain times and will create employment opportunities for the region’s growing population. Confidence in the city’s future, and the economic activity that underpins it, will be strengthened.
Property prices around the existing Flinders Street Mall have performed poorly since the mall was introduced. The redevelopment of Flinders Street will revitalise the CBD property market, encouraging investment in both existing and new stock.
Visitation and walk-through traffic to Flinders Street will be enhanced, creating opportunities for increased spending in the CBD. New speciality stores will assist in retaining income within the region by offering the community greater retail choice. Offices will once again find Flinders Street to be a compelling location from which to operate.
The project will enable Townsville’s tourism industry to present a new and more confident face to its markets. Currently, tourists find a neglected and unenjoyable city heart where they should be experiencing the great lifestyle of the region. The redevelopment will increase safety, security and local community pride.
There is a general consensus amongst the local business community that Flinders Mall is neglected and in desperate need of attention. A range of businesses are ready to put their money to work in the CBD once Flinders Street has been restored.
Outcomes
 The redevelopment project is supported by a new $200m retail complex, proposed for construction in Flinders Street by Austexx and the Lancini Group.
Analysis conducted by the AECgroup reveals a combined employment stimulus of 954 full-time equivalent jobs in Queensland’s construction related sectors (710 based in north Queensland and an extra 244 full-time jobs in other Queensland centres). 207 full time jobs will also be generated in north Queensland’s retail sector.
Overall, the redevelopment and associated projects will generate and additional $28.3m per annum in Gross Output and an additional $12.9m per annum in Gross Regional Product for the Queensland economy.
The redevelopment will enhance the region’s promotion, and strengthen its capacity to attract and retain the visitors, workers and professionals vital to sustaining defence, tourism, and education growth in north Queensland.
The redevelopment of Flinders Street is an excellent investment for public funds.
A range of benefits will result, including increased property values (and higher rates to council), reduced maintenance expenditure, directly stimulated private sector investments, increased turnover of existing businesses and improved parking options.
Weighing against these benefits are the costs of demolition and construction, temporary loss of revenues to businesses affected by the redevelopment, and loss of lease revenues from establishments needing removal to make way for the reopened road through Flinders Mall.
Over a period of 20 years, the benefits from the project far outweigh the costs. Many of the benefits will be realised quickly from the redevelopment. For example, the Flinders Plaza development (a major private sector development dependent on the removal of the mall) is timed to coincide with the redevelopment of Flinders Street.
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Project Evaluation
| Discount Rate |
Net Present Value |
Benefit-Cost Ratio |
| 2% |
$2.40b |
23 |
| 4% |
$1.96b |
20 |
| 6% |
$1.62b |
17 |
| 8% |
$1.36b |
15 |
At a discount rate of 6%, the value of the project in present-day figures is worth $1.62b. For every $1 of costs associated with the development, the result is an estimated $17 worth of benefits to the region. In terms of the $18.9m investment by each level of government, the benefit stream over the next 20 years amounts to an average $81m per year.
“Townsville provides a significant contribution to the economic strength of Queensland… the foundation and key to sustaining this is to ensure that the city provides a great lifestyle for our community. Townsville needs the Flinders Street Redevelopment program to underwrite the social fabric of its community.”
Peter Honeycombe, Managing Director, Honeycombes Property Group
“Refurbishment of Flinders Mall and Flinders Street East is essential for Townsville and will set a benchmark for our thriving, progressive city over the next decade.”
Lindy Nelson-Carr MP, Member for Mundingburra
For more information, please contact Planning and Economic Development.
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Flyover
(942kB) conducted by AECgroup.
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