Economic evaluation - Lavington CBD Revitalisation Project, Albury

Economic evaluation - Lavington CBD Revitalisation Project, Albury

About the project

Our economic consulting team conducted a comprehensive economic evaluation of the proposed Stage 2 revitalisation of Wagga Road in the Lavington Central Business District (CBD), Albury, New South Wales. This project aimed to revitalise a key commercial area that had experienced economic decline following the 2007 Hume Freeway Bypass, which significantly reduced traffic along Wagga Road.

Our method

To evaluate the economic benefits and viability of the project, our team employed a multi-faceted approach:

1. Benefit-Cost Analysis (BCA): Conducted in accordance with Australian Government guidelines to determine the project's net community benefit.
2. Wider Community Benefit Analysis: Examined qualitative impacts not captured in the BCA to provide a holistic view of the project's benefits.
3. Economic Impact Analysis (EIA): Utilized the Albury Economic Impact Model to assess the project's effect on both the national and local economy.
4. Case Study Analysis: Examined two comparable revitalization projects to identify potential benefits and outcomes.
5. Supporting Documentation: Developed comprehensive project management, asset maintenance, risk management, and procurement plans to support the business case

Key findings

Our analysis revealed significant potential benefits from the Lavington CBD Revitalization Project:

• Net Community Benefit: The project is expected to generate $5.1 million in net community benefits.
• Strong Return on Investment: A benefit-cost ratio (BCR) of 1.95:1, indicating that every $1 million invested would generate $1.95 million in benefits.
• Job Creation: The project is projected to create 31 ongoing jobs, with 25 located within the Albury Local Government Area (LGA).
• Economic Performance: Improved amenity is expected to lower vacancy rates and attract new businesses to the area.
• Tourism Boost: Enhanced streetscape is anticipated to generate additional tourism expenditure.
• Safety Improvements: Modest safety benefits are expected due to reduced accidents.
• Wider community benefits: Our analysis also identified several significant social and environmental benefits including improved amenity and sense of place; reduced vacancy rates; addresses high unemployment in the area; increased community participation and enhanced visual environment.

Results

Our comprehensive economic evaluation provided robust, independent evidence to support the business case for the Lavington CBD Revitalization Project. Key outcomes include:

1. Demonstrated the project's potential to strengthen the underlying economic conditions of the Lavington CBD.
2. Highlighted the catalyst effect for new opportunities within the Albury LGA economy.
3. Quantified the project's potential to address socio-economic disadvantage in the area.
4. Provided a strong rationale for investment, showing significant returns and community benefits.

About our economic consulting team

Our economic consulting team is engaged by councils and organisations across Australia to provide in-depth insights behind the data. Our experts draw on their knowledge of urban and regional economic development and years of experience working with decision makers across Australia. This information is used by councils to develop evidence based economic development strategies, investment attraction plans and support grant applications.

If you need help on a project, please contact us and we will get in touch.