Niki Alcorn, Saul Ryan & Stuart Yardley June 2004 CBA of Westfield Bondi Junction

Why we chose this project? –Scale of redevelopment –Killing time on a bus –Negative local responses to development taking place CBA of Westfield Bondi Junction

History: –Bondi Junction –Westfield –Development Project Reconstructed Financial Appraisal: –decision criteria – NPV and IRR Philosophical/ethical reasons for CBA: –PIC/PPIC –Shadow prices (market distorted,non marketed goods, project bidding up inputs) –More meaningful analysis of efficiency and overall social net benefits

Data Sources and Methodology –Westfield –Waverly Council/local councillors –Economic Impact report –Traffic Reports –NSW Planning Office –‘reconstruction’ –Using secondary studies and data and applying for non valuing non market goods –Bondi Chamber of Commerce –Estate agents –Internet, news articles etc CBA of Westfield Bondi Junction

CBA –Rentable retail space – tax? Rates? Rents? Using SP –Labour – incremental vs displaced, taxes, skilled vs unskilled, Use SP –Raw Materials/Construction inputs –Council conditions required for WF to meet eg env and transport –Car Parks – lease rev, what ppl pay –Other components in FA - re-price using shadow prices –(Consider complements/substitutes) (Consider change in CS and PS) Comparative Analysis: –FA vs CBA – does it over/underestimate? Externalities –Traffic/congestion (before, during, after?), Pollution (noise/litter), Crime, Landfill CBA of Westfield Bondi Junction