Consider Parramatta City Council's plans for a new aquatic leisure centre. In the cost-benefit analysis, should we include the benefits for local businesses (for example, cafes and swimwear suppliers) and the multiplier effects that result from this increase in local incomes? What about the health benefits and the reduction in health costs for the government? Explain.

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Table 3-26: Costs and benefits considered as part of the economic assessment Costs/Benefits Costs Planning costs Capital costs Operating costs Loss of current land use benefits Broader council costs related to upgrading connectivity and access Benefits Producer surplus Description Cost associated with design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre. The (incremental) opportunity cost of resources required to construct and maintain the new aquatic leisure center relative to the base case. The (incremental) opportunity cost of resources required to maintain the operation of the new facility relative to the base case. The land proposed for the facility is expected to remain a 'passive' park for the coming decades in the base case due to its topography. This community asset will be lost with the development of the facility, which may be associated with some social and environmental costs such as a loss of vegetation and open space for leisure. If street and infrastructure upgrades are required to support the operation of the new facility, any costs associated with the infrastructure provision will need to be included in the CBA assessment. Producer surplus is the difference between the price that a producer receives and the cost of production. Analysts should quantify the benefit wherever possible. Bearer / Beneficiary NSW Community NSW Community NSW Community NSW Community NSW Community The City, and third party operators Cost category Economic Economic Economic Economic/social/ environmental Economic Economic Quantified Yes Yes Yes Yes No Yes Rationale/ method Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on financial estimates provided by Warren Green Consulting. Based on the expected value of the lease provided by PPT. No public works infrastructure is expected to be need to support the operation of the new aquatic leisure centre. Based on financial projections provided by Warren Green Consulting. Table 3-26: Costs and benefits considered as part of the economic assessment Costs/Benefits Costs Planning costs Capital costs Operating costs Loss of current land use benefits Broader council costs related to upgrading connectivity and access Benefits Producer surplus Description Cost associated with design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre. The (incremental) opportunity cost of resources required to construct and maintain the new aquatic leisure center relative to the base case. The (incremental) opportunity cost of resources required to maintain the operation of the new facility relative to the base case. The land proposed for the facility is expected to remain a 'passive' park for the coming decades in the base case due to its topography. This community asset will be lost with the development of the facility, which may be associated with some social and environmental costs such as a loss of vegetation and open space for leisure. If street and infrastructure upgrades are required to support the operation of the new facility, any costs associated with the infrastructure provision will need to be included in the CBA assessment. Producer surplus is the difference between the price that a producer receives and the cost of production. Analysts should quantify the benefit wherever possible. Bearer / Beneficiary NSW Community NSW Community NSW Community NSW Community NSW Community The City, and third party operators Cost category Economic Economic Economic Economic/social/ environmental Economic Economic Quantified Yes Yes Yes Yes No Yes Rationale/ method Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on financial estimates provided by Warren Green Consulting. Based on the expected value of the lease provided by PPT. No public works infrastructure is expected to be need to support the operation of the new aquatic leisure centre. Based on financial projections provided by Warren Green Consulting. Table 3-26: Costs and benefits considered as part of the economic assessment Costs/Benefits Costs Planning costs Capital costs Operating costs Loss of current land use benefits Broader council costs related to upgrading connectivity and access Benefits Producer surplus Description Cost associated with design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre. The (incremental) opportunity cost of resources required to construct and maintain the new aquatic leisure center relative to the base case. The (incremental) opportunity cost of resources required to maintain the operation of the new facility relative to the base case. The land proposed for the facility is expected to remain a 'passive' park for the coming decades in the base case due to its topography. This community asset will be lost with the development of the facility, which may be associated with some social and environmental costs such as a loss of vegetation and open space for leisure. If street and infrastructure upgrades are required to support the operation of the new facility, any costs associated with the infrastructure provision will need to be included in the CBA assessment. Producer surplus is the difference between the price that a producer receives and the cost of production. Analysts should quantify the benefit wherever possible. Bearer / Beneficiary NSW Community NSW Community NSW Community NSW Community NSW Community The City, and third party operators Cost category Economic Economic Economic Economic/social/ environmental Economic Economic Quantified Yes Yes Yes Yes No Yes Rationale/ method Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on financial estimates provided by Warren Green Consulting. Based on the expected value of the lease provided by PPT. No public works infrastructure is expected to be need to support the operation of the new aquatic leisure centre. Based on financial projections provided by Warren Green Consulting. Table 3-26: Costs and benefits considered as part of the economic assessment Costs/Benefits Costs Planning costs Capital costs Operating costs Loss of current land use benefits Broader council costs related to upgrading connectivity and access Benefits Producer surplus Description Cost associated with design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre. The (incremental) opportunity cost of resources required to construct and maintain the new aquatic leisure center relative to the base case. The (incremental) opportunity cost of resources required to maintain the operation of the new facility relative to the base case. The land proposed for the facility is expected to remain a 'passive' park for the coming decades in the base case due to its topography. This community asset will be lost with the development of the facility, which may be associated with some social and environmental costs such as a loss of vegetation and open space for leisure. If street and infrastructure upgrades are required to support the operation of the new facility, any costs associated with the infrastructure provision will need to be included in the CBA assessment. Producer surplus is the difference between the price that a producer receives and the cost of production. Analysts should quantify the benefit wherever possible. Bearer / Beneficiary NSW Community NSW Community NSW Community NSW Community NSW Community The City, and third party operators Cost category Economic Economic Economic Economic/social/ environmental Economic Economic Quantified Yes Yes Yes Yes No Yes Rationale/ method Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on cost estimates by the quantitative surveyor Turner and Townsend. Based on financial estimates provided by Warren Green Consulting. Based on the expected value of the lease provided by PPT. No public works infrastructure is expected to be need to support the operation of the new aquatic leisure centre. Based on financial projections provided by Warren Green Consulting.

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In a costbenefit analysis CBA it is generally advisable to include a comprehensive range of costs and benefits to provide a holistic view of the proje... View the full answer