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New economic modelling commissioned by the Hobart City Council has found that the planned new AFL stadium on the city’s harbourside will provide "significant" economic benefits.

Following on from the Tasmanian Planning Commission (TPC) having recently advised that the cost of building the venue will rise to $992.5 million - a 39% rise on its initial $715 million projected cost - the new report modelled a $178.9 million annual boost to the local economy and the creation of 813 full-time equivalent jobs.

The economic analysis, undertaken by AEC Group, was commissioned by the Council as part of its submission the TPC.

It suggests that benefits to the local economy had not been "adequately considered" by the Commission as part of its draft assessment of the stadium project, finding that the proposed venue at the city’s Macquarie Point would deliver more than $140 million in economic impact to Hobart per year during the construction phase, and $178 million per year when operational.

The AEC report modelled "significant economic impacts" for Hobart during the construction phase of the project totalling $143 million per year, as well as a $65.4 million growth in the city's gross regional product, a $44.7 million rise in "incomes" and 385 full-time equivalent jobs.

However, the Council shares the TPC's concerns about the stadium's potential impact on the state budget and the state's ability to finance the project.

According to AEC Group, the benefits for Hobart were more substantial during the stadium's operational phase and become "steady" by 2032.

The AEC Group's input was sought due to what the Council described as "a missed opportunity" by stadium developers the Macquarie Point Development Corporation to understand the economic impacts on the "chosen location of the project".

The Council noted that "through its own economic modelling, significant local economy benefits that have not been adequately considered by the (TPC) panel in both the construction and operational phases of the project".

It added “given the project will be located within the Hobart LGA and adjacent to Hobart's CBD, council engaged AEC Group to undertake additional economic analysis to inform its decision-making as well as to highlight the potential economic, social and cultural implications for Hobart specifically.

"The modelling incorporates previous related studies and peer reviews, along with desktop research to inform the underlying assumptions and quantify the project's economic impact on the Hobart LGA using input-output modelling."

Operational phase activity included:

• Operating activity of the stadium itself
• Activity associated with organising and hosting events at the stadium
• Activity supported more broadly in Hobart on event days outside the stadium, before and after an event
• Induced non-event day visitation and associated visitor expenditure

The submission also noted that "the anticipated uplift in urban renewal is expected to support additional economic activity in the Hobart CBD and enhance the liveability and attractiveness of the city".

The submission will be tabled at Monday night's Hobart City Council meeting, with a recommendation that it be endorsed by councillors.

The stadium was set to be assessed via the Project of State Significance process, but that could be scrapped in favour of special legislation set to be introduced by the Tasmanian Government.

Images: Concepts for the new AFL stadium at Hobart's Macquarie Point. Credit: Macquarie Point Development Corporation.

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