DUBLIN CITY Council has denied claims that it could break its contract with the developers of the Poolbeg incinerator without incurring costs, including potentially punitive compensation payments.
The council was responding yesterday to a report on RTÉ’s Prime Time that a “get-out” clause in the contract signed with incinerator developers Covanta in 2007 would allow it to terminate the contract tomorrow.
The programme reported that the contract for the development of the 600,000 tonne-capacity incinerator runs out tomorrow and the council could extend, renegotiate or walk away from the deal if conditions necessary for the development of the facility had not been by that date.
Minister for the Environment John Gormley has yet to grant a foreshore licence for a cooling facility needed for the plant.
The council yesterday said it did not intend to break the contract and that the incinerator was essential to dealing with Dublin’s waste.
“The Prime Time report on the project aired last night (Thursday Sept 2nd) stated that the council could ‘walk away with no cost’ . . . This is factually incorrect,” the council said.
It said the four Dublin local authorities had already spent substantial sums to date in land acquisition, statutory processes and client representative costs. Dublin city manager John Tierney has previously stated that these costs amount to about €120 million.
The council also said that it was committed to further “major expenditure” in relation to the purchase of lands on the site.
“This does not take into account any compensation that might be payable to the PPP company should the contract be terminated,” it said.
Substantial costs had also been incurred by Covanta, the council said. A spokesman for the company could not be contacted yesterday.
A source close to the project said the compensation, which would be payable to Covanta, would be in the region of €200 million. He also said that tomorrow’s date was no longer relevant in terms of the contract and no moves would be made by either side.
The council said it would be updating city councillors on the matter on Monday night at the first council meeting of the new term, and that it would be making no further comment on the contract until that time.
Mr Gormley, who is in possession of a copy of the contract, was not available to comment on the matter yesterday. However, last week he said that the contract should be renegotiated. A spokesman yesterday said that Mr Gormley’s position remained that the facility was too large and would end up costing the taxpayer money.
An application for the foreshore licence was made to the Department of Agriculture in 2008.
Responsibility for determining foreshore licences was transferred to Mr Gormley’s department last January. Construction of the incinerator began last December but has been suspended since May because, Covanta has said, of the lack of a foreshore licence.
However, the council, following a request from Covanta, last month began a process to compulsorily purchase the land needed for the cooling facility. By taking ownership of the land, the council would no longer need the licence from Mr Gormley.
The compulsory purchase process could involve Bord Pleanála hearing, and could involve further expense and delays for the project. It is not known if the contract was renegotiated at the time the council agreed to start the process.
Mr Gormley last March appointed accountant John Hennessy SC to carry out an independent examination of the contract and its financial implications.
Mr Hennessy’s report is due shortly.
Irish Times
www.buckplanning.ie
Sunday, 5 September 2010
Friday, 3 September 2010
Warning over car park breaches
A COMPANY director has been warned that he faces being jailed for six months and assets of the firm being seized if there are any further breaches of a High Court order banning the use of an underground car park until fire safety regulations are complied with.
At the High Court yesterday, Mr Justice Peter Charleton held that Hugh McGinley of McGinley Construction was in contempt of a High Court injunction, obtained by Dublin City Council last month, prohibiting the use of the car park.
The court heard that more than 25 cars and motorbikes were found in the underground car park of a complex consisting of 73 apartments in blocks of four and five floors, as well as unoccupied retail units and a creche, at 55-58 East Road, Dublin 3.
The injunction was granted after a senior fire prevention officer with Dublin Fire Brigade expressed fears that a fire in the car park posed “a serious and immediate risk to the lives” of the dozens of occupants living in the apartments located above.
The court heard the council had concerns about the basement’s fire alarm system, fire escape routes and fire-fighting equipment.
James Connolly SC, for the council, said proceedings were brought against McGinley Construction Ltd, Lifford, Co Donegal, which owns and constructed the apartment complex, and Mr McGinley.
Mr Connolly said the injunction was to remain until certain measures took place, including works to ensure compliance with fire safety notices, and that certificates of compliance from a registered engineer or architect were furnished to the Fire Authority.
Despite undertakings from Mr McGinley, Mr Connolly said inspections by the council carried out after the injunction was granted revealed that vehicles and rubbish remained stored in the car park.
Mr McGinley told the court that efforts were being made to comply. He said it had been difficult to stop people from using the basement to park their cars, because those who owned apartments at the complex also owned parking spaces in the basement. There were now only two cars in the car park.
One of the owners was on holidays, while efforts were being made to locate the owner of the other car. Mr McGinley also said that efforts were being made to comply with the fire safety notices.
Mr Justice Charleton said Mr McGinley was in contempt of court. The authority of the High Court had to be obeyed, he said, adding that the whole country has suffered due to a “lack of regulation and authority”.
The judge said he had no option other than to make orders jailing Mr McGinley for six months and seizing the firm’s assets.
However, he was placing a stay on those orders until October 11th, when the matter returns before the court, to allow Mr McGinley time to take steps to rectify the situation.
If there was any further breaches, Mr Justice Charleton said the sanctions would be imposed.
Irish Times
www.buckplanning.ie
At the High Court yesterday, Mr Justice Peter Charleton held that Hugh McGinley of McGinley Construction was in contempt of a High Court injunction, obtained by Dublin City Council last month, prohibiting the use of the car park.
The court heard that more than 25 cars and motorbikes were found in the underground car park of a complex consisting of 73 apartments in blocks of four and five floors, as well as unoccupied retail units and a creche, at 55-58 East Road, Dublin 3.
The injunction was granted after a senior fire prevention officer with Dublin Fire Brigade expressed fears that a fire in the car park posed “a serious and immediate risk to the lives” of the dozens of occupants living in the apartments located above.
The court heard the council had concerns about the basement’s fire alarm system, fire escape routes and fire-fighting equipment.
James Connolly SC, for the council, said proceedings were brought against McGinley Construction Ltd, Lifford, Co Donegal, which owns and constructed the apartment complex, and Mr McGinley.
Mr Connolly said the injunction was to remain until certain measures took place, including works to ensure compliance with fire safety notices, and that certificates of compliance from a registered engineer or architect were furnished to the Fire Authority.
Despite undertakings from Mr McGinley, Mr Connolly said inspections by the council carried out after the injunction was granted revealed that vehicles and rubbish remained stored in the car park.
Mr McGinley told the court that efforts were being made to comply. He said it had been difficult to stop people from using the basement to park their cars, because those who owned apartments at the complex also owned parking spaces in the basement. There were now only two cars in the car park.
One of the owners was on holidays, while efforts were being made to locate the owner of the other car. Mr McGinley also said that efforts were being made to comply with the fire safety notices.
Mr Justice Charleton said Mr McGinley was in contempt of court. The authority of the High Court had to be obeyed, he said, adding that the whole country has suffered due to a “lack of regulation and authority”.
The judge said he had no option other than to make orders jailing Mr McGinley for six months and seizing the firm’s assets.
However, he was placing a stay on those orders until October 11th, when the matter returns before the court, to allow Mr McGinley time to take steps to rectify the situation.
If there was any further breaches, Mr Justice Charleton said the sanctions would be imposed.
Irish Times
www.buckplanning.ie
Bord says no, no no
WE’VE NOTICED that the few planning applications for new homes these days tend to be for small infill developments in desirable locations – not that this guarantees the planners will look favourably upon them. In fact these days An Bord Pleanála seems to be putting the kibosh on small developments all over the city .
Recently it refused permission to demolish Kinloch , a four-bed house on Gordon Avenue, Foxrock, Dublin 18 – which sold for over €3.35m in 2008 – and build four two-storey over basement houses.
The planning board, who’s inspector noted that “although the front elevation is largely overgrown with ivy , it is largely an attractive property with individual features”, ruled that the design and scale would constitute overdevelopment of the site and set an undesirable precedent for similar development in the area. The planning application was observed closely by Foxrock Area Development . In Sandyford the board vetoed a development where Rod McGovern lost his first party appeal to demolish a bungalow – Darone , Slate Cabin Lane in Sandyford, Dublin 18 – and build six semi-detached bungalows.
This time the board said “the layout, bulk and massing fails to provide an appropriate response to the site’s context.”
Meanwhile across the city in Malahide, the board overturned Fingal County Council’s decision to grant permission to Tommy Kelly for a four-storey over basement apartment block with eight units on the coast road which would involve knocking an existing bungalow.
Malahide Community Forum, one of the appellants, pointed out that there are “currently many vacant apartments for sale and rent” in the area and said it would be out of character with existing development in the area.
Irish Times
www.buckplanning.ie
Recently it refused permission to demolish Kinloch , a four-bed house on Gordon Avenue, Foxrock, Dublin 18 – which sold for over €3.35m in 2008 – and build four two-storey over basement houses.
The planning board, who’s inspector noted that “although the front elevation is largely overgrown with ivy , it is largely an attractive property with individual features”, ruled that the design and scale would constitute overdevelopment of the site and set an undesirable precedent for similar development in the area. The planning application was observed closely by Foxrock Area Development . In Sandyford the board vetoed a development where Rod McGovern lost his first party appeal to demolish a bungalow – Darone , Slate Cabin Lane in Sandyford, Dublin 18 – and build six semi-detached bungalows.
This time the board said “the layout, bulk and massing fails to provide an appropriate response to the site’s context.”
Meanwhile across the city in Malahide, the board overturned Fingal County Council’s decision to grant permission to Tommy Kelly for a four-storey over basement apartment block with eight units on the coast road which would involve knocking an existing bungalow.
Malahide Community Forum, one of the appellants, pointed out that there are “currently many vacant apartments for sale and rent” in the area and said it would be out of character with existing development in the area.
Irish Times
www.buckplanning.ie
Carroll Anglo building approved
An Bord Pleanála has granted planning permission for developer Liam Carroll to complete the building of the proposed Anglo Irish Bank headquarters in the Dublin docklands.
State-owned Anglo Irish Bank formally ended its agreement to occupy the building in February.
The property was already facing an uncertain future prior to Anglo's withdrawal following the collapse of Mr Carroll’s Zoe Group, which owned the development, and a successful legal action by developer Seán Dunne quashing the planning on the land.
The skeletal structure has become synonymous with the country’s defunct property development market.
Construction on the proposed Anglo head office stopped after Mr Dunne won a High Court case quashing fast-track planning permission granted by the Dublin Docklands Development Authority (DDDA) to Mr Carroll’s company, North Quay Investments, to construct the building.
During Mr Carroll’s failed bid to secure court protection from his corporate debts last year, Anglo offered to loan a further €8 million to his Zoe Group to clad the shell of the building and a further €60 million to complete the project.
Mr Carroll’s firm had already drawn down €40 million from Anglo as of last June to finance the development of the property.
Despite permission being given to North Quay Investments Limited to complete the building, there is doubt whether the troubled developer has the funds needed to finish the project.
According to North Quay's submission to An Bord Pleanála, the company intends to retain the eight-storey structure as an office building. The submission says the owner intends to undertake works that would complete the construction of the building, such as facades, roof plant areas and an internal fit-out.
Earlier this year the former chief executive of the DDDA told The Irish Times there was "no conspiracy" in the authority's agreement with Mr Carroll over the new building.
Paul Maloney said he never had a discussion about the project with former DDDA directors Seán FitzPatrick and Lar Bradshaw, who are also both former directors of Anglo Irish Bank.
The new DDDA board has criticised the deal and voiced concerned over cross-directorships between Anglo and the authority.
Irish Times
www.buckplanning.ie
State-owned Anglo Irish Bank formally ended its agreement to occupy the building in February.
The property was already facing an uncertain future prior to Anglo's withdrawal following the collapse of Mr Carroll’s Zoe Group, which owned the development, and a successful legal action by developer Seán Dunne quashing the planning on the land.
The skeletal structure has become synonymous with the country’s defunct property development market.
Construction on the proposed Anglo head office stopped after Mr Dunne won a High Court case quashing fast-track planning permission granted by the Dublin Docklands Development Authority (DDDA) to Mr Carroll’s company, North Quay Investments, to construct the building.
During Mr Carroll’s failed bid to secure court protection from his corporate debts last year, Anglo offered to loan a further €8 million to his Zoe Group to clad the shell of the building and a further €60 million to complete the project.
Mr Carroll’s firm had already drawn down €40 million from Anglo as of last June to finance the development of the property.
Despite permission being given to North Quay Investments Limited to complete the building, there is doubt whether the troubled developer has the funds needed to finish the project.
According to North Quay's submission to An Bord Pleanála, the company intends to retain the eight-storey structure as an office building. The submission says the owner intends to undertake works that would complete the construction of the building, such as facades, roof plant areas and an internal fit-out.
Earlier this year the former chief executive of the DDDA told The Irish Times there was "no conspiracy" in the authority's agreement with Mr Carroll over the new building.
Paul Maloney said he never had a discussion about the project with former DDDA directors Seán FitzPatrick and Lar Bradshaw, who are also both former directors of Anglo Irish Bank.
The new DDDA board has criticised the deal and voiced concerned over cross-directorships between Anglo and the authority.
Irish Times
www.buckplanning.ie
Nama must decide over funding for Anglo HQ
THE NATIONAL Asset Management Agency (Nama) will have to decide whether it should fund the completion of developer Liam Carroll’s half-built development in Dublin’s docklands following yesterday’s decision by An Bord Pleanála that the structure can be retained and completed.
The original planning permission for the residential and commercial buildings was given by the Dublin Docklands Development Authority as part of its fast-track process but was rescinded in 2008 by the High Court, in a case taken by Sean Dunne.
After the ruling Mr Dunne, who has a nearby development, wanted Mr Carroll’s half completed structure demolished.
Mr Carroll’s company, North Quay Investments Limited, successfully got permission from Dublin City Council to retain the structure and to complete it. However that decision was appealed to An Bord Pleanála by Mr Dunne’s company, North Wall Quay Property Development Limited, part of the Mountbrook Homes group. Yesterday the Dunne appeal was dismissed.
The development was to house a new headquarters for Anglo Irish Bank, which has funded the project to date.
A court hearing last year heard it would cost €8 million to clad the buildings and a further €60 million to complete them.
Mr Carroll’s companies had drawn down €40 million from Anglo as of last June to finance the development.
Mr Carroll’s loans have been moved to Nama. As one of the first and largest 10 developers to have had loans moved to the agency, Mr Carroll’s group will have to submit business plans to Nama before it will release any further funding.
The agency has a €5 billion fund for investment in projects where it believes it can increase its overall return if it completes unfinished projects.
The docklands buildings, which form part of the collateral for Mr Carroll’s loans, have arguably increased in value because of yesterday’s decision.
The three-block, seven- to eight-storey development was to have housed a new HQ for Anglo and for Evershed O’Donnell Sweeney solicitors, which acted for Carroll.
Anglo, which is now nationalised, has announced it has withdrawn from its agreement to move to the Carroll building, though it is not known how much it paid to be released from its agreement.
Nor is it known how long a lease or at what rate Anglo had contracted for. A note in its 2009 accounts said withdrawal from the agreement reduced the bank’s future rent by €101 million.
The current board of the Dublin Docklands Development Authority has expressed misgivings about aspects of the development, not least the multiple involvements of Anglo Irish Bank.
The bank’s former chairman, Sean FitzPatrick, was on the board of the authority while also being a director of the bank.
The authority’s current chairwoman, Prof Niamh Brennan, has expressed concerns about how the authority’s executive concluded a deal with Mr Carroll whereby it would press to have the planning scheme for the North Quay area changed, so that Carroll could double the height of the development.
The underground car park is sufficient for a 16-storey development.
Irish Times
www.buckplanning.ie
The original planning permission for the residential and commercial buildings was given by the Dublin Docklands Development Authority as part of its fast-track process but was rescinded in 2008 by the High Court, in a case taken by Sean Dunne.
After the ruling Mr Dunne, who has a nearby development, wanted Mr Carroll’s half completed structure demolished.
Mr Carroll’s company, North Quay Investments Limited, successfully got permission from Dublin City Council to retain the structure and to complete it. However that decision was appealed to An Bord Pleanála by Mr Dunne’s company, North Wall Quay Property Development Limited, part of the Mountbrook Homes group. Yesterday the Dunne appeal was dismissed.
The development was to house a new headquarters for Anglo Irish Bank, which has funded the project to date.
A court hearing last year heard it would cost €8 million to clad the buildings and a further €60 million to complete them.
Mr Carroll’s companies had drawn down €40 million from Anglo as of last June to finance the development.
Mr Carroll’s loans have been moved to Nama. As one of the first and largest 10 developers to have had loans moved to the agency, Mr Carroll’s group will have to submit business plans to Nama before it will release any further funding.
The agency has a €5 billion fund for investment in projects where it believes it can increase its overall return if it completes unfinished projects.
The docklands buildings, which form part of the collateral for Mr Carroll’s loans, have arguably increased in value because of yesterday’s decision.
The three-block, seven- to eight-storey development was to have housed a new HQ for Anglo and for Evershed O’Donnell Sweeney solicitors, which acted for Carroll.
Anglo, which is now nationalised, has announced it has withdrawn from its agreement to move to the Carroll building, though it is not known how much it paid to be released from its agreement.
Nor is it known how long a lease or at what rate Anglo had contracted for. A note in its 2009 accounts said withdrawal from the agreement reduced the bank’s future rent by €101 million.
The current board of the Dublin Docklands Development Authority has expressed misgivings about aspects of the development, not least the multiple involvements of Anglo Irish Bank.
The bank’s former chairman, Sean FitzPatrick, was on the board of the authority while also being a director of the bank.
The authority’s current chairwoman, Prof Niamh Brennan, has expressed concerns about how the authority’s executive concluded a deal with Mr Carroll whereby it would press to have the planning scheme for the North Quay area changed, so that Carroll could double the height of the development.
The underground car park is sufficient for a 16-storey development.
Irish Times
www.buckplanning.ie
Rail station not to open until it has road link
ONE OF three new rail stations on the reopened Dunboyne railway line is to remain closed until a road is built linking it to the nearest town.
Hansfield station, at the southern end of the 7.5km line, is to remain closed because a road to the station has not yet been provided by developers.
The reopened railway route runs from Clonsilla on the Maynooth commuter line via Hansfield, and on to a new transport interchange to be known as M3 Parkway just north of Dunboyne, Co Meath.
However, in a second blow for the new service, Bus Éireann has said it will only divert one of its routes, the 111, to serve the transport interchange. The 111 route serves Granard, Athboy , Trim and Dublin.
Dublin Bus which serves Dunboyne said it would not to serve the interchange at all.
The M3 Parkway will, however, include Ireland’s largest park-and-ride site, a 1,200-vehicle facility at the southern end of the M3 toll motorway.
The reopening of the rail service was completed by Minister for Transport Noel Dempsey yesterday and services for the public get under way this morning.
It was reopened at a cost of €160 million. The route from Clonsilla to Navan was closed in 1963, but Dunboyne has not been served by rail since 1947.
The new service from the M3 Parkway offers a peak journey time of 31 minutes to Dublin and 27 minutes from Dunboyne to Dublin, with services operating every half hour in each direction at peak times.
The service will operate to Docklands station from Monday to Friday and to Connolly station at weekends.
“People deserve reliable public transport options,” Mr Dempsey said, “and that’s what this new service will provide here in Meath.”
Irish Times
www.buckplanning.ie
Hansfield station, at the southern end of the 7.5km line, is to remain closed because a road to the station has not yet been provided by developers.
The reopened railway route runs from Clonsilla on the Maynooth commuter line via Hansfield, and on to a new transport interchange to be known as M3 Parkway just north of Dunboyne, Co Meath.
However, in a second blow for the new service, Bus Éireann has said it will only divert one of its routes, the 111, to serve the transport interchange. The 111 route serves Granard, Athboy , Trim and Dublin.
Dublin Bus which serves Dunboyne said it would not to serve the interchange at all.
The M3 Parkway will, however, include Ireland’s largest park-and-ride site, a 1,200-vehicle facility at the southern end of the M3 toll motorway.
The reopening of the rail service was completed by Minister for Transport Noel Dempsey yesterday and services for the public get under way this morning.
It was reopened at a cost of €160 million. The route from Clonsilla to Navan was closed in 1963, but Dunboyne has not been served by rail since 1947.
The new service from the M3 Parkway offers a peak journey time of 31 minutes to Dublin and 27 minutes from Dunboyne to Dublin, with services operating every half hour in each direction at peak times.
The service will operate to Docklands station from Monday to Friday and to Connolly station at weekends.
“People deserve reliable public transport options,” Mr Dempsey said, “and that’s what this new service will provide here in Meath.”
Irish Times
www.buckplanning.ie
Treasury to press ahead with its Skerries project
Treasury Holdings, which is locked in intensive negotiations with NAMA over huge debts, is officially still planning to press ahead with a 150-bedroom hotel and two golf courses in north Co Dublin.
The company received planning permission five years ago for a 427-acre site at Milverton Demesne in Skerries, and despite the recession the company is seeking to renew the planning for another five years.
It has lodged an application for the extension with planners, but Fingal County Council are seeking additional information.
A loss of planning would greatly reduce the value of the site and impact on the value of assets at Treasury. The application is being made through its subsidiary Tamorbrick Ltd. The company declined to comment yesterday on whether the planning extension is purely designed to safeguard the value on the site. It is understood there is no immediate plans to build either the golf courses or the hotel, but the company maintains that demand could yet emerge for such facilities.
According to the file lodged with Fingal, Tamorbrick wants to build an "integrated/recreational facility'' on the site -- with plans for a 150-bedroom hotel with restaurant, bars and a leisure centre with pool, spa treatment rooms.
There would also be two 18-hole golf courses located near the Black Hills-Balcunnin Road. A clubhouse and a nine-hole putting course would also be added. Almost 50 houses, with some aimed at the tourist market, are also planned.
The precise debt load at Treasury is not known but the company it controls, Real Estate Opportunities (REO) has debts of £1.7bn and NAMA is currently negotiating with REO and Treasury about its debt burden. A disposal of assets is one potential option for both companies. REO has already missed one coupon payment to its bondholders. The planning permission given at Skerries was extended during an earlier county development plan, so it's important for Treasury to keep the permission as it could be difficult to get fresh permission for the site, sources pointed out. Fingal now have four weeks to review the extension application.
Any hotel on the site would be facing severe competition if it opened at present. Golf hotels have been the most vulnerable, with large properties such as Jim Mansfield's Citywest facility in receivership.
Emmet Oliver Deputy Business Editor
Irish Independent
www.buckplanning.ie
The company received planning permission five years ago for a 427-acre site at Milverton Demesne in Skerries, and despite the recession the company is seeking to renew the planning for another five years.
It has lodged an application for the extension with planners, but Fingal County Council are seeking additional information.
A loss of planning would greatly reduce the value of the site and impact on the value of assets at Treasury. The application is being made through its subsidiary Tamorbrick Ltd. The company declined to comment yesterday on whether the planning extension is purely designed to safeguard the value on the site. It is understood there is no immediate plans to build either the golf courses or the hotel, but the company maintains that demand could yet emerge for such facilities.
According to the file lodged with Fingal, Tamorbrick wants to build an "integrated/recreational facility'' on the site -- with plans for a 150-bedroom hotel with restaurant, bars and a leisure centre with pool, spa treatment rooms.
There would also be two 18-hole golf courses located near the Black Hills-Balcunnin Road. A clubhouse and a nine-hole putting course would also be added. Almost 50 houses, with some aimed at the tourist market, are also planned.
The precise debt load at Treasury is not known but the company it controls, Real Estate Opportunities (REO) has debts of £1.7bn and NAMA is currently negotiating with REO and Treasury about its debt burden. A disposal of assets is one potential option for both companies. REO has already missed one coupon payment to its bondholders. The planning permission given at Skerries was extended during an earlier county development plan, so it's important for Treasury to keep the permission as it could be difficult to get fresh permission for the site, sources pointed out. Fingal now have four weeks to review the extension application.
Any hotel on the site would be facing severe competition if it opened at present. Golf hotels have been the most vulnerable, with large properties such as Jim Mansfield's Citywest facility in receivership.
Emmet Oliver Deputy Business Editor
Irish Independent
www.buckplanning.ie
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