Construction plea as firm quits five city housing schemes

THE GOVERNMENT was urged to fund the construction of new homes for people living in some of the capital's most deprived housing estates after a developer who won the original contract under a public-private partnership deal formally pulled out yesterday.

Bernard McNamara, owner of the Burlington and Shelbourne Hotels in Dublin and one of the country's most successful developers, has agreed to withdraw from five regeneration projects he was involved with after a dispute with Dublin City Council.

Yesterday, it emerged that, following a mediation process, Mr McNamara and his holding companies had withdrawn from three projects at O'Devaney Gardens in Dublin 7, Infirmary Road and the Convent lands on Sean McDermott Street.

In June, he said he had "no objection" to Dublin City Council finding another developer to build homes at Dominick Street and St Michael's Estate in Inchicore, and pulled out the following month.

Yesterday's announcement that Mr McNamara had removed himself from the other three deals means the city council has to either re-tender the projects or build the units itself.

Unclear

Hundreds of families hoping to move into new homes will now have to wait, and it is unclear when -- or if -- the projects will go ahead, in light of the economic downturn.

"Given what has happened, I'm glad the deal is done and severed and now we've a clear pitch," said local councillor Emer Costello (Labour).

"We need to find an alternative as quickly as possible. This is going to create a total air of despair and we need to create confidence for residents that there is a regeneration process."

Under the terms of the deal, Mr McNamara will release the five sites back to the council, give the council a licence to the designs for the proposed developments and pay a contribution of €1.5m towards the costs. The council has previously said it has spent €6m on the projects.

In a statement yesterday, the council said it has agreed to "mutually disengage" from the regeneration projects.

"The city council has always said that its tenants are its main priority," a statement said. "In that regard a new multidisciplinary team is in place examining all options with regard to the future regeneration of these areas."

The projects were worth some €900m and were expected to deliver up to 1,800 new homes, in a mix of public and private housing.

Paul Melia
Irish Independent

www.buckplanning.ie