DUBLIN City Council has been accused of a conflict of interest by selling land at prices which are agreed strictly on condition that it then grants planning permission for development. In the unusual event that planning is rejected, the would-be purchaser can pull out.
Critics of the practice claim it skews the planning system and leads to a situation where people objecting to the planning application are not aware that the council has a vested interest in granting permission.
The issue is due to be debated at an upcoming council meeting, which will discuss a motion from independent councillor Damian O'Farrell seeking clarity on the system and assurances that it is not open to abuse.
The Sunday Tribune has seen two examples where small sites were offered to private residents for €30,000 and €40,000 on the basis that the council could also provide planning permission. The values would be significantly lower without permission.
Planners are aware of such agreements but the council insists its professional judgement is not influenced.
Further concerns that third parties objecting to planning applications are not aware of such deals were dismissed by the council, which said that decisions are ultimately judged by An Bord Pleanála, the planning appeals authority.
However, in a letter to management last November, O'Farrell highlighted the self-serving role of the council in such sales. "I absolutely fully appreciate that DCC is in a very poor financial position at the moment to say the least… and that these very small plots of land can generate much-needed income," he wrote.
"Without [planning] permission, DCC would receive a lot less or nothing. I am against these types of contracts no matter what the circumstances or reason."
While there is no suggestion of any wrongdoing regarding planning decisions, O'Farrell believes the system must be "fireproof" and transparent.
Defending the system, Declan Wallace, executive manager in charge of economic development, said that if the council did not seek to maximise the land value ahead of its sale, it could be accused of exactly the opposite, undervaluing public property at a cost to the taxpayer.
"The city council as a land owner can't disadvantage itself by virtue of the fact that it's also the planning authority," he said.
"If someone said there was a conflict of interest that you sell the land and also grant planning, then following on from that [logic] would be that we sell land with no thought of what could go on it or for its development potential, which would be a huge waste of public resources."
Asked whether or not a third-party planning system would be prudent in such cases, Wallace said: "We would say that third party is An Bord Pleanála."
Sunday Tribune
www.buckplanning.ie
Showing posts with label land and planning. Show all posts
Showing posts with label land and planning. Show all posts
Sunday, 20 June 2010
Saturday, 28 June 2008
Developer pushes for lower price in council land deal
CONSTRUCTION FIRM Stanley Holdings says it is not in a position to complete a major land purchase from Dublin City Council at the moment for the agreed price of €60 million.
Blaming the downturn in construction, the company wants to pay a reduced price of €47.9 million for the land at Balgriffin, or else defer payment of most of the money for three years and make it subject to obtaining planning permission, local councillors have been told.
In June 2006, the company agreed to buy 9.3 hectares of land on the Malahide Road through a subsidiary, Belmayne Contracts Ltd, for €47.9 million.
The deal required the developer to build a public square and access road and provide 20 per cent social and affordable housing as part of plans to create a new town on the so-called "northern fringe" of the city.
The contract contained an "uplift clause" allowing the council to renegotiate the price if property values in the area rose. This happened, and the price increased to €60 million. However, two years on, no contract has been signed and no planning permission has been applied for. Now, according to a reply given by council officials to local Labour councillor Seán Kenny, the company says it cannot pay the €60 million.
Instead, it is offering to pay the original sum of €47.9 million, or else pay €5 million now and the remaining €55 million in three years' time, subject to planning permission being granted for the site.
A spokesman for Stanley Holdings confirmed that it was not prepared to pay the €60 million price in the current climate, and admitted the council was "not keen" on settling for less.
"We haven't walked away from this deal by any means. The only thing that has changed is the timing of the payment."
He blamed the difficulty on the "very challenging" state of the residential market at present, but predicted agreement with the council would be reached within weeks.
He said the company was pressing ahead with plans for an international architectural competition for the design of the civic plaza, and a master plan was being finalised. A planning application could be submitted early next year once agreement is reached with the council.
The council declined to comment, saying contractual talks were continuing and the information was commercially sensitive.
The original deal with Stanley Holdings caused controversy when it emerged that it was not put out to tender. Council officials argued that the approach taken represented the quickest route to progress, given that the firm already owned the adjoining land.
Stanley Holdings has a 10-year planning permission to build 2,600 units at Belmayne, across the Malahide Road. In spite of an eye-catching advertising campaign featuring glamorous models, the company struggled to sell the 850 units built so far and was forced to drop prices. "The last six months have been very quiet, but before that we did well," the spokesman said. About 600 units have been sold and building will continue until January, after which the situation would be reviewed, he said.
Irish Times
www.buckplanning.ie
Blaming the downturn in construction, the company wants to pay a reduced price of €47.9 million for the land at Balgriffin, or else defer payment of most of the money for three years and make it subject to obtaining planning permission, local councillors have been told.
In June 2006, the company agreed to buy 9.3 hectares of land on the Malahide Road through a subsidiary, Belmayne Contracts Ltd, for €47.9 million.
The deal required the developer to build a public square and access road and provide 20 per cent social and affordable housing as part of plans to create a new town on the so-called "northern fringe" of the city.
The contract contained an "uplift clause" allowing the council to renegotiate the price if property values in the area rose. This happened, and the price increased to €60 million. However, two years on, no contract has been signed and no planning permission has been applied for. Now, according to a reply given by council officials to local Labour councillor Seán Kenny, the company says it cannot pay the €60 million.
Instead, it is offering to pay the original sum of €47.9 million, or else pay €5 million now and the remaining €55 million in three years' time, subject to planning permission being granted for the site.
A spokesman for Stanley Holdings confirmed that it was not prepared to pay the €60 million price in the current climate, and admitted the council was "not keen" on settling for less.
"We haven't walked away from this deal by any means. The only thing that has changed is the timing of the payment."
He blamed the difficulty on the "very challenging" state of the residential market at present, but predicted agreement with the council would be reached within weeks.
He said the company was pressing ahead with plans for an international architectural competition for the design of the civic plaza, and a master plan was being finalised. A planning application could be submitted early next year once agreement is reached with the council.
The council declined to comment, saying contractual talks were continuing and the information was commercially sensitive.
The original deal with Stanley Holdings caused controversy when it emerged that it was not put out to tender. Council officials argued that the approach taken represented the quickest route to progress, given that the firm already owned the adjoining land.
Stanley Holdings has a 10-year planning permission to build 2,600 units at Belmayne, across the Malahide Road. In spite of an eye-catching advertising campaign featuring glamorous models, the company struggled to sell the 850 units built so far and was forced to drop prices. "The last six months have been very quiet, but before that we did well," the spokesman said. About 600 units have been sold and building will continue until January, after which the situation would be reviewed, he said.
Irish Times
www.buckplanning.ie
Monday, 5 May 2008
Radical new bill to cut state land costs gets the green light
The cabinet has given the green light to a radical new bill, which would allow the government to acquire land at below the market rate for critical public projects.
Environment minister John Gormley’s land bill promises to curb the exorbitant cost of building land for public projects such as schools, rail and other amenities. The heads of the Designated Land Bill will now be drawn up, and it is expected to come to cabinet before the summer recess for formal approval.
The bill, which will apply initially to housing development, will be used as a wider vehicle for the state’s acquisition of zoned land for a range of critical infrastructure under the National Development Plan.
Landowners have made record profits from the sale of sites needed for schools and public projects, such as the Luas line in south Dublin. A controversial ‘use it or lose it’ mechanism may set a five-year time limit for landowners to develop zoned land or have it acquired on a compulsory basis at below the market value.
Alternatively, a development incentive levy could be imposed on designated land, based on a percentage of the estimated market value of the land. The value of land purchased on this basis would be higher than agricultural rates, but significantly lower than market rates. However, the precise valuation mechanism has yet to be determined.
An All-Party Oireachtas Committee on the Constitution report on building land in 2003 proposed a compulsory purchase price that was 25 per cent above agricultural land rates. The government anticipates that landowners and developers are likely to mount a legal challenge to the bill, claiming it breaches private property rights.
However, the legislation is viewed by government as a test case to establish the principle of a ‘common good’ for acquisition by the state of private land.
‘‘I have no doubt that any legislation affecting land rights will be tested in the courts, but we do have to address this issue, because, at the moment, land prices are unsustainable, in terms of providing good quality infrastructure,” Gormley told The Sunday Business Post.
Sunday Business Post
www.buckplanning.ie
Environment minister John Gormley’s land bill promises to curb the exorbitant cost of building land for public projects such as schools, rail and other amenities. The heads of the Designated Land Bill will now be drawn up, and it is expected to come to cabinet before the summer recess for formal approval.
The bill, which will apply initially to housing development, will be used as a wider vehicle for the state’s acquisition of zoned land for a range of critical infrastructure under the National Development Plan.
Landowners have made record profits from the sale of sites needed for schools and public projects, such as the Luas line in south Dublin. A controversial ‘use it or lose it’ mechanism may set a five-year time limit for landowners to develop zoned land or have it acquired on a compulsory basis at below the market value.
Alternatively, a development incentive levy could be imposed on designated land, based on a percentage of the estimated market value of the land. The value of land purchased on this basis would be higher than agricultural rates, but significantly lower than market rates. However, the precise valuation mechanism has yet to be determined.
An All-Party Oireachtas Committee on the Constitution report on building land in 2003 proposed a compulsory purchase price that was 25 per cent above agricultural land rates. The government anticipates that landowners and developers are likely to mount a legal challenge to the bill, claiming it breaches private property rights.
However, the legislation is viewed by government as a test case to establish the principle of a ‘common good’ for acquisition by the state of private land.
‘‘I have no doubt that any legislation affecting land rights will be tested in the courts, but we do have to address this issue, because, at the moment, land prices are unsustainable, in terms of providing good quality infrastructure,” Gormley told The Sunday Business Post.
Sunday Business Post
www.buckplanning.ie
Friday, 7 December 2007
Coghlan probes new Designated Land Bill
KILLARNEY Fine Gael Senator Paul Coghlan has drawn attention to apparent contradictions in Government approval for a new Bill which will impose a 'use it or lose it' requirement on land which has been designated for housing.
"The Designated Land Bill would require planning authorities to enter into a binding agreement with, or impose requirements on, the owners of designated land in order to bring land into housing development," he told the Seanad.
"This Bill would also provide an amended compensation mechanism whereby designated land, if not developed in agreement with or in accordance with requirements imposed by the relevant planning authority, could be compulsorily acquired at below market value. And it would allow planning authorities to impose an annual development incentive levy on designated land as a possible alternative to compulsory acquisition.
"But in response to a recent Dail question, Environment Minister John Gormley indicated that the principal recommendation in the Ninth Progress Report of the All-Party Oireachtas Committee on the Constitution on private property, was for the implementation of the central proposal of the 1973 majority 'Kenny Report'.
"This proposal was for a 'designated area scheme' under which local authorities would be empowered to compulsorily acquire land for general development purposes at its existing use value plus 25 per cent, rather than at open market value. However, the Minister stated he has no proposals to proceed with such a scheme despite the contrary proposal outlined in the Programme for Government," Senator Coghlan said.
The Kerryman
www.buckplanning.ie
"The Designated Land Bill would require planning authorities to enter into a binding agreement with, or impose requirements on, the owners of designated land in order to bring land into housing development," he told the Seanad.
"This Bill would also provide an amended compensation mechanism whereby designated land, if not developed in agreement with or in accordance with requirements imposed by the relevant planning authority, could be compulsorily acquired at below market value. And it would allow planning authorities to impose an annual development incentive levy on designated land as a possible alternative to compulsory acquisition.
"But in response to a recent Dail question, Environment Minister John Gormley indicated that the principal recommendation in the Ninth Progress Report of the All-Party Oireachtas Committee on the Constitution on private property, was for the implementation of the central proposal of the 1973 majority 'Kenny Report'.
"This proposal was for a 'designated area scheme' under which local authorities would be empowered to compulsorily acquire land for general development purposes at its existing use value plus 25 per cent, rather than at open market value. However, the Minister stated he has no proposals to proceed with such a scheme despite the contrary proposal outlined in the Programme for Government," Senator Coghlan said.
The Kerryman
www.buckplanning.ie
Tuesday, 7 August 2007
Price of land for new roads doubles in six years
STATE payments to landowners for new roads has almost doubled in six years, government officials confirmed last night.
The proportion of the road-building funds being paid to farmers and other landowners has jumped from 12pc in 2000 to 23pc last year.
In 2006, €360m in taxpayers' money was paid for land for road construction. The big increases have led to the launching of a review of land costs for transport projects.
Last night, a Transport Department official said the increase in the cost of land purchases was in line with overall land price inflation and the rising cost of homes and commercial property in recent years.
Building
Almost a quarter of all spending on roads is going into the pockets of farmers and property owners to compensate them for the loss of primarily agricultural lands throughout the Irish countryside.
Farmers are getting tougher in their negotiations with officials when requested to hand over land to roadbuilders.
Department officials have acknowledged that the increasing share of road construction funds going to landowners can result in lessening the amount of roads that can be developed within the current limits.
Some €18bn is being invested in the current nine year national road building programme.
Guidelines
As concerns continue about the need to adhere to cost guidelines, Transport Minister Noel Dempsey has been informed that the potential cost of changing the route of the controversial M3 motorway route in his Co Meath backyard would cost up to €200m.
The current route, which passed near the Hill of Tara, is expected to be completed, if unaltered, within three years at a cost of €750m.
Proposals to build a ring road far outside the M50 linking Drogheda, Navan, Naas and Celbridge is being considered. Dubbed the 'Leinster Orbital Corridor', the road is intended to link all the country's major motorways in an expanded circle outside the current ring road around the capital.
An estimated €60m would be needed for pre-construction development.
The road would link routes such as the M1, the N3 and N4 and would link in with the N7/N9 interchange on the main roads to Cork and Galway.
With two million cars expected to be on Irish roads by 2016, the Leinster Corridor proposal has not yet been fully costed.
Alan O'Keeffe
Irish Independent
The proportion of the road-building funds being paid to farmers and other landowners has jumped from 12pc in 2000 to 23pc last year.
In 2006, €360m in taxpayers' money was paid for land for road construction. The big increases have led to the launching of a review of land costs for transport projects.
Last night, a Transport Department official said the increase in the cost of land purchases was in line with overall land price inflation and the rising cost of homes and commercial property in recent years.
Building
Almost a quarter of all spending on roads is going into the pockets of farmers and property owners to compensate them for the loss of primarily agricultural lands throughout the Irish countryside.
Farmers are getting tougher in their negotiations with officials when requested to hand over land to roadbuilders.
Department officials have acknowledged that the increasing share of road construction funds going to landowners can result in lessening the amount of roads that can be developed within the current limits.
Some €18bn is being invested in the current nine year national road building programme.
Guidelines
As concerns continue about the need to adhere to cost guidelines, Transport Minister Noel Dempsey has been informed that the potential cost of changing the route of the controversial M3 motorway route in his Co Meath backyard would cost up to €200m.
The current route, which passed near the Hill of Tara, is expected to be completed, if unaltered, within three years at a cost of €750m.
Proposals to build a ring road far outside the M50 linking Drogheda, Navan, Naas and Celbridge is being considered. Dubbed the 'Leinster Orbital Corridor', the road is intended to link all the country's major motorways in an expanded circle outside the current ring road around the capital.
An estimated €60m would be needed for pre-construction development.
The road would link routes such as the M1, the N3 and N4 and would link in with the N7/N9 interchange on the main roads to Cork and Galway.
With two million cars expected to be on Irish roads by 2016, the Leinster Corridor proposal has not yet been fully costed.
Alan O'Keeffe
Irish Independent
Tuesday, 24 July 2007
RTE star Kenny in land row with his neighbour
PAT Kenny's next-door neighbour is to go to court next week in a bid to inspect lands in exclusive Dalkey at the centre of a long-running dispute with the Late Late Show host.
Retired solicitor Gerard Charlton is locked in a legal battle with the RTE's star broadcaster and his wife Kathy over a piece of land near their homes in south county Dublin.
The proceedings brought by Mr Charlton against the Kennys came before Mr Justice Frank Clarke yesterday but were adjourned to Monday, when the court will deal with Mr Charlton's motion asking the court to be allowed inspect the lands.
When the case was in court last year in an unsuccessful bid to have it heard by the Commercial Court, Mr Charlton claimed the Kennys' had wrongly "annexed" a portion of his lands adjoining their home in Dalkey, Co Dublin.
Access
He also alleged the Kennys' had sought to prevent him gaining access to the lands in question in July 2006 and that, when he did gain access, they had bolted a gate, which prevented him leaving the property.
Mr Charlton (72), Maple Tree House, Harbour Road, Dalkey, claims he agreed to permit Mr Kenny to replace a pedestrian gate at the entrance to the lands in question near Bulloch Harbour, referred to as the Gorse Hill property, which the pensioner claims he had permitted the Kennys to use since they had come to live beside him in 1988.
However, he claims, Mr Kenny subsequently refused to give him the code for a digital keypad installed at the new electronic gate and had also sought on July 27, 2006 to prevent Mr Charlton from gaining access to Gorse Hill.
It was that incident last July which trigged the beginning of legal proceedings, Mr Justice Peter Kelly was told when the case was before him last year via an application to have it admitted to the Commercial Court.
Refusing to admit the case, Mr Justice Kelly said it was about an "unfortunate dispute between neighbours". The issue was whether Mr Charlton was the legal and beneficial owner of the lands and he believed the case would be more appropriately dealt with in the Circuit Court.
Ann O'Loughlin
Irish Independent
Retired solicitor Gerard Charlton is locked in a legal battle with the RTE's star broadcaster and his wife Kathy over a piece of land near their homes in south county Dublin.
The proceedings brought by Mr Charlton against the Kennys came before Mr Justice Frank Clarke yesterday but were adjourned to Monday, when the court will deal with Mr Charlton's motion asking the court to be allowed inspect the lands.
When the case was in court last year in an unsuccessful bid to have it heard by the Commercial Court, Mr Charlton claimed the Kennys' had wrongly "annexed" a portion of his lands adjoining their home in Dalkey, Co Dublin.
Access
He also alleged the Kennys' had sought to prevent him gaining access to the lands in question in July 2006 and that, when he did gain access, they had bolted a gate, which prevented him leaving the property.
Mr Charlton (72), Maple Tree House, Harbour Road, Dalkey, claims he agreed to permit Mr Kenny to replace a pedestrian gate at the entrance to the lands in question near Bulloch Harbour, referred to as the Gorse Hill property, which the pensioner claims he had permitted the Kennys to use since they had come to live beside him in 1988.
However, he claims, Mr Kenny subsequently refused to give him the code for a digital keypad installed at the new electronic gate and had also sought on July 27, 2006 to prevent Mr Charlton from gaining access to Gorse Hill.
It was that incident last July which trigged the beginning of legal proceedings, Mr Justice Peter Kelly was told when the case was before him last year via an application to have it admitted to the Commercial Court.
Refusing to admit the case, Mr Justice Kelly said it was about an "unfortunate dispute between neighbours". The issue was whether Mr Charlton was the legal and beneficial owner of the lands and he believed the case would be more appropriately dealt with in the Circuit Court.
Ann O'Loughlin
Irish Independent
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