€95 million to regenerate three major inner city flat complexes

DUBLIN CITY Council is to spend €95 million to regenerate three major inner city flat complexes which were to have been rebuilt by developer Bernard McNamara under the Public Private Partnership (PPP) scheme.

City councillors were last night told the PPP process was "no longer viable" for the regeneration of the dilapidated social housing complexes because of the economic downturn and the council would have to use its own resources to house the residents.

The council has already lost €5 million following the collapse earlier this year of the agreement with Mr McNamara to build developments of social affordable and private housing on five council owned sites.

The five developments were at Dominick Street and Seán McDermott Street in the north inner city, O'Devaney Gardens, and Infirmary Road near the Phoenix Park and St Michael's Estate in the south inner city.

The council will now press ahead with building social and affordable units at three of the sites: St Michael's Estate at a cost of €36 million, O'Devaney Gardens at €32 million and Dominick Street at €27 million.

The smaller plots of land at Infirmary Road and Seán McDermott Street are not existing social housing complexes with residents needing re-housing and their development will be considered at a later date, assistant city manager Ciarán McNamara said.

The council is to spend €8.5 million next year to start the regeneration of the three estates. Work will begin on 137 social and affordable houses for St Michael's Estate, where planning permission has already been obtained, in 2010.

The council will then design 80 social apartments for Dominick Street and an initial 70 social and affordable homes for O'Devaney Gardens, where a total of 200 homes will eventually be built. It will then apply to An Bord Pleanála for permission for both developments. However, building work will not begin until 2011.

The new plans have emerged from a special housing taskforce established following the collapse of the agreement with Mr McNamara.

The council had in recent months been in negotiation with Boston firm Corcoran Jennison, the bidder that originally lost out to Mr McNamara.

However, Ciarán McNamara said last night legal advice was that Corcoran Jennison's plans could not proceed under the original procurement process for the PPPs. Re-housing the existing residents was a matter of urgency, but he said private investment, for both commercial uses and private housing would be part of each site at a later date.

"While Dublin City Council continues to be open to considering other alternative solutions to deliver the regeneration of all three projects, we are not willing to wait around. Our tenants are our priority and we have to begin to address their needs," he said.

Dublin soccer club, St Patrick's Athletic, is also understood to be interested in becoming involved in developing St Michael's Estate. Mr McNamara said the club would have to approach the council with a proposal which would be put before city councillors if they were interested in the development.

Lord Mayor of Dublin Eibhlin Byrne said the new proposals were an important step forward.

Sinn Féin councillor Christy Burke said the council had worked "pretty fast" to come up with a new plan. "I hope these proposals can inject some hope into these three areas," he said.

Irish Times

www.buckplanning.ie

Developer to pay €1.5m and pull out of social housing

PROPERTY DEVELOPER Bernard McNamara is to pay Dublin City Council €1.5 million as part of a deal that will see him pull out of all five social housing regeneration projects in the inner city.

Mr McNamara had been due to build social, affordable and private housing schemes in five of the most deprived areas of the city under a public-private partnership scheme with the council.

However, his arrangement with the council broke down earlier this year after it emerged that he could not get planning permission for the number of units he wanted, following a change in regulations on apartment size.

Last July the council formally terminated its contracts in relation to two projects - the redevelopment of St Michael's estate in Inchicore and Dominick Street in the north inner city.

Agreement was reached that Mr McNamara would go ahead with a third project, the "convent lands" development on Seán McDermott Street in the city centre.

The council entered into mediation with him on the final two projects at Infirmary Road and O'Devaney Gardens, both in Dublin 7, but warned the developer that it would initiate High Court proceedings against him if mediation was not successful.

The council yesterday issued a statement saying that following mediation, its relationship with Mr McNamara was now at an end.

Not only was he to pull out of the O'Devaney Gardens and Infirmary Road schemes, but he would also no longer be going ahead with the convent lands development.

Under the mediation agreement, Mr McNamara will hand over all drawings and plans for the developments, will relinquish any claims to the land, and will pay the council €1.5 million in compensation. It is understood that the council has in return agreed not to take legal action against him.

The council said it was examining the options for the future of all five sites. The council's statement came just days after the council said it was to immediately demolish the derelict blocks of flats in O'Devaney Gardens, which were the scene of violent incidents during the summer.

The empty flats had been due for demolition more than eight months ago, but the work was delayed because of the problems with Mr McNamara.

Labour councillor Emer Costello said the local communities must be reassured the regeneration projects would go ahead.

"The whole area is in despair, this situation has been eating and rotting away at the community. The Government needs to come up with funding to kick-start the building of social housing in these areas now," she added.

The Irish Times

www.buckplanning.ie