Noel Ahern (Dublin North West, Fianna Fail)

I am pleased to update the House on the proposed sale of lands at Clare Hall and Belmayne. The purchase of the site was not directly funded by my Department. The site was part of a 30-acre site bought by Dublin City Council in 1999 for €18.8 million, for social and affordable housing purposes, by means of a housing finance agency loan. That purchase had the approval of the Department of the Environment, Heritage and Local Government. The council now proposes to sell 23 acres of the site to Stanley Holdings, which owns sites adjacent to this land, for €60.4 million.

There was some discussion between Department officials and Dublin City Council on the council's decision to dispose of the site. While a public tendering process often yields a higher value, the council felt the particular circumstances surrounding this site meant the preferable option was to negotiate with the adjacent developer. The site being sold is surrounded by lands belonging to Stanley Holdings and any successful bidder under a public tendering process would have to negotiate with that company to secure access rights. This would have the effect of reducing any bid for the lands being sold by the council. It was the view of the council that negotiating directly with the adjacent developer would leverage the maximum possible outcome for the site.

In May 2006, the council negotiated a price of €48 million with Stanley Holdings, with an uplift clause built in that would enable the council to revisit the deal if it felt subsequently that a higher valuation of the site was merited. The council subsequently invoked this clause and recently negotiated a deal worth €60.4 million. Contract negotiations are nearing completion at this stage. However, the deal is worth more than the €60.4 million agreed. Part of the north fringe master plan involves a plaza and the development of a new main street and DART station from Baldoyle to this junction at the Malahide Road end. As part of the deal negotiated with Stanley Holdings, the company will construct this plaza and new main street on their property within 18 months, and it will then come back into public ownership.

A resolution agreeing to the disposal of the lands was passed by Dublin City Council. It is proposed the council will use the funds arising from the sale of these lands for capital projects within the city. The remaining seven acres from the original 30-acre site purchase by the council in 1999 is being held as part of the council's land bank for future housing needs.

The Deputy will note that I had reservations about the sale of this site. It was bought for social and affordable housing and I thought it should be used for that purpose. The Deputy's party has a majority on the city council and the job of disposing of land is the responsibility of the councillors.

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