Council decision sees Mountjoy value drop 25%

THE value of the Mountjoy prison complex has been cut by up to 25% following a ruling by Dublin City Council.

The news comes as residents, opposed to a new super prison to replace Mountjoy, plan to launch a legal challenge today unless they receive word it will not go ahead.

Campaigners have promised to take their challenge as far as possible to the Supreme Court and then to the European Court of Human Rights.

The blow to Mountjoy's price tag follows a decision by Dublin City Council that 25% of the land at the 30-acre site must be set aside for public spaces in any future development.

Property experts yesterday said the site could now be worth 15-25% less.

Last week, Justice Minister Michael McDowell said the 30-acre site was valued between €50 million and €100m.

This will have financial implications for the Government's plans to replace Mountjoy with a new prison complex in north Dublin.

The 150-acre site at Killsallaghan alone has already cost the State almost 30m.

Passing their five-year development plan on Monday night, Dublin City Council overturned a decision made last September that only sheltered and social housing could be built on institutional land, including Mountjoy.

But they ruled any development must preserve 25% of the site for "publicly accessible open spaces".

And they ruled an "architectural assessment" must be carried out to establish which buildings should be protected.

"We would estimate that this might knock off 15-20% off the value of the site," said Paul Mergatroid of Douglas Newman Good.

He said they would estimate the Mountjoy site to be worth in the region of €60-75m.

Another estate agent said the decision could reduce the value by the full 25%.

Meanwhile, residents have warned builders planning to bid for the public-private development to replace Mountjoy and the Central Mental Hospital they should take out high insurance against "very long delays".

"Whatever funds we have to raise to mount the legal challenge, we will," said a defiant Michael O'Rourke, resident spokesperson.

The action is being taken by an unnamed female resident who claims her constitutional rights have been violated because the decision to develop the site has been made without any independent arbitration.

While the Justice Department yesterday issued a statement saying the €30m paid for the land was the cheapest suitable offer, Fine Gael's Jim O'Keeffe said the most that should have been paid was €6m.

The department said five of some 30 sites matched the criteria which stipulates: the site must be within 8km of the M50; have proximity to public transport; access to gardaí, hospital and fire services; the availability of sewage, electricity and other services.

It must also take into consideration planning, zoning and the impact on local community.