Council site got ‘best deal possible’, says city manager
Joe Gavin said Cork City Council got “the best deal possible” when it agreed to sell the 2,600sq metre site behind Albert Quay House, headquarters of the council’s traffic department, to developers Howard Holdings.
The company, headed by Greg Coughlan, plans to build an Enterprise Ireland-supported Webworks project on the site - an incubator project for IT companies.
But some councillors expressed concern at the sale price given recent property prices in the area.
Developer Michael O’Flynn of O’Flynn Construction paid €3m an acre earlier this year for a site to the rear of Albert Quay House. Sources said they thought the Albert Quay site was undervalued given its closer proximity to the river.
Rumours last week suggested bids on the half-acre Cork Warehouse Company site next to Albert Quay House were at €6m-€8m. However, property sources have played down those amounts.
Mr Gavin insisted €2.25m was the best price for the council’s site.
“We have effectively sold the backyard of Albert Quay House,” he said.
He also defended the procedures surrounding the sale amid concerns that just one developer was involved.
Mr Gavin said the sale was advertised widely, including in the EU journal.
“Everyone had knowledge of this plan,” he said.
“Eight parties indicated an interest. Just one was prepared to follow through on the deal given the restrictions laid down by Enterprise Ireland.”
He said a professional valuation was secured at the start of the process more than three years ago.
A price of €2.5m was put on the site and on the landmark Albert Quay House, the ground floor of which was to be included in the deal at the time.
But councillors voted two weeks ago to keep the house in public ownership.
Howard Holdings will now pay €2.25m and a nominal €10 annual rent under a 700-year lease for the land behind the house.
“The price was the best price secured. Those are the facts,” Mr Gavin said.
He made his comments following questions from Cllr Tim Brosnan who wanted it made clear that the council got the best possible deal.
Mr Gavin agreed that city property prices have soared in the past 12 months.
“Why? Because Cork City Council has promoted the city and granted permission for developments which has encouraged development,” he said.
One of the restrictions on the site means Webworks tenants have to be approved by Enterprise Ireland for the first five years.
