Council faces €200k yearly rent bill for empty offices

A LOCAL authority is facing a €200,000 annual rent bill for empty offices and buildings.

Cork City Council confirmed last night that it is paying the money for empty space in two city centre office blocks, and for a vacant building in Blackpool.

The office blocks became vacant when civil servants transferred to the council’s €35 million civic offices officially opened next to City Hall in June, 2007.

Almost 350 civil servants, who were based in rented offices across the city, relocated to the building.

However, the council could not get out of two long-term leases, and is still paying rent.

The Blackpool building became vacant in recent weeks after a VEC project it housed closed down.

The details of the rent payments, which have been presented to members of the council’s finance committee, show that:

* The council is paying €45,714.17 per quarter (almost €183,000 a year) to rent office accommodation at Abbeycourt House — only 50% of which used by the council.

The lease doesn’t expire until December 31, 2013.

The rent is being paid to Lisney Property Management, at 24 St Stephen’s Green, Dublin.

* The council is paying €15,388.92 per quarter (just over €61,000 a year) to rent a second floor office suite at 89/90 South Mall. These offices are no longer used by the council.

The expiry lease date is October 25, 2015. This rent is also being paid to Lisneys.

* The council is also paying €11,745.08 per quarter (almost €47,000 a year) to rent a training centre at Brocklesby Street in Blackpool, which is no longer used by the council.

The rent is being paid to Owen Cafferkey Ltd, with an address at 31 Commons Road. The expiry date on the lease is July 31, 2031, with a five-year rent review.

While some staff in the water department and traffic wardens are still based at Abbeycourt House, almost half the space being rented by the council is vacant.

Socialist Party Cllr Mick Barry said the total amount of money being wasted on the rent of empty space tops €200,000.

“Victims of council cutbacks will not be impressed at all with the fact that the council is currently paying out €200,000 per annum on empty office space.”

A council spokesperson said it is doing everything possible to resolve the situation. She said the council signed lease deals on the South Mall and at Abbeycourt House offices in the late 1980s and early 1990s. Those deals would be more expensive to buy out now, than to continue renting and have the option of putting to other uses, she said.

And, she said, officials are looking for alternative uses for the Blackpool building.

She said landlords have been approached to negotiate better rent rates but they have not been secured.