City boss backs ‘bargain’ sale of land to GAA

CORK’S city manager has defended what critics have called the “bargain sale” of public land to the GAA.

Tim Lucey was speaking after city councillors voted 24-6 in favour of the disposal of nearly seven acres at the former Showgrounds to the Cork GAA County Board for €1.7 million.

Cork City Council acquired the entire Showgrounds site from the Munster Agricultural Society in 2009 by compulsory purchase order for around €11.5m plus costs.

In a detailed report to councillors, Mr Lucey said that figure was agreed after a long arbitration process.

“The settlement of compensation for the Showgrounds land was essentially under the rules that apply to equivalent reinstatement, as opposed to market value, being applied,” he said.

“Building costs made up a major proportion of the settlement figure, indeed, up to 80%.

“It is, however, the case that the ‘bubble’ character of the market in 2007 may have reflected values of between €400,000 and €500,000 per acre.

“However, by 2009 the market had dropped significantly as reflected by the purchase of lands at Curraheen by the city council at €117,000 per acre.”

Mr Lucey said the deal agreed on Monday is equivalent to €249,267 per acre — above the current market value of land in that area.

“The current market value of the lands is professionally valued at €90,000 per acre, recognising the negligible market demand, lack of bank funding and poor confidence levels,” he said.

“This, however, would disregard any special neighbour value that would apply in these circumstances.

“The consideration agreed with the GAA for the disposal of the 6.82 acres is equivalent to €249,267 per acre at a disposal value of €1.7 million.

“This is professionally considered to be substantially above market value, even when you make allowance for the neighbour character of the transaction.”

Following the vote, a master plan for the area will be prepared to include the GAA’s revamp plans as part of the proposed Marina Park, to facilitate the Cork County Board’s planning application.

A formal disposal of the property will come before councillors in due course, and a rezoning may be required.