Planners to extend Cork City renewal project

Cork’s city planners have sought ministerial approval for the major extension of a tax break scheme designed to promote regeneration and city living, and to include the city’s main shopping and office districts.

They have asked Finance Minister Michael Noonan to extend the boundary of the Living City initiative to include St Patrick St and the South Mall, as well as Blackpool village, and the St Luke’s, Military Hill, and O’Mahony’s Avenue areas.

The initiative, which was announced in last October’s budget, and which will be open until 2020, is designed to encourage city centre living and promote regeneration of residential and commercial buildings in designated areas. The residential element provides an income-tax deduction for qualifying expenditure incurred on refurbishment or conversion of a building, built before 1915, in the designated areas, for use as a dwelling over a 10-year period.

The property must be occupied by the claimant as their sole or main residence in order to avail of the income tax relief.

The commercial element provides for capital allowances over seven years in respect of qualifying expenditure incurred on the refurbishment or conversion of a building in the designated areas for retailing or for the provision of services.

The amount of tax relief available under the commercial element is capped at €200,000 for any individual project. When the scheme was announced, Cork’s planners identified mostly inner-city residential neighbourhoods for inclusion, based on Department of Finance criteria that qualifying areas should be “residential in character”, and opened the scheme in May.

However, there was outcry in Blackpool at its exclusion from the scheme, and when it emerged that the main retail streets in Dublin, Waterford, Limerick, and Kilkenny, were included in their Living City schemes, Cork’s planners went back to the drawing board.

Head of planning Pat Ledwidge said St Patrick St should qualify, given its 18% vacancy rate, which according to Retail Excellence Ireland, is one of the highest levels for a main shopping street in any Irish city.

“Adjacent streets have also experienced high vacancy levels,” said Mr Ledwidge. “These streets contain many independent retailers which add greatly to the character of the city centre.”

A similar situation exists on South Mall, where recent surveys have shown a 17% vacancy rate, as businesses relocate to more modern buildings. Over 42% of its buildings are protected structures, some of which are Georgian, and many of which need upgrading to meet modern standards, Mr Ledwidge said.

The Blackpool village area, which is on the city’s historic spine, has suffered from a significant concentration of vacancy and dereliction, and would benefit from inclusion in the tax scheme, he said.

And he said the St Luke’s, Military Hill and O’Mahony’s Ave areas have several small to medium sized 19th century houses which could qualify for the scheme.

The council’s request for an extension of the scheme is currently being considered by Finance Department.