Fears Limerick may steal a march on Cork in terms of development

Cork city does not need European funding to bankroll development, with some €365m worth of private sector projects underway in the city, writes Eoin English.  

What the city does need is funding for key infrastructure, housing, and the possible acquisition of underused property.

That is the message from the city council’s head of planning and economic development, Pat Ledwidge, who was answering queries from councillors about the implications for Cork in the wake of a major European funding package for a massive urban regeneration project in Limerick.

It comes as planning permission was granted for the development by BAM of a 220-bed hotel on the site of the former Revenue Commissioner’s office on Sullivan’s Quay. It will be the largest hotel in the city centre.

The European Investment Bank (EIB) announced an €85m loan last month to help develop the Limerick Opera Centre, which includes three large commercial buildings, one of which could be up to 14-storeys high, the refurbishment of several buildings to provide office space and up to 1,000sq m of retail space which, combined, will have capacity to house up to 3,000 workers.

The news raised concerns in Cork that Limerick could steal a march in terms of development.

It also sparked renewed fears about the delivery of Cork’s stalled 6,000-seat events centre, earmarked for the former Beamish and Crawford site.

The Department of Arts, which is overseeing the public funding element of this project, has refused to comment on when it will make a decision in relation to a request for an additional €10m in State funding, on top of the €20m which has already been committed.

Sinn Féin councillor Chris O’Leary asked city officials if they had any plans to use EIB funding mechanisms to support developments in Cork.

Mr Ledwidge replied that private sector development worth an estimated €365m is underway in Cork city.

“Limerick city and county council must be congratulated on its initiative in securing this loan,” he said.

“Cork City Council is continuing to explore options in relation to the need for funding. However, the situation in Cork appears to be fundamentally different to Limerick.”

Developments such as those earmarked for EIB funding in Limerick are being fully funded in Cork by the private sector without the need for the public sector to take on debt, he said.

He cited the 16,000sq m One Albert Quay office complex, the 9,300sq m Capitol development, the under-construction 32,500 sq m Navigation Square project, the 4,320sq m development underway at 85-86 South Mall, and the 70,000sq m HQ office, residential, and retail project on Horgan’s Quay, which is in planning.

He said pre-planning talks on a 20,500sq m project should begin early next year, with development also planned for the Permanent TSB building on Lapps Quay and at 7-9 Parnell Place.

“Where Cork City Council requires assistance is in the funding of key infrastructure, housing [both social and private] and the possible further acquisition of underused properties,” said Mr Ledwidge. “It is anticipated that government will support the city council in its ambitious and successful regeneration programme.”