Competitors challenge funding for Cork event centre

The new €50m State funding package for the beleaguered Cork event centre project is facing a High Court legal challenge.

It is the latest obstacle to hit the delivery of the stalled 6,000-capacity entertainment venue, which had its sod turned before the 2016 general election — but which has yet to see a brick laid.

Now, it has emerged that the funding for the venue is facing a High Court challenge from potential competitors in Kerry.

The Gleneagle Hotel Ltd, whose owners operate the INEC arena and the Killarney Convention Centre in Killarney, has lodged notice of motion papers with the High Court challenging the funding arrangements.

Gleneagle Group CEO Patrick O’Donoghue is named as the deponent.

The matter is listed for preliminary hearing on February 14.

While An Bord Pleanála has yet to issue its decision on foot of an appeal against the city council’s grant of planning for the venue, a legal challenge against the funding is likely to further delay delivery of the project.

After years of delays, details emerged early last month of a new funding deal designed to get the Cork venue over the line.

The city council published a special voluntary ex-ante transparency notice in the Official Journal of the European Union on January 4 to inform ‘the market’ of proposed changes to the project’s funding agreement, and of its intention to conclude a contract with developers BAM, which won the original tender for €20m in state aid in 2014.

It revealed how it is now proposed to make some €50m available as a non-repayable grant to BAM and Live Nation, and that, once the venue is built, the centre will transfer to the operator.