Future developer of Waterford site must cover council's €5.6m spend

Concerns have been raised that another developer might have the site evaluated below the council’s figure, thus forcing the council to take a ‘hit’.

Artists impressions of the proposed redevelopment of the Waterford North Quays.

Any new developer seeking to acquire Waterford city’s North Quays site will have to add the €5.6m that the council has already invested in the location to the purchase price, it has emerged.

The decision comes as the council reappraises the site’s plans and potential following Falcon Real Estate's withdrawal from the projected €500m redevelopment last month.

The Saudi-backed company caused shockwaves across the region when failing to meet funding requirements for the project on the seven-hectare quayside site.

The company’s withdrawal, despite a commitment by the Government to invest €100m, has left plans that included a new bridge, transport hub, shopping centre, hotel & conference centre, office towers, residential apartments, and open public space, in limbo.

Artists' impression of the collapsed North Quays development in Waterford city. Picture: Falcon Real Estate Development Ireland LTD

Responding to inquiries from Fianna Fáil councillor Eamon Quinlan, Waterford Council CEO Michael Walsh told June’s monthly plenary meeting that the next, rather than the previous, developer would have to meet the cost, as it "comes with the site".

He said the money had been expended on the demolition of old buildings and other works, “to make the site as clean and straightforward as could be”.

The CEO said he was “very comfortable” that the sum represented “the order of value” of the site and would be “absolutely satisfied” that he would acquire that sum "in the marketplace if choosing just to dispose of the site”.

Questioned whether Falcon Real Estate would have been liable for the sum already spent, Mr Quinlan told WLR’s Déise Today show with Damien Tiernan that councillors were not privy to all the details of its contract with the council.

He explained that even though the council was driving the project, “company law takes precedent”, and therefore councillors’ access was limited by “commercial sensitivities”.

Mr Quinlan said the council had had the site evaluated, but he was unaware of what figure was decided.

Addressing concerns that another developer might have the site evaluated below the council’s figure, thus forcing the council to take a ‘hit’, Mr Quinlan said councillors had been assured that the site itself was worth more than the €5.6m invested.

“Its €5.6m invested in developing an asset on a waterfront city-centre property”, he said.