Cork City derelict site to be sold to facilitate €25m student apartment block

The existing derelict North Main St site

A long-time derelict publicly-owned site in Cork City centre is to be sold to facilitate a €25m student apartment project.

City councillors voted last night to dispose of the city council’s leasehold interest in number 96 North Main St to Pantherlee Ltd for €100,000 — half its current market value. The disposal price was agreed over two years ago.

The vote to dispose followed the granting of planning permission late last year to a linked company, BMOR Developments Ltd, for a 280-bed student apartment development on sites which include the former Munster Furniture Store site, which was gutted by fire in 2008.

The estimated €25m development will also occupy 92 North Main Street, formerly Molloy’s Footwear, as well as numbers 95 and 96, both of which are long-time vacant.

The project also includes two retail units, and space for a coffee shop or restaurant.

An image of the plans from Bmor Developments Ltd for 49 student apartments, as well as two retail units and a cafe/restaurant at 92-96 North Main Street.

Cork City Council acquired number 96 North Main St in May 2018 and councillors were reminded last night that a report was issued in April 2019 to permit the developers, BMOR, to include number 96 in a planning application for the student apartment scheme, and to agree in principle to dispose of the property at existing market value, subject to planning permission.

In a report to council last night, officials said the €100,000 disposal represents the value of the site when the council granted the developers consent to include the property within the planning application for their consented scheme.

“A recent independent valuation taking into account the benefit of the developer’s consented planning for the scheme gave a market value of €200,000 representing an uplift in value of €100,000,” they were told.

But they were also told that following negotiations with the developers, heads of agreement have been agreed which will provide for two eight-bed residential units within the development being leased to the city council for 10 years.

“These units represent a floor area in excess of the original floor area of the previous premises at number 96,” they were told.

Preferential lease terms have been agreed which will represent a further saving over the 10-year lease period of well in excess of the €100,000 uplift value and accordingly represents the best consideration reasonably obtainable for the council’s interest.” 

The disposal is subject to conditions, including the purchaser agreeing to enter into a lease agreement with the council on two 271 sq m pods, each containing eight-bed spaces in the complex.

The units will be located on the first and second floors on the north-eastern corner of the site, which faces onto North Main St.

Bmor Developments Ltd are planning to build apartments, as well as two retail units and a cafe/restaurant at 92-96 North Main Street.

Rent of the units will be at a discounted rate of €100 per week per bed space, inclusive of all services, heat and light, wifi, refuse, furniture and fittings.

Councillors Fiona Ryan (Solidarity), Ted Tynan (Worker's Party), and Paudie Dineen (Independent) objected to the disposal, with Ms Ryan insisting that more could be done with the site if it was retained in public ownership.

Green Party councillor Dan Boyle said he is not fully in favour of the overabundance of student accommodation in the city, but he welcomed assurances that the city will be paid the derelict site levies owed on the sites earmarked for development.

Councillor Mick Finn (Independent) described it as a good compromise and Fianna Fáil Councillor Seán Martin said that during the negotiations with the developers, the council insisted on a social dimension and got it.

Councillors voted 24 to four in favour of disposal.