D-day looming for beleaguered Cork event centre project

Construction inflation biggest threat to future of venture

Enda Kenny, second right, turned the sod on the former Beamish and Crawford site in Cork in February 2016 but construction work has yet to start on the events centre.

D-day is looming for the beleaguered Cork event centre project amid fears that construction inflation is now its biggest threat.

Detailed design work on the proposed 6,000-capacity city centre venue is due to be completed this month, triggering a 10-week costs verification process, it has emerged.

That process will determine if the previously estimated €85m project can be delivered under the current funding arrangements, which includes some €57m in state aid.

But with the rate of construction price inflation up at least 14% since the increased state funding arrangements were outlined last year, there are fears that the costs will soar.

At this week’s meeting of Cork City Council, two city councillors, Independent Cllr Mick Finn and Labour Cllr John Maher, both sought updates on the project, which saw its sod turned by former Taoiseach Enda Kenny in February 2016, but which has yet to see a brick laid on site.

In written questions, they both asked for details of final costs and a start date.

In an identical response to both, the council’s chief financial officer, John Hallahan, said the event centre consortium — BAM and Live Nation — has told the city council that the detailed design process will be completed in July.

“Once completed, the level of funding/costing parameter changes will be determined,” he said.

“Cork City Council will undertake a full verification process on the final design costings once received.

“Once the verification process is completed, final discussions with the joint venture will take place and it is not possible to give a start date for the project in advance of the conclusion of that discussion.” 

October decision

Mr Hallahan said the verification process will take up to 10 weeks which means that a decision on whether the project is viable or not under the current funding arrangements should be known by October.

Mr Finn said despite all the delays and dramas over the years, he still believes it will happen given the amount of time and money that has been invested in the process to date.

“I think the developers can see the huge potential in the entertainment and conference market. They know there is a market for it,” he said.

"Certainly, construction inflation will be a factor in this but the extra money won’t come from the council. 

"I think there will be a call on government for extra funding, but I think the partners (BAM and Live Nation) will have to up their stake as well.

“This project needs to be realised for Cork. The government has to see it through."

The Irish Examiner reported last week how almost €1.5m of public money has been spent on the long-stalled project since 2014, most of it on legal and management consultancy fees, with two firms alone accounting for almost €1m of the spend.

In April 2014, BAM won the competitive tender process for €20m of state aid for the project, with estimates that the venue would cost €50.1m.

But following various delays caused by planning, redesigns, requests for further state funding, and the covid pandemic, costs for the proposed 6,000-capacity venue have soared to over €85m, and the state funding has been increased to €57m — more than the original cost estimate.