Council doubles the amount of derelict site levies it collects

Cork City Council reap the benefits of adopting a more aggressive approach to tackling the issue of derelict buildings

A derelict shop front on South Main Street in Cork city defaced with graffiti. Picture: Chani Anderson

Cork City Council has doubled the amount of derelict sites levies it has collected in a year as part of a more aggressive approach to tackling the issue.

In the 12 months to June 2024, it had collected almost €428,000 in levies attached to properties list on the city’s derelict site register.

The annual levy, which was 3% on the market value of the derelict property, was increased to 7% in 2020. 

And following a city-wide blitz on dereliction last year, there was a 45% increase in the number of sites on the city’s derelict site register.

These two factors combined led to an increase in the amount of derelict sites levies owed to the local authority.

But it has been notoriously difficult to collect it from those who have left their properties fall into dereliction, with an estimated €900,000 in derelict sites levies owed to the council last year.

However, councillors were told at this month’s meeting of city council that the city has collected a total of €427,993 in derelict sites levies in the 12 months to June 2024.

Cork City Council extensively reviewed its derelict sites processes in 2023 and increased the size of its derelict sites team. Picture: Larry Cummins

A breakdown shows that the vast bulk of that was from properties in the city’s south central local electoral area, which includes most of the city centre, accounting for €319,705 of the total amount collected.

The north west local electoral area accounted for €64,893.

Just €7,500 was collected in derelict sites levies in the south west local electoral area.

The figures emerged in response to a question from Labour Cllr Laura Harmon, who welcomed the progress.

Fearghal Reidy, the council’s director of services in the strategic and economic development directorate, said the doubling in the collection rate so far this year is as a direct result of a strategy adopted by council in 2019.

“We are going more aggressively after levies, with charges on properties and legal action,” he said.

He said the council extensively reviewed its derelict sites processes in 2023 and increased the size of its derelict sites team.

“Cork City Council applies a robust approach to the collection of levies including timely notification of placement on the register, a determined approach to owner identification, timely issuing of relevant statements, and the enforcement of final demand letters when payment is not received,” Mr Reidy said.

The council is placing a legal charge on properties who fail to pay their levies, which means the property cannot be sold without the settlement of any outstanding levies.

Mr Reidy also said that in 2023, the council increased staffing numbers and surveyed more than 13,000 city properties, which led to a 45% increase in the number of sites on the derelict sites register, with the council’s derelict sites team now working on a portfolio of more than 700 vacant and derelict properties.

He said the council is “using all tools at its disposal” to facilitate a timely removal of dereliction and a return to use, including the administering of available grants, with more than 250 properties having applied for the Croi Conaithe/Vacant Property Refurbishment Grant, which brings long term vacant and derelict properties back into use.