Latest phase of event centre saga outlined to councillors

Cost of delivering venue on its earmarked site on South Main Street has soared from an initial estimate of around €50m to around €150m

Public realm upgrades at South Main Street, Cork City, in the vicinity of the former Beamish & Crawford Brewery site, adjacent to the proposed event centre. Picture: Larry Cummins

The group that will oversee the retendering of millions in state aid for the Cork event centre is due to hold its first formal meeting next week.

The first step in the latest phase of the complex and long-drawn out event centre saga was outlined to city councillors at the January meeting of Cork City Council on Monday night.

Labour councillor Peter Horgan who sought an update from city officials on the establishment of the new group arising out of government's decision last October to embark on a new procurement process for the increased state aid on offer for the proposed 6,000-capacity venue. It had its sod turned ahead of the 2016 general election, but where construction has yet to start.

The cost of the delivering the venue on its earmarked site on South Main Street has soared from an initial estimate of around €50m to around €150m.

The amount of available state aid has also soared, from the €20m on offer in the original tender won by Bam in 2014, to the €57m pledged shortly after covid following various delays and redesigns.

But as time drags on and construction inflation continues, it is understood that government has been told that an additional €30m to €40m in state aid is required.

Given the scale of change in the funding model since the sod turning, and amid concerns about state aid rules, legal advice to Cabinet led to October’s decision to order a completely new tendering process, and to set up a project development board to oversee that retendering process.

The assistant chief executive of Cork City Council, Brian Geaney, told Mr Horgan on Monday that following government's decision in October, the Department of Housing and Local Government has been in touch with the council outlining the details of the government decision and the steps required to begin the formation of the project development board (PDB), including identification of potential board members and preparation of the terms of reference for the board.

Terms of reference

Mr Geaney said both the PDB and its terms of reference are in place.

He said he will chair the group, and that it will include representation from a number of state agencies, government departments, and local stakeholders, with the first meeting of the group scheduled to take place on January 24.

“As responsibility for oversight of the procurement process will rest with the PDB, the governance arrangements and any briefings of locally elected members can be considered by the board once it formally meets,” he said.

Mr Horgan asked if the PDB meetings will take place in Cork, and if minutes will be available.

Mr Geaney said it is his intention that most meetings will take place in Cork, with 'dial-in' options available for those members who cannot attend certain meetings in person.

He said the membership of the board will be made available to councillors once the terms of reference are formally adopted at the group’s first meeting.

While Bam’s five-year grant of planning for its proposed venue is due to expire in March 2025, it is likely to be extended to June arising out of various delays during covid.

The retendering process could take between 12 to 18 months, with other parties, including Marina Market, signalling their intent to get involved in the process.