City may get back land it offloaded in State ‘bailout’

Land which was bought from the City Council by the State in a ‘bailout’ scheme for indebted local authorities will be available to take back free of charge for social housing in the future.

City councillors were told at a meeting yesterday evening (Monday) that three sites in the Knocknacarra area which have been offloaded under the Land Aggregation Scheme could be given back to the city.

The Council handed over the 19 acres to the Housing Agency in a bid to cut interest payments of around €1 million per year on loans drawn down to buy the lands.

One site has already been transferred to the Agency – described as the ‘NAMA four councils – while the other two are in the process of being transferred.

The tranches of land were purchased close to the peak of the property boom. Coupled with this, the Department of the Environment has since decided to concentrate on long-term leasing of properties to meet housing demand, rather than building new homes.

The sites are at Ballyburke (4.3 hectares) bought in 2006, on which €15.7m was outstanding; 3.1 Ha on the Ballymoneen Road where €11.2m was outstanding and 0.2 Ha on the Ballymoneen Road, where just under €2.5m was owed.

At the moment, the annual interest bill on the two sites waiting to be transferred amounts to €455,000.

In a presentation, John O’Connor, Chief Executive of the Housing Agency told councillors that if the local authority wishes to use any of the 19 acres for housing in the future, there will be zero charge.

If the lands are to be used for educational or for other public facilities, they will be made available at a reduction on the current open market value.

“If it’s required in the future for housing, it will be transferred straight back to Galway City Council. In essence, it’s still very much in the control of the City Council.

Read more in today’s Connacht Sentinel