Johnny Ronan: submission

Property development company Treasury Holdings, which is owned by Johnny Ronan and Richard Barrett, lobbied Dublin City Council for a significant cut in the development levies it charges. A letter from consultants Bruce Shaw, sent with the Treasury submission, said that it "would be of the view that a reduction of between 17% and 20% should be a fully justifiable and realistic prospect".


Treasury's development director Rob Davies also said that "the current market conditions are such that development levies have significantly diminished and the continuation of applying 2009 levels will have a negative impact on any possible development occurring".


The letter also said that the fall in construction tender prices was likely to have been 17.5% or more and that a fall in the contribution levies in line with the fall in construction tender prices "would have a positive impact on development levies in the city".


Rival developer N1 Property Developments, which is owned by Brian O'Farrell, said it was facing a development levy bill of €22.9m (falling to €17.9m when social and affordable housing was taken into account) as part of its plan to redevelop the area around Northside Shopping Centre in Coolock, north Dublin.


It also said the €45.6m costs earmarked by the developer for upgrading and constructing new roads, providing community facilities and improving parkland facilities amongst other items would not receive any allowance under the contribution plan.


Dublin City Council had invited submissions on its development contributions scheme and a number of other submissions were also made. Various clients asking for the scheme's terms to be simplified and to "increase the transparency in the way in which contributions are levied".


The Construction Industry Federation and Irish Homebuilders Agency meanwhile said that "should Dublin City Council fail to acknowledge current market realities and adjust the development contribution rates... the city council policy will not be facilitating any revival of economic or construction/development activities in its area". It also said that some of the assumptions and figures being used were "flawed".


The Society of Chartered Surveyors estimated that 20% of all space in Dublin city centre was "obsolescent" and said the council "should examine options to allow temporary redevelopment/regeneration of floor space to allow the temporary use of these buildings without incurring a double levy once the building is redeveloped in full in the future".