CORK’S city councillors are to consider proposals to slash development levies by 50% in an effort to stimulate construction.
They have asked for a full report from the city manager on the implications of the move ahead of a special meeting of the council’s planning committee within the next two weeks.
The issue was discussed at a recent city council meeting during a debate on two motions — one signed by all Fine Gael councillors and the other signed by Sinn Féin councillor Chris O’Leary — which had exactly the same wording.
At the height of the Celtic Tiger’s construction boom, the council raked in millions of euro in development charges — the money paid by developers upon the granting of planning permission for specific projects.
In 2007, it took in €21 million in development charges.
But as the construction industry collapsed, the level of development charges received plummeted, decreasing to €13m in 2008, and to €3.5m in 2009.
City manager Tim Lucey said the council raised just €2m in development charges last year.
"Cork is craneless," Cllr Joe O’Callaghan (FG) said.
"We have thousands of construction workers signing on every week. We must do something to stimulate development."
He suggested cutting the development charges by 50%, or abolishing them completely for a three-year period.
However, Cllr Michael Aherne (Lab) said slashing the charges would hit the council’s already under-pressure income streams.
He said a 50% cut on last year’s total income from development charges would cost the city €1m.
Some councillors said if the reduction was agreed, the council would have to make cuts elsewhere to make up the shortfall.
Socialist Party councillor Mick Barry pointed out the wording of the motions signed by Fine Gael and Sinn Féin councillors was exactly the same, and had come before council following intense lobbying by a developer.
Cllr Denis O’Flynn (Lab) said he was incensed by the motion. "It was developers who brought the country to its knees and these motions are now supporting them."
However, Cllr John Buttimer (FG) said similar motions had been proposed by councillors in other local authorities, and he made no apologies for signing the motion.
City manager Tim Lucey defended the city’s current rate of development charges which at €80 per square metre, compares very favourably with the rates charged by other local authorities.
He is now preparing a report for the planning committee on the implications of a cut in rates.
Irish Examiner
www.buckplanning.ie
Showing posts with label development contributions. Show all posts
Showing posts with label development contributions. Show all posts
Friday, 4 November 2011
Monday, 19 September 2011
GP WINS COUNCIL APPEAL
A RUSH GP and campaigner for health reform has won a planning appeal against Fingal County Council which mean he will not have to hand over a whopping €10,000 to the local authority. In granting planning permission for Dr Marcus De Brun's plans to turn a home in Rush into a medical practice, Fingal County Council wanted a special contribution in lieu of parking spaces such a development would usually be required to provide.
Fingal County Council had granted Dr De Brun planning permission subject to six conditions for the retention of a change of use from a two-storey residential dwelling at 6A Main Street, Rush to a medical practice of the same size, including a single consulting room and including staff parking and ramped wheelchair access to the rear. However, one condition required the payment of the contribution in respect of the provision of controlled on-street car parking for two motor vehicles based on Fingal's Development Plan, which sets the car-parking requirement for clinics and group medical practices as 2.5 spaces per consulting room. Dr De Brun considered this to be both onerous and excessive. He said on submitted plans that two carparking spaces had been clearly outlined and the parking bay to the rear of the building was sufficient for two large spaces, although only one had been drawn on the plans. He further stated that through the gates to the rear of the building, there was also ample space for twoto-three additional vehicles.
Dr De Brun added that his practice was only one of three in Rush and that neither of the other two had off-street parking, with both availing of metered parking. Several other small businesses operating on the street did not provide off-street car parking, nor were they compelled to contribute to the upkeep of metered parking, according to Dr De Brun. An Bord Pleanála considered that it would be 'inappropriate' to charge the €10,000 because adequate off-street car parking had been provided to serve the permitted doctor's surgery.
JOHN MANNING
Fingal Independent
www.buckplanning.ie
Fingal County Council had granted Dr De Brun planning permission subject to six conditions for the retention of a change of use from a two-storey residential dwelling at 6A Main Street, Rush to a medical practice of the same size, including a single consulting room and including staff parking and ramped wheelchair access to the rear. However, one condition required the payment of the contribution in respect of the provision of controlled on-street car parking for two motor vehicles based on Fingal's Development Plan, which sets the car-parking requirement for clinics and group medical practices as 2.5 spaces per consulting room. Dr De Brun considered this to be both onerous and excessive. He said on submitted plans that two carparking spaces had been clearly outlined and the parking bay to the rear of the building was sufficient for two large spaces, although only one had been drawn on the plans. He further stated that through the gates to the rear of the building, there was also ample space for twoto-three additional vehicles.
Dr De Brun added that his practice was only one of three in Rush and that neither of the other two had off-street parking, with both availing of metered parking. Several other small businesses operating on the street did not provide off-street car parking, nor were they compelled to contribute to the upkeep of metered parking, according to Dr De Brun. An Bord Pleanála considered that it would be 'inappropriate' to charge the €10,000 because adequate off-street car parking had been provided to serve the permitted doctor's surgery.
JOHN MANNING
Fingal Independent
www.buckplanning.ie
Sunday, 4 September 2011
Developer wins appeal against €24,000 Ballinrobe footpath levy
The developer of a proposed housing development in Ballinrobe will not have to pay a €24,000 levy for the upgrade of a public footpath after An Bord Pleanála upheld his appeal against Mayo County Council’s planning condition.
An Bord Pleanala (ABP) questioned the legitimacy of Mayo County Council requesting London-based developer Paul Fox to pay the €24,000 levy as part of the planning conditions after permission was granted last January to construct 80 dwelling houses along with a creche at a site at New Line, Knockfereen (Neale Road), Ballinrobe.
Mr Fox appealed this condition as well as another requiring him to pay a €19,577.88 housing take-over contribution.
Mayo County Council had attached 40 conditions to the planning applications, and it claimed that the €24,000 special contribution levy was to be paid prior to the commencement of the development to upgrade the public footpath from the site to the Bulkan River.
With regard to the footpath, Mr Fox claimed that the area between the site and the river is already connected by an existing footpath, which is sufficient to serve the development. He also claimed that the council had already applied a general contribution of €19,577.88 for footpaths and argued that this was a ‘duplication of levies’.
The footpath in question runs along the western boundary/road frontage of the site which is along the N84 and runs from where the frontage of the site along this road terminates up to the Bulkan River, where the N84 meets the New Line Road.
In the ABP report, inspector Colin McBride questioned the legitimacy of a special contribution given that there is already a provision for a footpath levy. He did not view the footpath upgrade as essential and recommended the removal of the condition.
He added that he felt the €19,577.88 charge for the housing take over contribution was acceptable and recommended no change to this condition.
Mr Fox applied for planning permission in 2009 to build 110 dwellings comprising of 17 two-storey detached three-bedroom houses; 66 two-storey semi-detached three-bedroom houses; nine semi-detached three-bedroom bungalows; 18 two-storey three-bedroom terraced houses in blocks of three; as well as a 340-square-metre creche.
Mayo County Council granted planning permission last January but the total number of dwellings was reduced to 80, with 20 per cent of the units to be preserved for social and affordable housing.
MayoNews.ie
www.buckplanning.ie
An Bord Pleanala (ABP) questioned the legitimacy of Mayo County Council requesting London-based developer Paul Fox to pay the €24,000 levy as part of the planning conditions after permission was granted last January to construct 80 dwelling houses along with a creche at a site at New Line, Knockfereen (Neale Road), Ballinrobe.
Mr Fox appealed this condition as well as another requiring him to pay a €19,577.88 housing take-over contribution.
Mayo County Council had attached 40 conditions to the planning applications, and it claimed that the €24,000 special contribution levy was to be paid prior to the commencement of the development to upgrade the public footpath from the site to the Bulkan River.
With regard to the footpath, Mr Fox claimed that the area between the site and the river is already connected by an existing footpath, which is sufficient to serve the development. He also claimed that the council had already applied a general contribution of €19,577.88 for footpaths and argued that this was a ‘duplication of levies’.
The footpath in question runs along the western boundary/road frontage of the site which is along the N84 and runs from where the frontage of the site along this road terminates up to the Bulkan River, where the N84 meets the New Line Road.
In the ABP report, inspector Colin McBride questioned the legitimacy of a special contribution given that there is already a provision for a footpath levy. He did not view the footpath upgrade as essential and recommended the removal of the condition.
He added that he felt the €19,577.88 charge for the housing take over contribution was acceptable and recommended no change to this condition.
Mr Fox applied for planning permission in 2009 to build 110 dwellings comprising of 17 two-storey detached three-bedroom houses; 66 two-storey semi-detached three-bedroom houses; nine semi-detached three-bedroom bungalows; 18 two-storey three-bedroom terraced houses in blocks of three; as well as a 340-square-metre creche.
Mayo County Council granted planning permission last January but the total number of dwellings was reduced to 80, with 20 per cent of the units to be preserved for social and affordable housing.
MayoNews.ie
www.buckplanning.ie
Friday, 20 February 2009
Dublin local authorities owed up to €322m in unpaid levies
THE FOUR Dublin local authorities are collectively owed up to €322 million from property developers in unpaid levies.
Dublin City Council is owed €142 million in development levy contributions by builders according to a report to be presented to the council’s finance committee next week.
While €118 million relates to developments which have not yet been completed, €28 million remains outstanding from developers whose schemes are completed but have not paid their debt to the council.
Developers of residential or commercial schemes, as a condition of planning permission, must pay a levy towards council costs of providing water, roads and sewerage for their developments. Levies in the city are €13,908 per unit for residential projects and €132 per sq m for commercial or industrial schemes.
Fingal County Council is owed €70 million, the bulk of which is now subject to phased payments that have been agreed with the developers. However, the council said it would institute legal proceedings if the money was not forthcoming.
Dún Laoghaire Rathdown County Council said it is owed a “nominal figure” of €86.7 million, but that the actual figure would be much less because of issues relating to duplicate permission for the one site, and phased payments that have yet to be tallied.
South Dublin County Council said it was owed in the region of €22.5 million in development levies.
Separately, Dublin City Council is facing a massive drop in funding for the city’s infrastructure, following a fall of more than 55 per cent in the value of levies paid by developers due to the downturn in construction.
The council brought in almost €68 million in development levies in 2007. In 2008, it collected just €30 million in levies and is expecting to get less than €25 million this year.
Levies are collected by the council on a quarterly basis and dwindled over the course of last year from almost €12 million in the first three months to just under €4 million in the last three months of the year.
The money is ringfenced and used to fund the development of the city’s capital infrastructure. The council expects to fund eight percent of infrastructure from this source in 2009.
Fine Gael councillor Naoise Ó Muirí said the council needed to find new sources of funding for the city’s infrastructure and should consider the introduction of an investment bond scheme.
“We can’t afford to take this hit on our capital budget without generating new income. The Government could facilitate Dublin City Council in moving to municipal bonds, or ‘munis’, as an alternative source of funding,” he said.
Irish Times
www.buckplanning.ie
Dublin City Council is owed €142 million in development levy contributions by builders according to a report to be presented to the council’s finance committee next week.
While €118 million relates to developments which have not yet been completed, €28 million remains outstanding from developers whose schemes are completed but have not paid their debt to the council.
Developers of residential or commercial schemes, as a condition of planning permission, must pay a levy towards council costs of providing water, roads and sewerage for their developments. Levies in the city are €13,908 per unit for residential projects and €132 per sq m for commercial or industrial schemes.
Fingal County Council is owed €70 million, the bulk of which is now subject to phased payments that have been agreed with the developers. However, the council said it would institute legal proceedings if the money was not forthcoming.
Dún Laoghaire Rathdown County Council said it is owed a “nominal figure” of €86.7 million, but that the actual figure would be much less because of issues relating to duplicate permission for the one site, and phased payments that have yet to be tallied.
South Dublin County Council said it was owed in the region of €22.5 million in development levies.
Separately, Dublin City Council is facing a massive drop in funding for the city’s infrastructure, following a fall of more than 55 per cent in the value of levies paid by developers due to the downturn in construction.
The council brought in almost €68 million in development levies in 2007. In 2008, it collected just €30 million in levies and is expecting to get less than €25 million this year.
Levies are collected by the council on a quarterly basis and dwindled over the course of last year from almost €12 million in the first three months to just under €4 million in the last three months of the year.
The money is ringfenced and used to fund the development of the city’s capital infrastructure. The council expects to fund eight percent of infrastructure from this source in 2009.
Fine Gael councillor Naoise Ó Muirí said the council needed to find new sources of funding for the city’s infrastructure and should consider the introduction of an investment bond scheme.
“We can’t afford to take this hit on our capital budget without generating new income. The Government could facilitate Dublin City Council in moving to municipal bonds, or ‘munis’, as an alternative source of funding,” he said.
Irish Times
www.buckplanning.ie
Wednesday, 5 November 2008
City council pursues developers over failure to pay development contributions
DEVELOPERS OF 70 separate building schemes are facing legal action from Dublin City Council for their failure to pay development contributions levied as a condition of planning permission.
City manager John Tierney has told the Department of the Environment's local government auditor that the council has served 20 enforcement orders and sent 50 warning letters to developers who had failed to pay up.
Mr Tierney was responding to the auditor's report on the council's accounts for 2007. Principal auditor Richard Murphy found the council lacked a proper accounting system for dealing with development contributions.
Mr Murphy's report highlighted the money spent in relation to the five social housing regeneration schemes which Bernard McNamara was to build under Public Private Partnership (PPP) with the council. The council lost approximately €5 million following the collapse of the deals earlier this year, Mr Murphy found.
Developers of residential or commercial schemes, as a condition of planning permission, must pay a levy towards council costs of providing water, roads and sewerage for their developments. Levies are €13,908 per unit for residential projects and €132 per sq m for commercial or industrial schemes.
Mr Tierney told the auditor that the council is pursuing outstanding debts, and a new accounting system would be in use by the end of the year.
Mr Murphy said it remained unclear what the outcome of the PPP projects would be. He would review the council's progress on the matter in next year's audit.
Mr Tierney said council management has sought legal advice on how to avoid "over-exposure to one bidder" in the future.
With a cut of almost seven per cent in local government fund allocation to the council for 2009, development levies will become a crucial source of funding.
Ensuring developers paid up was essential, Labour councillor Dermot Lacey said.
The Irish Times
www.buckplanning.ie
City manager John Tierney has told the Department of the Environment's local government auditor that the council has served 20 enforcement orders and sent 50 warning letters to developers who had failed to pay up.
Mr Tierney was responding to the auditor's report on the council's accounts for 2007. Principal auditor Richard Murphy found the council lacked a proper accounting system for dealing with development contributions.
Mr Murphy's report highlighted the money spent in relation to the five social housing regeneration schemes which Bernard McNamara was to build under Public Private Partnership (PPP) with the council. The council lost approximately €5 million following the collapse of the deals earlier this year, Mr Murphy found.
Developers of residential or commercial schemes, as a condition of planning permission, must pay a levy towards council costs of providing water, roads and sewerage for their developments. Levies are €13,908 per unit for residential projects and €132 per sq m for commercial or industrial schemes.
Mr Tierney told the auditor that the council is pursuing outstanding debts, and a new accounting system would be in use by the end of the year.
Mr Murphy said it remained unclear what the outcome of the PPP projects would be. He would review the council's progress on the matter in next year's audit.
Mr Tierney said council management has sought legal advice on how to avoid "over-exposure to one bidder" in the future.
With a cut of almost seven per cent in local government fund allocation to the council for 2009, development levies will become a crucial source of funding.
Ensuring developers paid up was essential, Labour councillor Dermot Lacey said.
The Irish Times
www.buckplanning.ie
Tuesday, 19 August 2008
An Bord Pleanala ruling costs university €154,000
A DECISION by the board of An Bord Pleanala not to confer voluntary status on the University of Limerick (UL) is to cost the university more than €150,000.
The board overruled its inspector's decision to exempt UL from paying €154,000 demanded by Clare County Council after it found that the council had properly applied its development contribution scheme in the case.
Earlier this year, UL secured planning permission for development of an Irish World Academy of Music and Dance at Garraun, Clonlara, Co Clare, a project that included two performance theatres, music practice rooms, and computer and research suites.
As part of the decision, Clare County Council told UL to pay €304,000 in development contributions.
But UL appealed against this payment saying the council was wrong to exclude it from its development exemptions as the university was a voluntary body, registered as a charity trust.
Concerts
UL said its voluntary status was accepted by the Revenue Commissioners and the academy was to be used by the people of Clare and Limerick as well as by its students.
But the council argued the academy building did not come under its definition of voluntary schemes as it would charge fees for courses taught there.
The council also said the academy was to be a venue for concerts and exhibitions, which would generate revenue through ticket sales, while the development would connect to existing public water and sewerage schemes.
In his report, the board inspector said the term "voluntary organisation" had not been defined in the Planning and Development Act, 2000, but it was likely UL came within this remit and should qualify for a full exemption from the council's development charge.
The inspector also ruled UL should be exempt from making a €150,000 contribution towards upgrading the local road network.
However, in its consideration of the inspector's report, the board said it did not accept UL came within the scope of the exemptions for voluntary organisations contained in the development contribution scheme and it considered the scheme was properly applied by the planning authority.
The board, however, ordered the removal of the demand for the €150,000 contribution for the road network as UL had already contributed €500,000 for a related development at its campus in Co Clare.
Gordon Deegan
Irish Independent
www.buckplanning.ie
The board overruled its inspector's decision to exempt UL from paying €154,000 demanded by Clare County Council after it found that the council had properly applied its development contribution scheme in the case.
Earlier this year, UL secured planning permission for development of an Irish World Academy of Music and Dance at Garraun, Clonlara, Co Clare, a project that included two performance theatres, music practice rooms, and computer and research suites.
As part of the decision, Clare County Council told UL to pay €304,000 in development contributions.
But UL appealed against this payment saying the council was wrong to exclude it from its development exemptions as the university was a voluntary body, registered as a charity trust.
Concerts
UL said its voluntary status was accepted by the Revenue Commissioners and the academy was to be used by the people of Clare and Limerick as well as by its students.
But the council argued the academy building did not come under its definition of voluntary schemes as it would charge fees for courses taught there.
The council also said the academy was to be a venue for concerts and exhibitions, which would generate revenue through ticket sales, while the development would connect to existing public water and sewerage schemes.
In his report, the board inspector said the term "voluntary organisation" had not been defined in the Planning and Development Act, 2000, but it was likely UL came within this remit and should qualify for a full exemption from the council's development charge.
The inspector also ruled UL should be exempt from making a €150,000 contribution towards upgrading the local road network.
However, in its consideration of the inspector's report, the board said it did not accept UL came within the scope of the exemptions for voluntary organisations contained in the development contribution scheme and it considered the scheme was properly applied by the planning authority.
The board, however, ordered the removal of the demand for the €150,000 contribution for the road network as UL had already contributed €500,000 for a related development at its campus in Co Clare.
Gordon Deegan
Irish Independent
www.buckplanning.ie
An Bord Pleanala ruling costs university €154,000
A DECISION by the board of An Bord Pleanala not to confer voluntary status on the University of Limerick (UL) is to cost the university more than €150,000.
The board overruled its inspector's decision to exempt UL from paying €154,000 demanded by Clare County Council after it found that the council had properly applied its development contribution scheme in the case.
Earlier this year, UL secured planning permission for development of an Irish World Academy of Music and Dance at Garraun, Clonlara, Co Clare, a project that included two performance theatres, music practice rooms, and computer and research suites.
As part of the decision, Clare County Council told UL to pay €304,000 in development contributions.
But UL appealed against this payment saying the council was wrong to exclude it from its development exemptions as the university was a voluntary body, registered as a charity trust.
Concerts
UL said its voluntary status was accepted by the Revenue Commissioners and the academy was to be used by the people of Clare and Limerick as well as by its students.
But the council argued the academy building did not come under its definition of voluntary schemes as it would charge fees for courses taught there.
The council also said the academy was to be a venue for concerts and exhibitions, which would generate revenue through ticket sales, while the development would connect to existing public water and sewerage schemes.
In his report, the board inspector said the term "voluntary organisation" had not been defined in the Planning and Development Act, 2000, but it was likely UL came within this remit and should qualify for a full exemption from the council's development charge.
The inspector also ruled UL should be exempt from making a €150,000 contribution towards upgrading the local road network.
However, in its consideration of the inspector's report, the board said it did not accept UL came within the scope of the exemptions for voluntary organisations contained in the development contribution scheme and it considered the scheme was properly applied by the planning authority.
The board, however, ordered the removal of the demand for the €150,000 contribution for the road network as UL had already contributed €500,000 for a related development at its campus in Co Clare.
Gordon Deegan
Irish Independent
www.buckplanning.ie
The board overruled its inspector's decision to exempt UL from paying €154,000 demanded by Clare County Council after it found that the council had properly applied its development contribution scheme in the case.
Earlier this year, UL secured planning permission for development of an Irish World Academy of Music and Dance at Garraun, Clonlara, Co Clare, a project that included two performance theatres, music practice rooms, and computer and research suites.
As part of the decision, Clare County Council told UL to pay €304,000 in development contributions.
But UL appealed against this payment saying the council was wrong to exclude it from its development exemptions as the university was a voluntary body, registered as a charity trust.
Concerts
UL said its voluntary status was accepted by the Revenue Commissioners and the academy was to be used by the people of Clare and Limerick as well as by its students.
But the council argued the academy building did not come under its definition of voluntary schemes as it would charge fees for courses taught there.
The council also said the academy was to be a venue for concerts and exhibitions, which would generate revenue through ticket sales, while the development would connect to existing public water and sewerage schemes.
In his report, the board inspector said the term "voluntary organisation" had not been defined in the Planning and Development Act, 2000, but it was likely UL came within this remit and should qualify for a full exemption from the council's development charge.
The inspector also ruled UL should be exempt from making a €150,000 contribution towards upgrading the local road network.
However, in its consideration of the inspector's report, the board said it did not accept UL came within the scope of the exemptions for voluntary organisations contained in the development contribution scheme and it considered the scheme was properly applied by the planning authority.
The board, however, ordered the removal of the demand for the €150,000 contribution for the road network as UL had already contributed €500,000 for a related development at its campus in Co Clare.
Gordon Deegan
Irish Independent
www.buckplanning.ie
Monday, 7 January 2008
Building slowdown to hit councils
The building slowdown threatens to hit a key source of local government funding that was worth almost €700 million to the Republic's city and county councils in 2006, writes Barry O'Halloran .
The State's local authorities will see a fall in the level of development contributions collected from builders as the residential construction slowdown worsens over the next year.
Planning laws oblige developers to pay the contributions to councils, who use them to fund general services in the areas under their charge.
Local authorities collected a record €671 million in development contributions when house building reached an all-time peak of 88,000 new homes in 2006.
However, most analysts and economists agree that the number of new houses built in the Republic this year will be around half the 2006 high.
As house building accounted for around two thirds of all development in the Republic in 2006, the fall off will wipe out a high proportion of the cash collected from builders.
Most of the development contribution schemes operated by councils require builders to pay a set fee for each house or apartment they build.
The Construction Industry Federation says these can range between €7,000 and €15,000 for each home.
While planning legislation requires councils to earmark the money for public infrastructure, they are not obliged to spend the cash collected in respect of a given housing scheme on providing services for that development.
According to the Department of the Environment, Heritage and Local Government, the cash can be used for general services such as roads and road maintenance, car parks, bus lanes, drainage and waste water schemes, and a whole range of other infrastructure. Department figures show that the total development contributions collected by local authorities grew to €671 million in 2006 from €110 million in 2000.
As it is estimated that around 70,000 homes were built in the Republic last year, the return from the charge is expected to be strong.
As the levy is directly related to development activity, urban councils, or those whose jurisdictions bordered on big towns and cities, benefited the most in 2006.
Fingal County Council in Dublin collected the highest amount, getting €72.5 million from developers. Dún Laoghaire-Rathdown County Council came second with €62 million, while Cork County Council came third with €57.3 million.
Further evidence of the residential building slowdown emerged at the weekend with the news that new home registrations with construction guarantee agency Homebond, hit a record low of 925 in December.
The Irish Times
Irish Times
www.buckplanning.ie
The State's local authorities will see a fall in the level of development contributions collected from builders as the residential construction slowdown worsens over the next year.
Planning laws oblige developers to pay the contributions to councils, who use them to fund general services in the areas under their charge.
Local authorities collected a record €671 million in development contributions when house building reached an all-time peak of 88,000 new homes in 2006.
However, most analysts and economists agree that the number of new houses built in the Republic this year will be around half the 2006 high.
As house building accounted for around two thirds of all development in the Republic in 2006, the fall off will wipe out a high proportion of the cash collected from builders.
Most of the development contribution schemes operated by councils require builders to pay a set fee for each house or apartment they build.
The Construction Industry Federation says these can range between €7,000 and €15,000 for each home.
While planning legislation requires councils to earmark the money for public infrastructure, they are not obliged to spend the cash collected in respect of a given housing scheme on providing services for that development.
According to the Department of the Environment, Heritage and Local Government, the cash can be used for general services such as roads and road maintenance, car parks, bus lanes, drainage and waste water schemes, and a whole range of other infrastructure. Department figures show that the total development contributions collected by local authorities grew to €671 million in 2006 from €110 million in 2000.
As it is estimated that around 70,000 homes were built in the Republic last year, the return from the charge is expected to be strong.
As the levy is directly related to development activity, urban councils, or those whose jurisdictions bordered on big towns and cities, benefited the most in 2006.
Fingal County Council in Dublin collected the highest amount, getting €72.5 million from developers. Dún Laoghaire-Rathdown County Council came second with €62 million, while Cork County Council came third with €57.3 million.
Further evidence of the residential building slowdown emerged at the weekend with the news that new home registrations with construction guarantee agency Homebond, hit a record low of 925 in December.
The Irish Times
Irish Times
www.buckplanning.ie
Monday, 14 May 2007
Councils levied charge twice for development of same premises
A SHAKE-UP of the controversial council development levies scheme has been ordered by the Government after a damning report revealed massive variations between authorities.
Some local authorities had charged two levies for the same development, the report found.
Councils have already pocketed €1.45bn since the controversial scheme was introduced seven years ago.
And they stand to earn another €2.1bn between now and 2013.
A developer is obliged to fork out the special levy to a local authority after planning permission is approved for the construction of either residential or commercial property.
The amount is determined by the size of the development.
The council use the cash to pay for infrastructure such as sewage, roads and public lighting in the vicinity of a development.
A Department of Environment committee - Inter-Departmental Committee on Development Levies - set up to probe local authorities over the levies branded the practice of councils charging two fees for the same development as "wholly inappropriate".
In one case, the IDA paid the levy on a premises and a private enterprise that later moved in and made changes to the site which needed planning permission was also hit with the fee.
The review also raised concerns about huge variations in charges between neighbouring counties and called for greater transparency.
But a request by the Department of Education for a waiver on the levy for the construction of new schools was turned down.
Local authorities earned €110m in 2000 when the scheme was first introduced. This sum soared to €517m a year by 2005.
Treacy Hogan
Irish Independent
Some local authorities had charged two levies for the same development, the report found.
Councils have already pocketed €1.45bn since the controversial scheme was introduced seven years ago.
And they stand to earn another €2.1bn between now and 2013.
A developer is obliged to fork out the special levy to a local authority after planning permission is approved for the construction of either residential or commercial property.
The amount is determined by the size of the development.
The council use the cash to pay for infrastructure such as sewage, roads and public lighting in the vicinity of a development.
A Department of Environment committee - Inter-Departmental Committee on Development Levies - set up to probe local authorities over the levies branded the practice of councils charging two fees for the same development as "wholly inappropriate".
In one case, the IDA paid the levy on a premises and a private enterprise that later moved in and made changes to the site which needed planning permission was also hit with the fee.
The review also raised concerns about huge variations in charges between neighbouring counties and called for greater transparency.
But a request by the Department of Education for a waiver on the levy for the construction of new schools was turned down.
Local authorities earned €110m in 2000 when the scheme was first introduced. This sum soared to €517m a year by 2005.
Treacy Hogan
Irish Independent
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