| 17.2°C Dublin

Council to take charge of Carroll Cherrywood site

Dun Laoghaire Rathdown County Council has established a new company to take over management of the development of Cherrywood, a site it once co-owned with developer Liam Carroll.

The local authority has set up DLR Properties Limited to hold, manage and potentially sell the lands at Cherrywood in south Dublin.

The Dublin council said that it would now have a "significant property holding'' in Cherrywood, most of which will be located near the Luas terminus.

The 64-acre site, off the N11 in south Dublin, was part owned by the council, which also invested €57m into the project.

Last year several banks sought to put charges over the lands at Cherrywood when Mr Carroll's business empire all but collapsed.

The council took legal steps to protect its interests at the Science and Technology Park in Cherrywood, following the collapse of Mr Carroll's Zoe Group.

He owned Dunloe Ewart, the company that had gone into the joint venture project with the council in 1997.

A selection of land and property will now come to the council following negotiations with Mr Carroll's companies and the banks. Following a mediation process, the council has acquired assets worth at least €60m, which could potentially be sold at some point.

County manager Owen Keegan said DLR Properties Ltd would be 100pc owned by the council and any profits made would go back to the council.

He acknowledged he had been slightly uneasy about the council acting as both planning authority and developer for the development, but told councillors that time is of the essence.



profit

The company will be able to sell the assets without council approval under the Local Government Act (2001) -- but in line with to certain safeguards.

The new company would have the power to "enhance or diminish'' its corporate reputation and will be legally separate from the council.

Mr Keegan said directors appointed to this company must not have any conflicts of interest and must not directly or indirectly profit from the activities of the new company.

It was pointed out that there are significant VAT savings which can be made if the council's interests are placed in the company.


Privacy