The dissolution of the Dublin Docklands Development Authority, due to take place next week, has been deferred by Minister for the Environment Phil Hogan following Cabinet approval.
The decision to abolish the development quango was announced by Mr Hogan in May 2012 after the Comptroller and Auditor General found serious shortcomings in the conduct of its planning and development functions, specifically in relation to the purchase of the Irish Glass Bottle site in 2006.
The authority was to remain in place for a transitional period of up to 18 months under a new board chaired by then Dublin city manager John Tierney, now chief executive of Irish Water.
It was due to be dissolved by the end of this month and its powers and functions transferred to Dublin City Council. However, Mr Hogan has asked the board to remain in place for an indefinite period.
The authority’s planning functions have already been transferred to the city council. Earlier this month the council approved a new fast-track planning scheme for 66 hectares of the docklands through the creation of a strategic development zone (SDZ).
An Bord Pleanála
The creation of the zone is set to come before An Bord Pleanála. If approved by the board, all future decisions made for this part of the docklands by the council cannot be appealed to the board.
Mr Hogan has decided to hold back on the full transfer of the authority’s powers to the council.
The authority’s remaining functions largely relate to the management of its property portfolio. Since the beginning of this year some €12 million has been realised through the sale of assets, primarily from the sale of the CHQ centre for more than €10 million. The former warehouse cost €45 million to remodel and redevelop as a shopping complex in 2007.
The proceeds of this year’s sales were used to pay off €12 million of the authority’s liabilities. A further €4 million of asset sales are currently under contract. The extension of the authority’s term would allow for “an orderly wind-up and a prudent disposal of assets”, a spokesman for the Department of the Environment said.
When the decision to axe the authority was made it was expected that its assets would be disposed of by the end of this year, but it is understood the authority is hoping to get a better return on its remaining properties next year with the beginnings of a recovery in the commercial property market.
Assets
The authority will remain in place pending the disposal of the remaining assets and until the new planning scheme comes into force. With an appeal against the creation of the scheme likely, it could be six months before a decision is made by An Bord Pleanála .
The Irish Glass Bottle site was bought for €412 million by a consortium that included the authority, but was valued last year at €45 million. The State’s exposure through the authority totalled €52 million.
