That with reference to Rosebank Cove Estate, and other unfinished estates still waiting to be taken in charge, in the Carrick Municipal area, can the County Council give any explanation as to why certain developers have not been obliged to have an insurance Bond in place to cover the cost of finishing off the estate, thereby allowing it to be taken in charge. What will now happen to Rosebank Cove and to the others?
Minutes:
To consider the following Notice of Motion submitted by Councillor Des Guckian;
"That with reference to Rosebank Cove Estate, and other unfinished estates still waiting to be taken in charge, in the Carrick Municipal area, can the County Council give any explanation as to why certain developers have not been obliged to have an insurance Bond in place to cover the cost of finishing off the estate, thereby allowing it to be taken in charge. What will now happen to Rosebank Cove and to the others?"
Report by Director of Services for Economic Development, Planning, Environment and Transportation.
"All Developers of residential estate type developments were obliged, as a condition of the relevant grant of planning permission, to provide a security for the satisfactory completion of their developments. These securities were either by way of a cash deposit or a Bond provided by a financial institution. The Council received a total of 71 cash deposits and 165 Bonds in respect of such developments. Of the Bonds received, 44 were of a time-limited nature whilst the remainder were open-ended. Of the time-limited Bonds which have expired, 7 may have a financial implication for the Council if the associated development is taken in charge. By and large these implications are directly related to the financial downturn post 2008 as it became practically impossible to secure the provision of replacement bonds at that time.
The non-availability of a Bond attaching to a development has no implications for whether or not it is taken in charge. The Council is not allowed to consider the cost implications of taking in charge if it receives a request from the majority of homeowners in the development where the permission was granted more than 9 years before the request. The Council does not, however, have to take a development in charge where it has commenced enforcement action within the appropriate enforcement period: where enforcement action has commenced, a decision on whether to take in charge is entirely at the discretion of the Council.
Where the Council receives a request to take in charge a development where the Bond has expired, it shall, subject to its absolute discretion where enforcement action has commenced, move to take such developments in charge. Should there be any unfinished elements within the estate then the Council and Irish Water shall have to fund the necessary works from their own resources in respect of the services they will have responsibility for. For the purposes of clarity this only extends to roads and services."
Councillor Des Guckian gave the background to his motion and sought clarification as to why the bond expired in 2010 why it was not enforced and why subsequent Planning Applications were not made dependent on works been carried out on the original development. He sought clarification on the possibility of Rosebank Cove Estate and other such estates getting potholes fixed and being taken in charge.
Councillor Sean McGowan supported the motion and said funding should be provided from the Department of Public Expenditure as many housing estates in the county have similar problems and the Council do not have the financial resources required to address the issue.
Councillor Finola Armstrong McGuire endorsed what had been said by the Members in this regard.
Mr Joseph Gilhooly said the reply to the motion set out the general position with regard to cash deposits, bonds and time bound bonds. Mr Gilhooly outlined that the Council received a total of 71 cash deposits and 165 bonds in respect of such developments. Of the bonds received, 44 were of a time-limited nature whilst the remainder were open-ended. Of the time-limited bonds which have expired, 7 may have a financial implication for the Council if the associated development is taken in charge. With the financial downturn in 2008 it became practically impossible to secure the provision of replacement bonds at that time.
Mr Martin Donnelly said time limited bonds are the normal bond. Leitrim County Council are fortunate to have a number of open-ended bonds. When the bonds expired in 2010, no financial institutions were providing bonds. 2nd planning permissions cannot be used as enforcements, each planning application must be considered on its own merits. In relation to future developments, all bonds will be time limited which have been designed nationally. The process to determine is a bond needs to be called in will be reviewed.
Councillor Des Guckian said the process seems “murky” and the Council and Government have learned very little, and he queried why Irish Water and the Council should put their resources into resolving the problems left behind by developers.
Mr Donnelly said the option in getting developers to finish works in these unfinished estates is very remote, the only option is if developers do so voluntarily, or they continue to have an interest in property in the estate. There is no benefit in it for developers only expenditure once all houses are sold. Mr Donnelly said an application has been made to the Department to seek funding to assist in finishing estates.
Where the Council receives a request to take in charge a development where the bond has expired, it shall, subject to its absolute discretion where enforcement action has commenced, move to take such developments in charge. Should there be any unfinished elements within the estate then the Council and Irish Water shall have to fund the necessary works from their own resources in respect of the services they will have responsibility for, which only extends to roads and services.
Mr Joseph Gilhooly said he was not sure in what context Councillor Guckian referred to the process as “murky” and he said that further funding from the Government would be worthwhile to help to bring the situation to a conclusion in this regard.