Plea made at council meeting to halve development bond for proposed estate of 94 homes in Tipperary Town

Tipperary County Council was urged by a councillor to halve the close to €800,000 development bond it is levying on a developer proposing to build 94 homes at Garranacanty, Tipperary Town, at the monthly meeting of its elected members in Clonmel last week.
But Fine Gael Cllr John Crosse received a rap on the knuckles from council CEO Joe MacGrath who said he was “taken aback” at the matter being raised at the meeting and considered it “inappropriate”.
The Donohill councillor raised the Garranacanty estate developer’s difficulty with the bond during a debate on the shortage of private rental houses in the county and an increase in homeless cases due to landlords selling their investment properties in the buoyant property market.
Cllr Crosse said the developer of this proposed estate at Garranacanty contacted him on the morning of the council meeting. The council was looking for a bond of €8,500 per house. He said he had been talking to the council’s Director of Planning Services Eamon Lonergan and staff and they were coming back to him in relation to the bond.
He indicated he wished to table a motion to the council meeting proposing the halving of the bond to €4,250 per house.
He was informed by council Cathaoirleach and Fine Gael party colleague, Cllr Marie Murphy, that a motion must be tabled in advance of the council meeting. She cautioned him about seeking a reduction in the bond for this project.
She pointed out the bond could be needed in 15 years’ time when the residents want the estate’s infrastructure services “taken in charge” by the council and works are required to enable this to happen. She expressed concern that if the bond was reduced, there wouldn’t be sufficient funds in place to cover the costs of repairs and infrastructure works in the future.
“Be careful what you wish for in asking for a bond to be halved. There could be different issues down the road,” she warned.
Cllr Crosse responded that construction of this housing estate could start in the morning if the developer’s proposal was accepted.
Cllr Murphy suggested this was a matter for Tipperary/Cashel/Cahir Municipal District but Cllr Crosse argued the Municipal District couldn’t make this change and the bond was set at county level. She also pointed out that it was a planning issue and planning matters weren’t on the agenda at this meeting.
Cllr Crosse insisted it was a housing issue and argued that he would be told this if he raised it at Municipal District level.
At this stage, Cllr Michael Fitzgerald (FG) intervened and voiced his support for Cllr Crosse. He said the county was “crying out for houses” and this developer needed a bit of help. He was doing everything right in relation to planning and Cllr Crosse was concerned they were going to lose this development.
“This is going to be the straw that breaks the camel’s back. We have an opportunity here...I know Cllr Crosse has dealt with this individual more than I have but I have never met a guy so determined to do the right thing,” said the Golden councillor before adding that a nursing home was included in the proposed development.
Cllr Murphy responded that both councillors needed to talk to the council’s Directors of Housing and Planning Services.
Cllr Crosse acknowledged it was indicated a meeting would be arranged with the developer at the council’s Tipperary Town office.
Council CEO Joe MacGrath said they would arrange that meeting but confessed to being a “bit taken aback” at this issue being raised at the county council’s monthly meeting.
He said he didn’t think it was appropriate that there should be a discussion at the council meeting about a very specific development.
“My door is always open. I accept it’s a big issue but I don’t think it’s appropriate,” he reiterated.

What is a Development Bond

The bond is levied by councils on housing estate projects and its purpose is to ensure the planning conditions set out for the specific development are met.
The bond is used by the local authority to finish off an estate in the event the developer goes out of business before it is completed.
It can also be spent on infrastructure works or repairs to bring an estate up to the required standard for the council to “take in charge” the estate’s public lighting, sewerage, water and roads infrastructure where the developer has failed to do this.