Agenda item
Disposal of Office Space - Assets
· Lease of office space comprising a net internal area of 130m2 located on the second floor of An Ríoga, Boyle.
Minutes:
On the PROPOSAL of Cllr. Moylan
SECONDED by Cllr. Callaghan
It was AGREED that the Council consent to the disposal of property pursuant to the provisions of Article 206 of the Planning and Development Regulations 2001, Section 211 of the Planning and Development Act, 2000 (as amended) and Section 183 of the Local Government Act, 2001 of particulars of lands which it is proposed to dispose of at the location in County Roscommon and to the persons set out in the schedule hereunder. Particulars of the land which the County Council proposes to dispose:
The Land: Office space comprising a net internal area of 130m2 located on the second floor of An Ríoga, Boyle.
The person(s) from whom the land was acquired: Shirley Regan, 10 Glencarrig, Carrick-on-Shannon, Co. Leitrim.
The person(s) to whom the land is to be disposed of: Coillte Cuideachta Ghníomhaíochta Ainmnithe
The consideration proposed in respect of the disposal: €12,600 per annum
The term proposed in respect of the disposal: 10 Years
Members welcomed this leasing of office space and made the following points:
- It is great to see the building at full capacity.
- It was noted that the rent amount was quite low.
- It was questioned if there would be an option for local community groups to take over the lease when the current term of rental has expired.
- It was questioned if there is a clause in the contract to review the rent after 5 years, and if so, would the review be index linked.
- Praise for the Council for acquiring the building which was derelict and an eye-sore to the town for many years and without the work, it would still be derelict.
Director of Finance Sean Mullarkey advised that two independent valuers were engaged to review the market rent in Boyle and recommended the rent amount. He added that the semi-state body were previously located in Lough Key, and this lease would create more available space in Lough Key, coinciding with the Lough Key Masterplan. He confirmed that the second floor had been designated as office accommodation while the ground floor had been designated for arts related activities so it is unlikely that the lease for this area would be offered to community groups. He explained that the aim is to ensure vibrancy in the middle of the town, and by attracting employment to the building, more money would be spent in the town.
Members welcomed Mr. Mullarkey’s clarification and discussed the following:
- Acknowledgement for designating the ground floor for arts.
- Praise for seeking RRDF funding for projects such as this.
- Acknowledgement for the benefit of creating space in Lough Key.
- Reiteration that a rent review/break clause should be provided for in the contract.
- Acknowledgement that the market value was carried out professionally.
On the PROPOSAL of Cllr. Fitzmaurice
SECONDED by Cllr. Keogh
It was AGREED that Roscommon County Council seek further RRDF and URDF funding for derelict buildings in towns throughout the county.
Cathaoirleach Cllr. Liam Callaghan added that he was delighted to see progress on this building and reiterated that similar projects should be looked at for similar buildings. He also noted the importance of having an anchor tenant in the building to pay for the costs as arts doesn’t always generate significant income.
Director of Finance Sean Mullarkey explained that the contract provided for a break clause after three years and a rent review after five years. He noted that the regeneration of the building was paid for with 80% funding from outside bodies and 20% from Roscommon County Council. He advised that old buildings, such as this one, are expensive to refurbish and would not have been possible without the 80% outside funding. He further explained that this would also be the case going forward, if other similar projects were to be explored.