COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, October 12, 2009
HEADED ITEM NO. 13
Approval of registration of charge in favour of Clann Credo in respect of Neilstown Enterprise Centre, Clondalkin, Dublin 22.
REPORT:
The Council provided an Enterprise Centre at Neilstown in the mid 1990s and granted a licence to Clondalkin Partnership in 1996 to manage the facility on a day to day basis. The Partnership arranged for the management of the facility to be undertaken by the Clondalkin Enterprise Group T/A Enterprise Action. This company has since agreed to amalgamate its interests with another company, Bawnogue Enterprise & Community Centre Ltd which manages the Bawnogue Enterprise & Community Centre, and have formed a new company known as Action Community & Enterprise Ltd to manage both Enterprise Centres.
This Company comprises representatives of the County Council, County Enterprise Board, local Partnership Company and Community development programmes, local Business People, Department of Social & Family Affairs, and local public representative.
The existing Centre at Neilstown comprises of six units and is now twelve years old. Action Community & Enterprise Ltd propose to refurbish and expand the existing Centre to improve its economy of scale and make it more sustainable. The Company proposes to reconfigure the existing units internally to form four larger units together with the construction of three additional units within the overall site. Planning permission has been granted for these works on 29/6/2009, Planning Reg. Ref. SD09A/0113. The Company has indicated that there has been a significant increase in the past year in the number of potential business start- ups taking part in the ‘Start Your Own Business Training Programme’ being run by the Company and it would hope to accommodate a small number of start-up businesses in the new units to be developed.
The Council at its meeting held on 14th September 2009 noted a proposal to grant a 35 year lease of the premises known as Neilstown Enterprise Centre to Action Community & Enterprise Ltd, subject to terms and conditions. Manager’s Order LA/211/2009 refers.
The terms and conditions provide, inter alia, that Action Community & Enterprise Limited shall be granted a building licence to enter the premises and carry out the refurbishment and building works to the satisfaction of the Council and on satisfactory completion, the Company shall be granted a lease.
The cost of the proposed development is circa €450,000 and Company has indicated that it has secured grant funding in the sum of €187,000 towards the cost of the proposed works from Enterprise Ireland which is available for draw down up to end of 2009. The Company has also been approved for a loan in the sum of €250,000 by Clann Credo towards the cost of the works subject to terms, including the placing of a charge against the premises for the period of the loan. The balance of the development cost is to be covered from the Company’s reserves.
Clann Credo is a not-for-profit organisation which has charitable status and which provides finance to the community and voluntary sector throughout Ireland from its social investment fund, normally at terms more favourable than those available commercially.
As the lease will only be granted once work has been satisfactorily completed, this leaves the Company in a position where it would not be able to draw down the loan funds during the course of the works. In order to assist the Company in availing of the funding and to ensure that the works at the Enterprise Centre will be completed, the Council proposes to accept, subject to the requisite statutory approvals, the Deed of Charge being registered as a burden against the Council owned lands in favour of Clann Credo.
On completion of the lease, the Council will arrange to have the Charge registered against the leasehold interest of Action Community & Enterprise Limited.
The terms and conditions of the proposed lease also provide that the Company shall not sell, assign, sub-let, sub-divide, alienate or part with the possession of the subject property without the prior consent of the Council and accordingly the Council’s consent to the registration of a Charge in favour of Clann Credo against the Company’s leasehold interest will be required.
In accordance with Section 66 of the Local Government Act, 2001 the Council may approve the granting of any ‘financial assistance whether by grants, loans, guarantees or other financial aid, lands or other structures etc’ for matters of this nature, such approval to be by way of resolution of the Council. The above definition would include accepting a charge against Council property in respect of funds provided by other parties for facilities constructed thereon.
Accordingly it is recommended that the Council adopt the following resolution:
“Thatsubject to the provisions of Section 66 of the Local Government Act, 2001, that the Council approves the registering of a charge in favour of Clann Credo for a period of up to 15 years against the Council in respect of the premises known as Neilstown Enterprise Centre, Clondalkin, Dublin 22 as shown outlined in red on Indicative Drawing No. DEV. 6166 to enable Action Community & Enterprise Limited to draw down loan finance in the sum of €250,000 towards the carrying out of works to refurbish and extend the Enterprise Centre and that following the grant of the proposed lease in this case, that the Council consents to the registration of the Charge against the leasehold interest."