COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

South Dublin County Council Crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, May 13, 2013

QUESTION NO.14

QUESTION: Councillor D. Looney

To ask the Manager if any bonds provided by developers for projects in the County have been lost under the liquidation of IBRC; to give details of the projects and the status of the bonds; to state if in any cases the bonds are necessary for completion of developments; and to make a statement on the matter?

REPLY:

There are six residential developments where the security provided is in the form of an IBRC (formerly Anglo Irish Bank) bond. None of the bonds have expiration dates.

Two of the six developments are privately managed developments where surface works are completed to a high specification and the Council has no evidence of default by the developer which would necessitate a claim on the bond. In the case of another development, which is gated, one of the bonds is in the process of being assessed for release as the area to which the bond relates appears to be completed satisfactorily; a report is due imminently on this.

In the case of one of the other developments the Council is working with the developer/NAMA in the identification of remaining works to services and upon submission of the Councils requirements the proposals are to be costed by NAMA to be completed. There has been cooperation to date in this case with survey costs etc already incurred by the developer. It should be noted in the case of the development that the period for the taking of enforcement action to secure service completion remains live and therefore in the event that there is any issue with the bond this further measure is available to the Council.  

In the case of the final two developments the developments are not completed with construction ongoing and number of units still to be constructed and sold. The permissions are still live and therefore the period for the taking of enforcement action to secure service completion remains live and also as some unsold units remain in the development should the bond not be viable, other security will be required to be lodged with the Council to enable the sales to proceed.

It is not apparent therefore that the bonds will be essential to complete the services in the developments in question.