Developers leave Council with outstanding bill of €2 million

By SIOBHÃÂN HOLLIMAN DEVELOPERS of some residential estates and commercial projects around the county have left Galway Co Council with unpaid fees amounting to more than €2 million. The significant sums relate in many instances to unfinished housing estates around the county. The local authority says it is actively pursuing the developers in relation to the charges due as set down in the grants of planning permission. Homeowners in incomplete estates in the county, however, wonâ€â„¢t be faced with a bill for unpaid development contributions as is the case in some parts of the country. Galway Co Council has confirmed that it is not pursuing a similar approach to that taken by Wicklow Co Council, which is following individual homeowners for thousands of euro after the developers of estates failed to pay. Galway Co Council says it is owed about €2 million in unpaid development contributions. The calculation of development charges can vary, depending on the number of buildings and their type, but they can amount to substantial sums. The charges for one of Tuamâ€â„¢s large estates came to more than €900,000. However developers rarely pay the total amount due prior to construction and as the property crash impacted on house sales, developers often paid the charges one house at a time as they were being sold. A spokesperson for Galway Co Council ruled out any likelihood of the local authority requesting payment from homeowners who are living in estates where the developer has failed to pay outstanding charges. â€Å“We are still pursuing the outstanding amounts owed but from the original developer, not individual householders,â€Â said the Council spokesperson. Since the Planning and Development Act 2000, which overhauled development contributions, such funding has become increasingly important to local authorities. The contributions mainly relate to the use of roads, water and waste services. The charge, set down as conditions in a grant of planning permission, are usually required to be paid before construction work begins, or at least on a phased basis, with a substantial percentage of the total due paid upfront. Local Cllr Seán Canney told The Herald that ascertaining whether or not the development contributions have been paid is a serious issue for anyone purchasing a property, whether in an estate or a one-off house in the country. He says the purchaserâ€â„¢s solicitor should always seek a letter of compliance in which the local authority confirms that the development levy as set down in the planning permission has been paid with regard to the individual property. Issues in Lissadyra The independent councillor welcomed Galway Co Councilâ€â„¢s confirmation that it wouldnâ€â„¢t be seeking to recoup the outstanding levies from householders but also questioned the legality of such a proposal. Cllr Canney said the numerous unfinished estates around the county continued to be a â€Å“nightmare situationâ€Â and that very little progress has been made in improving them. He said problems could arise with regards to finished but unsold houses in estates on which the development contribution hasnâ€â„¢t been paid. â€Å“The house canâ€â„¢t be sold until a certificate of compliance relating to the levy is issued. If the developer has gone out of business then the duty goes to the liquidator or NAMA. Galway Co Council must ensure that they are first on the list to be paid if any such properties are sold,â€Â he said. Cllr Canney said while householders in some estates are seeking the council to take the estate in charge, this wonâ€â„¢t be done until all aspects of planning permission are completed. â€Å“We met representatives from Lissadyra in Tuam last week who are eager for their estate to be taken in charge by the Council. The developer has been issued with a list of items to carry out and a certain period of time to do them. If these arenâ€â„¢t complied with then the Council will move for the bond lodged at the time of planning permission to be released in order to carry out the works,â€Â he explained.