By Jennifer Long and Julie Smyth
THE CEO of Waterford Council says he is "disappointed" the partnership with Falcon Real Estate has not worked out but is "confident" that the North Quays development will proceed regardless.
Michael Walsh said the time is now for the council to move on and suss out market interest in the north quays site which remains ideal for a mixed-use development of residential, tourism, retail and office development.
"We're moving on with a heavy heart," he told Deise Today this morning. "We are disappointed but we know we have a valuable site and we're satisfied that the market will be interested in it."
Michael Walsh was speaking to Damien Tiernan this morning, just minutes after a statement released by the council confirmed they will not partner with Falcon Real Estate to progress the North Quays development.
In the statement released just after a briefing with councillors, the local authority says the contract was extended until last Saturday to allow the developer time to source alternative funding partners, taking into account the constraints imposed by the pandemic.
The local authority said the developer had not demonstrated to "any reasonable satisfaction" that it had fulfilled its contractual conditions. As a consequence, the Council had decided to not extend the contract further.
As of yet, Falcon Real Estate has not commented on the situation.
On the Deise Today programme this morning, Michael Walsh said the council had made the decision to end their relationship with the private developers so as not to lose further time on the project.
"We extended the timeframe for the contract to allow Falcon to seek other funding sources, is how I'd describe it," the Council CEO told Damien Tiernan.
"We have given that six months at this point and it hasn't been achieved to any reasonable level of satisfaction. We have to move on,"
"The market is due to come back in September or October and we need to be in the marketplace to make this happen. There is nobody on my team who doesn't want to see this happen but what we have seen (from Falcon) is not realistic."
The council, he said, had "absolutely" fulfilled all of its contractual obligations in terms of Compulsory Purchases Orders for lands, going to draft planning and progressing the public infrastructure side of things.
Meanwhile, Falcon had been given "every opportunity" to meet theirs.
Michael Walsh said that out of respect for the agreement between the two, the council had not approached other investors as yet and he added that there was nothing to say that Falcon Real Estate couldn't rejoin the process when the project goes to market, so to speak, if they were "first up and best dressed" with demonstrating evidence of funding.
He also assured there was no possibility of the land being sold and re-sold without development and it could only be disposed of in accordance with the council wishes and with the go-ahead of the elected council.
He added that in the next 2-3 months, the council intended to put into the public domain what would be a "very good proposition" for the prominent site and they would share some basic information on that in a week or two.
He further added that the site, which would work best as an extension of the city centre, would still make a "very significant destination".
Reacting to the news this morning, Senator John Cummins of FG said that the news that contract would be terminated with Falcon Real Estate Development was "regrettable but will not stop the North Quays project proceeding:
“Waterford city and county council are fully committed to realising its vision for the North Quays which was set out in the adopted SDZ planning scheme in 2018. The government remains fully committed to this project, as evidenced by the unprecedented €110.6 million which has been earmarked to unlock the sites potential. I am confident that a transformative regeneration scheme can be delivered on this prime waterfront site and I understand the council will be going back out to the marketplace in the coming weeks to source alternative development partners”.
If you'd like to listen back to Michael Walsh's full interview with Damien Tiernan this morning, you can do so by clicking below here...
Meanwhile, here is the full statement from Waterford City and County Council, released this morning...
"Over recent months the Council extended the contract to May 15th, 2021 with Falcon Real Estate Development (Falcon) for the North Quays Development to allow the developer (Falcon) time to source alternative funding partners, given the obvious constraints imposed by the Covid 19 pandemic.
"In correspondence received from Falcon Real Estate Development Ireland over the weekend, the developer has not demonstrated to any reasonable satisfaction that it has fulfilled its contractual conditions. As a consequence, this Council will not be extending the contract further in the coming week/s and will be in discussion with Falcon to conclude our relationship on an agreed basis.
"The Council appreciates Falcon’s commitment to the project over the past number of years; and the considerable resources, time and effort committed to the project by the company.
"While this position is regrettable it is by no means the end of the project. The Council’s position remains the same: it is fully committed to the development of the North Quays and is confident that an exciting and transformative proposition can be brought to bear and it is our intention to immediately go back into the market-place to secure other development partners. We are satisfied that there will be market interest and that the North Quays project is now in a very different place to where it was a few years ago:
- All land ownership and title issues are secured and in the ownership of Waterford Council.
- All site environmental issues have been resolved.
- Benefit of a National SDZ designation which facilitates fast-track planning permission.
- Secure government funding under the URDF for North Quays and City Centre regeneration.
"This Council has been working in the background to undertake a fundamental reappraisal of the North Quays Scheme and will be proposing to engage with the marketplace on a revised proposal in the coming weeks. To this end it is envisaged that there will be a Request for Tender issued next week for a commercial property adviser(s) to assist us in reengaging with the marketplace.
"It is to be regretted that there is a delay in the project at this time but this may in some respects be timely. A revised planning permission will only take three months to complete once ready given the Strategic Development Zone designation and there is a reality that the broader development market is in serious trauma post-Covid and it is only now that signs of re-emergence are beginning. It would be our clear objective to be at market by September where we envisage the broader development market growing significantly again in line with the reopening of society and we would now be targeting development commencement in Quarter 2, 2022.
"There is a strong need for this project under Project Ireland 2040 as Waterford continues to grow and the South East has the expertise required to attract major international investment and jobs. The recent launch of Waterford 2040 demonstrates the city’s enormous potential and we intend the North Quays to be a central element in the City’s future."
