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Development Contributions South Dublin County Council s position

Development Contributions South Dublin County Council s position

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17/06/2003

Archived item. This item is published here for historical reasons. The information below may be out of date.

Issued on behalf of the Council                                                  Document Title:                                                 Development Contributions South Dublin County

                                                                                                                  Council’s position

by M.Keyes Head of Corporate Services                                                  Author                                                 : A McDermott

Tel: 4149100                                                  Creation Date:                                                 17th June 2003

                                Email:mkeyes@sdublincoco.ie

 

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You may be aware of reports regarding the proposed Dublin Area Development Levy Scheme and suggestions that it may impact on the cost of new homes.

 

DeLoitte and Touche, HKR Planning Consultants and Peter Bacon Associates have been appointed by the four Dublin Authorities to prepare Schemes for consideration by the Elected Members in accordance with Section 48 of the Planning Act 2000. This has been referred to during Budget consideration and at other meetings of Council.

 

In commissioning this Scheme, South Dublin County Council, ensures that its obligations in relation to the proper planning and sustainable development of the County are adhered to and will take all necessary steps to secure the objectives of the Development Plan, and ensure also compliance with the provisions of section 48 of the Planning & Development Act.

 

The Scheme will be presented to the Members when the detailed work has been completed, Public Consultation on the report will follow and it will then be necessary for the Manager to present a report on the submissions made during the period of consultation and prior to the making of the Scheme by the Elected Council.

 

Background:

Since September 2002, a revised Development Contribution Scheme has been in operation in the South Dublin area, with higher combined levies in areas that benefit most from ongoing and planned infrastructural projects.

 

These projects include new and improved non national regional road schemes costing approximately €60 million over the next five years; expenditure of €40 million on the Outer Ring Road and the Greenhills Road, which are already under construction, and similar levels of investment in planned water and drainage schemes. Some of which are already under construction. Development contributions are the only method available to Local Authorities, for financing these necessary infrastructural and support facilities.

 

The current and existing levels of Development Contribution in South Dublin are as follows since September 2002.

 

The average cost of construction of 

·         An office block is in the region of €2,200 per sq m and the average contribution levied is €75 per sq metre or 3.4 % of cost

 

·         A 3 bed semi dwelling is in the region of  € 1,800  per sq metre with an average purchase price of  €240,000 ( per CSO 2002), and the average contribution is  €10,000 per unit or 4.2% of cost

 

·         An industrial building would be €1,200 per sq metre and the average contribution is €75 per sq metre or 6.25% of cost

 

In relation to the overall costs of investment in facilities, this provision is minimal and this element of cost has not had a significant impact on purchase prices.  Consequently, no increase in house prices as a result of new development contributions is expected.