Minister yet to approve Galway City Council €60m Crown Square loan

GALWAY City Council has confirmed that it has not yet drawn down the €60 million loan approved earlier this year to fund major capital projects.

At this week’s meeting, Cllr Níall McNeilis (Lab) asked for an update on the loan, which is intended to cover a range of investments including the fit out of the Council’s new headquarters at Crown Square.

In response, officials said the loan requires Ministerial sanction before it can proceed, with the Minister yet to sign off on it.

“It has not been drawn down yet,” said Director of Services, Patrick Greene.

“The Director of Finance needs Ministerial sanction. We can’t do anything further until then,” Councillors were told.

Cllr McNeilis said he wanted to keep the matter on the agenda at every meeting “to make sure we know where we are”.

The €60m loan, to be sourced from the Housing Finance Agency and administered by the Department of Housing, would be repaid over 30 years at an interest rate of 3.35%, with annual repayments of €3.1m.

Chief Executive of Galway City Council, Leonard Cleary, has previously said the funding would give certainty in relation to capital investment, while Director of Finance, Helen Kilroy, had described the new headquarters as a “priority investment”.

The capital programme also includes the redevelopment of Galway City Museum, upgrades to public lighting, road infrastructure improvements, and the development of new and enhanced sports facilities.

The move to Crown Square is progressing, with the Council purchasing the offices in late 2022 for €44.5m, including VAT and Stamp Duty.

Over the Summer, the Crown Square Project Team organised staff information sessions and site visits.

The Part VIII planning process for proposed external works at the new site is currently being finalised, with public consultation to follow. Tender documents for the building’s fit out are also being prepared for imminent issue to shortlisted contractors.

“The Part VIII application will be coming before members in the not-too-distant future,” said Director of Services, Derek Pender, “and like any Part VIII application, people can make submissions.”

The current Council headquarters on College Road has been deemed no longer fit for purpose.

Funded by the Local Democracy Scheme