There is “no chance” of Cavan County Council avoiding paying millions for the purchase of a ‘white elephant’ multi-storey car park agreed by a previous administration.
Local legal sources say that the deal, which Cavan County Council head of finance Des Magurie recently described as “copper-fastened”, has “almost zero” chance of any reversal, says one legal expert familiar with the deal.
“There’s no chance of getting out of it, none it looks like,” said one.
“Deals like these are usually locked in to the enth degree,” said another. “It looks like they will have to take the hit.”
The hit in question is €6.7M purchase fee for the Cavan Town facility on top of a similar amount accruing from 15 years of rent to the owners, known as the Virginia Consortium.
The consortium is made of what appears to be individuals and is does not appear to be registered with the Company Registration Office.
The Town Council pays half a million a year through a company called Glassell Ltd to the consortium for the rent of the multi-storey - members were named in The Irish Times in the summer of 2011.
Those named were: John Brennan, Ashlawn, Ballinteer, Dublin; David Simpson, Fortfield Park, Terenure, Dublin; Brendan Horan, Castledillon, Straffan, Co Kildare; Alan Dillon, Deerpark, Castleknock, Dublin; Gerard Dillon, Avoca Park, Blackrock, Co Dublin; Anthony Gallagher, Herbert Park, Ballsbridge, Dublin; Richard McHale, Castilla Park, Clontarf, Dublin; Eileen Monaghan, Ballincar, Co Sligo; John Lynch, Bellevue Park, Blackrock, Co Dublin; Owen Owens, The Burnaby, Greystones, Co Wicklow and Gerard Ryan, Pallas Green, Co Limerick.
With the abolition of the town councils next year, Cavan County Council will have to take the hit on the purchase price, however, at a recent county council meeting the town council’s balance sheet was said to be “very healthy”.
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