New €46.5M HQ proposed for Monaghan County Council

Monaghan County Council will hold a special meeting on July 20 to determine whether to proceed with the construction of new €46.5M civic offices at Rooskey in Monaghan Town.

If the Council approves the development, borrowing of €38M will be required. But the project has “a demonstrated affordability”, Director of Financial Services, Olga McConnon, told last Monday’s meeting of the local authority.

Ms McConnon explained how the estimated €2.09M in annual loan repayments will be met by annual budget provisions the council has been making in relation to the development, and an estimated €648,000 in yearly savings.

A 106-page business case circulated at the meeting and prepared by audit, tax, advisory and consulting firm, Forvis Mazars, recommended that the project proceed to implementation and contract award stage. It concluded that the proposed development ‘will not only address critical accommodation and service delivery needs but will also act as a key economic driver, supporting long-term growth, regeneration and resilience across Monaghan Town and area’.

‘BIGGEST DECISION’

“This is probably the biggest decision we will take as a Council,” the meeting was told by Chief Executive Robert Burns, endorsing the consultants’ recommendation.

After a series of further presentations from senior executive staff on the merits of the project, it was agreed to defer a decision until July 20 to allow elected members study the plan and submit questions to the executive in advance.

Director of Services for Capital Projects, Cathal Flynn, noting that the issue of new offices has been on the agenda many times over the last 25 years, said the council moved into its existing headquarters at The Glen in Monaghan Town in 1984, into a building that had been a maternity hospital in the 1950s, and then later used as a technical school. The offices had never been a purpose-built, or customer service centred, he noted.

Mr Flynn pointed out that the council is now based at six separate locations throughout the county, four rented at rates up to €400,000 per year “which, in any man’s language, is lost money”.

The dispersal of staff across the county, Mr Flynn continued, is not ideal for cohesion and collaboration.

The director said the new building will provide a modern facility for customers and staff, close to a “one-stop shop” model, and improve town centre vitality.

“We deserve to be doing our business in a fit-for-purpose office location,” Mr Flynn added.

Ms McConnon stated that, if the project proceeds, the Housing Finance Agency is currently offering a 30-year fixed term loan at 3.3% interest. The useful life of the asset will be 60 years but the loan will be repaid after 30 years, at savings in rent over 30 years of around €14M.

“This is the stop/go point,” the Chief Executive told councillors.

Mr Burns made a strong recommendation to proceed to construction stage as, he said, the proposal stacks up economically and financially.

Once delivered, he pointed to the potential to dispose of assets such as The Glen and in doing so release capital towards the local authority's €460M capital programme.

DISSENTING VOICES

Cllr Seamus Treanor (Ind), who is strongly opposed to the civic offices project, expressed the view at Monday’s meeting that the decision was already “a done deal”. He predicted it will pass by 16-2, and called for an immediate vote.

Cllr Raymond Aughey (FF), a supporter of the project, felt a special meeting is still required.

“There is a lot to take in, and so much at stake,” he said.

Another other opponent of the project, Cllr P J O’Hanlon (FF), also felt it important the full picture be given.

“The public can then judge us in relation to the decision we make.”

After the presentations, Cllr O’Hanlon said members needed time to look at some of the figures presented.

“We are borrowing €38 million to pay back €60 million,” he pointed out. “What about the finances of the ratepayers? Who is representing them?”

Cllr Alan Johnston (FG) said the ratepayers are currently forking out for the rental costs and operational expenditure of the council that this project will save.

He suggested, if nothing is done, it will cost more in the long term.

It was agreed on the proposal of Cllr Colm Carthy (SF), Cllr Seán Conlon (SF) seconding, to hold a special meeting on July 20 to decide the issue.