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Construction Industry Federation owes €140,000 in derelict levies at €23m site of Dublin 6 terrace collapse

Dublin City Council is owed €140,000 in charges on Dublin 6 cottages that collapsed on Monday

Debris from a collapsed house along the Grand Canal, Ranelagh, Dublin 6. Photograph: Dara Mac Dónaill
Debris from a collapsed house along the Grand Canal, Ranelagh, Dublin 6. Photograph: Dara Mac Dónaill

The Construction Industry Federation (CIF) has failed to pay more than €140,000 in derelict site levies owed on a South Dublin terrace that partially collapsed on Monday, despite being in line for €23 million through the sale of the surrounding site.

The roof of one of the five Victorian cottages, which had become heavily overgrown with moss and ivy, collapsed just after 8am on Monday, propelling the front wall out into the path and road opposite the Grand Canal in Dublin 6.

An eyewitness said debris was scattered over the cycle lane and into the road, narrowly missing a cyclist and a pedestrian walking with their dog. The terrace was until recently covered by a banner advertising a CIF construction safety campaign.

Collapsed Victorian cottage in Ranelagh is owned by Construction Industry FederationOpens in new window ]

In a statement on Monday, the CIF said it “immediately liaised with Dublin City Council and have taken prompt measures to cordon off the area for public safety. A team has been appointed to carry out works on the site and take appropriate action.”

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The late 19th century cottages at 2-6 Dunville Terrace, facing the Canal close to Ranelagh Road, have been listed on the council’s Derelict Site Register since June 2023. To date the CIF, which has owned the vacant homes since the 1990s owes the council more than €140,000 in levies, charged at a rate of 7 per cent per annum on the market value plus 1.25 per cent interest a month on unpaid levies.

CIF director general Hubert Fitzpatrick said the levies have not yet been paid. “We acknowledge that they are due and that will be discharged in due course.”

The front facade of an unoccupied cottage in Ranelagh has crumbled and fallen onto the street, obstructing a footpath. Video: Dara MacDonaill

The Construction Industry Federation will be compelled to pay the charge to allow the sale of the cottages and the federation’s 1970s office blocks Construction House and Canal House, which sit behind derelict houses, to be completed.

The CIF and the Construction Workers Pension Scheme have agreed the sale of the adjoining sites to international property developer, Osborne + Co, for a sum understood to be in the region of €23 million.

The sale was agreed four years ago, but was subject to Osborne securing planning permission for a redevelopment scheme. An application was made in October 2022 by Rimor Fortis, an Osborne company, for the demolition of all buildings on-site, including the derelict terrace and another free-standing cottage used as a bike repair shop, and their replacement with an eight-storey office scheme. Planning permission was granted last September.

However, Mr Fitzpatrick said the sale has yet to be finalised.

“That sale has not been concluded,” he said. “Rimor Fortis applied for planning permission in respect of the development, it would be normal practice in any transaction that [the] sale was subject to planning.”

In the meantime the derelict terrace, and its collapse, continued to be the responsibility of CIF, said Mr Fitzpatrick.

“We have taken full responsibility for the issue and we are ensuring that all public concerns are being attended to.” A previous assessment of the buildings had determined they were “structurally safe”, he said. “We had them assessed and it wasn’t evident that there was any danger at the time.”

Green Party Cllr Hazel Chu, who had sought the reuse of the cottages for housing, said the levy should be increased to provide a greater sanction for owners who leave homes to “rot”.

“This site should never have been zoned for pure commercial use. I had proposed a rezoning at the time of the development plan [in place since 2022]. In the midst of a housing crisis and growing demand on working from home, we need more sites for mixed-use residential, not less. We also need a proper mechanism and higher levy to ensure developers pay the fine imposed when they leave sites to rot,” she said.

“Councils need money and power to address issues such as vacancy, dereliction, effective planning and housing supply.”

Olivia Kelly

Olivia Kelly

Olivia Kelly is Dublin Editor of The Irish Times