Expansion of two huge projects under threat

The future of two of the largest commercial developments ever proposed for Cork, the £500 million (635m) Eastgate scheme and …

The future of two of the largest commercial developments ever proposed for Cork, the £500 million (635m) Eastgate scheme and the £400 million (508m) Mahon project, now rests with An Bord Pleanβla.

The giant Eastgate development by O'Flynn Construction, on 120 acres at Little Island, includes high-tech, purpose-built office space as well as 90,000 sq ft of retail warehousing, and a 65,000 sq ft supermarket/shopping mall.

The office side of the project is already partially operational and the first phase is due to be completed within 12 months.

Companies such as Xilinx Ireland, Advance Laser Systems, ESBI, a subsidiary of the ESB, and PFH, the computer firm, are in situ, and others are expected to follow within a short time.

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The developers say a major part of the scheme's attraction is that high-tech companies which locate there can have office space geared specifically to their needs.

However, an objection has been lodged with An Bord Pleanβla concerning the retail element and the developer will not know the outcome until later in the summer. The agents are Colliers Jackson Stops and Hamilton Osborne King.

The objection has been lodged by the Midleton Traders' Association on the grounds that the retail life of the bustling town could be affected by such a huge development in its hinterland.

With superb road infrastructure already in place, the proposed Eastgate retail complex would be just a short distance away from Midleton.

The new scheme would have a 5,000 sq ft creche, a similar-sized restaurant and a car-parking density of eight spaces per 1,000 sq ft. When it is completed in four years' time, it is expected that up to 4,000 people will be employed there. Thousands of jobs will also be created during the construction stage.

The Mahon Point development by O'Callaghan Properties has been more than two years at the planning stage and a project that was to have cost £350 million (444m) is now closer to the £400 (508m) million mark, according to the developers.

It, too, is the subject of planning objections, in this case by Clayton Love Jnr and RGDATA, the retail umbrella group.

Mr Love Jnr has two shopping centres at nearby Douglas, including Douglas Court, which has Dunnes Stores as the anchor tenant. His objection is based on the scale of the retail element in the O'Callaghan Properties scheme.

The project was granted planning permission by Cork Corporation last April as a mixed commercial and retail development, including a business park (180,000 sq ft), office and high-tech facilities, a retail park and shopping centre.

The planning permission allows for 120,000 sq ft of comparison shopping and 30,000 sq ft of convenience shopping. Prior to that, the corporation had already granted permission for a national trade centre, a 150-bedroom hotel and leisure centre, as well as 50,000 sq ft of office development.

The shopping centre will house a department store anchor tenant, 40 small shopping units, restaurants and an 11-screen cineplex. A park-and-ride facility will link the development with the city centre.

"The project remains viable and it will go ahead, even though costs are mounting. We would hope to begin early next year, all going well. An Bord Pleanβla is likely to make its decision known this side of Christmas.

The objections are holding us up, obviously, but that's the way it is. We think it is a superb, multi-faceted project and one that will add to the attractiveness of the region as a whole," Mr O'Callaghan said.

While there was initial concern amongst city centre traders that the availability of two new retail complexes on the periphery would act as a magnet, drawing people form the hub, Cork Corporation's research suggests that the greater region requires an additional 600,000 sq ft of shopping space and that the traditional shopping centre would not be damaged by such a provision.

According to Mr Joe Gavin, Cork city manager, it should be possible to provide an additional 100,000 sq ft of shopping space in the city centre in parallel with the Mahon development. " It is important that Cork City should accommodate expanded shopping facilities if it is to continue to function as the premier retail centre in the region," Mr Gavin added.

Within two years of the commencement of the project at Mahon, more than 2,000 construction jobs are expected to be created. Once operational, Mahon is expected to create some 3,500 full-time and some 2,500 part-time jobs. It will take up to 5 years to complete.