Council to take legal action on unpaid development levies

A LOCAL authority is to take court action against one of the developers behind a development following his alleged failure to pay €10 million in development levies.

Dún Laoghaire-Rathdown County Council is pursuing Landmark Developments, owned by businessman Paddy Shovlin, for levies it allegedly owes following projects completed in the Sandyford Business Park.

The company built both the Beacon South Quarter and Beacon Court.

A spokesman for the company said it would not be commenting on the matter as it was before the courts. The case is expected to be heard in the Commercial Court next month.

The €10 million allegedly owed by the company is part of a €25 million pot currently being sought by the council for levies imposed on developers as part of its planning process.

Development levies were introduced under Section 48 of the Local Government Planning and Development Act 2000. They were designed to collect funds for public infrastructure and other facilities.

Dún Laoghaire-Rathdown has invoiced developers for levies in excess of €109 million on foot of planning permission, but it can only pursue the fees for properties that have actually been built. Over the last two years, council staff have inspected 225 sites to ascertain whether building work had been completed.

Of the €25.48 million due, €15 million is owed by six developers, including Landmark Developments, and all six are at various stages in the legal process.

A spokesman for the council said the council was taking an “aggressive line” with companies that owed it development levies. Through the enforcement process, €3 million had been recovered in the last couple of years.

He said most developers were engaging with the process and the council was facilitating phased payments and accommodating developers as best it could.

There was some leeway for a developer to claim an offset, such as that he built part of a public road, the spokesman said, but the levy was non-negotiable.