A property developer who tried to charge an additional €1 million above a previously agreed price for social and affordable housing had a change of heart following coverage of the issue in The Irish Times on Wednesday.
Galway-based Zelda Properties Ltd had agreed to sell 10 apartments it was building in a 100- apartment development at Ringsend, Dublin 4, for between €180,000 and €203,000 under the social and affordable housing scheme. The 10 apartments, at Thorncastle Street, were to be made available to Dublin City Council for a total of €1.9 million.
They were to be 50 per cent paid for by 10 families with rent to be paid on the 50 per cent stake retained by the council. The families had agreed to buy out the council and achieve full ownership of their homes within 20 years.
However, as reported in this newspaper on Wednesday, just before the families were due to move into the apartments, Zelda informed the council it wanted €2.9 million for the properties, €1 million higher than the agreed price.
The developer sought the price-rise despite planning permission for its 100-apartment Ringsend development having been granted with a section 25 certificate from the Dublin Docklands Development. Under the terms of this agreement, Zelda was bound to make a percentage of the houses available as affordable housing.
On Wednesday, the city council's senior executive officer, Mr Frank Lambe, told The Irish Times that the council was taking legal advice. As far as it was concerned, its agreement with Zelda over the reduced price for the 10 apartments was legally binding. Mr Lambe said the council would go to court if necessary.
Yesterday he said that following this paper's coverage on Wednesday, "there was a lot of activity". The developer contacted the Dublin Docklands Development on Wednesday to inform it that the apartments would be made available at the previously agreed price.
"To their credit, the developers helped bring this to a satisfactory conclusion for all involved," Mr Lambe said. "We obviously requested confirmation in writing on this and when we got it we informed the 10 families involved. They are all absolutely delighted, as are we that it has ended so well".
Zelda denied it was motivated by greed, saying the cost of building the properties far exceeded the price agreed with the Dublin Docklands Development in early 2001. A statement said the price had been increased in an effort by it to recover the costs of the building work.
It had tried to resolve the matter as quickly as possible from the outset and it had only become aware, through the media, in recent days of the hardship being caused to those waiting to move into the 10 apartments.
"Simply to relieve the hardship, the company has agreed to transfer the houses at a cost that represents an actual loss to it," the Zelda statement said. A spokesman added: "The matter is now closed".
