Amid criticism of the Government's handling of the sale, it has emerged that Dublin Corporation is likely to bid for the 13.5 acre Clancy Barracks site at Islandbridge in Dublin.
The site, close to the city centre and zoned for residential use, is an attractive prospect for development, though any construction would be restricted by several existing buildings, which are listed for preservation.
Dublin's City Manager, Mr John Fitzgerald, confirmed on RTE's Morning Ireland yesterday that the corporation would "probably" bid for the barracks, which he believed to be valued at £25 million. He added, however, "since we adopted our housing strategy last week we're in the comfortable position of knowing we're going to get 20 per cent no matter what happens".
Some 20 per cent of the site will automatically be allocated to the corporation at no cost, for social and affordable housing under its new housing strategy, but Mr Fitzgerald wants this increased to 30 per cent.
He said: "We now have a choice, we can bid for the barracks, which we probably will do, and try to get as much social and affordable housing that way, or we can let it go ahead and be developed on the basis we're entitled to 20 per cent of it anyway." He confirmed that the corporation had asked the Department of Defence to allocate 30 per cent of the site, as State property, for social and affordable housing.
Mr Fitzgerald said 30 to 35 per cent was the most he could expect, as the remainder would have to be private housing under the Government's mixed housing policy. The site, one of six barracks designated for auction by the Department of Defence in 1998, was initially valued by the Government Valuation Office at £40 million. The auctioneers handling the sale, Hamilton Osborne King, recently set a guide price in excess of £20 million.
The bid was discussed at a special meeting of the City Council yesterday morning, and Mr Fitzgerald said the council appeared to be "generally supportive" of buying the property.
Labour Senator, Mr Joe Costello, criticised the Government for not informing the Dail that the corporation had sought 30 per cent of the site, despite it being raised twice by Labour leader, Mr Ruairi Quinn with the Taoiseach.
Mr Costello said, "It would be immoral for the Government to simply auction off this prime site to the highest bidder, without any regard to the role the land could play in tackling the housing crisis in the city."