Multi-million Gort development deferred over lack of bank loans

PLANS for the development of a multi-million euro nursing home and commercial development in Gort have been deferred for five years after the promoters revealed funding for the project couldn’t be secured at this stage.
However, the developers of a proposed “high quality” town centre mixed-use development are confident this will become more attractive to the market and will achieve the required funding in the coming years.
Galway County Council recently granted a decision to extend the period of time for planning permission already granted until April 14 next. Gerry, Aleisha, Gearóid and Fergal Lydon were granted a five-year extension to their original plans until April 13, 2016.
The proposed mixed-use development includes a 48-bedroom nursing home; 10 two-bed sheltered homes; 31 townhouses comprising one one-bed, 24 two-bedroom and six three-bedroom units; medical centre, retail/commercial, offices, plant and associated external works such as protection quay wall in the townland of Lavally.
Planning permission was granted by Galway County Council on June 20, 2006 with the exception of Block A, which was refused due to concerns relating to the design  and its ability to integrate with the existing neighbouring streetscape.
No works have begun on site and funding cannot be accessed from banking institutions.
A submission to the council from Jimmy Green, McCarthy Keville O’Sullivan Planning and Environmental Consultants, explained that while finance is available to the applicants at the time of lodging the application, following review of the market conditions and building costs associated with the proposed development, funding could not be sourced due to the prevailing economic conditions and associated lending restrictions.
“The funding issue arose as a function of the high construction costs associated with the proposed development at that time and the overall condition of the residential market. The inability to source funding for the development permitted was beyond the control of the applicant and was a result of the decline in economic conditions since the granting of permission.
“However, due to the current economic situation, construction costs have been reduced and our client is confident that the proposed development will become more attractive to the market and achieve the required funding to carry out the development in the coming years,” he said.
Mr Green noted the 2009 to 2015 County Development Plan identifies Gort as a hub under the county settlement strategy and an extra 450 dwelling houses have been allocated for the plan period.
He stated the county plan supports the continued development of the town centre through the provision of extra residential and commercial developments.
“The proposed development, which is located centrally within the town on zoned and serviced land within walking distance of the recently re-opened railway station will help to consolidate development in the town and cater for additional commercial uses and an increased residential population as required in the regional planning guidelines,” he added.