The Blarney Woollen Mills group has lost its challenge against the decision by Cork City Council that it should be liable for a new land hoarding tax on the site of a former hotel near the world-famous Blarney Castle.
An Bord Pleanála has confirmed the inclusion of the derelict site of the former Blarney Hotel and Leisure Centre on a final map designating land liable for the new residential zoned land tax (RZLT).
It rejected an appeal by the Blarney Woollen Mills that the lands of the former hotel located in The Square, Blarney, Co Cork, which are currently under grass, should not have been included on the RZLT map.
The site is zoned for a new residential neighbourhood under the Cork City Development Plan 2022-2028, which claims it is a site of “strategic importance to the town.”
The plan also states that “its redevelopment is paramount to sustaining Blarney as one of the country’s prime tourist attractions”, while it also forms part of the Blarney Architectural Conservation Area (ACA).
In its appeal, Blarney Woollen Mills claimed the site had been included on the RZLT map on the basis of an incorrect zoning.
The group pointed out that it had been seeking to develop the site for over a decade and had recently had planning permission for a mixed-use development quashed by the High Court.
In December 2022, the operators of Blarney Castle, including its owner, Charles Colthurst, successfully challenged the decision of An Bord Pleanála to grant planning permission for an 80-bed hotel, supermarket, café, office block and commercial buildings on the site.
They claimed the proposed redevelopment would seriously detract from the character of the castle and harm its status as a tourist attraction.
An Bord Pleanála had upheld an appeal by Irish Conference and Leisure Holdings, whose directors include Freda Hayes, the chief executive of Blarney Woollen Mills, against the decision of Cork City Council to refuse planning permission for the project.
Blarney Woollen Mills claimed the process to try and develop the site had taken considerable time and financial resources.
The group said it was currently engaged with the local authority about potentially providing social housing on the site.
An inspector with An Bord Pleanála said the group had raised issues outside the board’s scope, including the council’s evaluation of the site and its assessment of financial matters.
The inspector confirmed the site was zoned for a new residential neighbourhood under the relevant development plan and not for long-term strategic generation as claimed by the appellants.
She did not consider any part of Blarney to be zoned for long-term strategic generation.
The inspector said it was reasonable to determine that the local road network and water network had capacity to serve the site given they previously accommodated a hotel.
She also noted that the designation of part of the site within the Blarney ACA did not preclude housing on it.
“No physical or other reasons have been identified that would prevent the development of these lands in principle for residential purposes in accordance with the residential zoning objective that applies to these lands,” the inspector said.
The RZLT will charge landowners an annual rate of 3 per cent of the value of land which is zoned for residential use which has access to services.
Property owners had to make their first tax return in relation to the new tax by May 23rd, 2024, based on a self-assessed value of their lands.
The new tax was introduced by the Government as a measure to incentivise landowners to activate existing planning permissions for housing on identified lands or to engage with planning authorities and seek planning permissions on suitably zoned serviced lands.
The Blarney Park Hotel, which opened in 1969, was damaged by fire in 2008 after it had been closed in October 2007 as part of plans for a mixed-use development on the site by Blarney Woollen Mills.
The hotel was subsequently placed on the market, but it failed to sell during the economic downturn.
A receiver was appointed in 2015 to Zalaal, a company which owned the 91-bedroom hotel.
