Another property developer involved in a project to provide International Protection accommodation has taken legal action against the Government after its backing for the plan was withdrawn, the Commercial Court has heard.
Palmerstown Temporary Accommodation (PTA) Ltd claims it invested €17 million converting a premises in the Cherry Orchard Industrial Estate, west Dublin, that was intended to house 456 people, reports Breaking News.
The company expected to receive about €26.6 million in State funding, based on an €80-per-person daily rate, over an initial two-year period.
PTA’s parent company, Tailored Projects Ltd, is registered at The Box, Chapel Lane, Killarney, Co Kerry, and purchased the site for around €3.5 million in early 2024, reports Breaking News.
In February 2024, South Dublin County Council granted a “declaration of exemption for planning,” allowing the 32,000-square-foot building to be repurposed for accommodation use without planning permission.
The following July, PTA signed a contract with the Minister for Children to carry out the conversion works, reports Breaking News.
In May, responsibility for housing International Protection applicants was transferred to the Minister for Justice, Home Affairs and Migration.
At a meeting with Department of Justice officials the previous month, PTA director Peter Dunlea said he was informed that the defendant “might not proceed” with the accommodation centre, reports Breaking News.
Later in April, Mr Dunlea stated in an affidavit that he was told the property was being taken off the list of potential accommodation sites.
Mr Dunlea said this came “as a complete shock to me as this is completely out of the blue,” reports Breaking News.
He added that it was “deeply concerning” that the Department of Justice had begun telling public representatives that the centre would not go ahead.
According to Mr Dunlea, it became clear that the defendant was “attempting to walk away” from the agreement without recognising its binding terms or the “enormous costs” already incurred to prepare the site, reports Breaking News.
PTA said it was open to mediation under a clause in the contract designed to resolve disputes between the parties, but said no reply was received to multiple letters, prompting the company to issue legal proceedings.
In its claim, PTA is seeking a declaration that the defendant has repudiated the contract, along with damages for alleged negligent misrepresentation, breach of duty, and other related issues, reports Breaking News.
On Monday, Mr Justice Michael Quinn admitted the case to the Commercial Court’s fast-track list on the application of Joe Jeffers SC, who represents PTA.
Ailbhe O’Neill SC, for the defendant, consented to the case entering the Commercial Court but requested a one-week adjournment, as this and several similar cases heading for mediation are expected to be addressed on that date, reports Breaking News.
Ms O’Neill also indicated that there could be an application for security for costs against PTA.
In a related case before the court on Monday, Ms O’Neill secured an adjournment to February after confirming that both sides had agreed to mediation, reports Breaking News.
That case involves another developer who alleges that the Government similarly repudiated a contract to refurbish Knockmitten House in the Western Industrial Estate in Dublin to accommodate 66 International Protection applicants.
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