IT’S hoped that a new review by Dublin City Council will bring an end to pricey levies being imposed on those who buy properties along the route of the shelved Metro North project.
Northside People exclusively revealed in August how almost
?¬3.4 million stumped up by Northsiders as part of the Metro North levy will continue to sit unused in a bank account until the Government decides when, or if, to proceed with the light rail project.
The levy is a financial charge imposed on homes or properties built along the proposed route for Metro North.
Dublin City Council, on behalf of the Rail Procurement Agency (RPA), is still collecting the fee even though the Government announced last year that it was deferring the project under its Infrastructure and Capital Investment 2012-2016 plan.
The council has come under increasing pressure to justify how thousands of euro worth of levies can continue to be charged even when the Metro North project has been shelved.
It is now carrying out a review to examine whether any amendment can be made to the Supplementary Contribution Scheme under the Planning and Development Act 2000.
Local councillor Mary Fitzpatrick (FF) has repeatedly called for the scheme to be suspended since the Government postponed the light rail project.
“I welcome this review and have sought confirmation from the City Manager that the objective of the review is to identify ways to suspend the scheme and refund the more than e3million already collected,
? she stated.
“The scheme needs to be suspended because it is bad practice for Dublin City Council to collect a levy for a project that has been indefinitely suspended. It is damaging the city economy and it undermines the council’s ability to collect legitimate charges.
“Also, you’d have to wonder how much interest is being earned on the monies collected so far?
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The Metro North Development Contribution Scheme was approved by Dublin City Councillors in 2007 and is applied to any developments within a one kilometre distance of the proposed Metro North line.
There are three rates in the scheme – residential, commercial and retail – and these are increased annually at a compound interest rate of five per cent.
It’s expected that over the 30-year life of the scheme
?¬100 million will be collected by 2037.
The scheme states that if the project does not proceed the contributions collected would be returned to those who paid them. However, as the scheme has only been deferred rather than scrapped, this clause does not yet apply.
The Government is due to review the Metro North project in 2015.
In correspondence seen by Northside People and sent from Dublin City Council’s Planning and Economic Development Department to councillors, it was confirmed that the details of the contribution scheme are under review.
“The city council is mindful of the burden being placed on applicants for development within the Metro North corridor and in particular small business operators/owners who have obtained planning permission for extension to or changes in use to existing commercial premises and the impact these contributions are having on their businesses,
? the letter states.
“Dublin City Council together with Fingal County Council and the National Transport Authority are currently carrying out a review of the existing Section 49 Metro North Scheme to establish the extent to which the Scheme can be amended having regard to the provisions of the Act [Planning and Development Act].
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The council expects to take two months to complete the review after which a recommendation will be brought before the council.