Appeal No. DS08/0/003

AN BINSE LUACHÁLA
VALUATION TRIBUNAL
AN tACHT UM LAITHREAIN TREIGHTE, 1990
DERELICT SITES ACT, 1990

Patrick Barrett & John Barrett   APPELLANT
and
Kerry County Council    RESPONDENT

RE:  Derelict Site  at Ballymacasy (Quay Street), Ballylongford, Co. Kerry.   

B E F O R E

Maurice Ahern - Valuer     Deputy Chairperson
Frank O'Donnell - B.Agr. Sc. FIAVI.    Member
Joseph Murray - B.L.   Member

JUDGMENT OF THE VALUATION TRIBUNAL
ISSUED ON THE  16TH DAY OF JULY, 2008

By Notice of Appeal dated the 14th day of January, 2008 the appellant appealed against the determination of Kerry County Council in fixing a market value of €60,000 on the above described property.

The grounds of Appeal are set out in the Notice of Appeal, a copy of which is attached at the Appendix to this Judgment.

This appeal proceeded by way of an oral hearing held in the offices of the Tribunal, Ormond House, Ormond Quay Upper, Dublin 7 on 11th April, 2008.  At the hearing the appellants, Mr. Patrick Barrett and Mr. John Barrett, were represented by Mr. Stephen Barrett. The respondent, Kerry County Council, was represented by Mr. Derry O’Sullivan, Property Manager, Kerry County Council.

In accordance with the requirements of the Tribunal both parties exchanged their respective précis of evidence which were subsequently received into evidence at the oral hearing.
 
Introduction
The subject property is a site of 0.1 acres situated on Quay Street in the centre of Ballylongford village, north Kerry. It is owned by the appellants, Patrick Barrett of Lough Hill West, County Limerick and John Barrett of The Mall, Glin, County Limerick. They are appealing against the market value of €60,000 set by Kerry County Council under the Derelict Sites Act, 1990, on the valuation date of 7th November, 2007. The appellants say the subject property has no market value as no planning permission has been granted.

Submissions of Mr. Stephen Barrett for the Appellants

  1. Mr. Barrett estimated the area of the site to be 0.182 acres but he was prepared to accept the Council’s figure of 0.1 acres.
  2. He said it was difficult to understand how Kerry County Council could put a value on the site considering they had refused planning permission for the erection of 2 houses on the site.
  3. The area in which the site is located is not zoned for development.
  4. In determining the market value Mr. O’Sullivan did not take into account the fact that planning permission was refused.
  5. He asked if it was fair to penalise someone who wants to be progressive and get planning permission. A levy of 3% of the market value is imposed.  He asked if it was fair to impose this penalty? 

Submissions of Mr.  Derry O’Sullivan for the Respondent

  1. The appellants’ planning application was premature as the area had no “local area action plan” at the time the application was made. A draft local area action plan was now on view and he expected it would be adopted.
  2. Under that plan this area is zoned for residential purposes and therefore there is a greater likelihood of planning permission being granted.
  3. In his view the streetscape, which now stops at this site, could be continued.
  4. All issues with regard to planning can be overcome.
  5. Sites similar to the subject site were sold without planning permission. In valuing the property he had relied on comparison with lands without planning permission which were sold, with the Council’s direct involvement, for values comparable to the value he had put on the subject site.
  6. An independent valuer, Sherry Fitzgerald Dillon Prendiville, had valued the site at €80,000 compared to the Council’s valuation of €60,000.
  7. Dereliction of a site is independent of planning permission.

Conclusions
The Tribunal is guided in estimating the market value of the land by reference to section 22 of the Derelict Sites Act 1990. We consider what the “unencumbered fee simple” of the subject property would fetch on the open market.
        
An important factor is the location of the subject property. The location is good in being situated near the village centre of Ballylongford, County Kerry. We also note that an independent valuer valued the site at €20,000 more than the Council’s own valuation of €60,000. We also note that the Council’s figure was arrived at by the comparative method.

However, market prices of properties including residential properties have dropped considerably in the last year or so and may continue to do so with rising oil prices.  This is reflected by the slowdown in the building trade with increased unemployment.  This in turn has caused a cutback in conveyancing work by some solicitors.

The site is very small with only 0.1 acres, just enough room for two terraced houses or two small townhouses. Considering the size of the subject site, a property developer would perhaps not be interested in developing it as it is too small and not worthwhile as an investment.

Although the area has been zoned for residential development, the site does not have actual planning permission yet.

Considering the above mentioned factors and circumstances, we consider that a market value of €50,000 on the subject site would be reasonable and we therefore determine the market value of the subject property to be €50,000.
And the Tribunal so determines