Cork council advised against stalling O'Callaghan project

A move to freeze a £41 million deal to transfer 111 acres of Cork Corporation land to property developer Mr Owen O'Callaghan last night failed after councillors were advised that the sale contract was legally binding, while the motion to freeze the move had no legal standing.

Green Party Councillor Dan Boyle had proposed that the corporation put a temporary stay on the transfer of lands at Mahon Point to O'Callaghan Properties pending confirmation of evidence to the Flood tribunal.

However, Cork Corporation law agent Mr David O'Hagan advised councillors that the corporation was legally bound by the agreement it had signed with O'Callaghan Properties and any attempt to withdraw or delay would expose them to legal action.

Mr O'Hagan said the contract was subject to planning permission being granted for Mr O'Callaghan's shopping complex.

"I can't see any case which could be made which would allow Cork Corporation to withdraw from or slow or delay the contract . . . it's a binding contract enforceable on us and the developer," he said.

Mr O'Hagan said the only way the contract would not be activated was if planning permission for the project was not granted. He also pointed out that suspending standing orders would allow councillors to debate the issue but not vote on it or come to any decision on it.

In a lively meeting councillors agreed to suspend standing orders by 24 to three to allow the debate. Mr Boyle explained that he was proposing the motion on foot of evidence to the Flood Tribunal last week. Mr Frank Dunlop said he had paid money to Dublin county councillors and had been reimbursed by Mr O'Callaghan.

Mr Dunlop's revelations were disturbing for anyone in public life and the corporation should respond by clearly showing that its procedures were pristine and above board, he said.

He was supported by Labour Councillor Kathleen Lynch, but was strongly attacked by more than a dozen councillors for suggesting that local government in Cork was corrupt. However, he declared he would place the motion before the next corporation meeting to allow councillors to come to a decision on the project.

An O'Callaghan Properties spokesman last night said: "We're very pleased with the outcome. The process of winning the contract has been validated and it's now up to us to secure planning and demonstrate that this is a very, very good project for Cork and particularly for the Mahon area."