Business

Settlement reached in €31.5m Cherrywood dispute

Hines claimed demand for public infrastructure contributions had no lawful basis

Following a day of talks on Tuesday, the judge was told on Wednesday by Tom Flynn SC, for Hines, that the case had been settled and struck out. Photograph: iStock

Wed Mar 9 2022 - 15:23

A High Court dispute relating to a demand for €31.5 million in public infrastructure contributions for a new town centre in Cherrywood, south Dublin, has been settled.

Hines Cherrywood Development Fund ICAV brought the case against Dún Laoghaire Rathdown County Council claiming there was no lawful basis for the demand because it had an express understanding and legitimate expectation it could offset the approximate €57 million costs of certain works done to date against development contributions due.

However, the council disputed its entitlement to do so and legal action by Hines followed.

The case was due to start this week before Mr Justice Michael Twomey.

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Following a day of talks on Tuesday, the judge was told on Wednesday by Tom Flynn SC, for Hines, that the case had been settled and struck out. The judge, who had welcomed and encouraged the talks, made the order striking out the case.

Development

Hines, of George’s Court, Townsend Street, Dublin 2, is an Irish collective asset management vehicle engaged in commercial property development. It owns lands within the Cherrywood Strategic Development Zone (SDZ) located within the council’s functional area.

Hines has various planning approvals for development of roads and infrastructure and three public parks known as Tully Park, Ticknick Park and Beckett Park as approved within the SDZ planning scheme.

In 2018, it obtained permission for construction of a new town centre development, including 15 blocks comprising 1,269 residential units, retail use, high intensity employment uses, non-retail uses, community uses and all associated roads, streets and public spaces and services.

That 2018 permission included conditions requiring Hines to pay development contributions to the council “as a contribution towards expenditure that is, or is proposed to be incurred, by the planning authority” in respect of the provision of certain public infrastructure and facilities.

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