The approval of 50 acres in Limerick city for tax incentives under the 1999 Urban Renewal Scheme will help to virtually complete the transformation of the central part of Ireland's third largest city.

Of 65 sites recommended for tax designations by Limerick Corporation under its Integrated Area Plan, 45 have been approved for a range of commercial, industrial and residential incentives.

The sites are in seven areas - the Abbey, the Markets, Cathedral Row, Georgian areas in O'Connell St and Upper William St, Edward St, the Docks and the Quays. Some well-known local landmarks, such as the old Carlton cinema, Spaights, Roches Feeds off Cathedral Row and Bord Gais off Dock Rd are included.

"We were pleased to get 50 acres - it's approximately the same designation as we've received under the previous urban renewal schemes," said Mr Fergus Quinlivan of Limerick Corporation's planning department.

"We expect the designations will attract around £200 million worth of direct investment, generating a minimum of 1,800 jobs," he added. Spin-off investments would raise the figure substantially, he said.

Auctioneer Mr Pat Kearney of Rooneys in Limerick, said that local developers were keen to get involved in the new sites. "There's a lot of money around and there is also a pride issue - people are very keen to continue the work that has been started already in Limerick. This is a city that has really embraced urban renewal. There have been a few derelict sites and black spots left, such as old cinemas and industrial sites, which this scheme should now eliminate," he added.

Limerick Corporation lists a number of sectors covered by incentives, including car-parks, offices, retail, industrial, residential owner/occupier for building and refurbishment and residential investor, also for building and refurbishment. There are also incentives for hotels.

The industrial/commercial tax incentives will apply for qualifying expenditure incurred from July 1st, 1999 up to December 31st, 2002, on construction or refurbishment of industrial buildings and commercial premises within the designated areas, said Ms Mary McKeogh of BDO Simpson Xavier chartered accountants.

Capital allowances on 100 per cent of the cost of construction or refurbishment may be claimed, with accelerated allowances of 50 per cent available in year one. Capital allowances on the remaining 50 per cent can be claimed at 4 per cent per annum over the next 12 years, with the 2 per cent balance being written off in the final year.

In the case of an owner/occupier, capital allowances are available for offset against total income. However, in the case of individual investors, the capital allowances must be offset in the first instance against rental income and then against other income to a maximum of £25,000 per annum. Any unused capital allowances can then be carried forward to future tax years.

THE Corporation is already in discussions with a range of potential investors, Mr Quinlivan said. "Hotels will be a prominent addition to the upcoming improvements in the city. It is expected that there will be a minimum of three major four-star 120-bed hotels in prime locations. The hotels are expected to be a mixture of Irish-owned ventures and a foreign chain, such as the Holiday Inn. One is expected to be located on the river near the new Abbey Bridge, and another in the Docks area.

Grove Island Development, a local group that includes Sisk, is planning to include a hotel in a £24 million scheme on King's Island, Limerick's medieval section. The scheme will also include a leisure centre, with a 25 metre pool and student accommodation.

Limerick Corporation, together with other local development groups, is interesting in encouraging developments that help to "pull the University of Limerick closer to the city," said Mr Quinlivan.

A committee is currently looking into better utilisation of the canal that runs between the King's Island area and the University of Limerick some three miles away. "The university plays a very important part in the cultural life of the city," said Mr Quinlivan. Among other proposals to promote more cultural facilities in the city centre, the Corporation has submitted a plan for a civic plaza, incorporating a theatre and exhibition centre at Merchant's Quay near St Mary's Cathedral and the Corporation's offices, to the Millennium Committee.

The new tax designations would mean the completion of the redevelopment of the important Quays area between the old Spaights site and Mount Kennett. In recent years, Limerick has reoriented itself towards the River Shannon, which has helped to enlarge the city centre and to create attractive new spaces with thriving commercial and cultural activity.

Demand for modern office space was still high in the city, and the Corporation expects that the trend will continue for more businesses in, for instance, the financial and medical sectors, to move to areas like Steamboat Quay. "It's no longer a pre-requisite for businesses to be right in the city centre," said Mr Quinlivan.

The tax incentives for residential schemes would contribute to making central Limerick a vibrant place for people to live, he said. The incentives will apply for qualifying expenditure incurred from March 1st, 1999 to December 31st, 2002 on the construction and refurbishment of residential accommodation within the designated areas, said Mary McKeogh.

Tax relief is available to an individual who will use the accommodation as his/her only or main residence. There is no Section 23 type relief available within Limerick's designated areas.

Relief is given by way of an annual deduction against the individual's total income over 10 years at the rate of 5 per cent per annum for construction expenditure and 10 per cent for refurbishment.

The new tax designations will substantially progress overall plans for the development of Limerick, as outlined in Limerick Corporation's Integrated Area Plan and its Planning, Land Utilisation and Transportation Study (Limerick-Pluts).

Changes in regional business practices, including industrial expansion at Shannon airport, Raheen and other centres, expansion at Foynes and Limerick Port and a rise in shopping centres and other growth sites, have helped transform the pattern of land use in Limerick in recent years.

Among the developments not envisaged by earlier planners are the expansion of Castletroy into a major employment and growth area, the rise of Parteen as a major residential district and the large growth of employment in the Dooradoyle area.

Like other cities around the country, the growth has put considerable pressure on roads and transportation in Limerick, the major hub for the midwest region. The Pluts study has identified a "tension between the needs of bypassing, local and terminating" traffic in Limerick, and is conducting a wide-ranging study of transport needs, including the upgrading of public transport.