DIAGEO HAS offered to sell St Francis Abbey brewery in Kilkenny city to the local authorities for €2.1 million.
The brewery, which has been in the city for more than 300 years, is where Smithwick’s ale was first brewed. Diageo also produces Budweiser in the facility under licence. However, the brewing operation is to close down in December 2013.
The 10.6-acre site does not include the Victorian buildings at the front or St Francis Abbey itself, which is a national monument in State ownership.
County and city manager Joe Crockett told councillors yesterday the lands had been independently valued on the council’s behalf, and that the price was in keeping with the advice received about town centre buildings.
Kilkenny County Council and Kilkenny City Borough Council have already put aside €300,000 towards the acquisition, and it is open to the council to provide some €500,00 from expected land sales in the Kilkenny city area.
It has been estimated that repayments on a loan of €1.3 million would be in the region of €125,00 per annum over 15 years.
The matter will have to be put formally to both local authorities, and the loan will need the sanction of Minister for the Environment Phil Hogan, who is from Kilkenny.
The acquisition process would have to take into account discussions under way between unions representing staff at the brewery.
It would also be subject to the site being cleared and remediated in accordance with a plan agreed with the Environmental Protection Agency and limited brand uses.
The lands are zoned industrial and a review of that zoning will begin on June 16th, with public consultation playing a major part.
Mr Crockett concluded by saying the site was of strategic importance to the economic and social development of the city and county. He recommended that both councils acquire the land.