Dublin City Council has given a leading sports centre free use of prime city-centre land it owns for over nine years, it has emerged.
A council official acknowledged the Westwood Club at Clontarf Road, Fairview, could acquire the land for nothing after 12 years under squatters' rights if the council fails to act.
Fine Gael councillor Gerry Breen said the council had forgone rent of up to €500,000 through its failure to charge the club a commercial rent on the land, which is used for car parking.
The council spokesman admitted the finalisation of the lease had previously "fallen off the radar" but said it was now a priority.
He said the council had issued the terms of a lease to Westwood. While no agreement had been reached, the club accepted it had to pay "something" for use of the land. The council was not seeking a commercial rent for the land because it was not zoned for building and because the club had ceded some of its own car parking spaces when it built a 50-metre swimming pool at the request of the council.
The issue is complicated by the fact that the council has taken enforcement proceedings against the club bar. Officials claim it is too big to be considered ancillary to the main use of the centre, as required in the planning permission. The club owners, Templeville Developments, are contesting this and the matter is expected to end up in court.
The issue dates back to 1996, when the council sold a four-acre site at Clontarf Road for a sports centre. Templeville Developments got approval to build a leisure facility including a 25-metre pool. At the time, Ireland had no 50-metre pool and the council asked the developers to enlarge their plans.
Templeville agreed to build a 50-metre training pool but this reduced the number of car parking spaces available to the centre. The council agreed to provide additional parking space on land adjoining Clontarf Dart station "on terms and conditions to be agreed at a later stage".
Nine years on and agreement has yet to be reached.
"This is an unforgivable omission by the council both in the loss to the public purse and to the opportunity lost to commuters of Dublin to avail of a park-and-ride facility," said Mr Breen.