Five-year extension sought for completion of major housing project

The developer behind the €120m Dún an Rí housing development has this week applied to Westmeath County Council for a five-year extension of planning permission in order to complete the development.

CastleStar (Athlone) Ltd was granted permission for 426 residential units (237 houses and 189 apartments), a creche, a large central parkland area with a children's playground and a 430-metre distributor road in October 2020, making it one of the largest ever developments in Athlone. The 15.615 hectare site is located in the townlands of Coosan, Clonbrusk and Cornamagh and is adjoined by Buccaneers RFC playing fields to the east and the housing developments of Church Hills Road, Church Hills Crescent, Churchfields to the west.

In planning documents lodged with Westmeath County Council this week, the developer cited supply chain issues resulting from the Covid 19 pandemic and the Russia/Ukraine war, delays in the movement of high voltage overhead electricity lines underground at the site, and delays in Uisce Éireann connections due to capacity issues, as reasons for the delay in completing the housing development.

It further stated: "Local market absorption rates have been lower than originally anticipated and are currently projected to be in the range of 50 to 100 homes per year (75 on average) as a result of competition from other competing residential developments and the lower than expected rate of new job creation in the Athlone market."

The development initially received the green light from An Bord Pleanála on October 27, 2020, with permission valid for five years.

The applicant is seeking an extension of the planning permission to February 4, 2031.

Construction works began on the development in April 2024, and the first private phase, comprising 46 units, has been built and sold. Respond Housing Association Phase 1, comprising 50 units, is under construction with completion expected by October this year.

The contractor has been selected for the second phase of private dwellings, comprising 45 units, with 50% of these sold off the plans. Construction of these is pending Uisce Eireann approvals, which are expected by September this year.

A contractor has also been selected for Respond Housing Association Phase 2, comprising 80 units, and construction will take place pending Uisce Eireann approvals and Housing Finance Agency approvals, which are expected by December this year.

This means that by February 4 next year, some 221 units (over 51.8%) will either be completed or under construction prior to the expiration of the current permission, the developer states in its planning application cover letter to the council.

The extensive landscaped parkland, to include a children's playground, has been installed and is largely complete. This is a central component of the entire development, the letter added. The road base infrastructure for phases 2, 3 and 4 are installed. Works on rerouting ESB infrastructure are due to be complete in the third quarter of this year and key Irish Water connections for phases 2, 3 and 4 are scheduled for the third quarter also.

Another factor in the delay of the completion of the development, the letter stated, was the fact that it had encountered significant administrative delays in securing the final approvals for the funding package for the social housing component of the project.

In relation to the creche, the letter stated that creche owners are unwilling to commit until at least 350 housing units have been delivered. It said the applicant has identified several creche operators who are interested in leasing the creche with a view to opening the facility no earlier than September 2027.

CastleStar is also seeking an amendment to the planning conditions which would link the timeline of the delivery of the distributor road to the final phase of the scheme. It said the purpose of the road was to link to other developments and as there are no such developments planned that would require the distributor road, it was seeking to have it attached to the final phase of the project.

The letter further stated that construction had ramped up significantly in the last six months, and will be further accelerated in the coming six months.

The planning application was lodged with Westmeath County Council on June 17 and a decision is due by August 11.